C espo, Nuno; C espo, Cá ia Fe nandes; Sil a, G aça Mi anda; Ba os, Bea iz
A icle
Changing he sails o su i e he s o m: S a egies ha
os e in e na ional business model inno a ion du ing a
c isis
Jou nal o Inno a ion & Knowledge (JIK)
P o ided in Coope a ion wi h:
Else ie
Sugges ed Ci a ion: C espo, Nuno; C espo, Cá ia Fe nandes; Sil a, G aça Mi anda; Ba os, Bea iz
(2024) : Changing he sails o su i e he s o m: S a egies ha os e in e na ional business model
inno a ion du ing a c isis, Jou nal o Inno a ion & Knowledge (JIK), ISSN 2444-569X, Else ie ,
Ams e dam, Vol. 9, Iss. 4, pp. 1-13,
h ps://doi.o g/10.1016/j.jik.2024.100584
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Changing he sails o su i e he s o m: S a egies ha os e
in e na ional business model inno a ion du ing a c isis
Nuno Fe nandes C espo
a,
*,C
a ia Fe nandes C espo
b
, G a¸ca Sil a
a
, Bea iz Ba os
c
a
CSG/ADVANCE, ISEG (Lisbon School o Economics & Managemen ), Uni e sidade de Lisboa, Po ugal
b
CARME, School o Technology and Managemen , Poly echnic o Lei ia, CSG/ADVANCE, Po ugal
c
ISEG (Lisbon School o Economics & Managemen ), Uni e sidade de Lisboa, Po ugal
ARTICLE INFO
A icle His o y:
Recei ed 22 Feb ua y 2024
Accep ed 24 Sep embe 2024
A ailable online 21 Oc obe 2024
ABSTRACT
Pe sis ing global c ises, such as COVID-19, pose significan challenges o in e na ional companies. The
inc ease in unce ain y and ins abili y in o eign ma ke s has p o oundly a ec ed fi ms’s a egic decisions,
o cing hem o adap o dynamic condi ions in o de o main ain o imp o e hei in e na ional pe o -
mance. G ounded in he dynamic capabili ies iew, his s udy examines how explo a ion and exploi a ion
s a egies d i e in e na ional business model inno a ion, ul ima ely a ec ing in e na ional pe o mance and
expec a ions conce ning c isis su i al du ing he COVID-19 c isis.
U ilizing su ey da a om 1455 in e na ionalized companies, we use s uc u al equa ion modeling o es ou
hypo heses. The esul s show ha , al hough bo h explo a ion and exploi a ion s a egies os e in e na ional
business model inno a ion, explo a ion has a s onge e ec han exploi a ion. The esul s u he emphasize
ha in e na ional business model inno a ion has a posi i e impac no only on he expec a ion o c isis su -
i al bu also on he in e na ional pe o mance.
© 2024 The Au ho s. Published by Else ie España, S.L.U. on behal o Jou nal o Inno a ion & Knowledge. This
is an open access a icle unde he CC BY license (h p://c ea i ecommons.o g/licenses/by/4.0/)
Keywo ds:
C isis
In e na ional business model inno a ion
Exploi a ion
Explo a ion
In e na ional pe o mance
JEL classifica ion:
L10
L25
F23
M16
In oduc ion
In e na ional business has always in ol ed a deg ee o isk and
unce ain y, o cing fi ms p e iously confined o domes ic ma ke s o
explo e oppo uni ies in o eign ma ke s (Sha ma e al., 2020). The
COVID-19 pandemic exe ed a p o ound impac on he global econ-
omy and in e na ional ade, leading o a subs an ial decele a ion o
nea cessa ion o mos in e na ional business ac i i ies in ce ain
momen s. This pandemic can be cha ac e ised as an en i onmen al
shock, defined as a se o `` ansien pe u ba ions whose occu ences
a e di ficul o o esee and whose impac s on o ganiza ions a e dis-
up i e and po en ially inimical’’ (Meye , 1982, p. 515). A di ec con-
sequence o such shocks is an inc eased le el o en i onmen al
dynamism, which e e s o he unp edic abili y and unce ain y a is-
ing om he in ensi y and equency o changes in he ex e nal en i-
onmen (Mille & F iesen, 1983).
The adical unce ain y and unp edic abili y du ing he COVID-19
pandemic posed significan challenges o in e na ional fi ms (A ah-
Boakye e al., 2023;Ciszewska-Mlina i
c e al., 2024;Sha ma e al.,
2020). These challenges ine i ably o ced companies o e hink hei
s a egic decisions and adap hei p oduc s, p ocesses, se ices, and
business models o he new condi ions in o de o ensu e hei su -
i al and main ain hei compe i i eness in o eign ma ke s (Ahn
e al., 2018;Colo ic, 2022;E e s e al., 2023;Radziwon e al., 2022).
This s udy examines wo di e en adap a ion s a egies ha fi ms
can employ in esponse o he COVID-19 global c isis: exploi a ion
and explo a ion (Chou e al., 2024;Gup a e al., 2006;Ma ch, 1991;
O’Reilly & Tushman, 2013;Osiye skyy e al., 2020). In his seminal
wo k, Ma ch (1991, p. 71) defines explo a ion as encompassing
“sea ch, a ia ion, isk- aking, expe imen a ion, play, flexibili y, dis-
co e y and inno a ion’’, which enables fi ms o adap and adop new
knowledge. In con as , exploi a ion e e s o “ efinemen , choice,
p oduc ion, e ficiency, selec ion, implemen a ion and execu ion”,
which allows fi ms o imp o e ope a ional e ficiency.
The in e na ional business li e a u e has p og essi ely adop ed
exploi a ion and explo a ion s a egies as analy ical amewo ks o
analyse se e al ou comes (Asemokha e al., 2019;Ju & Gao, 2022;Liu
e al., 2022;Sosna e al., 2010;Sousa e al., 2020), such as in e na-
ional pe o mance (Asemokha e al., 2019) and he e olu ion o busi-
ness model inno a ion (BMI) (Sosna e al., 2010). E en so, ecen
esea ch highligh s he need o u he in es iga ion o cla i y in
* Co esponding au ho .
