Entrepreneurial Aspiration and Flexibility of Small and Medium-Sized Firms: How Headquarters Facilitate Business Model Innovation at the Subsidiary Level

Yangfeng Cao, Peter Ping Li, Peter Skat-Rørdam

    Publikation: Working paperForskning

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    Primarily due to the large gaps in economic and institutional contexts between
    the developed and emerging markets, business model innovation (BMI) at the
    subsidiary level plays an important role for the success of small and medium
    sized firms (SMEs) from the developed markets operating in the emerging
    markets as top-down venture. While some studies claim that the direct
    involvement of headquarters (HQ) of SMEs in the activities of their subsidiaries
    is essential, surprisingly little is known about how HQ specifically facilitates BMI
    at the subsidiary level, especially in the context of top-down venture. Adopting
    the method of comparative and longitudinal case study, we tracked the BMI
    process of six SMEs from Denmark operating in China. The emergent framework indicates that entrepreneurial aspiration and flexibility at the HQ level 2 are two primary facilitators of BMI at the subsidiary level via the mechanisms of
    commitment and cooperation. We also found that BMI performance would
    influence the two facilitators in a feedback loop. Hence, we can contribute to the
    literatures on international entrepreneurship and strategic entrepreneurship by
    integrating the two previously separated research streams via their shared
    theme of accelerated learning. In particular, this study helps solve the puzzle
    concerning fast and successful international venture.
    UdgiverAsia Research Centre. Copenhagen Business School
    Antal sider50
    StatusUdgivet - feb. 2013
    NavnCopenhagen Discussion Papers


    • Business Model Innovation
    • International Strategic Entrepreneurship
    • Headquarters - Subsidiary Link
    • Aspiration
    • Flexibility
    • Emerging Markets