Internationalisation patterns of African sharing economy companies: The role of gateway markets

Sharing economy companies (sharecoms) have been internationalising rapidly, including entering African markets. Little research has been conducted on the strategies and behaviours of African sharecoms. Questions have been raised as to whether existing theories adequately explain the internationalisation of African firms. Thus, we analyse the internationalisation patterns of six African sharecoms, focusing on time, speed, and scope. The findings indicate that firms apply unique combinations of various internationalisation models. A novel pattern of internationalisation where the firms use foreign gateway markets as strategic launchpads before rapidly internationalising was also uncovered. Locational advantages, strategic networks, and relative technological advancement characterise the foreign gateway markets. We also propose the concept of complex regional context to define the context of emerging regions with many neighbouring countries with the potential for high levels of internationalisation but low levels of international business due to the lack of common enabling frameworks and institutions.

Automated summary

Sharing economy companies (sharecoms) are rapidly internationalizing, including in African markets. This study analyzes the internationalization patterns of six African sharecoms and uncovers a new pattern where firms use foreign gateway markets as strategic launchpads. The concept of "complex regional context" is also proposed to define emerging regions with potential for internationalization but lack of common enabling frameworks and institutions.