E-mail add ess: [email p o ec ed] (N.F. C espo).
h ps://doi.o g/10.1016/j.jik.2024.100584
2444-569X/© 2024 The Au ho s. Published by Else ie España, S.L.U. on behal o Jou nal o Inno a ion & Knowledge. This is an open access a icle unde he CC BY license
(h p://c ea i ecommons.o g/licenses/by/4.0/)
Jou nal o Inno a ion & Knowledge 9 (2024) 100584
Jou nal o Inno a ion
&Knowledge
h ps://www.jou nals.else ie .com/jou nal-o -inno a ion-and-knowledge
g ea e de ail he ole o hese s a egies in he in e na ional business
con ex (Liu e al., 2022;Ruano-A cos e al., 2024). Fu he mo e, he
adop ion o exploi a ion and explo a ion s a egies has been ecog-
nised as pa icula ly ad an ageous o fi ms ope a ing in u bulen
and unce ain en i onmen s (Chou e al., 2024;O’Reilly &Tushman,
2013).
The apid esponse equi ed by he COVID-19 pandemic necessi-
a es no el app oaches o o ganisa ional ambidex e i y— ha is, he
simul aneous pu sui o bo h s a egies (Radziwon e al., 2022). How-
e e , he e ec i eness o exploi a ion and explo a ion s a egies in
he ace o adical unce ain y, such as he one induced by he
COVID-19 global c isis, emains poo ly unde s ood (Chou e al.,
2024). This s udy aims o add ess hese gaps by analysing he exploi-
a ion and explo a ion s a egies adop ed by in e na ional companies
in esponse o he COVID-19 c isis.
Gi en he pe sis en ma ke unce ain ies aced by in e na ional
fi ms, i is c ucial o hem o con inuously implemen changes, ein-
en hei business p ocesses, and seek g ow h oppo uni ies o
main ain p ofi abili y (Ami & Zo , 2012). The adical changes
b ough abou by he COVID-19 c isis ha e p o oundly a ec ed o -
eign ma ke condi ions and in e na ional pe o mance (A ah-Boakye
e al., 2023;Ch is ofie al., 2024;Ola ewaju & Ajeyalemi, 2023). This
has c ea ed an u gen need o in e na ional fi ms o inno a e hei
app oaches and find inno a i e ways o c ea e and deli e alue in
o eign ma ke s (E e s e al., 2023;Lew e al., 2023;Sousa e al.,
2020). P e ious esea ch sugges s ha BMI enables fi ms o iden i y
en i onmen al h ea s and oppo uni ies, enhance o ganiza ional
esilience, and imp o e c isis managemen (Salamzadeh e al., 2023),
hus se ing as a c i ical mechanism o esponding e ec i ely o
global c ises, such as COVID-19 (Ch is ofie al., 2024). Fu he mo e,
in e na ional BMI is ecognized as a key d i e o in e na ional pe -
o mance (Asemokha e al., 2019). Radziwon e al. (2022) a gue ha
he u gency c ea ed by he COVID-19 pandemic equi es new
app oaches o BMI. As a esul , he ole o BMI in in e na ional busi-
ness has become inc easingly p ominen . The e o e, in e na ional
BMI ep esen s a iable solu ion o in e na ional fi ms o e ec i ely
espond o he challenges posed by he COVID-19 c isis (A ah-Boa-
kye e al., 2023;Ch is ofie al., 2024).
Ne e heless, he engagemen o in e na ional fi ms in in e na-
ional BMI equi es ha hese in e na ional fi ms use hei dynamic
capabili ies o enew hemsel es (Teece, 2014,1997). They sense he
fi s signs o he c isis, seize new oppo uni ies ha a ise du ing his
di ficul pe iod, and econfigu e o eo ganize exis ing esou ces and
capabili ies o o e come he c isis and imp o e pe o mance (Balles-
e os e al., 2017;C espo e al., 2023). While he de e minan s o fi m
beha io du ing c ises and pe iods o decline a e well documen ed
(e.g., T ahms e al., 2013), how fi ms, pa icula ly in e na ional fi ms,
ha e coped wi h majo c ises, such as COVID-19, emains unde ex-
plo ed (A ah-Boakye e al., 2023;Ch is ofie al., 2024;E e s e al.,
2023;Lew e al., 2023). Mo e specifically, al hough he e a e se e al
s udies analysing he impac o BMI on fi m pe o mance (Whi e
e al., 2022) and, in pa icula , on in e na ional pe o mance in unce -
ain en i onmen s (E e s e al., 2023;Lew e al., 2023), i is no clea
how in e na ional BMI ela es o in e na ional pe o mance unde
he ex eme unce ain y o he COVID-19 global c isis (Ch is ofie al.,
2024). Fu he mo e, he BMI li e a u e ecognises ha he unde lying
ac o s ha uly d i e BMI emain la gely unexplo ed (Bashi e al.,
2020).
To add ess hese gaps, we p opose he ollowing esea ch
ques ions:
RQ1: How do explo a ion and exploi a ion s a egies ela e o in e -
na ional BMI du ing he COVID-19 global c isis? Wha a e he di -
e ences in he impac o explo a ion and exploi a ion s a egies
on inno a ion o he in e na ional business model?
RQ2: How does in e na ional BMI impac pe o mance (in e na ional
pe o mance and expec a ions conce ning c isis su i al) du ing
he COVID-19 global c isis?
This s udy builds on he dynamic capabili y iew (he ea e DCV)
(Teece, 2014) o add ess hese esea ch ques ions. We hypo hesise
ha he adop ion o exploi a ion and explo a ion s a egies posi i ely
a ec s in e na ional BMI, and ha his e ec is s onge o he explo-
a ion s a egy. In addi ion, we hypo hesise a posi i e e ec o in e -
na ional BMI on bo h in e na ional pe o mance and expec a ions
conce ning c isis su i al. Using su ey da a om 1455 in e na ional-
ized fi ms and co a iance-based s uc u al equa ion modelling (CB-
SEM), we es he p oposed hypo heses.
