A process for start-ups growth through expansion into emerging markets

One of the biggest challenges faced by many tech start-ups from developed markets is to have validated market-fit products/services and to see their solutions implemented. In several sectors, stringent regulations, and the law of handicap of head start at home can be hurdles that limit the development and even the survival potential of theses start-ups. Tech start-ups seeking implementation, learning, and legitimacy may have a solution in expanding into emerging markets. Emerging markets offer both business opportunities in sectors in need of new technologies as they are “fertile grounds” for developing and testing internationalisation business models. We present here a process designed to help tech start-ups to identify, access, shape and seize these opportunities and to overcome their own specificities and emerging markets specificities. The three phases of the proposed process cover entry node concept, partnership, and business, operating and revenue joint models’ development. DesignScience Research Paradigm is used for the design and evaluation of the process. To show the relevance of this process, a case study on the expansion in Morocco of a Dutch start-up active in e-health is used. The study shows the importance of the process for the embeddedness in a local relevant value network with a relevant adopter’s system, a key enabler to achieve time and cost-effective expansion in that specific business and institutional contexts. A pilot to assess the proposed models and evidence of benefits is under development. To boost their chances of growth tech start-ups from developed markets should consider expansion into emerging markets in their strategy. It would be beneficial that policy makers adopt a strategy by which to assist tech start-ups in accessing value networks in emerging markets. It is also important for policy makers from emerging markets to consider developing schemes to attract tech start-ups from developed markets.