Internationalisation Driving Value Chain Configuration: The Case of Emerging Market IT Companies

Abstract

Abstract Global value chain (GVC) configuration is a result of a complex sequence of decisions made by internationalizing firms to suit their strategies and business environment. We use multiple case study method looking at GVC configuration and make cross-case analysis to identify similar patterns in Russian IT firms’ GVC activities. Our research findings suggest there are three sets of factors strategically determining GVC configuration: industry, institutions, and internalization. The industry encourages firms being global from the inception, institutions push Russian firms to seek for legitimacy abroad while internalization takes place because firms should be present on the market of their main customers.