Skip to main content
SpringerLink
Log in

Internationalization, innovation and entrepreneurship: business models for new technology-based firms

  • Published:
Journal of Management & Governance Aims and scope Submit manuscript

Abstract

New technology-based firms, particularly those that develop their business around a new technological platform, are likely to be impacted by globalization, in terms of both pace of innovation and pressure of competition. For these firms, strategic decisions and growth processes are characterized by a deep inter-relationship amongst the processes of internationalization, innovation and entrepreneurship; processes which have tended to be examined independently in distinct bodies of literature. In practice strategic decisions concern each of these processes and address issues such as organizational boundaries, location of the operational activities, what activities to focus on and selection of value partners. The business model by which firms operate needs also to accommodate the spatial dimensions indicated by globalization; and the emergence of global technology markets. Little is known to date about the extent to which business models accommodate or are adapted to internationalization, innovation and entrepreneurship. This paper presents a review of the business model literature from which a generic business model framework is derived, identifying and introducing the main elements of these processes as the firms’ focus, modus and locus. This contribution makes a clear distinction between the business model and the strategy concepts and highlights the relevance of location decisions—not considered by extant business model literature to date. While our discussion draws on the high technology new venture as our primary example, we believe our business model conceptualization has general applicability.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Afuah, A., & Tucci, C. L. (2001). Internet business models & strategies. Text & cases. New York: McGraw-Hill International Edition.

    Google Scholar 

  • Allee, V. (2000). Reconfiguring the value network. Journal of Business Strategy, 21(4), 36–39.

    Article  Google Scholar 

  • Alt, R., & Zimmermann, H.-D. (2001). Introduction to special section—business models. Electronic Markets, 11(1), 1019–6781.

    Google Scholar 

  • Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33–46.

    Article  Google Scholar 

  • Amit, R., & Zott, C. (2001). Value creation in e-business. Strategic Management Journal, 22(6/7), 493–520.

    Article  Google Scholar 

  • Andersen, O. (1993). On the internationalisation process of firms: A critical analysis. Journal of International Business Studies, 24(2), 33–46.

    Article  Google Scholar 

  • Andersen, O. (1997). Internationalisation and market entry mode: A review of theories and conceptual frameworks. Management International Review, 37(Special Issue 2), 27–42.

    Google Scholar 

  • Andrews, P. P., & Hahn, J. (1998). Transforming supply chains into value webs. Strategy & Leadership, 26(3), 6–11.

    Google Scholar 

  • Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, (September–October), 113–124.

  • Applegate, L. M. B. (2001). Building information age businesses for the 21st century. In P. B. Lowry, J. O. Cherrington, & R. R. Watson (Eds.), e-business handbook (pp. 1–32). USA: St. Lucie Press.

    Google Scholar 

  • Auer, C., & Follack, M. (2002). Using action research for gaining competitive advantage out of the internet’s impact on existing business models. 15th Bled Electronic Commerce Conference, Bled, Slovenia.

  • Autio, E. (1997). New technology based firms in innovation networks: Symplectic and generative impacts. Research Policy, 26(3), 263–281.

    Article  Google Scholar 

  • Betz, F. (2002). Strategic business model. Engineering Management Journal, 14(1), 21–27.

    Google Scholar 

  • Brouthers, K. D., & Nakos, G. (2004). SME entry mode choice and performance: A transaction cost perspective. Entrepreneurship: Theory and Practice, 28(3), 229–247.

    Article  Google Scholar 

  • Brush, C. (1992). Market place information scanning activities of new manufacturing ventures. Journal of Small Business Management, 30(4), 41–53.

    Google Scholar 

  • Chesborugh, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from xerox corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529–555.

    Article  Google Scholar 

  • Chesbrough, H. W. (2003). Open innovation: The New Imperative for Creating and Profiting from Technology. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Chesbrough, H. W. (2004). The sustainability of technology markets. Journal of Management and Governance, 8, 117–120.

    Article  Google Scholar 

  • Chesbrough, H. W. (2006). Open business models. How to thrive in the new innovation landscape. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Chesbrough, H. W. (2007). Why companies should have open business models. MIT Sloan Management Review, 48(2).

  • Christensen, G. E., & Methlie, L. B. (2003). Value creation in e-business: Exploring the impacts of internet-enabled business conduct. 16th bled e-commerce conference e-transformation (pp. 27–43). Slovenia: Bled.

