The Role of Digital Transformation For Startups : Scalability and Economic Sustainability of Swedish Technology Startups Operating in International Markets

Sammanfattning

Digital transformation has existed for several years through the redefinition of business models, processes, and digital tools within business and academic discourse. This study sought to examine whether it represents more than a managerial buzzword by investigating its actual role in enabling startups to achieve scalability and economic sustainability. To investigate this phenomenon, a multiple-case study methodology was employed to analyze how these start-ups utilize digital transformation to navigate the complexities of scalability and economic sustainability within the international context. The study adopted an abductive research approach and collected qualitative data through semi-structured interviews with founders, CEOs, and ecosystem actors, triangulated with secondary data sources from five startups and the experiential perspective of a portfolio entrepreneur involved in four or more startups. The findings further provide practical implications for startup founders, policymakers, and incubators by highlighting the importance of combining digital transformation with localization, ecosystem support, and adaptive business strategies. By exploring the interplay between technological adoption, internationalization (born global), ecosystems, and dynamic capabilities, this research identified five distinct relationships that define the scaling and economic sustainability of the start-ups from the empirical findings and analysis, and they are 1) Digital transformation improves efficiency, thus facilitating scalability; 2) The process of successful internationalization has two components: a. digital tools and b. localization, 3) Effective use of digital technologies is part of dynamic capabilities. 4) Ecosystems may be moving from the role of provider of knowledge to facilitator of networks and funding, and 5) Scalability and sustainability are not something that is achieved at once but rather developed over time and require firms to consistently update business models, digital capabilities, cultures, and market strategies. This research contributes to the literature in international business studies by offering a conceptual model for scalability and economic sustainability by integrating digital transformation, internationalization (born global), ecosystems, and dynamic capabilities.