Publication Type

Journal Article

Version

acceptedVersion

Publication Date

10-2024

Abstract

International entry research rarely examines strategies affecting entry performance in a target country, largely due to data limitations in the traditional multinational enterprise setting. However, the emergence of digital business with trackable international performance data helps address this gap. We utilize digital freemium products as our research context to examine the effect of two major demand-side strategies associated with freemium products, network effects and word-of-mouth (WOM), on entry performance across different institutional environments. By analyzing 1,891 freemium games, we show that lower network readiness of a target country strengthens the impact of network effects on entry performance whereas higher network readiness strengthens the impact of WOM. Our findings generate new insights by integrating the literature on foreign entry performance and digital internationalization.

Keywords

Digital freemium product, Demand-side perspective, Network readiness, International market entry, Mobile apps

Discipline

International Business | Strategic Management Policy | Technology and Innovation

Research Areas

Strategy and Organisation

Publication

Journal of World Business

Volume

59

Issue

6

First Page

1

Last Page

14

ISSN

1090-9516

Identifier

10.1016/j.jwb.2024.101569

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.jwb.2024.101569

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