Challenges and Success factors in the international expansion of Software-as-a-Service (SaaS) Companies
Koskela, Matias (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202601291956
https://urn.fi/URN:NBN:fi:amk-202601291956
Tiivistelmä
This study explores the challenges and success factors in the internationalization of Software as a Service (SaaS) companies. SaaS companies, distinguished by their scalable digital products and subscription-based revenue models, are proliferating rapidly across borders, often encountering a range of complex operational, regulatory, and cultural challenges. The goal of this study is to investigate how these companies overcome the challenges and assess the explanatory power of existing internationalization theories in this context.
The theoretical basis of this study involves an extensive literature review on the topic that provided an overview of the existing classical and contemporary models of internationalization. These models, such as the Uppsala model, the Born Global theory, Network Theory, Dunning’s Eclectic Paradigm (OLI) are supplemented by some of the commonly used models that help SaaS companies in their internationalization such as PESTEL, SWOT and the 5C framework. The theoretical lens employed in this study therefore provides both conceptual (mainstream internationalization theories) and pragmatic perspectives (tested and proven expansion frameworks) on expansion motives, dynamics, and potential risks.
The research was conducted as a single case study with an embedded holistic (i.e., cross-case) qualitative design. The data for the study was collected via five semi-structured interviews of individuals working in different sub-sectors of SaaS industry (Food-as-a-Service, Mobility-as-a-Service, Parking-as-a-Service, etc.). Thematic analysis approach was used to compare the responses across cases.
Three central themes have emerged from the data analysis: (1) The most effective expansion strategies revolve around localization, regulatory compliance, and organizational readiness; (2) the most common mistakes made during the expansion are premature market entry, lack of localization, and non-compliance; (3) the most useful resources and capabilities for internationalization are solid partnerships, scalable technology, and culturally competent teams. The results of the study show that SaaS internationalization processes are predominantly driven by the newly developed (because of this study) hybrid model, which can be called digitally accelerated incrementalization, in other words the dynamic of rapid digital expansion combined with traditional learning and local adaptation. The results of the study provide theoretical insights into the internationalization of SaaS companies and complement practical managerial knowledge by explaining what key factors make the difference between the effective and ineffective internationalization.
The theoretical basis of this study involves an extensive literature review on the topic that provided an overview of the existing classical and contemporary models of internationalization. These models, such as the Uppsala model, the Born Global theory, Network Theory, Dunning’s Eclectic Paradigm (OLI) are supplemented by some of the commonly used models that help SaaS companies in their internationalization such as PESTEL, SWOT and the 5C framework. The theoretical lens employed in this study therefore provides both conceptual (mainstream internationalization theories) and pragmatic perspectives (tested and proven expansion frameworks) on expansion motives, dynamics, and potential risks.
The research was conducted as a single case study with an embedded holistic (i.e., cross-case) qualitative design. The data for the study was collected via five semi-structured interviews of individuals working in different sub-sectors of SaaS industry (Food-as-a-Service, Mobility-as-a-Service, Parking-as-a-Service, etc.). Thematic analysis approach was used to compare the responses across cases.
Three central themes have emerged from the data analysis: (1) The most effective expansion strategies revolve around localization, regulatory compliance, and organizational readiness; (2) the most common mistakes made during the expansion are premature market entry, lack of localization, and non-compliance; (3) the most useful resources and capabilities for internationalization are solid partnerships, scalable technology, and culturally competent teams. The results of the study show that SaaS internationalization processes are predominantly driven by the newly developed (because of this study) hybrid model, which can be called digitally accelerated incrementalization, in other words the dynamic of rapid digital expansion combined with traditional learning and local adaptation. The results of the study provide theoretical insights into the internationalization of SaaS companies and complement practical managerial knowledge by explaining what key factors make the difference between the effective and ineffective internationalization.