Business model innovation (BMI) is an important carrier for the rapid growth of emerging market enterprises. Yet, the role of the institutional context in BMI themes has seemingly received little attention in the literature. This study aims to conceptualise the BMI themes by integrating the business model theory with institutional attributes of BMI. Drawing on the literature, we propose two BMI themes – pioneering and perfecting, where pioneering BMI creates new market rules and perfecting BMI improves existing transaction rules. Following three sequential studies, we developed and empirically validated the scales of the two themes using two separate primary datasets collected in China. The results suggest that both transactional innovation and legitimacy building are critical to BMI in the emerging market. We contribute to the BMI theory by incorporating institutional attributes to the BMI themes, which allows a better understanding of the BMI activities of emerging market enterprises.
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FunderThe work was funded by the Ministry of Education of the People’s Republic of China (19YJA630052), the General Project for Natural Science Foundation of Zhejiang Province in China ( LY19G020008 ), and the Post-funding Project for the National Social Science Fund of China ( 19FGLB015 ).
- Business model innovation (BMI)
- Emerging market enterprise
- Innovation theme
ASJC Scopus subject areas