26th International Association for Management of Technology Conference - IAMOT 2017

By selecting four processes of new market entry for long-lived companies with orientation to continue to renew their business model, this work proposed to analyze these strategies, guided by the research question: How is the new market entry strategy related to the configuration of the business model? The qualitative case studies, enabled to visualize the heterogeneous processes used by the companies with recursive effects between these two constructs to be identified; one as a strategy and the other as an organizational base for its effectiveness. The work also highlights propositions and recommendations for future studies inherent to the proposed theoretical framework. Long-lived companies, unlike companies that cease their activities prematurely, may have succeeded in maintaining their capacity to meet the new demands of stakeholders, especially those in their markets, through constant strategic reactivation. The demand-side looks toward markets, coupling with customers (Danneels, 2003), rather than factor market and producers, to explain managerial decisions that increase value creation (Priem, Li & Carr, 2011). By selecting four processes of companies oriented to renew their business model continuously, this study proposed to analyze three new market entry strategies guided by the research question: How is the new market entry strategy related to the configuration of the business model? New market entry strategies have to do with the initiatives of the company regarding: a) examining flaws in the current or emerging market; b) the possibility of employing the capabilities of the companies in the new market; and c) adapting the company to the new market structure and costs. This question refers to recognizing that consumers’ heterogeneity of demand contributes to the business heterogeneity (Adner & Snow, 2010), and related to the business model. Thus, it is understood that new market entry means a new configuration of the business model, which provides the operational and administrative base required to enact the company strategies in the new market. Therefore, the adequate configuration of the business model was found to be capable of generating administrative support for effective changes that began with new strategic practices. The data also show that the companies’ new market entry strategies lead to different processes and practices that are adapted to the operational conditions, resources and previously existing capabilities in the business model. In these cases, there are changes in the analysis and reconfiguration of products, in the definition of the markets involved, the routines of administrative processes, resources and operations and the creation of value. These have higher or lower levels of emphasis depending on the characteristics of each commercial activity. Therefore, validating the original proposition, it may be suggested that the capacity of the business model to create value is directly affected by support for the strategy. As the strategy defines the changes to be made to the business model to make it effective, the strategic actions in question helped to gauge the effective choice of new market entry strategy of the companies. In the four cases, a strong relationship was identified between the strategic actions chosen by the managers and the business model recursively. Their effectiveness can be proved because their actions are supported by new configurations of the business model.