TY - JOUR

T1 - The role of home market context in business model change in internationalizing SMEs

AU - Rissanen, Tommi

AU - Ermolaeva, Liubov

AU - Torkkeli, Lasse

AU - Ahi, Ali

AU - Saarenketo, Sami

N1 - Rissanen, T. The role of home market context in business model change in internationalizing SMEs / T. Rissanen, L. Ermolaeva, L. Torkkeli, A. Ahi, S. Saarenketo // European Business Review. - 2020. - Volume 32, Issue 2. - P. 257-275. Publisher Copyright: © 2020, Emerald Publishing Limited.

PY - 2020/4/3

Y1 - 2020/4/3

N2 - Purpose: This paper aims to explore the underlying reasons for business model change among internationalizing SMEs and illustrate how home market context affects that change. Design/methodology/approach: This is a comparative case study of two companies with similar backgrounds from different countries of origin. In each case, the data were collected by means of in-depth interviews with key informants. For its theoretical background, the study draws on the business model innovation and international business literature. Findings: The authors found that home market context has two kinds of effect on business model change in internationalizing SMEs. First, home market maturity has a strong effect on the timing of companies’ internationalization efforts. Second, the company’s home market can either be used to strengthen the value proposition or may be disguised, depending on how the country of origin is seen in international markets. This factor has a strong influence on how SMEs change their business model when internationalizing. Research limitations/implications: The study’s limitations relate to its qualitative and exploratory nature. Future research should further assess the generalizability of these findings across different cultural contexts and countries of origin by quantifying the central concepts and examining how they relate to larger-scale cross-national and cross-sectional panel data. Practical implications: As internationalization increasingly poses both threats and opportunities, companies must be able to experiment with business models when necessary to adapt to the host market. In so doing, it is also important to consider how a company’s home market affects business model change. Originality/value: This is one of the first studies to illustrate how the process of internationalization drives SMEs to change their business models. As such, the paper enhances existing understanding of business model change in the context of internationalization. To our knowledge, no previous study has described these dynamics in a comparative context that takes account of SME country of origin.

AB - Purpose: This paper aims to explore the underlying reasons for business model change among internationalizing SMEs and illustrate how home market context affects that change. Design/methodology/approach: This is a comparative case study of two companies with similar backgrounds from different countries of origin. In each case, the data were collected by means of in-depth interviews with key informants. For its theoretical background, the study draws on the business model innovation and international business literature. Findings: The authors found that home market context has two kinds of effect on business model change in internationalizing SMEs. First, home market maturity has a strong effect on the timing of companies’ internationalization efforts. Second, the company’s home market can either be used to strengthen the value proposition or may be disguised, depending on how the country of origin is seen in international markets. This factor has a strong influence on how SMEs change their business model when internationalizing. Research limitations/implications: The study’s limitations relate to its qualitative and exploratory nature. Future research should further assess the generalizability of these findings across different cultural contexts and countries of origin by quantifying the central concepts and examining how they relate to larger-scale cross-national and cross-sectional panel data. Practical implications: As internationalization increasingly poses both threats and opportunities, companies must be able to experiment with business models when necessary to adapt to the host market. In so doing, it is also important to consider how a company’s home market affects business model change. Originality/value: This is one of the first studies to illustrate how the process of internationalization drives SMEs to change their business models. As such, the paper enhances existing understanding of business model change in the context of internationalization. To our knowledge, no previous study has described these dynamics in a comparative context that takes account of SME country of origin.

KW - Business model change

KW - Business models

KW - Home market context

KW - Internationalization

KW - SCOPUS

KW - РИНЦ

UR - http://www.scopus.com/inward/record.url?scp=85077673541&partnerID=8YFLogxK

U2 - 10.1108/EBR-09-2018-0168

DO - 10.1108/EBR-09-2018-0168

M3 - Article

VL - 32

SP - 257

EP - 275

JO - European Business Review

JF - European Business Review

SN - 0955-534X

IS - 2

ER -