Internationalisation in the Cloud. An explorative case study into the foreign market expansion of SaaS providers

Table of Contents

1 Introduction

1.1 Problem Definition and Objective

1.2 Course of Investigation

2 Literature Review

2.1 Conceptualisation of Cloud Technology

2.2 Theories of Internationalisation & The Uppsala Model

2.2.1 The Economic Perspective

2.2.2 The Behavioural Perspective

2.2.3 The Relational Perspective

2.2.4 The Entrepreneurial Perspective

2.2.5 The Uppsala Model: The Process Model of 1977

2.2.6 The Uppsala Model: The Network Model of 2009

2.3 Knowledge & Networks in Internationalisation Literature

2.3.1 The Process Model and Knowledge

2.3.2 The Network Model and Knowledge

2.3.3 Experiential Knowledge

2.3.4 Other Types of Knowledge

2.3.5 Individual Characteristics

2.3.6 Learning and Knowledge Absorption

2.3.7 Relationships and Network Positioning

2.4 Effects of Cloud Technology on Internationalisation

3 Case Company Overview

4 Methodology

4.1 Research Model

4.2 Data Collection

4.2.1 Qualitative Interview Structure

4.2.2 Participants

4.3 Data Analysis

4.4 Deductive Category Assignment

4.4.1 Definition of the Category System from Theory

5 Results

5.1 Market Knowledge / Knowledge Opportunities

5.1.1 Entrepreneurial Dispositions (H1+)

5.1.2 Network Opportunities (H8+)

5.2 Market Commitment / Network Position

5.2.1 Network Opaqueness (H3-)

5.2.2 Varied Portfolio (H6+)

5.2.3 Network Composition and Dependency (H7a-, H7b+)

5.3 Commitment Decisions / Relationship Commitment Decisions

5.3.1 International Employee (H9+)

5.4 Current Activities / Learning, Creating, Trust-Building

5.4.1 Learning (H2+)

5.4.2 Virtuality Trap (H11-)

5.5 Cloud-Specific Product Attributes

5.5.1 Relationship Service (H5+)

5.5.2 Information Good (H10+)

5.6 Cloud-Specific Market / Customer-Related Factors

5.6.1 Cloud Readiness (H4-)

5.6.2 Bandwagon Effect (H12-)

6 Limitations and Implications for Future Scientific Research

7 Conclusion

Objectives and Research Themes

This thesis examines the complexities of internationalisation for cloud technology providers. The central research objective is to determine how cloud-based firms expand into foreign markets and whether existing internationalisation theories, developed for traditional business models, remain relevant in a cloud-computing context.

• Analysis of the Uppsala Model of Internationalisation (1977 and 2009 versions) in the context of virtual cloud environments.
• Evaluation of cloud-specific factors such as "rapid scalability," "cost associativity," and the "virtuality trap."
• Exploration of the roles of knowledge, network positioning, and entrepreneurial dispositions in international market expansion.
• Qualitative case study research of an expanding Danish SaaS provider to derive and test new hypotheses regarding cloud internationalisation.

Excerpt from the Book

Summary of Chapters

1 Introduction: Defines the research problem regarding cloud technology and its impact on traditional internationalisation theories.

2 Literature Review: Provides a comprehensive overview of existing internationalisation theories and their application to the cloud context.

3 Case Company Overview: Introduces the case company, NN, and details its history, service model, and international expansion activities.

4 Methodology: Outlines the qualitative research approach, the research model, and the data collection process via expert interviews.

5 Results: Presents the findings of the empirical research, testing twelve hypotheses related to cloud internationalisation.

6 Limitations and Implications for Future Scientific Research: Critically discusses the methodological limitations of the study and suggests areas for future research.

7 Conclusion: Summarizes the key findings and evaluates the relevance of contemporary literature for cloud technology vendors.

Keywords

Cloud Computing, Internationalisation, Uppsala Model, SaaS, Network Theory, Knowledge Absorption, Virtuality Trap, SME, Foreign Market Entry, Entrepreneurial Dispositions, Network Opaqueness, Organisational Learning, Information Goods, Global Expansion, Case Study.

Frequently Asked Questions

What is the primary focus of this research?

The thesis investigates how cloud technology vendors expand internationally and assesses whether existing internationalisation literature is still applicable to these types of firms.

What are the key themes addressed in this work?

The work covers the conceptualisation of cloud technology, theoretical perspectives on internationalisation, the role of knowledge and networks, and the specific challenges faced by cloud firms in foreign markets.

What is the core research question?

The study addresses two main questions: How do cloud providers internationalise, and is the existing internationalisation literature relevant for cloud technology vendors?

What methodology was applied?

The author conducted a qualitative, explorative single case study of a Danish SaaS provider, utilizing unstructured interviews with five employees involved in internationalisation.

What does the main body cover?

The main body examines various theoretical models—specifically the Uppsala Process and Network models—and synthesizes these with cloud-specific factors to develop twelve hypotheses for testing.

Which keywords best characterize this thesis?

Keywords include Cloud Computing, Internationalisation, Uppsala Model, SaaS, Network Theory, Knowledge Absorption, and Virtuality Trap.

How does the "virtuality trap" impact cloud firms?

It impacts firms through superstitious learning and the misinterpretation of market knowledge, as cloud providers may incorrectly assume they have sufficient market knowledge despite the lack of physical presence.

Why are franchisees important to the case company, NN?

Franchisees provide essential local market knowledge and act as "door-openers" in psychically distant markets, helping NN overcome its lack of initial local presence and market research.

Does NN qualify as an "information good" provider?

No, the findings conclude that NN's solution, due to its complexity and the need for sensitive data management, does not function as a simple information good (like Spotify or Netflix), meaning it cannot easily sell the same solution universally without adaptation.