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We advance research on the antecedents of business model design by integrating institutional and imitation theories to explore how the business model of new ventures evolves in a weak institutional environment. Based on a case study of Jumia—an online retailing company in Africa established with the aim to emulate the success of Amazon.com—we propose a process model entitled “imitate-but-modify” that explains how business models evolve through four distinct phases (i.e., clarification, legitimacy, localization, and consolidation). In essence, this model explains how new ventures surrounded by considerable uncertainty deliberately seek to learn vicariously by imitating the business model template of successful firms. However, because of significant institutional voids, the ventures’ intentional imitation is progressively replaced by experiential learning that blends business model imitation with innovation.

The nexus between entrepreneurship and economic growth has been examined in entrepreneurship and economic development literature. Yet, a critical analysis of these studies shows that research attention has mainly been focused on advanced economies leaving much to be understood in developing countries especially in Africa. Using data from the World Development Indicator on 10 African countries (Botswana, Morocco, Mauritius, Namibia, Nigeria, Rwanda, Senegal, Sierra Leon, South Africa, and Zambia), this study tests the effects of entrepreneurship and on economic growth. The results of the analysis show that entrepreneurship is positive and significantly stimulates economic growth. Based on this finding, policy implications are discussed.

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