Ou esul s show ha , in he con ex o he COVID-19 global c isis,
he adop ion o bo h explo a ion and exploi a ion s a egies posi-
i ely influences in e na ional BMI, wi h explo a ion ha ing a s on-
ge impac . Fu he mo e, he esul s indica e ha in e na ional BMI
du ing he COVID-19 c isis posi i ely influences bo h in e na ional
pe o mance and expec a ions conce ning c isis su i al.
F om ou esul s, we make ou impo an con ibu ions o he
in e na ional business li e a u e, which a e o p ac ical ele ance
because fi ms need o know how o deal wi h high le els o unce -
ain y, such as hose c ea ed by he COVID-19 global c isis. Fi s , ou
s udy p o ides a be e unde s anding o he ole o exploi a ion and
explo a ion s a egies in complex en i onmen s. Second, we add
new insigh s in o he d i e s o in e na ional BMI in he con ex o a
global c isis, an issue ha emains unclea (Ch is ofie al., 2024).
Mo e specifically, we cla i y how exploi a ion and explo a ion s a e-
gies lead in e na ional fi ms o engage in BMI as a esponse o global
c isis. Thi d, we con ibu e o he knowledge o he ou comes associ-
a ed wi h BMI—namely, in e na ional pe o mance and expec a ions
conce ning c isis su i al, in a global c isis con ex . To he bes o ou
knowledge, his is he fi s s udy o assess he exis ing ela ionship
be ween in e na ional BMI and bo h in e na ional pe o mance and
expec a ions conce ning c isis su i al in an in e na ional con ex .
Fou h, his s udy is based on a sample ha includes fi ms o di e en
sizes and no only SMEs as conside ed in he exis ing li e a u e. In
sum, ou s udy emphasizes he c i ical ole o exploi a ion and explo-
a ion s a egies in d i ing in e na ional BMI so ha in e na ional
companies can success ully espond o a se e e global economic c i-
sis.
The emainde o his pape is s uc u ed as ollows. The nex sec-
ion p esen s a comp ehensi e e iew o he ele an li e a u e and,
in he sec ion ha ollows, a p esen a ion o he concep ual model
and esea ch hypo heses. The me hodological decisions a e ou lined
in he ou h sec ion. Then, he da a analysis and esul s a e p e-
sen ed ollowed by a discussion o he esul s. Finally, we conclude
by p esen ing he heo e ical and manage ial implica ions, he
s udy’s limi a ions, and sugges ions o u u e esea ch.
Li e a u e e iew
In e na ionaliza ion and exploi a ion and explo a ion s a egies
C ises equi e fi ms o quickly make decisions and adap hei
s a egic beha io o ensu e fi ms’ iabili y (Beliae a e al., 2020;
Kunc & Bhanda i, 2011;Ma í, 2017). This is pa icula ly ue o
ex eme c ises, such as he COVID-19 pandemic (Osiye skyy e al.,
2020). Thus, how o su i e a global c isis, such as COVID-19, is a un-
damen al issue o bo h na ional and in e na ional fi ms (Chou e al.,
2024). The e a e se e al possible ways ha fi ms can espond o a c i-
sis (e.g., Beliae a e al., 2020;Chou e al., 2024;T ahms e al., 2013).
Among he possible ways a e exploi a ion and explo a ion adap a ion
s a egies (Almahend a & Ambos, 2015;Gup a e al., 2006;Ma ch,
1991;O’Reilly & Tushman, 2013). These s a egies a e pa icula ly
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
impo an when fi ms ace an ex eme economic c isis, such as he
COVID-19 pandemic (Osiye skyy e al., 2020).
Explo a o y inno a ions a e adical ad ances, aiming o mee he
needs o new cus ome s o ma ke s (Benne & Tushman, 2003,p.
243). These inno a ions in oduce no el designs, c ea e new ma ke s,
and de elop al e na i e dis ibu ion channels. They equi e he
de elopmen o new knowledge and capabili ies (He & Wong, 2004;
Jansen e al., 2006;Le in hal & Ma ch, 1993;Osiye skyy e al., 2020;
Uo ila, 2017). In con as , exploi a i e inno a ions a e inc emen al
and ailo ed o mee he needs o exis ing cus ome s o ma ke s
(Benne & Tushman, 2003, p. 243). Such inno a ions ocus on he use
and imp o emen o exis ing knowledge and capabili ies, he efine-
men o es ablished designs, he expansion o cu en p oduc s and
se ices, and he op imiza ion o exis ing dis ibu ion channels (He &
Wong, 2004;Jansen e al., 2006;Le in hal & Ma ch, 1993;Osiye skyy
e al., 2020;Uo ila, 2017). As a esul , exploi a i e inno a ions build
on and ein o ce exis ing knowledge, skills, p ocesses, and s uc u es
(Le in hal & Ma ch, 1993).
While exploi a ion can lead o posi i e sho - e m pe o mance
e ec s by educing a ie y and inc easing e ficiency, explo a ion
s a egies ocus on a iance-inc easing ac i i ies ha allow he fi m
o achie e posi i e long- e m pe o mance e ec s (Uo ila, 2017).
Al hough hese s a egies compe e o esou ces and ha e inhe -
en con adic ions (Ma ch, 1991;Smi h e al., 2010), he e is a con-
sensus in he li e a u e ha fi ms mus balance hese s a egies o
ensu e hei su i al and compe i i e ad an age (e.g., He & Wong,
2004;Ma ch, 1991;Osiye skyy e al., 2020;Shi e al., 2020). Two o
he mos widely s udied ways o balance exploi a ion and explo a-
ion s a egies a e ambidex e i y—simul aneous pu sui o bo h
s a egies (Gup a e al., 2006;He & Wong, 2004;Kasso aki, 2022)—
and empo al ansi ion meaning ha s a egies can sepa a e o coex-
is o e ime (Gup a e al., 2006;Kang & Kim, 2020).
