Internationalization and the Need of Business Model Innovation – A Theoretical Approach

Abstract

The global market can be considered a volatile environment and the internationalization of a firm through the adoption of any entry mode may lead to the need to innovate or adapt its business model (BM) to better fit specific contexts of international markets. Even though entry modes have been deeply investigated during the last decades, the relation of business model innovation (BMI) and entry modes is a new study subject. This article assumes that the internationalization process is a trigger for innovation, and it aims to answer what are the different possibilities of BMI generated through the entry modes. The concepts of BM, BMI, and its relationship with internationalization and entry modes are investigated in this paper. Based on the literature review, a theoretical model is proposed to relate entry modes and the need of business model innovation. We identified that little is known about the relation between these subjects and applied research is required.

The Effect of Learning Orientation and Business Model Innovation on Entrepreneurial Performance: Focused on South Korean Start-Up Companies

“…First, the learning orientation of start-ups had an effect on business model innovation (β = 0.761 ***), and business model innovation had an effect on market expansion (β = 0.491 **). It is consistent with the results of studies on the continuous release of products and services and the results of previous studies that learning orientation affects innovation [1,10,17,35]. Start-up companies can achieve the start-up performance of market expansion through business model innovation through operation in a way that can increase their learning orientation.…”

“…Business model innovation refers to creating an innovative business model to acquire new value by developing a new business model that did not exist or did not previously exist. From this point of view, business model innovation refers to radical or disruptive innovation that affects the entire business rather than a gradual change in the business model [35].…”

La estrategia como factor de innovación en las organizaciones

“…Morales y Pech (2000) [8], mencionan que las estrategias van en función de recursos, metas y objetivos y que suelen ser de manufactura, mercadotecnia, investigación y desarrollo, finanzas y de recurso humano. Y estos se deben de iniciar en los procesos internos de las compañías de tal manera que aporten a la cadena de valor de los clientes mediante la suma y combinación de procesos de innovación operativa [9][10][11].…”

Collaboration among Small and Medium-Sized Enterprises as Part of Internationalization: A Systematic Review

“…To enter in the foreign market, companies must define how they want to conduct business across national borders. In addition, an adaptation of their business models can impose different institutional and competitive conditions for the domestic market depending on the foreign market situation (Child et al 2017;Nunes and Steinbruch 2019).…”