What Makes a Global Business Model?

2018 ◽  
pp. 19-39 ◽  
Author(s):  
Oleksiy Osiyevskyy ◽  
Milena Troshkova ◽  
Yongjian Bao
Keyword(s):  
Theoretical Analysis ◽  
Conceptual Framework ◽  
Business Model ◽  
Business Models ◽  
International Expansion ◽  
Global Business ◽  
Specific Advantage ◽  
Global Companies ◽  
Research Questions

A firm's business model is an essential mechanism determining how an organization creates value for its stakeholders and captures part of the created value as profit for its owners. Global enterprises secure their market positions through properly functioning business models that are globally scalable. Once a globally scalable business model is successfully designed and validated in one location, it becomes a non-location-bound firm-specific advantage, promoting the firm's international expansion. This chapter addresses the following research questions: (1) What is the role of a business model in the success of global enterprises? (2) Which common attributes do business models of successful global companies possess? and (3) How to make a business model more suitable for global expansion? The theoretical analysis of these questions yields a conceptual framework for examining the global companies through the business model lens. The developed conceptual framework is illustrated and corroborated with the mini-cases of global companies.

What Makes a Global Business Model?

2020 ◽  
pp. 203-223
Author(s):  
Oleksiy Osiyevskyy ◽  
Milena Troshkova ◽  
Yongjian Bao
Keyword(s):  
Theoretical Analysis ◽  
Conceptual Framework ◽  
Business Model ◽  
Business Models ◽  
International Expansion ◽  
Global Business ◽  
Specific Advantage ◽  
Global Companies ◽  
Research Questions

A firm's business model is an essential mechanism determining how an organization creates value for its stakeholders and captures part of the created value as profit for its owners. Global enterprises secure their market positions through properly functioning business models that are globally scalable. Once a globally scalable business model is successfully designed and validated in one location, it becomes a non-location-bound firm-specific advantage, promoting the firm's international expansion. This chapter addresses the following research questions: (1) What is the role of a business model in the success of global enterprises? (2) Which common attributes do business models of successful global companies possess? and (3) How to make a business model more suitable for global expansion? The theoretical analysis of these questions yields a conceptual framework for examining the global companies through the business model lens. The developed conceptual framework is illustrated and corroborated with the mini-cases of global companies.

Extreme luxury fashion: business model and internationalization process

2017 ◽  
Vol 34 (3) ◽  
pp. 403-424 ◽  
Author(s):  
Simone Guercini ◽  
Matilde Milanesi
Keyword(s):  
Business Model ◽  
Business Models ◽  
Theory And Practice ◽  
Internationalization Process ◽  
International Expansion ◽  
Foreign Markets ◽  
Content Type ◽  
Positive Side ◽  
Unique Approach

Purpose The purpose of this paper is to identify the defining characteristics of the extreme luxury fashion business model (ELFBM) and the relationship between this business model and the process of firm internationalization. The paper examines the potentially positive outcomes of differences and distances in the internationalization process of extreme luxury fashion companies. Design/methodology/approach The paper presents and discusses the data collected during a five-year case analysis of an Italian luxury company. The main characteristics of the business model are identified in terms of products, manufacturing and sourcing, distribution channels, marketing communications and overall characteristics of consumers. The internationalization process is described, with a focus on the Russian market as an emblematic case, highlighting the role of distances – geographic, psychic and cultural – and liabilities, namely foreignness and outsidership in the international expansion of the firm. Findings The findings of this paper highlight the main features and specific traits of the ELFBM characterized by a global and unique approach to the offer. This business model has in its origin the demand from certain foreign markets, and the elements of the country of origin of the firms coexist and are enhanced by the presence of specific characteristics of the destination countries in terms of niche consumers with economic and cultural characteristics and a strong perception of “Made in” and luxury goods. Originality/value The paper contributes to previous studies on the relationships between business models and internationalization. It provides a framework for the “ELFBM,” in which internationalization is a constitutive element of a specific business model rather than a strategy for a business model already defined. Examining the positive side of differences and distances in the internationalization process of firms adopting such business model, the paper contributes to the international business theory and practice. It also expands research on luxury fashion defining an international company which is under-investigated, the extreme luxury fashion company, and the elements that constitute its business model.

scholarly journals The Role of MNE Subsidiaries in the Practice of Global Business Models in Transforming Economies

2021 ◽  
pp. 1-28
Author(s):  
Michael Zisuh Ngoasong ◽  
Jinmin Wang ◽  
Rolv Petter Amdam ◽  
Ove Bjarnar
Keyword(s):  
Business Model ◽  
Multinational Enterprises ◽  
Business Models ◽  
Multinational Enterprise ◽  
Western Country ◽  
Structured Interviews ◽  
Global Business ◽  
Cultural Tensions ◽  
Subsidiary Managers

ABSTRACT This study provides new insights into the role of subsidiary managers in the practice of global business models of multinational enterprises in transforming economies. Drawing on the global business model literature and through semi-structured interviews with a leading Norwegian maritime multinational enterprise in China, we have developed and critically explored a theoretical framework for uncovering how subsidiary managers understand and manage the tensions between the headquarters based in a western country and the subsidiaries based in a transforming economy. More specifically, when implementing the global business model in the transforming economy, subsidiary managers need to undertake effective management of structural, behavioural, and cultural tensions along with the global integration-local responsiveness dilemma. Subsidiary managers can contribute to solving structural tensions between the headquarters and subsidiary by undertaking effective market sensing and knowledge transfer activities to integrate the transforming economies into the MNE's global production networks. Meanwhile, they need to make effective relationship management to solve behavioural and cultural tensions.