Exploi a ion and explo a ion s a egies ha e been ex ensi ely
s udied in he managemen li e a u e (e.g., Almahend a & Ambos,
2015;Gup a e al., 2006;He & Wong, 2004;Kang & Kim, 2020;Shi
e al., 2020). The e is also a la ge body o li e a u e ha has ocused
on ambidex e i y (He & Wong, 2004;Jansen e al., 2006;Liu e al.,
2022;Luge e al., 2018;Nyagadza, 2022). Mos o hese s udies ha e
examined how explo a ion, exploi a ion, and ambidex e i y a ec
fi m pe o mance (Junni e al., 2013;Kang & Kim, 2020;Shi e al.,
2020), and mos o hem sugges ha fi ms should conside bo h
s a egies (He & Wong, 2004;Shi e al., 2020) because balancing
explo a ion and exploi a ion leads o complemen a y e u ns (Luge
e al., 2018). E en so, he li e a u e has p oduced some con o e sial
esul s (Shi e al., 2020). Fo example, some s udies sugges ha bo h
exploi a ion and explo a ion should be used o achie e highe le els
o pe o mance. Con e sely, o he s udies sugges ha fi ms ha
ocus on one s a egy alone ou pe o m hose ha combine bo h,
while o he s a gue ha his app oach is de imen al o pe o mance
(Gup a e al., 2006;Junni e al., 2013). Mo eo e , he exis ing li e a-
u e has ound ha he e ec i eness o exploi a ion, explo a ion, and
ambidex e i y s a egies depends on specific ac o s (Junni e al.,
2013), such as en i onmen al aspec s (e.g., Jansen e al., 2006;Luge
e al., 2018), fi m esou ces (A chibugi e al., 2013), indus ial con ex
(e.g., Chou e al., 2024), and c isis se e i y (Osiye skyy e al., 2020).
Fo example, Jansen e al. (2006) ound ha fi ms ollowing an explo-
a ion- ype s a egy in a highly dynamic en i onmen achie ed be -
e financial pe o mance, while fi ms ollowing his s a egy in a
s able en i onmen educed hei financial pe o mance.
Fu he mo e, he in e na ional business li e a u e has inc eas-
ingly used exploi a ion, explo a ion, and ambidex e i y (Liu e al.,
2022;Ruano-A cos e al., 2024 Sousa e al., 2020) o explain a a ie y
o phenomena, such as in e na ional ambidex e i y (Ruano-A cos
e al., 2024), expo pe o mance (Sha ma e al., 2018), expo sales
g ow h (Sousa e al., 2020), o eign en u e pe o mance (Ju & Gao,
2022), in e na ional join en u e new p oduc pe o mance (Jin
e al., 2016), and in e na ional pe o mance (Osiye skyy e al., 2020).
Due o hei nume ous unce ain ies, significan compe i i e p es-
su es, and high complexi y, in e na ional ma ke s equi e a s ong
emphasis on o ganiza ional lea ning (Sousa e al., 2020). To cope
wi h hese changing ma ke condi ions and achie e highe pe o -
mance, in e na ional fi ms should adop bo h exploi a ion and explo-
a ion s a egies (Ju & Gao, 2022;Sousa e al., 2020). Ne e heless,
he success o exploi a ion, explo a ion, and ambidex e i y s a egies
in in e na ional ma ke s, as in domes ic ma ke s, is con ingen on a
se o in e nal and ex e nal ac o s (e.g., Ju & Gao, 2022;Sousa e al.,
2020), and hei impac on pe o mance a ies o e ime (Sousa
e al., 2020). Fo example, Ju and Gao (2022) ound ha he ela ion-
ship be ween explo a ion and financial pe o mance is posi i ely
mode a ed by ma ke ing capabili ies, bu his e ec is insignifican
o exploi a ion.
Ano he specific s eam o he li e a u e has been ocused on he
ole o exploi a ion, explo a ion, and ambidex e i y s a egies in he
con ex o economic c ises (e.g., A chibugi e al., 2013;Beliae a e al.,
2020;Chou e al., 2024;Ibo a e al., 2020), pa icula ly he COVID-19
c isis (e.g., Clauss e al., 2022;Osiye skyy e al., 2020;Radziwon
e al., 2022). This esea ch sugges s ha fi ms ha engage in inno a-
ion a e able o be e cope wi h an economic c isis (Ahn e al., 2018;
A chibugi e al., 2013;Beliae a e al., 2020;Clauss e al., 2022;Radzi-
won e al., 2022), and inno a ion in es men s a e concen a ed in
fi ms ha we e al eady inno a i e be o e he c isis. Mo eo e , he
inc eased in es men s du ing he c isis a e s ongly linked o wo
g oups—namely, g ea inno a o s and as -g owing new en an s
(A chibugi e al., 2013).
Ambidex e i y has been equen ly p oposed as a sound s a egy
o achie e bes pe o mance when fi ms deal wi h u bulen en i on-
men s (Chou e al., 2024). Howe e , ecen s udies show ha , du ing
an economic c isis, he bes s a egy is no always ambidex e i y, and
i is con ingen on specific ac o s (e.g., A chibugi e al., 2013;Kim
e al., 2024;Osiye skyy e al., 2020). Fo ins ance, in he con ex o
he 2008 c isis, A chibugi e al. (2013) ound ha fi ms ha pu sue
mo e explo a i e s a egies o new p oduc and ma ke de elop-
men s ha e a highe likelihood o su i al han hose adop ing ei he
an ambidex e i y s a egy o an explo a ion s a egy.
