The impact of industry 4.0 on the 2017 version of the Uppsala model. Issue 4 (August 2022)

• Record Type: Journal Article
• Authors: Bhatti, Waheed Akbar; Vahlne, Jan-Erik; Glowik, Mario; Larimo, Jorma Antero
• Is Part Of: International business review. Volume 31:Issue 4(2022)
• Publication Date: 2022-08
• Subjects: Uppsala Model -- Digitalization -- Industry 4.0 -- Internationalization process -- Entrepreneur -- Firm-specific advantage -- Relationship learning -- Knowledge exchange; International business enterprises -- Periodicals; 338.8805
• DOI: 10.1016/j.ibusrev.2022.101996
• Languages: English
• ISSNs: 0969-5931

Abstract

Abstract: The emergence of Industry 4.0 offers firms internationalization opportunities employing digital platforms and emerging technologies. Relying upon the Uppsala model as applied in light of a firm case study, we contribute to the validity of the Uppsala model 2017. We respond to the counterpoint by Coviello, Kano, and Liesch (2017) to the Uppsala 2017 model, answering the question, What is the impact of Industry 4.0 on the validity of the 2017 version of the Uppsala model? This study builds on a qualitative research methodology through a single case study of Delivery Hero, a global service provider firm. We adopt an extensive longitudinal approach to understand a startup firm's digital business concept and business evolution, including its internationalization paths. We conclude that the mechanisms of the Uppsala model are valid, but their characteristics have changed by digital and globalized value-adding processes. The dynamic capabilities possessed by the founding entrepreneur turn out to constitute a critical micro foundation for the firm's international business success. Our findings explain these change mechanisms, illustrating the stepwise progression process led by entrepreneurial decision-making. Industry 4.0 technologies have changed the very manner by which firms arrange their value-adding activities with their business stakeholders in course of the firm's internationalization. By relying on reasonable business targets, algorithms, and data management systems, real-time market monitoring enables international startup firms to learn and adopt local identities faster, thereby efficiently alleviating liabilities of foreignness. Highlights: We answer how the Industry 4.0 reality fits the conception of the Uppsala model 2017. i4.0 affect commitments and performance (state variables) combined with commitment and knowledge development processes (change variables). Entrepreneurial dynamic capabilities drive business evolution & internationalization.