The increase in globalization has led to an increase in the need for innovation in Business Models (BM). As a BM needs to undergo a process of innovation, or at least change, to better adapt to the conditions of different external markets. As products and services become obsolete, so do processes and organizational systems when they fail to generate the expected value. Despite the growing importance of Business Model Innovation (BMI) as a consequence of global competitiveness, to realize these innovations is a huge challenge for companies worldwide.
The research question is: How the internationalization of the firm influence BMI? To answer this question, this paper presents an analysis of how the internationalization of a company influences the innovation on its BM in terms of context, structure, and governance, considering the different entry modes.
The literature review include BM and BMI, innovation and internationalization, and entry modes.
Considering the lack of knowledge about the relation between these subjects – BMI and internationalization – an empirical multiple case research was identified as the preference method for an exploratory research. Five cases were selected considering convenience and accessibility criteria. Interviews were made with top managers in each company in a face-to-face process. Transcriptions were analyzed following a content analysis strategy with the support of NVivo.
The main required changes in content are related with the flows of communication and products, and the required resources and capabilities. Regarding structure, the network size and the ways in which the parties are linked, and exchanges are executed, change as a consequence of the internationalization. Governance is specially related with the decentralization and centralization of the decision-making process.
BMI is still a little empirical investigated topic. When relating with internationalization, the gap is even bigger. This research represents an effort to bring these two areas of knowledge together. Through the cases studies was possible to identify that there is a relation between BMI and the internationalization process. This relation may change according to the entry mode adopted by the firm.
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