A quantitative approach to foreign market selection for digital platform companies

Abstract

Digital technologies have transformed the global economy, allowing small businesses to compete on a more level playing field. The rise of cloud computing and digital platforms has enabled businesses to scale more quickly and efficiently. Recent studies on international marketing strategies have increasingly considered the impact of technology and platform-based business models. Digital platforms provide competitive advantages using functionalities such as customer support, engineering, and data management, leading to accelerated growth and internationalization. Earlier studies have focused on digital platform companies in multi-sided business-to-customer (B2C) markets, but studies on foreign market entry of digital platform companies in business-to-business (B2B) markets remain limited. Our research fills this gap by identifying the foreign market selection strategy for a Northern European B2B digital platform company offering a digital parcel-tracking platform. Using a mixed-methods approach comprising country portfolio analysis and the Analytic Hierarchy Process (AHP), we systematically prioritized foreign markets and found that strategic flexibility, robust digital infrastructure, and strong network relationships are crucial for successful international operations. This study provides a comprehensive framework for B2B digital platform companies, contributing both theoretical and practical insights.