Academic research is increasingly emphasizing the critical role of business models (BMs) and business model innovation (BMI) in the international entrepreneurship (IE) domain, yet empirical studies on the topic are quite limited. This study demo0nstrates the role of BMI and entrepreneurial orientation (EO) in the internationalization of small-and medium-sized enterprises (SMEs). Specifically, we explored the mediating role of BMI in the relationship between EO and international performance among internationalizing SMEs. Drawing on a cross-industrial sample of 95 international Finnish SMEs, we empirically test the hypothesized relationships by developing a confirmatory factor analysis measurement model with subsequent application of ordinary least squares multiple regression. The results suggest that BMI positively and significantly mediates the relationship between EO and international performance. In addition, EO has a positive and significant effect on SMEs' BMI. Thus, the findings of the study imply that both BMI and EO are important drivers of international performance for internationalizing SMEs. The study contributes to the IE literature by illustrating the dynamics of BMI and providing evidence of the linkages between strategic orientations and BMI in the international performance of SMEs.
Entrepreneurial behavior research has widened its scope to focus on founders who engage in creating enterprises for both their economic self-interest and their concern for others. Yet, there is a lack of an empirically grounded understanding of the sustainable enterprise creation behavior of entrepreneurs at the bottom of the pyramid. This study contributes to sustainable entrepreneurship and entrepreneurial behavior literature streams by applying founder identity theoretical perspectives to explore and understand bottom of the pyramid entrepreneurs’ self-perceived identities in the creation of sustainable enterprises. The study applies a multiple case study design with qualitative data collected through field observations and in-depth interviews with enterprise founders and stakeholders. The data were complemented with secondary materials such as websites, founder blogs, online videos, news articles, and other media coverage. The data were analyzed in stages through thematic analysis. Findings show that sustainable entrepreneurs at the bottom of the pyramid possess multiple frames of reference, basic social motivations and adopt either single or multiple role identities, which influence their behavior during the process of creating their enterprises. Moreover, the analysis reveals that Fauchart and Gruber’s social identity typologies and the role identities of Cardon et al. can be applied to entrepreneurs at the bottom of the pyramid to understand their identity profiles and illuminate on how these identities result in observed behavioral differences during the process of creating their enterprises.
Previous studies have discussed extensively the development of business solutions in resource-constrained environments. However, understanding how local entrepreneurs engaged in environmental innovation can overcome resource constraints at the bottom of the pyramid (BOP) remains an under-researched area. Under the theoretical framework of bricolage, this study thus adopts a cross-sector multiple case study approach to provide empirical evidence on how social and environmental entrepreneurs in Kenya design low-cost solutions to environmental problems and for people at the BOP. The study considers environmental bricolage as a method of innovation ingenuity for social-environmental entrepreneurs. Network, marketing, waste material, and skills and knowledge bricolage are identified as mechanisms for addressing resource challenges by social and environmental entrepreneurs when creating low-cost and superior-value solutions at the BOP. The study further highlights the critical role of boundary-spanning organizations, the government, external knowledge, and technology.
Small-and medium-sized enterprises (SMEs) undergo different life cycle transitions that affect their business models (BMs) as they seek new to enter foreign markets. Although international entrepreneurship (IE) scholars have recognized the relevance of exploring the creation and growth of entrepreneurial firms, there is a dearth of studies linking how the key decision-makers influence their business model, especially as they pursue internationalization success. This study aims to respond to these gaps in the research by examining the nexus of effectuation and causation (decision logic) and how the combined effects of these logics influence business model innovation (BMI) as SMEs internationalize. In reviewing the existing literature on these concepts, we develop theoretically driven propositions that link business model innovation and decision-making logic in international entrepreneurship that can be subsequently tested with empirical data in the future. This study contributes to the literature on decision-making and business model innovation. It also links two streams of the research, which, to our knowledge, is limited. Moreover, the study is unprecedented in the international entrepreneurship domain.
Prior frugal innovation studies have highlighted their role in promoting ecological and social sustainability. The way enterprises coordinate a value proposition with the upstream and downstream value chain activities and a workable financial model are noted to be key in the delivery of innovations in low-income settings. However, the extant literature does not explicitly explain how enterprises combining socially oriented practices with economic rationality, successfully deliver their frugal innovation to low-income consumers. The current study thus contributes to this gap by employing the business model theoretical framework-via a single-case study design for a Kenyan enterprise supporting precision farming by serving smallholder farmers with digitally enabled low-cost soil sensors and interactive support services. Analysis of the case reveal four approaches that led to the successful delivery of the innovation: long-term focus, adjustable commitment, continuous experimentation, and the bricolage principle. In addition, digital technologies positively influenced the success of the soil sensors and respective business models. The study contributes to the literature streams around frugal innovation and social sustainability, by expanding knowledge around bringing frugal innovations to the market. Moreover, the study develops a framework of value creation and capture, in digitally enabled frugal innovation. This is of practical significance to enterprises engaging in frugal innovation in low-income contexts.
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