After TikTok: International Business and the Splinternet

Abstract

The internet is evolving from a globally connected and lightly regulated network to a ‘splinternet’ governed by diverging national policies. Governments are effectively re-creating national borders in digital space by asserting their authority over areas such as data protection, taxation, censorship, and national security. This increasing fragmentation of the internet creates new challenges for companies that use the internet to offer digital products and services (such as apps) internationally. Rather than addressing global markets more or less by default, these digital firms must make strategic choices with respect to foreign market selection, entry modes, local adaptation, and stakeholder management.