In recent years, the concept of business models has gained substantial attention in strategic management literature, as researchers and management practitioners realize that business model is the primary mechanism for value creation and appropriation by firms in a market economy. As such, a...

One of the main challenges for scholars studying micro-level international expansion is to identify new proxies for firm-specific advantages (FSAs), in lieu of - or in addition to - strengths in R&D/patents and advertising/brand names, and to predict which firms are most likely to engage earlier...

Transaction Cost Economics (TCE) as developed by Williamson, builds upon two behavioral assumptions: bounded rationality and opportunism. TCE studies governance mechanisms that “organize transactions so as to economize on bounded rationality while simultaneously safeguarding them against the...

In this chapter we address the lack of sufficient entrepreneurship in multinational enterprises that seek to improve their ability to achieve national responsiveness. The main reason for this deficiency appears to be the transfer of proven routines from the home country, even when it is clear...

Firms face a ceaseless dilemma of adaptation to their environments by embracing the right combination of exploration/exploitation strategies. Regarding this quandary’s long-term impact, we propose a novel theoretical model linking the pursuit of exploration and exploitation approaches and the...

Value implications of corporate social responsibility (CSR) have been extensively studied in the existing literature. Yet, most prior investigations of this relationship analyze CSR’s impact on the level of firm value across different contexts without considering the risk associated with such...

We develop a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (i) explorative adoption of a disruptive business model, (ii) exploitative strengthening of the existing business model. We derive and test hypotheses concerning the...

Building upon the theoretical insights of the literature on organizational routines and "activity system" perspectives on business models, we propose a multi-level theory of business model innovation that explains business model dynamics within established firms, integrating the processes...

Management scholars and practitioners generally agree that the primary functions of a business model are value creation and value capture. However, the meaning (conceptualization) of these terms, their measurement, and the factors and mechanisms affecting them remain contentious. In the current...