Effects of Digital Regulations on International Business Strategy: A multi-case study
(2021) IBUH19 20211Department of Business Administration
- Abstract
- Digital technologies have brought new challenges to society, such as data privacy abuses, attacks on democracy, and even military-grade technologies being accessed by civilians. Europe has taken the leadership by regulating different aspects of the digital economy; however, these regulations may create distortions that will harm European businesses. This study tries to draw a picture of the different types of regulations introduced in the digital economy and the potential effects on how international firms strategize.
To aid in this analysis, eight cases, comprising seven companies and one trade association, bring a first-person insight into how digital regulations work today and how much it has affected their strategy. The studied... (More) - Digital technologies have brought new challenges to society, such as data privacy abuses, attacks on democracy, and even military-grade technologies being accessed by civilians. Europe has taken the leadership by regulating different aspects of the digital economy; however, these regulations may create distortions that will harm European businesses. This study tries to draw a picture of the different types of regulations introduced in the digital economy and the potential effects on how international firms strategize.
To aid in this analysis, eight cases, comprising seven companies and one trade association, bring a first-person insight into how digital regulations work today and how much it has affected their strategy. The studied companies are international and primarily European, but the digital technologies they use in their business models vary greatly. The existing theory tries to explain the general effects of regulation on aspects of strategy but seldomly takes a broader approach. This dissertation studies the broader impacts of regulations on international business strategy, mostly in what concerns how the products are developed and adapted to each market or whether digital companies are more likely to pursue arbitrage.
The analysis of each case is made using Ghemawat’s (2007) model for international business strategy and Rugman and Verbeke’s (1998 and 1998b) models for the effect of environmental regulations on business strategy. In most cases, one particular trend indicates that digital companies that find regulations complementary to their business strategies tend to follow an AA strategy comprising aggregation and adaptation. Furthermore, a collection of strategies on how to deal with the national-international regulatory challenge is also offered. (Less) - Abstract (Portuguese)
- Tecnologias digitais apresentam novo desafios à sociedade como abusos a privacidade de dados, ataques a democracia, e até mesmo tecnologias de nível militar sendo acessadas por civis. A Europa tem tomado a liderança na regulação de diferentes aspectos da economia digital; no entanto, essas regulações podem criar distorções que podem ser prejudiciais às empresas Europeias. Esse estudo tenta apresentar os diferentes tipos de regulações introduzidos na economia digital e os efeitos potenciais que terão em como empresas internacionais estrategizam.
Em auxílio a esta análise, oito casos, consistindo de sete empresas e uma associação comercial, trazem a perspectiva de como regulações digitais funcionam hoje e o quanto tem afetado suas... (More) - Tecnologias digitais apresentam novo desafios à sociedade como abusos a privacidade de dados, ataques a democracia, e até mesmo tecnologias de nível militar sendo acessadas por civis. A Europa tem tomado a liderança na regulação de diferentes aspectos da economia digital; no entanto, essas regulações podem criar distorções que podem ser prejudiciais às empresas Europeias. Esse estudo tenta apresentar os diferentes tipos de regulações introduzidos na economia digital e os efeitos potenciais que terão em como empresas internacionais estrategizam.
Em auxílio a esta análise, oito casos, consistindo de sete empresas e uma associação comercial, trazem a perspectiva de como regulações digitais funcionam hoje e o quanto tem afetado suas estratégias. As empresas estudadas são internacionais e primariamente Europeias, mas as tecnologias digitais usadas em seus modelos de negócio variam grandemente. A teoria existente tenta explicar os efeitos gerais da regulação em aspectos da estratégia, mas raramente tomam uma atitute ampla. Essa dissertação estuda os efeitos amplos que regulações tem em estratégias de negócios internacionais, principalmente no que concerne como os produtos são desenvolvidos e adaptados para cada mercado ou se empresas digitais são mais propensas a buscar arbitragem.
A análise de cada caso é feita usando o modelo de Ghemawat (2007) para estratégia de negócios internacionais, e os modelos de Rugman e Verbeke (1998 e 1998b) para os efeitos de regulações ambientais nas estratégias de negócio. Na maior parte dos casos uma tendência em particular indica que empresas digitais que veem regulações como complementares às suas estratégias de negócio costumam seguir uma estratégia AA consistindo de agregação e adaptação. Ademais, outras estratégias de como lidar com o desafio regulatório nacional-internacional também são oferecidas. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9056913
- author
- Fahrnberger, Laurin LU and Trindade Leite, Willian LU
- supervisor
- organization
- course
- IBUH19 20211
- year
- 2021
- type
- M2 - Bachelor Degree
- subject
- keywords
- international business strategy, digital economy, digital regulation, institution-based view, resource-based view
- language
- English
- additional info
- Both authors contributed equally to the study.
- id
- 9056913
- date added to LUP
- 2021-06-24 14:53:41
- date last changed
- 2021-06-24 14:53:41
@misc{9056913,
abstract = {{Digital technologies have brought new challenges to society, such as data privacy abuses, attacks on democracy, and even military-grade technologies being accessed by civilians. Europe has taken the leadership by regulating different aspects of the digital economy; however, these regulations may create distortions that will harm European businesses. This study tries to draw a picture of the different types of regulations introduced in the digital economy and the potential effects on how international firms strategize.
To aid in this analysis, eight cases, comprising seven companies and one trade association, bring a first-person insight into how digital regulations work today and how much it has affected their strategy. The studied companies are international and primarily European, but the digital technologies they use in their business models vary greatly. The existing theory tries to explain the general effects of regulation on aspects of strategy but seldomly takes a broader approach. This dissertation studies the broader impacts of regulations on international business strategy, mostly in what concerns how the products are developed and adapted to each market or whether digital companies are more likely to pursue arbitrage.
The analysis of each case is made using Ghemawat’s (2007) model for international business strategy and Rugman and Verbeke’s (1998 and 1998b) models for the effect of environmental regulations on business strategy. In most cases, one particular trend indicates that digital companies that find regulations complementary to their business strategies tend to follow an AA strategy comprising aggregation and adaptation. Furthermore, a collection of strategies on how to deal with the national-international regulatory challenge is also offered.}},
author = {{Fahrnberger, Laurin and Trindade Leite, Willian}},
language = {{eng}},
note = {{Student Paper}},
title = {{Effects of Digital Regulations on International Business Strategy: A multi-case study}},
year = {{2021}},
}