How do established multinational enterprises replicate digital business models across borders? The case of Telenor

Abstract

International business research is increasingly taken up with the relations between digitalization and internationalization at the level of multinational enterprises (MNEs). However, so far, the research literature has paid little attention to the important phenomenon of established MNEs that seek to build and replicate digital business models across borders and how they do this. MNEs often rely on established networks in foreign markets, build digital business models on top of existing non-digital businesses, and usually adapt digital business models to local circumstances. Hence, their digital internationalization approach cannot rely on uniform replication of a business model or international scaling, the replication approaches typically highlighted in the literature. Relatedly, the international digitalization strategies of established MNEs involve distinct management challenges that are not currently well understood. To improve the understanding of these challenges, we undertake a qualitative analysis of the cross-border replication of two digital business models by Telenor, a major established firm in the telecom industry. We summarize our findings and analysis in six propositions about the management of digital business model replication across borders by established MNEs.