Do cross-national distances still affect the international penetration speed of digital innovation? The role of the global network effect

This paper provides an improved understanding of the internationalisation speed of innovation in a digital context. It integrates virtual distance into the previous Cultural, Administrative, Geographic, and Economic (CAGE) distance framework. By tracking the penetration in 43 target countries of a unique sample of 102 mobile apps available on Apple's App Store, cultural and economic distances still hinder the penetration speed of digital innovation in a focal country. However, geographic and administrative ones no longer have a significant effect. More importantly, distance does not always act as a barrier, with high virtual spaces promoting international penetration. Therefore, digital innovation developers may overcome challenges presented by cross-national distances by resorting to the global user network effect.