    Google Scholar 

  • Christensen, C., & Rosenbloom, R. S. (1995). Explaining the attacker’s advantage: Technological paradigms, organizational dynamics, and the value network. Research Policy, 24, 233–257.

    Article  Google Scholar 

  • Collico Savio, D. (2001). Internet business models. Working Paper.

  • Cotta Ramusino, E., & Onetti, A. (2005). Strategia d’impresa. Obiettivi—contesto—risorse—azioni—sviluppo—innovazione.. Milano: il Sole 24 ORE.

    Google Scholar 

  • D’Aveni, R. A., & Gunther, R. E. (1994). Hypercompetition. Managing the dynamics of strategic maneuvering. New York, NY: Maxwell Macmillan International.

    Google Scholar 

  • De, R., Mathew, B., & Abraham, D. M. (2001). Critical construct for analyzing e-business: Investment, user experience and revenue models. Logistics Information Management, 14(1/2), 137–148.

    Article  Google Scholar 

  • Delay, L., Mehrotra, V., & Sivakumar, R. (1997). Corporate focus and value creation. Evidence from spinoffs. Journal of Financial Economics, 257–281.

  • Donath, R. (1999). Taming e-business models. ISBM Business Marketing Web Consortium, 3(1), 1–24.

    Google Scholar 

  • Doz, Y. L., Santos, J., & Williamson, P. (2001). From global to metanational: How companies win in the knowledge economy. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Dubosson-Torbay, M., Osterwalder, A., & Pigneur, Y. (2002). E-business model design, classification and measurements. Thunderbird International Business Review, 44(1), 5–23.

    Article  Google Scholar 

  • Dunning, J. H. (1988). Explaining international production. London: Allen & Unwin.

    Google Scholar 

  • Dunning, J. H. (1998). Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29(1), 45–66.

    Article  Google Scholar 

  • Fenny, D. F., & Willcocks, L. P. (1998). Core IS capabilities for exploiting information technology. Sloan management review, 39(3), 9.

    Google Scholar 

  • Finger, P., & Aronica, R. (2001). Value chain optimization: the new way of competing. Supply Chain Management Review, September/October.

  • Gereffi, G., & Korzeniewicz, M. (1994). Commodity chains and global capitalism. Westport, CT: Praeger Publishers.

    Google Scholar 

  • Glick, L. J. (2008). Biotechnology business models work: Evidence from the pharmaceutical marketplace. Journal of Commercial Biotechnology, 14(2), 106–117.

    Article  Google Scholar 

  • Golinelli, G. M. (2010). Viable systems approach (vsa). Governing business dynamics. Padova: Cedam.

    Google Scholar 

  • Gordijn, J., & Akkermans, H. (2001). E3-value: Design and Evaluation of e-Business Models. IEEE Intelligent Systems, Special issue on intelligent e-business.

  • Gordijn, J., & Akkermans, J. M. (2003). Value-based requirements engineering: Exploring innovative e-commerce ideas. Requirements Engineering, 8, 114–134.

    Article  Google Scholar 

  • Gordijn, J., Akkermans, H., & van Vliet, H. (2000a). What’s in an electronic business model? In R. Dieng & O. Corby (Eds.), Knowledge Engineering and Knowledge Management Methods, Models, and Tools (pp. 257–273). Berlin: Springer.

    Chapter  Google Scholar 

  • Gordijn, J., Akkermans, H., & van Vliet, H. (2000b). Business modelling is not process modelling. In S. Liddle, H. Mayr, & B. Thalheim (Eds.), Conceptual modeling for e-business and the web (pp. 40–51). Berlin: Springer.

    Chapter  Google Scholar 

  • Hamel, G. (2000). Leading the revolution. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Hargadon, A. B., & Douglas, Y. (2001). When innovations meet institutions: Edison and the design of the electric light. Administrative Science Quarterly, 46(3), 476–501.

    Article  Google Scholar 

  • Hawkins, R. (2001). The Business Model as a Research Problem in Electronic Commerce. STAR (Socio-economics Trends Assessment for the Digital Evolution) IST Project, Issue Report No. 4, SPRU—Science and Technology Policy Research.

  • Hedman, J., & Kalling, T. (2003). The business model concept: Theoretical underpinnings and empirical illustrations. European Journal of Information Systems, 12, 49–59.

    Article  Google Scholar 

  • Hoppe, G., & Breitner, M. H. (2003). Business models for e-learning. Discussion Paper No., 287, 1–17.

