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From home country disadvantages to firm-specific advantages: Digital recombination in the internationalization of cybersecurity international new ventures
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DOI：10.1016/j.jwb.2026.101757.png)
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Abstract
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This study examines how international new ventures (INVs) in cybersecurity leverage home country disadvantages to develop firm-specific advantages (FSAs) and achieve rapid internationalization. Drawing on an in-depth multiple case study of six Taiwanese cybersecurity INVs, we investigate how digital capabilities reshape the development, recombination, and cross-border deployment of FSAs. We find that firms operating in Taiwan’s extreme cyberthreat environment build proprietary threat intelligence capabilities that are subsequently deployable across international markets when bundled with the complementary resources of local partners. Three mechanisms account for this pattern: (1) digital architectures convert location-bound adversity into transferable firm capabilities, while the underlying country conditions remain bound to Taiwan; (2) AI-enabled platforms support continuous recombination of firm capabilities with local partner resources, allowing the four platform-based firms in our sample to reach the 25% international revenue threshold in roughly half the time taken by firms relying on conventional managerial approaches; and (3) modular compliance architectures enable firms to meet diverse regulatory requirements without redesigning their core technology. These findings extend the FSA/CSA framework by showing how digital platforms shift recombination from periodic managerial decisions to continuous algorithmic processes, partly addressing bounded rationality and bounded reliability constraints. For INV theory, we link internationalization speed to the speed at which firms convert home country experience into deployable firm capabilities.
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