Resumo

Fast-growing businesses stimulate innovation in different regions, as they use emerging technologies capable of developing new business models. Fast-growing businesses emerged from the year 1994 onwards, when a large number of Internet-based technology corporations showed rapid growth, considerably superior to previous scenarios. Developed countries such as Germany, Japan, the United States and England, as well as emerging countries, such as China, have actively embraced policies that encourage fast-growing businesses as a way to collaborate with economic development.

The authors sought to answer the following question: “Amongst the key factors that influence international expansion in fast-growing digital businesses, will there be significant differences per region or these factors maintain a similar degree of relevance?” The main research objective is to identify, through the use of a Bayesian Network Model, the factors that influence changes in the international expansion strategy choices of fast-growing businesses in the following cities: Amsterdam, Berlin, London, New York and Paris.

International expansion has been explored by an extensive research body; however, the studies did not particularly analyse key factors based on their varying relevance for similar organizations in different regions. Another critical obstacle to previous research on fast-growing businesses is that they looked at the competitiveness of fast-growing organizations only at the local level. Thus, the available body of knowledge provides only part of the understanding, not looking at how fast-growing organizations act when they expand internationally.

The research was divided into two stage: A qualitative longitudinal research with the CEOs and Founders of fast-growing digital businesses located in Amsterdam, Berlin, London, New York and Paris between 2016 and 2020 was carried out. The data analysed focused on the companies’ strategic growth options for international expansion. Afterwards, the research advanced the BN modelling: The network structure provided a composition with two nodes, represented by the key factor “International Expansion” (parent node), and the child node represented by “Factors of Interest”.

Amongst the key results it was observed that Exits and Acquisitions have a greater influence on CEOs and founders’ decision for international expansion for businesses in Amsterdam, New York and Paris. Other Venture Capital Options: Debt, Venture Debt and Private Equity have a greater relevance in businesses in Berlin and London. Throughout the study, several factors point out that the companies analysed in London and Berlin present a more mature business model, which may have a great impact on investment and partnership attraction.

Although the network uses probabilistic mathematical equations in its parameterization framework, it was possible to visually observe the model, both the model without the triggers and the illustrations with individual triggers in each factor, facilitating its understanding for those that are not familiar with mathematical equations, thus proving the usefulness of the BN approach. Regarding the observed findings, Exits and Acquisitions have a greater influence on CEOs and founders’ decision for international expansion for businesses in Amsterdam, New York and Paris.

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