    Google Scholar 

  • Hoque, F. (2002). The alignment effect: How to get real business value out of technology. Upper Saddle River, NJ: Financial Times Prentice Hall.

    Google Scholar 

  • Hordes, M. W., Clancy, J. A., & Baddaley, J. (1995). A primer for global start-ups. Academy of Management Journal, 9(2), 7–11.

    Google Scholar 

  • Horowitz, A. S. (1996). The real value of VARS: Resellers lead a movement to a new service and support. Marketing Computing, 16(4), 31–36.

    Google Scholar 

  • Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm—A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8, 23–32.

    Article  Google Scholar 

  • Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 51–59.

  • Jones, M. V. (1999). The internationalization of small high-technology firms. Journal of International Marketing, 7(4), 15–41.

    Google Scholar 

  • Jones, M. V. (2001). First steps in internationalization: Concepts and evidence from a sample of small high-technology firms. Journal of International Management, 7(3), 191–210.

    Article  Google Scholar 

  • Jones, M. V., & Coviello, N. E. (2005). Internationalization: Conceptualising an entrepreneurial process of behaviour in time. Journal of International Business Studies, 36(3), 284–303.

    Article  Google Scholar 

  • Jørgensen, F., & Ulhøi, J. (2009). Entrepreneurial emergence in the field of M-Commerce: A generic business model reconceptualization. Proceedings of The International Academy of E-Business 9th Annual Conference, April 9–12.

  • Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures the drive performance. Harvard Business Review, 70(1), 71–79.

    Google Scholar 

  • Kelly, K. (1998). New rules for a new economy: 10 Radical strategies for a connected world. New York, NY: Penguin Books.

    Google Scholar 

  • Knight, G. (2000). Entrepreneurship and marketing strategy: The SME under globalization. Journal of International Marketing, 8(2), 12–32.

    Article  Google Scholar 

  • Konde, V. (2009). Biotechnology business models: An indian perspective. Journal of Commercial Biotechnology, 15(3), 215–226.

    Article  Google Scholar 

  • Kothandaraman, P., & Wilson, D. T. (2001). The future of competition: Value-creating networks. Industrial Marketing Management, 30(4), 379–389.

    Article  Google Scholar 

  • Kuemmerle, W. (1999). The drivers of foreign direct investment into research and development: An empirical investigation. Journal of International Business Studies, 30(1), 1–24.

    Article  Google Scholar 

  • Kuemmerle, W. (2002). Home base and knowledge management in international ventures. Journal of International Venturing, 17(2), 99–122.

    Article  Google Scholar 

  • Linder, J., & Cantrell, S. (2001). Changing business models: Surveying the landscape. Accenture: Institute for Strategic Change.

    Google Scholar 

  • Magretta, J. (2002). Why business models matter. Harvard Business Review, 80, 86–92.

    Google Scholar 

  • Mahadevan, B. (2000). Business models for internet based e-commerce. An anatomy. California Management Review, 42(4), 55–69.

    Google Scholar 

  • March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87.

    Article  Google Scholar 

  • Markides, C. C. (1999). A dynamic view of strategy. MIT Sloan Management Review, 40(3), 55–63.

    Google Scholar 

  • Mason, K., & Leek, S. (2008). Learning to build a supply network: An exploration of dynamic business models. Journal of Management Studies, 45(4), 774–799.

    Article  Google Scholar 

  • Mayo, M. C., & Brown, G. S. (1999). Building a competitive business model. Ivey Business Journal, 63(3), 18–23.

    Google Scholar 

  • McDougall, P. P. (1989). International versus domestic entrepreneurship: New venture strategic behavior and industry structure. Journal of Business Venturing, 4(6), 387–399.

    Article  Google Scholar 

  • Mitchell, D. W., & Coles, C. B. (2004a). Business model innovation breakthrough moves. Journal of Business Strategy, 25(1), 16–26.

    Article  Google Scholar 

  • Mitchell, D. W., & Coles, C. B. (2004b). Establishing a continuing business model innovation process. Journal of Business Strategy, 25(3), 39–49.

    Article  Google Scholar 

  • Mitchell, D. W., Coles, C. B., Golisano, B. T., & Knutson, R. B. (2003). The ultimate competitive advantage: Secrets of continually developing a more profitable business model. San Francisco, CA: Berrett-Koehler Publishers.

