International Business Model Replication - The Role of Contextuality of Inter-Firm Activities

The capability to replicate and adapt one's own business model to foreign markets represents a key driver of international growth and firm success. In this paper, we examine the role of contextuality of inter-firm activities, i.e., the extent to which a firm's activities are influenced by the activities of external partners, as well as their complementarity for international business model replication, by studying the internationalization of Klarna AB, a young Swedish venture that offers complementary payment solutions to online shops. Our preliminary findings suggest that contextuality, complementarity, and a firm's dependence on it influence the adequate replication approach, the required extent of local adaption, the ability of the replicator to appropriate a share of the profits, and the need for alignment of inter-firm activities.