The internationalization of digital platform firms: the platform-OLI (P-OLI) framework

• Published in: International marketing review Vol. 41; no. 5; pp. 886 - 910
• Main Authors: Surana, Ankit, Chavan, Meena, Kumar, Vikas, Chirico, Francesco
• Format: Journal Article
• Language: English
• Published: London Emerald Publishing Limited 01-10-2024; Emerald Group Publishing Limited
• Subjects: Competitive advantage; Computer platforms; Customer services; Digital economy; Digital platform firms; Global economy; Globalization; Host country; IB theory; India; Internationalization; Market shares; Network theory; New OLI advantages; Qualitative case method; United Kingdom > UK; India; Network theory; Digital platform firms; New OLI advantages; Internationalization; India; Qualitative case method; IB theory
• ISSN: 0265-1335; 1758-6763; 1758-6763
• DOI: 10.1108/IMR-08-2023-0182

PurposeThe aim of this paper is to explore the internationalization of digital platform firms, specifically to investigate the advantages digital platform firms build during the internationalization journey, which helps them overcome the liability of foreignness. More importantly, drawing on network theory and Luo’s framework of new OLI advantages, a new framework of Platform OLI (P-OLI) advantages is developed for digital platform firms.Design/methodology/approachThis study adopts a multi-case method to empirically understand the internationalization phenomenon of digital platform firms in the emerging economy of India, which is a less researched area. Twenty semi-structured interviews from top executives of 12 Indian headquartered digital platform firms were inductively analyzed based on Gioia’s method, and a cross-case examination was conducted to explore the respondent firm’s internationalization journey.FindingsSeveral novel open resource and linkage advantages were identified for digital platform firms that are not covered by the new OLI advantages proposed by Luo. Furthermore, a new “I” advantage, which is information and knowledge advantage, has evolved from the data. This resulted in enhancing the scope of the new OLI framework and network theory and further enabled us to develop the P-OLI framework, a new framework for digital platform firms that reflects the specific advantages a digital platform firm builds during internationalization.Originality/valueThis is the first study which evaluates the new OLI framework from the perspective of a digital platform firm to develop a novel framework, P-OLI. Further, this study is among the few studies with an Indian digital platform firm focus and relies on primary interview data to study digital platform firms’ internationalization phenomenon.