This is the published version of a paper published in Journal of Business Models.
Citation for the original published paper (version of record):Johansson, M., Abrahamsson, J. (2014) Competing with the use of business model innovation: an exploratory case study of the journey of born global firms.
Journal of Business
AbstractPurpose: The purpose of this article is to investigate how business models are used by born global firms to act upon new business opportunities and how they manage business model innovation over time to prosper and grow.
Design/Methodology:The study is based on three exploratory case studies of born global firms in mobile communication, financial services and digital music distribution.
Findings:Three interrelated capabilities to manage business model innovation are articulated in the context of born global firms; sensing capabilities, entrepreneurial capabilities and relational capabilities and four propositions are formulated. We find that business model innovations are used as a tool by maturing born global firms to navigate the value chains and achieve international growth. We further propose that born global need the capabilities to balance different business model designs simultaneously and to manage its business model innovation in a timely manner.Originality: This article contributes to both the business model literature and research of international entrepreneurship. By putting business model research into the dynamic context of rapidly internationalizing born global firms, we contribute to the field of business model research with findings of how business models are used in the internationalization processes. Certain capabilities are needed to manage business model innovation for born global firms to dynamically use business models as a tool in the international growth overtime.
gerencial, este estudio muestra en dónde enfocar las iniciativas de IMN para lograr presencia internacional y crecimiento de forma sostenible. Keywords International new ventures. Business model innovation. Sweden community innovation survey Palabras clave nuevas empresas internacionales. innovación del modelo de negocio. encuesta sobre innovación en la comunidad de Suecia JEL classification 3 Entrepreneurship. 4 International business Summary highlights Contributions: This study contributes with new, large-scale, empirical findings to the emerging debate on the importance of business models of INVs as well as on how INVs are developing beyond the stage of initial international market entry by applying the business model lens. Purpose/research question: The purpose of this study is to examine the INV-specific value capture-and delivery-centered business model innovations. A particular focus is on innovations accompanied by changes in the relationships with firm's supply and demand side partners and the resulting external relationship handling processes in comparison with other internationalized firms. Findings/results : The findings show that INVs are more likely to innovate their business models in the areas of external relationships, sales channels, and logistics compared to other types of internationalized firms in the sample. Limitations : A number of limitations are present in this study. Firstly, the empirical context of a single, small, and open economy of Sweden. Studies in economies of different structure might yield different results. Additional elements of business model innovation could be included aside from the ones scrutinized in this study. Theoretical implications and recommendations : This study displays that INVs innovate their business models more frequently than other internationalized firms and suggests that INVs can have different business model configurations that allow them to remain internationally competitive beyond early internationalization. Thus, the study highlights the business model lens as a theoretical frame for understanding the development of INVs over time. Practical implications and recommendations : The study highlights the significance of managing external relationships dynamically for INVs as well as avoiding getting locked into certain sales channels or logistical modes of operation which may ultimately impede international development. New types of relationships, logistical methods, and sales channels are necessary as the once early-stage INV develops and grows on international markets.
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