What Makes a Global Business Model?

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Author(s): Oleksiy Osiyevskyy (University of Calgary, Canada & Northeastern University, USA), Milena Troshkova (Northeastern University, USA)and Yongjian Bao (University of Lethbridge, Canada)
Copyright: 2018
Pages: 21
Source title: Geopolitics and Strategic Management in the Global Economy
Source Author(s)/Editor(s): Angelo Presenza (University of Molise, Italy)and Lorn R. Sheehan (Dalhousie University, Canada)
DOI: 10.4018/978-1-5225-2673-5.ch002

Keywords: Business & Management / Business Science Reference / Economics and Economic Theory / Global Business

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Abstract

A firm's business model is an essential mechanism determining how an organization creates value for its stakeholders and captures part of the created value as profit for its owners. Global enterprises secure their market positions through properly functioning business models that are globally scalable. Once a globally scalable business model is successfully designed and validated in one location, it becomes a non-location-bound firm-specific advantage, promoting the firm's international expansion. This chapter addresses the following research questions: (1) What is the role of a business model in the success of global enterprises? (2) Which common attributes do business models of successful global companies possess? and (3) How to make a business model more suitable for global expansion? The theoretical analysis of these questions yields a conceptual framework for examining the global companies through the business model lens. The developed conceptual framework is illustrated and corroborated with the mini-cases of global companies.

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