Abstract
Drawing on institutional theory, this study investigates how institutional pressure can affect digital platform risk. Specifically, it examines whether two types of institutional pressure – domestic market e-commerce policy uncertainty and foreign market e-commerce policy uncertainty – affect the perceived digital platform risk for international new ventures (INVs) and its relationship with their scope of internationalization. The recent crisis caused by the Covid-19 pandemic has further impacted this new phenomenon, thus we examine its effects on the relationships between/among domestic and foreign market e-commerce policy uncertainties, digital platform risk, and the internationalization scope of INVs. We conduct four waves of a survey to test the Covid-19 effects as well as to minimize common method bias, analyzing the final sample of 394 responses from 260 Chinese INVs using structural equation modeling. The results show that domestic and foreign market e-commerce policy uncertainties positively affect the digital platform risk for INVs, with foreign market e-commerce policy uncertainty having a stronger positive impact. Moreover, we find that the Covid-19 pandemic interacts asymmetrically with the relationship between domestic vs. foreign market e-commerce policy uncertainty and the digital platform risk for INVs. In addition, the pandemic strengthens the negative relationship between digital platform risk and the internationalization scope of INVs. This research broadens and strengthens our understanding of e-commerce policy and international business in the context of INVs’ internationalization.
Original language | English |
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Pages (from-to) | 57–90 |
Number of pages | 34 |
Journal | Management International Review |
Volume | 63 |
Issue number | 1 |
Early online date | 3 Nov 2022 |
DOIs | |
Publication status | Published - Feb 2023 |
Bibliographical note
© The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.Keywords
- Covid-19 pandemic
- Digital platform risk
- Domestic vs. foreign market e-commerce policy uncertainty
- International new ventures (INVs)
- Internationalization scope
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management