How Creative Professional Service Firms Internationalize: a business model portfolio approach

Traditional theory of firm internationalization assumes all firms are homogeneous in their approach to managing uncertainties and implementing business strategies when internationalizing. A business model portfolio approach articulates a more complex process and suggests that firms adopt a portfolio of business models to balance uncertainties. Combining these two perspectives, this multiple case study research design explores how creative professional service firms (creative PSFs) internationalize. Creative PSFs such as architects are embedded in their local cultures, operating at the intersection of business and art. Our study reveals the complexities of creative PSF internationalization, showing that in contrast to existing explanations, multiple combinations of business models are adopted to manage uncertainty. We use these novel insights to develop a business model portfolio approach to understanding the internationalization process. This research paper brings relevant and important contributions to both the international business and business model literature.