Managing dual business models in emerging markets: An ambidexterity perspective
Journal
R & D Management
ISSN
0033-6807
ISSN-Digital
1467-9310
Type
journal article
Date Issued
2016-06
Author(s)
Abstract
Research on dual business models has highlighted the challenge for firms when they compete with different business models in a market. Drawing from ambidexterity literature, we investigate the question how firms integrate or separate business models on the level of value chain activities, which constitute the core operational activities within each business model. We employ a qualitative research approach based on eleven case studies of Western firms that implemented a low-cost business model in parallel to their premium business model in emerging markets. We find that firms may become ambidextrous in their business models by means of domain separation. In doing so, firms may separate value chain activities to address different additional customer segments in emerging markets. This study contributes to the emerging topic of dual business models and provides the ground for future research on ambidexterity in a global context.
Language
English
Keywords
Dual business models
ambidexterity
domain separation
low-cost business models
emerging markets
multinational corporations
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Wiley-Blackwell
Publisher place
Oxford
Volume
46
Number
3
Start page
464
End page
479
Pages
33
Subject(s)
Division(s)
Eprints ID
241246