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June 2016
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Amit Karna is a faculty in
Business Policy area. His research focuses on dynamic capabilities,
industrial clusters, innovation and internationalization of emerging market
firms.
karna@iima.ac.in karna@iima.ac.in
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Business Model Adaptation for Emerging Markets: A Case Study of a German Automobile Manufacturer in IndiaIn R&D Management, 46(3), January 21, 2016, 480–503 (Online Reference: DOI: 10.1111/radm.12201)Amit Karna, Christian Landau and Miriam Sailer Emerging markets offer a wide range of opportunities for
firms from developed markets, especially in terms of high growth potential.
However, business models that enable firms to achieve competitive advantage in
their home markets are often challenged by the different nature of emerging
markets. Firms, therefore, have to innovate and adapt their business models to
better fit the specific context of these international markets. Based on a
longitudinal case study of a German luxury automobile manufacturer's
internationalization to India, we develop a phase model of the business model
adaptation process to emerging markets. We find that firms adapt their business
models in four phases: international extension, local emergence, local
expansion, and local consolidation. Firms step-wise adjust business model
components along this process to develop a local emerging market business
model. In each phase of the business model adaptation process, firms emphasize
different components of the business model, before they enter into continuous
adjustments of all business model components. Furthermore, we find that firms
overall adjust some components of their business model more significantly than
others. Our findings are of particular relevance to the literature on business
model internationalization and the literature that points out the evolutionary,
step-wise nature of business model innovation.
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Abstracts of other articles published in refereed journals included in this issue
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Debjit Roy, Fabiana Tornese, Andres L. Carrano, Brian K. Thorn and Jennifer A. Pazour
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Ernesto Noronha, Premilla D’Cruz and Sarosh Kuruvilla
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Neharika Vohra and Rahul Chandra Sheel
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Poornima Varma and Akash Issar
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Jamus Jerome Lim and Sanket Mohapatra
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Rajesh Chandwani and Rahul Dey
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Viswanath Pingali, Federico Boffa and Francesca Sala
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Navdeep Mathur, Sejal Patel and Richard Sliuzas
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Ankur Sarin and Saravana Jaikumar
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Sachin Jayaswal, Navneet Vidyarthi and Vikranth Babu Tirumala Chetty
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Viswanath Pingali and Ratul Lahkar
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Manish Aggarwal and Madasu Hanmandlu
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