The impact of network externalities and the role of governments on internationalisation strategies in network industries : a theoretical overview

This theoretical paper explores the impact of network externalities and the role of governments on international strategies in network industries. It is argued that both characteristics have a major influence on how network companies determine their international market entry and operation modes, and the type of organisation strategies implemented. The paper discusses how these internationalisation processes differ from those suggested by more traditional theories based mostly on the internationalisation of manufacturing companies, and on service sectors other network industries. Propositions of the internationalisation strategies of these types of companies are developed.