Mo eo e , wo ecen s udies de eloped wi h SMEs in he con ex
o he COVID-19 c isis ound ha he bes s a egy o achie e a high
le el o pe o mance is con ingen on specific ac o s, such as he
se e i y o he c isis (Osiye skyy e al., 2020) and he loss o demand
o supply (Kim e al., 2024). Osiye skyy e al. (2020) ound ha ,
when he se e i y o he c isis is high, explo a ion s a egies ha e a
posi i e impac on fi m pe o mance le el and a iabili y, while
exploi a ion s a egies esul in a educ ion in bo h pe o mance le el
and a iabili y. On he o he hand, when he c isis se e i y is low,
opposi e esul s we e ound. In he con ex o SMEs, ambidex e i y
capabili ies coupled wi h s a egic consis ency help fi ms o su i e
and eco e om ex e nal e en s ha a e h ea ening and s ess ul
(Ibo a e al., 2020).
The concep o ambidex e i y has also been used o explain how
fi ms can compe e e ec i ely by u ilising mul iple business models
simul aneously (Ma kides e al., 2013). Schneide (2019) ound ha
fi ms acing high le els o exogenous change end o ocus on iden i-
ying objec i e oppo uni ies, while fi ms ope a ing in mo e s able
en i onmen s ocus on c ea ing oppo uni ies o BMI. D awing on
he li e a u e on dynamic capabili ies, o ganisa ional ambidex e i y,
and pa adoxes, Riccia di e al. (2016) iden i y he key enable s o
adap i e BMI: coope a ion−compe i ion, explo a ion−exploi a ion,
con o mi y−agency, and dynamic capabili ies.
Business model inno a ion
The business model is a well-de eloped concep and is ecognized
as a s a egic managemen ool o c ea ing cus ome alue and
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
sus aining a fi m’s compe i i e ad an age (E e s e al., 2023;Wi z
e al., 2016). The ex an li e a u e ecognizes ha business models
(BM) a e a ibu es o eal fi ms ha enable hem o conduc business
in pu sui o hei o ganiza ional goals (Whi e e al., 2022). The busi-
ness model can be seen as “ he di ec esul o s a egy”(Casadesus-
Masanell & Rica , 2010, p. 212) o “ he implemen a ion o a s a egy”
(Wi z e al., 2016, p. 3). I di ec s and ansla es he fi m’s cu en
esou ces and ope a ional capabili ies in o alue o s akeholde s,
including cus ome s, sha eholde s, and supplie s (Teece, 2010).
A business model can be conside ed an in e nal ac o (Anzen-
bache & Wagne , 2020), desc ibed as ``a p ac ical model o echnology
ha is eady o be copied, bu also open o a ia ion and inno a ion’’
(Baden-Fulle & Mo gan, 2010, p. 157). This defini ion sugges s ha a
specific business model is akin o a ecipe ha eme ges om p ac ical
pe spec i es and emphasizes he impo ance o aci knowledge ans-
e . The e a e se e al li e a u e e iews on business models (e.g.,
Budle e al., 2021;Wi z e al., 2016;Zo e al., 2011)aswellasBMI
(e.g., Bashi e al., 2020;Foss & Saebi, 2017;Zhang e al., 2024). How-
e e , al hough a ecen li e a u e e iew (Zhang e al., 2024) ecognizes
ha defini ions o BM in he li e a u e con e ge on he ``design o
a chi ec u e o he alue c ea ion, deli e y, and cap u e mechanisms’’
o a fi m (Teece, 2010,p.172),defini ions o BMI abound, and many o
hese defini ions lack specifici y (Foss & Saebi, 2017). Some s udies
define BMI om a pa ial poin o iew, whe e changes in a single com-
ponen o a BM can cons i u e BMI, while o he s define BMI wi h he
emphasis on i s componen s.
The li e a u e on BMI is an eme ging field ha builds upon he
ounda ional concep o BM. A new business model can be iewed as
a o m o inno a ion (Teece, 2010) and does no necessa ily ely on
exploi ing p e ious ad an ages (Ahokangas & Myllykoski, 2014),
which can be beneficial compa ed o BMI o adap a ion. In ou s udy,
we adop ed he defini ion o BMI p oposed by Casadesus-Masanell
and Zhu (2013, p. 464), which defines BMI as “ he sea ch o new log-
ics o he fi m and new ways o c ea e and cap u e alue o i s s ake-
holde s”. This defini ion aligns wi h he h ee p ima y dimensions o
afi m’s business model: alue c ea ion, alue p oposi ion, and alue
cap u e (e.g., Zo e al., 2011). BMI is also e e ed o in he li e a u e
as ``business model adap a ion’’ (Landau e al., 2014) o ``business
model ans o ma ion’’ (Ahokangas & Myllykoski, 2014). Se e al
schola s ca ego ize BMI in o di e en ypes. Fo example, Heij e al.
(2014) dis inguish wo main o ms: business model eplica ion and
business model enewal. Business model eplica ion e e s o he
adop ion and implemen a ion o an al eady success ul business
model. In con as , business model enewal in ol es he de elop-
men o a no el and dis inc business model ha is di e en om
exis ing ones.
The li e a u e on BMI highligh s h ee main ou comes. Fi s , fi m
pe o mance is a p ima y ou come (Bashi e al., 2021), wi h BMI
inc easingly ecognized as mo e c i ical o success han p oduc , se -
ice, and p ocess inno a ion (Ami & Zo , 2012; Bashi e al., 2021;
Sosna e al., 2010). A ecen li e a u e e iew ound ha he s eng h
o his ela ionship dec eases as he le el o no el y and he e-
quency o BMI inc ease (Whi e e al., 2022). Second, BMI o en leads
o compe i i e ad an age (Bashi e al., 2021). A su ficien ly di e en-
ia ed business model can p o ide significan compe i i e ad an age
because i is di ficul o o he fi ms o imi a e (Teece, 2010). In pa -
icula , in angible asse s a e di ficul o eplica e and, he e o e, p o-
ide a s ong compe i i e ad an age (Lonial & Ca e , 2015). The
social complexi y and pa h dependency associa ed wi h BMI also
con ibu e o i s inimi abili y (Bashi e al., 2021). Fi ms need o inno-
a e he business model in o de o achie e sus ainable p ofi abili y,
ega dless o he esou ces hey possess because hese alone a e no
su ficien (Teece, 2010). Fu he mo e, i is mo e di ficul o compe i-
o s o imi a e an en i e business model han a single p oduc o p o-
cess (Ami & Zo , 2012). Thi d, BMI i sel is seen as a sou ce o
inno a ion (Bashi e al., 2021; Budle e al., 2021;Zhang e al., 2024).
