Toward a Process Framework of Business Model Innovation in the Global Context

Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE

Yangfeng Cao, Peter Ping Li, Peter Skat-Rørdam

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

    Abstract

    Primarily due to the large gaps in economic and institutional contexts between the developed and emerging economies, effective business models in the two distinctive contexts tend to differ. In particular, the business model innovation (BMI) at the subsidiary level plays an important role in the success of multinational enterprises (MNE) from the developed economies operating in the emerging economies as top-down ventures. While some studies claim that direct involvement of headquarters (HQ) in the operations of subsidiaries is critical, surprisingly little is known about how HQ specifically enable BMI at the subsidiary level, especially for medium-sized MNE. Adopting the method of comparative and longitudinal case study, we tracked the BMI processes of six Danish medium-sized MNE operating in China. The emergent framework indicates that entrepreneurial aspiration and flexibility at the HQ level are two primary enablers of BMI (in terms of new value creation and new value capture) at the subsidiary level via dynamic capability (in terms of sensing and seizing new opportunities) as the underlying mechanism. Further, we also found that BMI can contribute to the initial enablers in a feedback loop. Hence, we contribute to the literatures of BMI and dynamic capability by enriching both research streams, especially the critical link between BMI and dynamic capability in the context of international strategic entrepreneurship.
    Original languageEnglish
    Title of host publicationProceedings of the 56th Annual Meeting of the Academy of International Business : Local Contexts in Global Business
    EditorsKlaus Meyer, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2014
    Pages84-85
    Publication statusPublished - 2014
    EventAIB 2014 Annual Meeting : Local Context in Global Business - Westin Bayshore, Vancouver, Canada
    Duration: 23 Jun 201426 Jun 2014
    Conference number: 56
    http://aib.msu.edu/events/2014/

    Conference

    ConferenceAIB 2014 Annual Meeting
    Number56
    LocationWestin Bayshore
    CountryCanada
    CityVancouver
    Period23/06/201426/06/2014
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume56
    ISSN2078-4430

    Cite this

    Cao, Y., Li, P. P., & Skat-Rørdam, P. (2014). Toward a Process Framework of Business Model Innovation in the Global Context: Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE. In K. Meyer, & T. Kiyak (Eds.), Proceedings of the 56th Annual Meeting of the Academy of International Business: Local Contexts in Global Business (pp. 84-85). East Lansing, MI: Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 56
    Cao, Yangfeng ; Li, Peter Ping ; Skat-Rørdam, Peter. / Toward a Process Framework of Business Model Innovation in the Global Context : Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE. Proceedings of the 56th Annual Meeting of the Academy of International Business: Local Contexts in Global Business. editor / Klaus Meyer ; Tunga Kiyak. East Lansing, MI : Academy of International Business, 2014. pp. 84-85 (Academy of International Business. Annual Meeting. Proceedings, Vol. 56).
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    title = "Toward a Process Framework of Business Model Innovation in the Global Context: Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE",
    abstract = "Primarily due to the large gaps in economic and institutional contexts between the developed and emerging economies, effective business models in the two distinctive contexts tend to differ. In particular, the business model innovation (BMI) at the subsidiary level plays an important role in the success of multinational enterprises (MNE) from the developed economies operating in the emerging economies as top-down ventures. While some studies claim that direct involvement of headquarters (HQ) in the operations of subsidiaries is critical, surprisingly little is known about how HQ specifically enable BMI at the subsidiary level, especially for medium-sized MNE. Adopting the method of comparative and longitudinal case study, we tracked the BMI processes of six Danish medium-sized MNE operating in China. The emergent framework indicates that entrepreneurial aspiration and flexibility at the HQ level are two primary enablers of BMI (in terms of new value creation and new value capture) at the subsidiary level via dynamic capability (in terms of sensing and seizing new opportunities) as the underlying mechanism. Further, we also found that BMI can contribute to the initial enablers in a feedback loop. Hence, we contribute to the literatures of BMI and dynamic capability by enriching both research streams, especially the critical link between BMI and dynamic capability in the context of international strategic entrepreneurship.",
    author = "Yangfeng Cao and Li, {Peter Ping} and Peter Skat-R{\o}rdam",
    year = "2014",
    language = "English",
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    Cao, Y, Li, PP & Skat-Rørdam, P 2014, Toward a Process Framework of Business Model Innovation in the Global Context: Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE. in K Meyer & T Kiyak (eds), Proceedings of the 56th Annual Meeting of the Academy of International Business: Local Contexts in Global Business. Academy of International Business, East Lansing, MI, Academy of International Business. Annual Meeting. Proceedings, vol. 56, pp. 84-85, Vancouver, Canada, 23/06/2014.

