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How External Factors Influence Business Model Innovation: A Study of the Bosch Group and the Chinese Automotive Aftermarket
Author(s) -
Wang Hua,
Kimble Chris
Publication year - 2016
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.21712
Subject(s) - automotive industry , business , industrial organization , business model , investment (military) , principal (computer security) , marketing , computer science , engineering , aerospace engineering , politics , political science , law , operating system
Adapting existing business models for use in developing economies poses particular challenges for established firms. Yet, few studies have separated stable internal factors from the novel external factors that drive change in the existing business model. The Bosch Group's investment in the Chinese automobile aftermarket highlights the impact of four principal external factors—industry, technology, institutions, and market—on business model innovation. A proposed framework comprising these factors offers managers who are charged with expanding into a developing economy guidance in modifying an existing business model to suit local conditions. By so doing, they will be better equipped to ensure the attainment of organizational objectives in their new setting. © 2016 Wiley Periodicals, Inc.