Identifying factors affecting the internationalization process of digital startups in Iran

Sarabi, Mahmoud; Salmani, Behzad; Jabarzadeh, Younis; Barghi Oskoee, Mohammad Mehdi

Identifying factors affecting the internationalization process of digital startups in Iran

Document Type : Article extracted from thesis

Authors

Mahmoud Sarabi ¹ ^¶

Behzad Salmani ²

Younis Jabarzadeh ³

Mohammad Mehdi Barghi Oskoee ²

¹ PhD student in Economic Sciences, Aras international campus, University of Tabriz, Tabriz, Iran

² Professor, Department of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

³ Assistant Professor, Department of Management, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

Abstract

Background and Objective: In recent decades, digital transformations and globalization have created novel opportunities for digital startups to expand beyond national borders. In Iran, despite the remarkable growth of the startup ecosystem and a young, talented human resource pool, the internationalization process of these companies faces multifaceted challenges, including economic and political sanctions, financial restrictions, and weak international networks. These barriers threaten the success of startups in global markets and underscore the need for a systematic analysis of influencing factors. The objective of this research is to identify and model key factors affecting the internationalization process of Iranian digital startups, focusing on barriers, opportunities, and interrelationships, to provide a practical conceptual framework for stakeholders such as policymakers, investors, and entrepreneurs.
Methodology: This study employs a mixed-methods qualitative-quantitative approach. In the qualitative phase, semi-structured interviews were conducted with 24 experts from Iran's startup ecosystem (using snowball sampling until saturation), identifying influencing factors and categorizing them into 6 dimensions and 41 components via thematic analysis (using MaxQDA software). In the quantitative phase, inter-dimensional relationships were analyzed using Interpretive Structural Modeling (ISM) and a self-interaction matrix, with model stability assessed through MICMAC analysis.
Results and Findings: The findings reveal six main dimensions: strategic and business model, marketing and customer interaction, cultural and international, infrastructural and legal, human resources and team, and supportive and financial. Marketing and cultural factors rank at the first level (linkage and vital), infrastructural and human at the second (autonomous), and financial at the third (independent). The ISM model emphasizes that successful internationalization requires a focus on cultural adaptation and marketing strategies, while financial and infrastructural supports play a facilitating role. The results urge policymakers to strengthen international networks and cultural empowerment, offering suggestions for future research such as comparative analyses and the role of emerging technologies. This model provides a practical framework to accelerate the internationalization of Iranian startups.

Keywords

Digital Entrepreneurship

Digital Start-Ups

Internationalization

Interpretive Structural Modeling

Thematic Analysis

Iran

Subjects

Urban & Regional Economic

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