The BMI li e a u e iden ifies se e al igge s, enable s, and ou comes
o BMI (Bashi e al., 2021). Fo example, ex e nal igge s include new
echnologies, digi aliza ion, and u u e p ojec ions, p ice p essu e, low
ma ke co e age, cus ome s and echnology, ex e nal s akeholde s,
en i onmen al ac o s, ma ke p essu e and echnology push, ma ke
c isis o change, and financial p essu e, while cus ome needs and eed-
back, and los sales and o ganiza ional cha ac e is ics a e in e nal ig-
ge s (Bashi e al., 2021). The main enable s ecognized in he li e a u e
include o ganiza ional s uc u e, o ganiza ional cul u e, o ganiza ional
ine ia, leade ship, and echnology (Bashi e al., 2021).
Inno a ion in business models occu s a di e en imes and
in ol es di e en expe iences compa ed o hei ini ial c ea ion
(Ahokangas & Myllykoski, 2014). Acco ding o Ahokangas and Mylly-
koski (2014, p. 14),“business model c ea ion and inno a ion p ac i-
ces in ol e comp ising isioning, s a egizing, pe o ming, and
assessing wi h he goal o eaching a compe i i e ad an age ega d-
ing a business oppo uni y”. Ini ial business models a e o en e ised
and adap ed, o en h ough a ial-and-e o app oach. Adjus men s
and he accumula ion o p io knowledge and lea ning, bo h indi id-
ual and o ganiza ional, a e essen ial in his p ocess (Sosna e al.,
2010;Teece, 2010).
BMI is pa icula ly aluable when fi ms supply o eign ma ke s, since
i helps companies o compe e e ec i ely agains local compe i o s, gain
local legi imacy, a ge new in e na ional ma ke niches, and ul ima ely
app op ia e he c ea ed alue (Me ín-Rod ig
a~
nez e al., 2024).
The in e na ional business li e a u e has ecognized he c ucial
ole o BMI o in e na ional fi ms in achie ing compe i i e ad an-
age ac oss bo de s (e.g., E e s e al., 2023;Me ín-Rod ig
a~
nez e al.,
2024). While p e ious s udies ha e p oduced di e en and some-
imes conflic ing esul s, mos esea ch con e ges on he idea ha
he e is a posi i e ela ionship be ween BMI, in e na ionaliza ion,
and in e na ional pe o mance (e.g., Asemokha e al., 2020;E e s
e al., 2023;Henna e al., 2021;K enn & Chia esio, 2024;Lew
e al., 2023). Fi ms ha inno a e hei business models, ei he be o e
o du ing ma ke en y, end o be mo e success ul in o eign ma ke s
(e.g., Asemokha e al., 2020;Ch is ofie al., 2024;E e s e al., 2023;
K aus e al., 2017). Empi ical s udies show ha BMI is posi i ely asso-
cia ed wi h highe in e na ional pe o mance (Asemokha e al.,
2020), business model design posi i ely impac s in e na ional pe o -
mance (K aus e al., 2017), and BMI accele a es he in e na ionaliza-
ion p ocess (Henna e al., 2021) and inc eases he scope o
in e na ionaliza ion (Lew e al., 2022).
An eme ging s eam o li e a u e has been ocused on he impac
o c ises on business models and, mo e specifically, BMI (e.g., Ri e &
Pede sen, 2020;Salamzadeh e al., 2023). C isis is ecognized as one
igge o BMI (A ah-Boakye e al., 2023; Bashi e al., 2021), and BMI
is conside ed an app op ia e s a egy o cope wi h c isis (e.g., Ch is-
ofie al., 2024;Salamzadeh e al., 2023).
In dynamic en i onmen s, such as he con ex o an economic c i-
sis, a fi m’s BMI o adap a ion s ongly con ibu es o i s pe o mance
(Riccia di e al., 2016) and also i s c isis managemen (Salamzadeh
e al., 2023). In an in e na ional con ex , Ch is ofie al. (2024) ound
a posi i e ela ionship be ween BMI and in e na ional pe o mance
du ing he COVID-19 c isis.
Mo eo e , he concep s o explo a ion and exploi a ion ha e been
in eg a ed in o he BMI li e a u e. The balance be ween explo a ion
and exploi a ion con ibu es o a be e unde s anding o BMI (Aho-
kangas & Myllykoski, 2014). Th oughou he li espan o a business
model, explo a ion and exploi a ion a e in e connec ed, wi h exploi-
a ion being he esul o explo a ion combined wi h lea ning (Aho-
kangas & Myllykoski, 2014). Sosna e al. (2010) discuss his
ela ionship du ing he business model adap a ion p ocess, iden i y-
ing wo sequen ial phases: explo a ion ollowed by exploi a ion. The
explo a ion phase in ol es he design, es ing, and de elopmen o
he business model, while he exploi a ion phase ocuses on imp o -
ing he model and sus aining g ow h h ough o ganiza ional
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
lea ning. Subsequen ly, explo a ion eoccu s in esponse o a ious
eme ging igge s. Se e al au ho s (e.g., Colo ic, 2022;Landau e al.,
2014) ha e also obse ed his ela ionship in he con ex o business
model adap a ion o in e na ional ma ke s.
C isis impac
Gi en he cu en le el o globaliza ion, many companies a e
expanding hei ac i i ies in e na ionally (Acos a e al., 2018). As a
esul , e en s in one coun y can ha e a - eaching e ec s, a ec ing
nume ous o he coun ies on a global scale. This in e connec edness
was e iden du ing he 2008 global financial c isis (e.g., A chibugi
e al., 2013) and he COVID-19 pandemic (e.g., Osiye skyy e al.,
2020;Sha ma e al., 2020), bo h o which o igina ed in specific loca-
ions bu had a - eaching global e ec s.
