Internationalization and the Need of Business Model Innovation

7. Final Considerations

This article presents a theoretical investigation of the construct 'BMI' and the internationalization process of a firm based on entry modes. Based on literature review, we identified that little is known about the relation between these two subjects. Some research projects on BMI already consider the international environment, to our knowledge, until this date, no one had already established a relation with entry modes. Taking this gap under consideration, we wrote a literature review about entry modes. This review focused on the analysis of the confrontation of entry modes with the main concept of BM and its elements developed by Amit and Zoot and Zoot and Amit. Considering three elements, the potential level of impact in the need for innovation that each entry mode may generate in a company was identified. At the same time, Zhang, Zhao, and Xu's model was used to relate the types of entry modes and the type of BMI. Exports and contractual agreements appeared to be more related to induction and imitation, and FDI to original innovation.

Considering the lack of applied research focusing on this subject, this research was conducted to develop some propositions that could lead to an exploratory research. This paper is restricted to the lack of previous research, but the development of a theoretical basic model to start the discussion about the relation of BMI and entry modes was necessary. Empirical investigation is required for advancement in the study of these fields of knowledge. We suggest the development of some case studies focusing on the analysis of the internationalization process and the impacts of it on its BM. Like a previous research on this, we have already investigated some papers on case studies that present internationalization process and we have identified that most of them do not present all the required information to be used as a complete base for this kind of investigation. The main reason is that the concept of BM was not included as an investigation variable and parts of the required information might not be well investigated. Because of that, some case studies as an exploratory investigation are recommended. Even though a survey is a very important research method that allow us to investigate a broader number of companies, we were not able to identify in literature a consistent base of knowledge to identify the variables to be investigated in a deeper investigation model. More research is required to identify these variables. Most of the papers on BM and BMI are theoretical or case studies investigations of technology-based companies or start-ups. Little is known about these innovations in more mature industries.

Other future studies recommendations regard the analysis of the variables that could influence the BMI, as the nature of the industry and the product. The adoption of different entry modes at the same time could imply in different impacts. In this paper, each entry mode was isolated as we consider each concept when investigating the level of impact on BM elements and the type of BMI. A study of a company that adopts different entry modes may lead to the understanding of these relationships. The identification of the variables that will influence the impact on the elements of a BM as a consequence of the internationalization process may represent a first effort on this recommendation.

From an academic point of view, one must consider that the propositions presented in this paper and the theoretical model should be viewed as future research guidelines. They cannot be considered as replicable results. Our effort was to integrate the discussion about BMI and internationalization through different entry modes, as there was a gap related with the connection of these topics. The use of the knowledge presented in this paper will support the improvement of the two research fields. From an executive perspective, the results may be used as a way to understand that the internationalization implies on a company's BM, and the need of innovation may not only be related with products and services, but also with the business as a whole. BMI can be a consequence of the international exposure of the firm and the understanding of the different elements of and types innovation can lead to a better strategy that assure competitiveness.

This article discussion, propositions, and model start explaining how the internationalization of a firm will lead to BMI decomposing it by its elements and types. It represents the first effort aiming at analyzing the need for a business model innovation as a consequence of the internationalization process through the adoption of different entry modes, thus, more research is required.