    Google Scholar 

  • Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58(6), 726–735.

    Article  Google Scholar 

  • Onetti, A., Talaia, M., Presutti, V, Odorici, M., & Verma S. (2010). The role of serial entrepreneurs in the internationalization of global start-ups. A business case. Journal of Strategic Management Education (JSME), 6(1), 79–94.

    Google Scholar 

  • Onetti, A., & Zucchella, A. (2008). Imprenditorialità, internazionalizzazione e innovazione. II business model delle imprese biotech. Roma: Carocci.

    Google Scholar 

  • Osterwalder, A. (2004). The business model ontology. A proposition in a design science approach. These Présentée à l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne.

  • Osterwalder, A., & Pigneur, Y. (2002). An e-business model ontology for modelling e-business. 15th bled electronic commerce conference e-reality: Constructing the e-economy (pp. 1–12). Slovenia: Bled.

    Google Scholar 

  • Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of AIS, the association for information systems, 15, 1–40.

    Google Scholar 

  • Oviatt, B. M., & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25, 45–64.

    Article  Google Scholar 

  • Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537–554.

    Article  Google Scholar 

  • Pateli, A. G., & Giaglis, G. M. (2003). A framework for understanding and analysing e-business models. 16th bled electronic commerce conference eTransformation (pp. 1–20). Slovenia: Bled.

    Google Scholar 

  • Patzelt, H., zu Knyphausen-Aufseß, D., & Nikol, P. (2008). Top management teams, business models, and performance of biotechnology ventures: An upper echelon perspective. British Journal of Management, 19, 205–221.

    Article  Google Scholar 

  • Peters, E., & Young, S. (2006). Emerging busines models for biotechnology firms and clusters: Policy responses in peripheral regions in the EU. In A. T. Tavares & A. C. Teixeira (Eds.), Multinationals, clusters & innovation: Does Public Policy Matter?. London: Palgrave Macmillan.

    Google Scholar 

  • Petrovic, O., Kittl, C., & Teksen, R. D. (2001). Developing business models for e-business. Vienna: International Conference on Electronic Commerce.

    Google Scholar 

  • Porter, M. E. (1980). Competitive strategy: Techniquies for analyzing industries and competitors. New York, NY: Free Press.

    Google Scholar 

  • Porter, M. E. (1985). Competitive advantage. New York, NY: Free Press.

    Google Scholar 

  • Porter, M. E. (2000). Location, competition, and economic development: Local clusters in a global economy. Economic Development Quarterly, 14(1), 15–34.

    Article  Google Scholar 

  • Powell, W. W., White, D. R., Koput, K. K., & Owen-Smith, J. (2005). Network dynamics and field evolution: The growth of interorganizational collaboration in the life sciences. American Journal of Sociology, 110(4), 1132–1205.

    Article  Google Scholar 

  • Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review.

  • Preece, S. B., Miles, G., & Baetz, M. C. (1999). Explaining the international intensity and global diversity of early-stage technology-based firms. Journal of Business Venturing, 14, 259–281.

    Article  Google Scholar 

  • Presutti, M., Onetti, A., & Odorici, V. (2008). Serial entrepreneurship and born-global new ventures. A case study. International Journal of Entrepreneurship Education, 6, 255–278.

    Google Scholar 

  • Pyzdek, T. (2003). The six sigma handbook. New York, NY: McGraw-Hill.

    Google Scholar 

  • Rappa, M. (2001). Business Models on the Web. Retrieved July 20, 2009 from www.digitalenterprise.org: http://digitalenterprise.org/models/models.html.

  • Rayport, J., & Jaworsky, B. (2002). Cases in e-Commerce. Boston: McGraw-Hill.

    Google Scholar 

  • Richardson, J. (2008). The business model: An integrative framework for strategy execution. Strategic Change, 17(5–6), 133–144.

    Article  Google Scholar 

  • Schmid, S. (2009). Do we care about relevance in IB research? The problems of transferring our research to practice. 10th Conference on International Business, University of Vaasa, Vaasa, Finland, August.

  • Schweizer, L. (2005). Concept and evolution of business models. Journal of General Management, 31(2), 37–56.

    Google Scholar 

  • Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48(3), 199–207.

    Article  Google Scholar 

  • Slywotzky, A. J. (1996). Value migration. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Stewart, D. W., & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of Public Policy & Marketing, 19(2), 287–296.

