Managing dual business models in emerging markets: an ambidexterity perspective

Research on dual business models has highlighted the challenge for firms when they compete with different business models in a market. Drawing from ambidexterity literature, we investigate the question of how firms integrate or separate business models at the level of value chain activities, which c...

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Bibliographic Details
Published in:R & D management 2016-06, Vol.46 (3), p.464-479
Main Authors: Winterhalter, Stephan, Zeschky, Marco B., Gassmann, Oliver
Format: Article
Language:English
Subjects:
Business models
Emerging markets
Market strategy
Qualitative research
Value chain
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Summary:Research on dual business models has highlighted the challenge for firms when they compete with different business models in a market. Drawing from ambidexterity literature, we investigate the question of how firms integrate or separate business models at the level of value chain activities, which constitute the core operational activities within each business model. We employ a qualitative research approach based on 11 case studies of Western firms that implemented a low‐cost business model in parallel to their premium business model in emerging markets. We find that firms may become ambidextrous in their business models by means of domain separation. In doing so, firms may separate value chain activities to address different additional customer segments in emerging markets. This study contributes to the emerging topic of dual business models and provides the ground for future research on ambidexterity in a global context.
ISSN:0033-6807
1467-9310
DOI:10.1111/radm.12151