Value creation of an internationalizing entrepreneurial firm

Abstract

PurposeIn order to respond to the call for a broader perspective on the internationalization of entrepreneurial firms, this study aims to bring the business model concept to the context of international entrepreneurship, with special emphasis on the notion of value formation and value exchange at company interfaces.Design/methodology/approachThis is a cross‐case study based on qualitative data from business model workshops with key company informants in each case firm.FindingsThe findings of the study indicate that, although the business models of firms with comparable positions may appear similar, there are fine‐grained differences both in their activities and in their value formation. In addition, the data collection workshops revealed that firms tend to neglect the inspection of their incentives to their partners, as they concentrate on value formation to end‐customers.Practical implicationsFrom the managerial point of view, the study shows how the managers of international entrepreneurial firms may describe and analyze their business model, including the whole value chain, systematically from the perspective of value exchange. Firms may gain insights from examining the business models of similar organizations.Originality/valueEven though the role of the business model has also been discussed in previous studies, it has not been so explicitly pronounced in the domain of international entrepreneurship. The paper contributes to previous business model conceptualizations by adding the notion of value exchange at the company interfaces.

Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance

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Strategic Alignment Between Competitive Strategy and Dynamic Capability: Conceptual Framework and Hypothesis Development

“…E‐business value sources have been investigated in several studies (e.g., Zhu et al , 2004; Zhu and Kraemer, 2005). Among these studies, the research carried out by Amit and Zott (2001) is a distinctive exception from others, which makes it more appropriate to be employed in several studies (e.g., Sainio et al , 2011). According to Amit and Zott, performance should be measured through four sources of value: novelty, lock‐in, complementarities, and efficiency.…”

Competitive strategy, dynamic capability, and value creation: Some empirical evidence from UK telecommunications firms

“…Several studies have investigated value sources (e.g., Amit & Zott, ; Zhu & Kraemer, ). Of these, Amit and Zott’s study of value creation (2001) has been widely used in previous studies (e.g., Sainio, Saarenketo, Nummela, & Eriksson, ). According to Zott and Amit ( , p. 181), value is determined by a business model which “elucidates how an organization is linked to external stakeholders, and how it engages in economic exchanges with them to create value for all exchange partners."…”