Business model innovation: How the international retailers rebuild their core business logic in a new host country. Issue 3 (June 2018)

• Record Type: Journal Article
• Authors: Cao, Lanlan; Navare, Jyoti; Jin, Zhongqi
• Is Part Of: International business review. Volume 27:Issue 3(2018:Jun.)
• Page Start: 543
• Page End: 562
• Publication Date: 2018-06
• Subjects: Business model -- Internationalization -- Case theoretical approach; International business enterprises -- Periodicals; 338.8805
• DOI: 10.1016/j.ibusrev.2017.10.005
• Languages: English
• ISSNs: 0969-5931

Abstract

Highlights: Six routes of retail business model innovations from home to host country by MNEs revealed. Three patterns of resource deployment: extension, embedment, and exploration. An analytical framework for firms adapting their business model internationally. Helpful for international firms to rebuild the core logic of their business model. Abstract: Although research into the business model has received increasing attention, few studies have so far been conducted on business model innovation in an international context. The purpose of the study is to identify different patterns of business model innovation which enables international retailers to rebuild their core business logic in new host countries. On the basis of comparing and contrasting the business model changes of 15 international retailers from various home countries to one single host country (China), our study provides an in-depth understanding of business model innovation in the context of international business. By looking at the firms' capabilities in rebuilding their core logic in the setting of a host country, we reveal six routes of retail business model innovation. Utilizing the lens of organizational learning theory and internationalization, we identify three patterns of resource deployment by international companies in the process of developing business model innovations. Our study, therefore, provides insights and guidance for multinational companies in general, international retailers in particular, as for how to successfully adapt their business model from home country to host country.