How do the interactions between institutions and digitalization shape FSAs for internationalization?
Authors
Term
4. Semester
Publication year
2025
Submitted on
2025-06-02
Pages
76
Abstract
This master's thesis explores how the interaction between institutions and digitalization shapes the development and internationalization of firm-specific advantages. With new technologies emerging continuously, these shape global business dynamics. We argue that it is essential to understand how institutions enable or constrain the scalability of digital FSAs across borders. The thesis applies a qualitative single-case methodology, examining KMD, a Danish software firm with deep roots in the institutional environment of the Danish public sector, to investigate how institutional conditions shapes the formation and transferability of FSAs in international expansion. The analysis draws on Dunning’s Eclectic Paradigm, the FSA/CSA framework, and neo-institutional theory, particularly the national business system approach. The findings demonstrate that Denmark’s coordinated institutional environment, has supported the emergence of digital FSAs, advantages that later facilitated KMD’s acquisition by NEC Corporation. The thesis contributes to international business literature by clarifying how digital FSAs are not only derived from within firms but rather should be seen as something that institutions and digitalization enable and shape. We conclude that the interaction between institutions and digitalization is a persistent force in shaping FSAs, one that will remain central to IB literature over time.
Documents