    Toward a Process Framework of Business Model Innovation in the Global Context : Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE. / Cao, Yangfeng; Li, Peter Ping; Skat-Rørdam, Peter.

    Proceedings of the 56th Annual Meeting of the Academy of International Business: Local Contexts in Global Business. ed. / Klaus Meyer; Tunga Kiyak. East Lansing, MI : Academy of International Business, 2014. p. 84-85 (Academy of International Business. Annual Meeting. Proceedings, Vol. 56).

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

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    N2 - Primarily due to the large gaps in economic and institutional contexts between the developed and emerging economies, effective business models in the two distinctive contexts tend to differ. In particular, the business model innovation (BMI) at the subsidiary level plays an important role in the success of multinational enterprises (MNE) from the developed economies operating in the emerging economies as top-down ventures. While some studies claim that direct involvement of headquarters (HQ) in the operations of subsidiaries is critical, surprisingly little is known about how HQ specifically enable BMI at the subsidiary level, especially for medium-sized MNE. Adopting the method of comparative and longitudinal case study, we tracked the BMI processes of six Danish medium-sized MNE operating in China. The emergent framework indicates that entrepreneurial aspiration and flexibility at the HQ level are two primary enablers of BMI (in terms of new value creation and new value capture) at the subsidiary level via dynamic capability (in terms of sensing and seizing new opportunities) as the underlying mechanism. Further, we also found that BMI can contribute to the initial enablers in a feedback loop. Hence, we contribute to the literatures of BMI and dynamic capability by enriching both research streams, especially the critical link between BMI and dynamic capability in the context of international strategic entrepreneurship.

    AB - Primarily due to the large gaps in economic and institutional contexts between the developed and emerging economies, effective business models in the two distinctive contexts tend to differ. In particular, the business model innovation (BMI) at the subsidiary level plays an important role in the success of multinational enterprises (MNE) from the developed economies operating in the emerging economies as top-down ventures. While some studies claim that direct involvement of headquarters (HQ) in the operations of subsidiaries is critical, surprisingly little is known about how HQ specifically enable BMI at the subsidiary level, especially for medium-sized MNE. Adopting the method of comparative and longitudinal case study, we tracked the BMI processes of six Danish medium-sized MNE operating in China. The emergent framework indicates that entrepreneurial aspiration and flexibility at the HQ level are two primary enablers of BMI (in terms of new value creation and new value capture) at the subsidiary level via dynamic capability (in terms of sensing and seizing new opportunities) as the underlying mechanism. Further, we also found that BMI can contribute to the initial enablers in a feedback loop. Hence, we contribute to the literatures of BMI and dynamic capability by enriching both research streams, especially the critical link between BMI and dynamic capability in the context of international strategic entrepreneurship.

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    Cao Y, Li PP, Skat-Rørdam P. Toward a Process Framework of Business Model Innovation in the Global Context: Strategic Entrepreneurship and Dynamic Capability of Medium-Sized MNE. In Meyer K, Kiyak T, editors, Proceedings of the 56th Annual Meeting of the Academy of International Business: Local Contexts in Global Business. East Lansing, MI: Academy of International Business. 2014. p. 84-85. (Academy of International Business. Annual Meeting. Proceedings, Vol. 56).