Business Model Literature Overview

2014 ◽  
pp. 79-130 ◽  
Author(s):  
Ales Novak
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Business Models ◽  
Potential Role ◽  
Financial Instruments ◽  
Business Logic ◽  
Literature Overview ◽  
Ifrs 9 ◽  
Definition Of

The term ?business model' has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model'. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model' has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author's opinion, the term ‘strategy' is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model' is a more static notion, reflecting the conceptualisation of the company's underlying core business logic. The conclusion contains the author's thoughts on the role of the business model in financial reporting.

The Ontology of the OSS Business Model

2013 ◽  
pp. 40-58
Author(s):  
Spyridoula Lakka ◽  
Teta Stamati ◽  
Christos Michalakelis ◽  
Dracoulis Martakos
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Value Chain ◽  
Exploratory Study ◽  
Business Models ◽  
Methodological Approach ◽  
Theory Building ◽  
Revenue Model ◽  
Software Business

This study focuses on theory building providing a holistic conceptual framework that consists of an ontology based OSS business model and an OSS business model taxonomy. The study extends existing theory in OSS business models and corresponding taxonomies, based on the structured-case methodological approach. An exploratory study is conducted in two research cycles, for the identification, validation, and evaluation of the critical constructs of an OSS business model. Results reveal that OSS business models differ from traditional software business models, having specific features that affect the software value chain, the infrastructure, and the revenue model of an OSS oriented firm.

The Role of Internal Standardization in Business Models

2020 ◽  
pp. 931-953
Author(s):  
Magnus Johansson ◽  
Amalia Foukaki ◽  
Matts Kärreman
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Firm Level ◽  
Internal Standardization

This chapter focuses on business models and the role of internal standardization in business models. We develop a typology that outlines the role of internal standardization for a set of value configurations that serve as representations of generic business models. The topic is of importance for both managers and researchers in relation to firm level innovation and strategy, as well as how business models relate to internal and external standardization. With regard to business model innovation, this chapter can aid in identifying shifts in the firm's internal standardization focus associated with changes in its business model.

The Role of Internal Standardization in Business Models

2019 ◽  
pp. 126-148
Author(s):  
Magnus Johansson ◽  
Matts Kärreman ◽  
Amalia Foukaki
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Firm Level ◽  
Internal Standardization

This chapter focuses on business models and the role of internal standardization in business models. The authors develop a typology that outlines the role of internal standardization for a set of value configurations that serve as representations of generic business models. The topic is of importance for both managers and researchers in relation to firm level innovation and strategy, as well as how business models relate to internal and external standardization. With regard to business model innovation, this chapter can aid in identifying shifts in the firm's internal standardization focus associated with changes in its business model.

Digital Retail and How Customer-Centric Technology is Reshaping the Industry

2018 ◽  
pp. 1560-1580 ◽  
Author(s):  
Pablo Penas Franco
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Business Models ◽  
Customer Experience ◽  
Retail Industry ◽  
Brick And Mortar ◽  
Digital Disruption ◽  
Cloud Technologies ◽  
The Impact

This chapter explains the digital disruption that has occurred and is still happening in the retail industry. It explains the relative positions of the world's leading retailers Wal-Mart, Amazon and Alibaba and the business models of the two top online competitors. It focuses on the impact of SMAC (Social, Mobile, Analytics and Cloud) technologies and new retail trends enabled or boosted by technology such as omni-channel, customer experience, internet of things (IoT) and analytics, fulfillment and delivery. It deepens into IT and business model customer-centric design, the role of the customer and the store in the new digital retail and finishes with an assessment of ROI in retail digitization. The chapter concludes the fundamental IT-enabled changes of digital disruption are critical for all players, traditional brick-and-mortar retailers, pure online players and those with both an online and an offline presence.

Entrepreneurial or Not?

2016 ◽  
pp. 110-133
Author(s):  
Chitra Buckley
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Early Phase ◽  
Best Practice ◽  
Business Models ◽  
Survival Strategies ◽  
Growth Strategies ◽  
Model Concept ◽  
Micro Enterprises ◽  
Point Of Reference

UK fashion micro-enterprises, often founded by creative individuals, need to be entrepreneurially oriented and develop a business model that sustains their growth during the critical early phase. Literature on this phase offers guidance in best practice and survival strategies for the operational challenges that emerge, however the business models that sustain enterprise development and provide the blueprint for growth strategies have not been examined. This chapter explores how micro-enterprises integrate entrepreneurial actions into their business models. By applying literature on best practice in fashion designer businesses and entrepreneurial orientation (EO) to the business model concept, a conceptual framework is developed and serves as a point of reference to analyse the current business models of five micro-enterprises. The study finds that business models in this segment of the fashion sector are asymmetrical and EO emerges in some components of the business model and not others.

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