The CAGE around cyberspace? How digital innovations internationalize in a virtual world

Abstract

This paper analyzes some salient factors affecting the internationalization speed of digital innovations by tracking international penetrations of 127 apps at Apple's app store. Although apps are globally available via online platforms, their international penetration is still subject to cultural, administrative, geographic, and economic (CAGE) distances that act as user adoption barriers to impede app internationalization. App developers may overcome these barriers by employing the demand-side strategies of engaging users in value co-creation. We contribute to an improved understanding of internationalization process in a digital context and also extend demand-side perspective to inform international entrepreneurship research.