    Article  Google Scholar 

  • Storey, D. J., & Tether, B. S. (1998). New technology based firms in the European Union. Research Policy, 26(9), 933–946.

    Article  Google Scholar 

  • Stuart, T. E., Ozdemir, S. Z., & Ding, W. W. (1997). Vertical alliance networks: The case of university—biotechnology—pharmaceutical alliance chains. Research Policy, 36(4), 477–498.

    Article  Google Scholar 

  • Tapscott, D. T. (1997). Strategy in the new economy. Strategy & Leadership, 25(6), 8–14, Publisher: MCB UP Ltd.

    Google Scholar 

  • Tapscott, D. T., Ticoll, D., & Lowy, A. (2000). Digital Capital—Harnessing the Power of Business Webs. Boston, MA: Harvard Business Press.

    Google Scholar 

  • Timmers, P. (1998). Business Models for Electronic Markets. Electronic Markets, 8(2), 3–8.

    Article  Google Scholar 

  • Treacy, M., & Wiersema, F. (1993). Customer intimacy and other value disciplines. Harvard Business Review, 84–93.

  • Van de Ven, A. H., & Walker, G. (1984). The dynamics of interorganizational coordination. Administrative Science Quarterly, 29(4), 598–621.

    Article  Google Scholar 

  • Van Der Vorst, J. G., Van Dongen, S., Nouguier, S., & Hilhorst, R. (2002). E-business initiatives in food supply chains; Definition and typoligy of electronic business models. International Journal of Logistics: Research and Applications, 5(2), 119–138.

    Google Scholar 

  • Vernon, R. (1966). International investment and international trade in the product cycle. The Quarterly Journal of Economics, 80(2), 190–207.

    Article  Google Scholar 

  • Viscio, A. J., & Pasternack, B. A. (1996). Toward a New Business Model. Retrieved July 20, 2009 from http://www.strategy-business.com/press/16635507/14974.

  • Voelpel, S., Leibold, M., Tekie, E., & Von Krogh, G. (2005). Escaping the red queen effect in competitive strategy: Sense-testing business models. European Management Journal, 23(1), 37–49.

    Article  Google Scholar 

  • Watson, D. (2005). Business Models. Petersfield: Harriman House Ltd.

    Google Scholar 

  • Weill, P., & Vitale, M. R. (2001). Place to space: Migrating to e-business models. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Welch, L. W., & Luostarinen, R. K. (1993). Inward-outward connections in internationalization. Journal of International Marketing, 1(1), 44–56.

    Google Scholar 

  • Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.

    Article  Google Scholar 

  • Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24(10), 991–995.

    Article  Google Scholar 

  • Yip, G. S. (2004). Using strategy to change your business model. Business Strategy Review, 15(2), 17–24.

    Article  Google Scholar 

  • Yli-Renko, H., Autio, E., & Tontti, V. (2002). Social capital, knowledge and the international growth of technology based new firms. International Business Review, 11(3), 279–304.

    Article  Google Scholar 

  • Zott, C., & Amit, R. (2007). Business Model design and the performance of entrepreneurial firms. Organization Science, 18(2), 181–199.

    Article  Google Scholar 

  • Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: Implications for firm performance. Strategic Management Journal, 29, 1–26.

    Article  Google Scholar 

  • Zucchella, A., Palamara, G., & Denicolai, S. (2007). The drivers of the early internationalization of the firm. Journal of World Business, 42(3), 268–280.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Economics, University of Insubria, Via Monte Generoso 71, 21100, Varese, Italy

    Alberto Onetti

  2. Faculty of Economics, University of Pavia, Via San Felice 5, 27100, Pavia, Italy

    Antonella Zucchella

  3. Business School, Department of Management, University of Glasgow, University Avenue, Glasgow, G12 8QQ, Scotland, UK

    Marian V. Jones

  4. Kelley School of Business, Indiana University, Bloomington, IN, 47405, USA

    Patricia P. McDougall-Covin

Authors
  1. Alberto Onetti
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Antonella Zucchella
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Marian V. Jones
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Patricia P. McDougall-Covin
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Alberto Onetti.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Onetti, A., Zucchella, A., Jones, M.V. et al. Internationalization, innovation and entrepreneurship: business models for new technology-based firms. J Manag Gov 16, 337–368 (2012). https://doi.org/10.1007/s10997-010-9154-1

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10997-010-9154-1

Keywords

Search

Navigation