An economic c isis can be defined as “an ex eme, unexpec ed o
unp edic ed change in he ex e nal mac oeconomic en i onmen
ha equi es an u gen esponse om fi ms and c ea es challenges
and new h ea s o hem”(Osiye skyy e al., 2020, p. 228). The
COVID-19 global c isis is an example o an ab up and un o eseen
change in bo h domes ic and o eign ma ke s. This si ua ion is cha -
ac e ized by a g oup o en i onmen al changes ha misalign fi ms,
po en ially leading o a decline in pe o mance (Ha
konsson e al.,
2013;T ahms e al., 2013). In addi ion, p e-exis ing plans may
become in easible due o adjus men s in a ailable esou ces, leading
o a decline in pe o mance as p e ious e o s ail o p oduce esul s
(Shi oko a e al., 2020). To na iga e hese pe iods, companies mus
adap hei s a egies and goals (Ma í, 2017;Osiye skyy e al., 2020)
and demons a e flexibili y o adap o he new en i onmen
(Ha
konsson e al., 2013). S a egic ac ion by fi ms is c ucial o long-
e m pe o mance a e a c isis, gi en he en i onmen al changes
ha ha e occu ed (T ahms e al., 2013).
The o ganiza ional decline and c isis li e a u e shows ha fi ms
adop a a ie y o esponses o cope wi h a c isis including BMI
(Ch is ofie al., 2024;Ri e & Pede sen, 2020), exploi a ion and
explo a ion s a egies (A chibugi e al., 2013;Ibo a e al., 2020;Kim
e al., 2024;Osiye skyy e al., 2020), in e na ional dynamic ma ke -
ing capabili ies (Ciszewska-Mlina i
c e al., 2024), ma ke o ien a ion,
and en ep eneu ial o ien a ion (Beliae a e al., 2020), among o he s.
Mo eo e , he ou comes o hese di e en esponses a e con ingen
on he fi m’s ope a ing en i onmen and c isis con ex s (Ha
konsson
e al., 2013;Kim e al., 2024;Osiye skyy e al., 2020). The exis ing li -
e a u e demons a es ha di e en s udies p opose opposing solu-
ions o c isis si ua ions. Some ad oca e inc eased igidi y, while
o he s ecommend enhanced adap abili y. Simila ly, he e is a deba e
o e whe he de ensi e s a egies o p oac i e s a egies should be
adop ed (Osiye skyy e al., 2020).
A se e e c isis, such as he global COVID-19 pandemic, can be an
oppo uni y o seek new solu ions and s a he p ocess o e hinking
and adap ing he cu en business model (Sosna e al., 2010). Shi o-
ko a e al. (2020) emphasize he impo ance o de eloping new s a -
egies and building new capabili ies o eplace ou da ed app oaches
ha may no longe be e ec i e in he changed en i onmen .
In he in e na ional con ex , bo h BMI and exploi a ion/explo a-
ion s a egies a e iden ified as e ec i e solu ions o coping wi h c i-
ses. Specifically, fi ms ha inno a e hei business models a e mo e
likely o enhance hei in e na ional pe o mance (Asemokha e al.,
2019). Addi ionally, du ing pe iods o high c isis se e i y, explo a ion
s a egies posi i ely impac in e na ional pe o mance whe eas,
unde low se e i y condi ions, exploi a ion s a egies ha e a mo e
significan posi i e e ec (Osiye skyy e al., 2020).
Dynamic capabili ies iew
The esou ce-based iew (RBV) is one o he mos p ominen he-
o e ical amewo ks o unde s anding how fi ms c ea e and sus ain
compe i i e ad an age o e ime (Ba ney, 1991,2001). Acco ding o
he RBV, fi ms a e iewed as bundles o esou ces, including bo h an-
gible and in angible asse s. The possession o aluable, a e, inimi a-
ble and non-subs i u able esou ces leads o supe io pe o mance
(Ba ney, 1991). The RBV emphasizes he u iliza ion o p oduc i e
esou ces in a ela i ely s able en i onmen . Howe e , his heo y
aces challenges when fi ms need o cope wi h high ola ili y, unce -
ain y, complexi y, and compe i i e business en i onmen s ha
equi e fi ms o econfigu e hei esou ces equen ly (D’A eni e al.,
2010;Schilke, 2014).
This s udy employs he DCV o examine how exploi a ion/explo-
a ion s a egies and BMI enable in e na ional fi ms o succeed in he
ex emely ola ile en i onmen o he COVID-19 global c isis. The
DCV has been inc easingly adop ed in he li e a u e o explain how
fi ms o e come dynamic en i onmen s and achie e compe i i e
ad an age (Amb osini & Bowman, 2009;Eisenha d & Ma in, 2000;
Hel a e al., 2009;Schilke, 2014,2018). Dynamic capabili ies (DC) a e
defined as “ he fi m’s abili y o in eg a e, build, and econfigu e in e -
nal and ex e nal compe ences o add ess apidly changing en i on-
men s”(Teece e al., 1997, p. 516) o achie e compe i i e ad an age
(Schilke, 2014). Upda ing a company’s compe encies in esponse o
quick changes in he indus y en i onmen cons i u es dynamic
capabili ies. DC in ol e he sensing, seizing, and econfigu a ion o
fi m esou ces and o dina y capabili ies, which a e essen ial o o ga-
niza ional adap a ion p ocesses (Hel a e al., 2009;Teece e al.,
1997). Du ing ex eme u bulence and unce ain y, such as he 2008
global financial c isis (Ahn e al., 2018;A chibugi e al., 2013), a na u-
al disas e (Ma inelli e al., 2018), o a pandemic such as he COVID-
19 (C espo e al., 2024), fi ms u ilize hei dynamic capabili ies o
enew hemsel es. They sense he c isis, seize new oppo uni ies,
and econfigu e exis ing esou ces o su i e and o enhance pe o -
mance (Ma inelli e al., 2018;Teece, 2007).
