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Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market.

This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation.

The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets.

The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity.

Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency.

Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.

The year 2013-14 was very significant for Raychem RPG Ltd (RRL) - a joint venture between RPG group, India and TE Connectivity, USA. The sales were looking up and order book was promising. Newly restructured units were working well and business in new segments was picking up. There were several initiatives undertaken by the CEO in last five years of his tenure. His team had achieved the desired stability and turnaround was successful. A high-growth future in a slowing global economic scenario had to be converted into a more profitable opportunity. However, he faced several questions. Was the strategic transformation journey that he embarked on four years ago complete? Could he have done something different? Which were the areas where the next focus should be? Did RRL have the required competences to succeed in those areas? How would RRL manage the changing expectations of the two JV partners?

This study aims to examine how foreign and domestic firms react to policy uncertainty in an emerging economy. In addition, the study investigates if older foreign firms better adapt to policy uncertainty than newer entrants.

The study uses pharmaceutical sales data on India’s cardiovascular segment for January 2011–May 2016. The authors use fixed fixed-effects panel data regression to measure the market reactions of foreign and domestic firms faced with policy uncertainty.

While domestic and foreign firms react similarly to anticipated policy changes, foreign firms react more adversely to policy uncertainty. Among foreign firms, early entrants respond less adversely than new entrants.

Foreign firms are able to cope with anticipated policy changes in similar vein as the domestic firms by way of a priori reading of the host country’s regulatory landscape. The foreign firms’ response to policy uncertainty is significantly different from domestic firms. The difference between the market response of foreign and domestic firms decreases over time.

The authors' findings demonstrate that adaptability is the key for new foreign firms to face policy uncertainty. Foreign firms can respond to policy changes, especially the unanticipated ones by imbibing local practices.

The authors' findings suggest that enhanced policy uncertainty hurts foreign firms more adversely than domestic firms, and newer foreign firms are more hurt with policy uncertainty than the existing ones. Such uncertainty could also have unintended consequences for consumer welfare.

The authors' study uses two natural experiments in the same industry within short periods of time. The comparison offers key insights on the differences in domestic and foreign firm responses to the two types of policy uncertainty.

In this paper, the authors undertake a systematic analysis of multinationality–performance (M-P) literature published in the last decade, when antecedents for internationalization and moderators of the M-P relationship had attained a center stage in international business and international management research. Though M-P relationship is one of the most widely studied topics within international business literature, so far synthesis of the entire theoretical landscape is missing in extant literature.

Through keywords search process, the authors found 111 studies in management literature that look at internationalization, its antecedents, performance of internationalized firms, and moderators of the M-P relationship. The focus of this study is to identify theoretical foundations used to explain the antecedents and moderators in M-P relationship, in order to suggest the future research direction for the field. The authors classify the antecedents and moderators based on their theoretical underpinnings not only to identify commonly used theoretical foundations in the last 10 years of international strategy research but also to highlight potential areas for future research.

The authors’ analysis indicates that research on international strategy in the last decade was dominated by theory testing in the context of developed economies. The authors’ review suggests that majority of the antecedents and moderators in the M-P relationship are anchored within institutional theory, organizational structure, resource-based view, social capital, and upper echelon theory.

The authors’ findings are indicative of a rich research potential of M-P relationship in the contextual research setting of emerging markets while leveraging more diversified theoretical bases and multiple levels of research design.

This case describes the evolution of MHFC, a player in the Indian informal housing sector. As a new entrant offering micro home loans to the financially excluded lower income families of urban India in 2008, MHFC had grown to an annual number of 18,000 loans worth INR 8 billion with an average ticket size of INR 0.43 million (USD 6,000).

With a 53.5% purchasable equity stake in MHFC, Chopra and his team were left with certain decisions to make. Should the company on-board a new social investor? Or should it bring on the more readily available and capital-rich private equity investors interested in the lucrative prospects of the microfinance housing sector?

The case discusses two key objectives: (1) to understand the entire entrepreneurial journey of a group of entrepreneurs and how they plan to exit the venture, and (2) to enable classroom discussion on how to develop a business model from scratch, get it funded, achieve scale and then exit.

What started as a FMCG distributor in 1967 in Kenya as Export Finance Company, is now a dynamic global conglomerate across 48 countries and 5 continents — Export Trading Group. ETG was taken over by the then CFO Mahesh Patel after exit of the founding stakeholders. It was then when the company shifted its focus to being a key regional player. In the next 35 years, the company grew systematically. Business focus evolved when Patel saw an opportunity in logistics in remote sub-Saharan Africa. This was followed by business expansion with supply chain diversification and significant infrastructure investments. All the different businesses amalgamated under a single group for better operations and ease of scaling up. They were later divided into six separate verticals for better management. Vamara (FMCG vertical) was launched in 2018 as the company moved towards digitalisation — externally and internally. ETG plans to focus on new business opportunities and continue to diversify across geographies and portfolios.

The case describes the internal growth workshop initiative at Vedanta Group. Anil Agarwal in 1976 founded Vedanta as a scrap-metal dealership in Mumbai (then Bombay). Over the years, Anil pursued a very aggressive growth journey with a vision to create a leading global natural resource company. The principal objective of discussing this case is to understand how Vedanta introduced this initiative and how it fits within the strategic human resource management at the group.

This case describes a situation in which Malkit Singh Bal (Bal) partner of Bal Roadlines shares with Mr. Ghura, who was about to be hired as consultant for Bal Roadlines, about the rise in issue of fraud and crime done by the fleet drivers and asked him to help a way out to solve the problem. The purpose of this case is to provide an opportunity to the participants of an MBA or Management Executive Education Programme to step into the shoes of Ghura, a consultant and to explore the options and to select the best possible option to offer a solution to Bal. The context for this involvement is the rise in fraud and crime done by the fleet drivers.

AuthBridge is a leading Background Screening & Risk Assessment Company. Founded in 2005, its mission is to be among the top and dominant in every line of business it undertakes with its creative, continually improving solutions. AuthBridge has 200 clients in 2015, and wishes to grow to serve 2000 clients by 2020. The case outlines the process it has adopted till date, and the journey of entrepreneur in terms of how he reached there. The founder faces the dilemma of whether he should scale this business model in other countries (emerging markets?) and what part of his model should be imitated and what part adapted. Through this case learners can understand the entrepreneurial journey of a serial entrepreneur and how he identified an opportunity in the market. The case also enables classroom discussions on developing a business model from the scratch, and how to set up efficient processes in a new venture.

The purpose of this paper is to investigate the capabilities of social entrepreneurship (SE) firms and how they achieve competitive advantage while engaging in social value creation. The authors employ a business model perspective to understand the (self-) sustaining mechanism for social good.

The authors carry out an in-depth investigation of three SE ventures. The authors analyse the history of these ventures to determine how they achieved competitive advantage. The cases are analysed based on the internal development in the context of environmental support.

The authors find that SE ventures, like all other organisations, achieve competitive advantage based on available resources such as reputation and network of the founder, managerial experience and other corporate resources within the firm. The authors also find that the competitive advantage often comes from innovate usage – a practice that is reinforced by the support from institutional environment.

Due to the case study approach, the research is aimed at theoretical development within the social business literature. The approach makes it difficult for the findings to be universally generalisable. The authors therefore envisage future researchers to test the theoretical propositions.

Based on the analysis, the authors conclude that distinct capabilities of social businesses help them achieve competitive advantage, and that policy makers should institutionally support these ventures. The findings stress the importance of resources in sustainability and effectiveness of emerging market SE.

The application of a business model perspective in SE is unique, and advances the understanding of social businesses from a strategic management perspective.