How do the interactions between institutions and digitalization shape FSAs for internationalization?
Authors
Winterberg, Frederik ; Jensen, Søren Binderup
Term
4. Semester
Publication year
2025
Submitted on
2025-06-02
Pages
76
Abstract
This thesis examines how the interaction between institutions and digitalization shapes the development and internationalization of firm-specific advantages (FSAs)—the unique capabilities and resources that give a company a competitive edge. As new technologies emerge, they reshape global business dynamics. We argue that it is essential to understand how institutions—such as laws, standards, public-sector practices, and business norms—enable or constrain the scalability of digital FSAs across borders. We use a qualitative single-case study of KMD, a Danish software firm closely tied to the Danish public sector, to explore how institutional conditions influence the formation and transferability of FSAs in international expansion. The analysis draws on established frameworks from international business and institutional theory: Dunning’s Eclectic Paradigm, the FSA/CSA framework (firm- and country-specific advantages), and neo-institutional theory, particularly the national business systems approach. Our findings show that Denmark’s coordinated institutional environment supported the emergence of digital FSAs, advantages that later helped facilitate KMD’s acquisition by NEC Corporation. The thesis contributes to international business research by clarifying that digital FSAs are not only generated within firms but are enabled and shaped by institutions and digitalization. We conclude that this interaction is a persistent force in the evolution of FSAs and will remain central to international business scholarship over time.
Denne kandidatafhandling undersøger, hvordan samspillet mellem institutioner og digitalisering former udviklingen og internationaliseringen af virksomhedsspecifikke fordele (FSAs) – de unikke kapabiliteter og ressourcer, som giver en virksomhed en konkurrencefordel. Når nye teknologier løbende opstår, ændrer de de globale markedsvilkår. Afhandlingen argumenterer for, at det er afgørende at forstå, hvordan institutioner – fx love, standarder, offentlige praksisser og forretningsnormer – muliggør eller begrænser, at digitale FSAs kan skaleres på tværs af grænser. Vi anvender et kvalitativt enkeltcasestudie af KMD, en dansk softwarevirksomhed med dybe rødder i den danske offentlige sektor, for at belyse, hvordan institutionelle forhold former tilblivelsen og overførbarheden af FSAs i international ekspansion. Analysen bygger på veletablerede rammer fra international erhvervsøkonomi og institutionel teori: Dunnings eklektiske paradigme, FSA/CSA-rammen (virksomheds- og landespecifikke fordele) og neo-institutionel teori, særligt tilgangen om nationale erhvervssystemer. Resultaterne viser, at Danmarks koordinerede institutionelle miljø har understøttet udviklingen af digitale FSAs, fordele der siden medvirkede til at gøre KMD attraktiv for og muliggjorde opkøbet af NEC Corporation. Afhandlingen bidrager til litteraturen i international business ved at tydeliggøre, at digitale FSAs ikke kun skabes internt i virksomheder, men bør forstås som noget, der formes i samspil mellem institutioner og digitalisering. Vi konkluderer, at dette samspil er en vedvarende kraft i udviklingen af FSAs og vil forblive centralt for forskningen i international virksomhed fremover.
[This apstract has been rewritten with the help of AI based on the project's original abstract]