On the interrelationship between business model innovation and internationalization: A critical review and empirical research.

This cumulative dissertation addresses the emerging field of research on the interrelationship between business model innovation and internationalization. Research on internationalization is well-represented in the literature, while research on business models and business model innovation only emerged in the 2000s, and has been growing steadily since. Despite a nexus between business model innovation and internationalization frequently existing in practice, the nature and workings of this relationship are not well-documented in the literature. Therefore, the main objective of this thesis is critically reflecting on existing research, identifying knowledge gaps and contributing to a better understanding of this particular relationship. The first study systematically reviews articles on the nexus between business model innovation and internationalization. The aim of this review is twofold: first, to identify the body of relevant research; and, second, to discover to what extent research in this area follows a process-oriented approach. Of 800 articles gathered from different scientific databases, 71 were included in the final review. The main topics identified in the articles under review deal with theoretical approaches, the interrelationship of business model innovation and internationalization itself, contextual factors, resources and capabilities, as well as processes. Few articles were found to clearly promote a process perspective (based on process-theory and process data); a high number of articles used process data, but without enhancing process theory. Future research should clarify the relationship between BMI and internationalization, the effect of BMI on international per-formance, and to advance theory in this context. The second paper addresses the research gap on how business model innovation is related to the success of an international venture of a firm. Based on Autio’s (2017) Strategic Entrepreneurial Internationalization framework and the Uppsala model of internationalization (Johannson & Vahlne, 1977), it is tested whether business model innovation (BMI) affects the success of a firm’s international venture and to which extent this relationship is influenced by internal and external dimensions of a gradual internationalization process (psychic distance, international experience, and resource commitment). Collecting data from 243 firms in Austria, Italy, and Slovenia, and using a multiple hierarchical regression model, results reveal a highly significant relationship between business model innovation and the success of an international venture. Additionally, it was found that psychic distance, international experience, and resource com-mitment positively moderate this relationship. The results of the study suggest that making the right changes in a business model during an important internationalization process can considerably raise the chances of the success of a firm’s international venture. However, the effect depends on internal and external dimensions typical for a stepwise internationalization process. The paper also contributes to theory by offering a new stage logic to explain how firms interna-tionalize with business model innovation. The third paper investigates when and how firms change their business model in the context of internationalization, through application of a multiple case study design based on the dynamic states approach (Levie & Lichtenstein, 2010). In instances where business model innovation results in or leads to internationalization, incremental adaptions in an organization’s business model occur more often than radical changes. These incremental adaptions can take place independently from radical changes. Furthermore, this paper presents four patterns of radical change and eight types of incremental adaptions, which are linked to process-, marketing-, organization- and product-related BMI.