Applying the latest Uppsala model to digital products: an empirical investigation of app internationalization via app updates

PurposeThis paper examines the application of the latest iteration of the Uppsala model to digital products by empirically investigating the role of app updates in an app's internationalization.Design/methodology/approachWe align the evolution of apps through updates in a foreign market with the evolutionary process anchored in the latest Uppsala model and empirically test the model using our data of 410 non-Korean apps launched in South Korea. Particularly, we estimate the effect of app updates on an app's foreign market performance. For the analysis, we employ a multiple fixed-effects regression model utilizing our panel data.FindingsWe present empirical support for the application of the latest Uppsala model to digital products in the context of apps and demonstrate a positive association between app evolution through updates and successful internationalization. We find that one additional app update is associated with a 6.2% increase in the number of monthly active users in the foreign market. We further show that this effect is conditional on time since entry and cultural distance.Originality/valueThis paper is the first to empirically test the latest Uppsala model in a digital context. Specifically, our work contributes to the emerging literature studying the impact of digitization on internationalization. We also provide empirical evidence supporting the strategic use of app updates to facilitate internationalization.