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

Abstract

Purpose

This 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/approach

We 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.

Findings

We 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/value

This 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.

Citation

Kim, Y., Gretz, R.T. and Basuroy, S. (2025), "Applying the latest Uppsala model to digital products: an empirical investigation of app internationalization via app updates", International Marketing Review, Vol. 42 No. 1, pp. 64-82. https://doi.org/10.1108/IMR-09-2023-0255