Session 8

Business Model Transitions in Transitional Market Settings

Track C

Date: Tuesday, October 9, 2012


Time: 14:15 – 15:30


Room: Dressing Room 221

Session Chair:

  • William Newburry, Florida International University

Title: Business Model Innovation at the Bottom (Base) of the Pyramid


  • Shahzad Ansari, University of Cambridge
  • Marloes Nijland, Erasmus University - Rotterdam

Abstract: We address the organizational processes by which firms develop innovative business models for delivering economic and social benefits in Bottom (Base) of the Pyramid (BoP) environments. While much work has addressed the desirable outcomes from such ventures, few studies focus on the process through which businesses co-create business models with partners such as the local community and NGOs. We conduct a qualitative analysis drawing on multiple cases to make two contributions. First, we apply the lens of business model innovation in BoP environments. Second, we examine how firms establish innovation routines for developing new business models in BoP environments. The focus on innovation process rather than on innovation outcomes at the BoP allows a novel way to conceptualize innovation in BoP environments.

Title: Internationalization Trajectories and Business Models of Emerging Market Multinationals: A Quest for Firm Performance


  • Margarete Bowien, ESADE Business School
  • Luis Vives, Ramon Llull University

Abstract: Despite the uptake of internationalization among firms from emerging markets, questions remain regarding their internationalization trajectories, business model management strategies and their impact on firm performance. To answer these questions, this study extends prior research on internationalization of emerging multinationals and builds on literature on business models. We propose a conceptual framework depicted by two variables: level of institutional difference, and strategic initiatives of leveraging traditional business model or developing a new one. We obtain four possible business model management trajectories. Through in-depth case studies of Latin American multinationals, we identify the various mechanisms and variables that play a role in each trajectory. We then analyze performance differences in each trajectory and discuss reasons and factors for the existence of the strategic groups.

Title: Navigating in the Modern MNC: The Emergence of a Pilot Subsidiary Role


  • Marty Reilly, Dublin City University
  • Pamela Sharkey Scott, National University of Ireland at Maynooth
  • Vincent Mangematin, Grenoble School of Management

Abstract: As multinational corporations (MNCs) shift from networks of miniature replica subsidiaries to value chains fine sliced across the globe, the impact of these changes on how subsidiaries contribute to the organization has been largely overlooked. Departing from the current perspectives of subsidiary initiative and entrepreneurship, we explore the impact of a narrow focus on subsidiary capacity to contribute to the MNC using multiple case studies within the Information Communications and Technology Industry. Drawing on both lead user and capability lifecycle theories, we uncover a Pilot subsidiary role, where a unit strategically positions as a test bed for capability development within its organization, engaging in the risky strategy of constantly developing and diffusing capabilities to the wider MNC. The implications of our findings for theory and practice are then discussed.

All Sessions in Track C...

Mon: 08:00 – 09:15
Session 2: Business Models: Transitioning from Research to Practice and Back
Mon: 09:30 – 10:45
Session 3: Strategic Change, Resources, and Business Model Transitions
Mon: 13:30 – 14:45
Session 4: Managerial Behavior and Business Model Transitions
Tue: 08:00 – 09:15
Session 5: Transitions in Governance and Business Models
Tue: 11:00 – 12:15
Session 6: Organizational Learning and Business Model Transitions
Tue: 14:15 – 15:30
Session 8: Business Model Transitions in Transitional Market Settings
Tue: 15:45 – 17:00
Session 9: Business Model Transitions As Industry Sector Phenomena

Strategic Management Society