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Business Model Innovation as a Result of Opportunity-Based Disruption
Abstract
Path-breaking international opportunities are a source of disruption for firms. This chapter argues that international opportunities trigger firm growth, and the firm itself evolves in the process, on the level of both organisational structure and business model. The authors report on a longitudinal study which traced the international trajectory of seven case study firms and finds that the organisational structure of a firm—namely the role of who leads the opportunity-development effort for the firm; the financing of international growth; and the role of the Board of Directors—does prepare the firm for evolution of its business model. However, the key trigger of business model change originates from outside the firm, when a path-breaking international opportunity leads the firm to develop new revenue streams or new market entry modes; or ways of capturing value changes the way the firm enacts commercial opportunity.
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