International Digital Competence

Abstract

This article evaluates which specific capabilities of afirm enable its internationalization process,with an emphasis on companies with exclusively digital products. The results provide an op-portunity to examine the strength of earlierfindings in International Entrepreneurship (IE) re-search, which has largely addressed high-tech ventures that export physical products. We reveal aset of intangible capabilities that are especially relevant to digital companies and their inter-nationalization process, without foreign direct investment (FDI) or with limited outward assetscharacterized by non-equity entry modes. Using an inductive, multiple-case study methodology,we develop a new construct that we term‘international digital competence’(IDC). IDC consists offour capabilities critical to these companies: cross-cultural programming skills, global virtualnetworks, cross-border digital monetizing adaptability, and international business model re-configuration. The possession of IDC enables digital companies to expand internationally throughan online presence. Therefore, we propose that international online expansion can increase thelikelihood of a digital company performing outward assets via non-equity entry modes. We alsoconceived that the digital company's strategy to achieve non-equity investments is moderated byits entrepreneur's international orientation.