When companies ha e s onge dynamic capabili ies, hey can
an icipa e, sense, and unde s and he c isis in a imely manne and,
he e o e, a e mo e likely o de elop he mos app op ia e esponses
o eac o ha c isis (Balles e os e al., 2017;M€
ulle , 1985). These
fi ms a e also mo e p one o seize and iden i y new aluable oppo -
uni ies in he con ex o a c isis (Balles e os e al., 2017). Las ly,
s ong dynamic capabili ies p omo e he fi ms’capabili y o econfig-
u e and eo ganize exis ing esou ces (in e nal o ex e nal) so as o
manage he c isis in a way ha enables he fi m o su i e and sus-
ain i s compe i i e ad an age (Guo e al., 2020;Makkonen e al.,
2014).
Concep ual amewo k and esea ch hypo heses
Exploi a ion and explo a ion s a egies and in e na ional business model
inno a ion
Fi ms can adap hei business model h ough explo a ion and
exploi a ion (K ingelum & Gje ding, 2018). He e, i is possible o
assume ha bo h explo a ion and exploi a ion ha e a posi i e ela-
ionship wi h BMI. The e a e se e al empi ical s udies (Ahokangas &
Myllykoski, 2014;Anzenbache & Wagne ; 2020;Smi h e al., 2010)
ha confi m ha explo a ion and exploi a ion s a egies, in line wi h
he dynamic capabili ies iew, a ec he business model and i s con-
inuous adjus men . Fo ins ance, Ahokangas and Myllykoski (2014)
es ablish he influence o explo a ion and exploi a ion in BMI, once i
con ibu es o he e olu ion o he business model on bo h c ea ion
and ans o ma ion. Mo eo e , he e is e idence ha bo h s a egies
(explo a ion and exploi a ion) benefi he business model, wi h
explo a ion being mo e beneficial in ce ain cases and exploi a ion in
o he s (Anzenbache & Wagne , 2020;Colo ic, 2022). Sosna e al.
(2010) no e he exis ence o ial-and-e o lea ning −which con-
empla es bo h explo a ion and exploi a ion −and i s posi i e e ec
on he BMI. In ligh o he p e ious discussion, we a gue ha :
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
H1. Explo a ion is posi i ely ela ed o in e na ional BMI.
H2. Exploi a ion is posi i ely ela ed o in e na ional BMI.
As p e iously s a ed, bo h exploi a ion and explo a ion s a egies
compe e o limi ed esou ces, equi ing companies o achie e a bal-
ance be ween hem (He & Wong, 2004;Shi e al., 2020). Ambidex e -
i y is c ucial o fi ms o su i e in changing en i onmen s
(Anzenbache & Wagne , 2020). I is no iable o an o ganiza ion o
exclusi ely dedica e i sel o one app oach. Focusing solely on explo-
a ion p e en s he o ganiza ion om eaping he benefi s o
acqui ed knowledge, while an exclusi e ocus on exploi a ion can
lead o obsolescence (Le in hal & Ma ch, 1993).
Since hese s a egies ep esen di e en app oaches, hey yield
di e en e ec s and esul s (He & Wong, 2004). Exploi a ion gene -
ally p oduces be e sho - e m esul s, whe eas explo a ion yields
be e long- e m ou comes (Le in hal & Ma ch, 1993;Ma ch, 1991;
Uo ila, 2017). Addi ionally, he e u ns om exploi a ion a e mo e
ce ain and immedia e compa ed o hose om explo a ion (He &
Wong, 2004).
Ne e heless, du ing se e e and p o ound c ises, companies end
o suppo BMI p ima ily h ough explo a ion s a egies a he han
exploi a ion s a egies (Osiye skyy & Dewald, 2015;Sosna e al.,
2010). The e is e idence o sugges ha fi ms pu suing explo a ion
s a egies manage c ises mo e e ec i ely (A chibugi e al., 2013;
Clauss e al., 2022;Radziwon e al., 2022). Fo ins ance, explo a ion
s a egies ocused on new p oduc and ma ke de elopmen s
inc ease he likelihood o su i al (A chibugi e al., 2013). These
s a egies equi e inno a ion in he business model o ensu e alue
c ea ion and deli e y (Teece, 2010). Based on hese a gumen s, we
hypo hesize ha :
H3. The posi i e e ec o explo a ion s a egy wi h in e na ional BMI
will be s onge han he e ec o exploi a ion s a egy.
In e na ional business model inno a ion and pe o mance
The in e na ional business li e a u e shows ha he majo i y o
s udies ound a posi i e e ec o BMI on in e na ionaliza ion pe o -
mance measu es (e.g., Asemokha e al., 2020;E e s e al., 2023;Hen-
na e al., 2021;K aus e al., 2017;K enn & Chia esio, 2024), in
pa icula , in a c isis con ex (e.g., Ch is ofie al., 2024). Empi ical
s udies show ha BMI posi i ely a ec s in e na ional pe o mance
(Asemokha e al., 2019; Lew e al., 2022) and con ibu es o accele a -
ing he in e na ionaliza ion p ocess (Henna e al., 2021). Fo
ins ance, K aus e al. (2017) ound ha business model design has a
posi i e e ec on in e na ional pe o mance. A ecen li e a u e
e iew (E e s e al., 2023) also suppo s he posi i e pe o mance
ou comes o BMI in he in e na ional con ex . Simila ly, Colo ic
(2022) e ifies ha business model adap a ion con ibu es posi i ely
o pe o mance. This au ho concludes ha in e na ional businesses
ha e o inno a e hei business models on a la ge scale in o de o
espond o he cons an needs o in e na ional ma ke s, and his
inno a ion is posi i ely ela ed wi h di e en measu es o in e na-
ional pe o mance. In hei s udy conce ning dis inc ypes o BMI,
Heij e al. (2014) e ified he posi i e e ec o bo h eplica ion and
enewal on fi m pe o mance. Whe eas he fi s one esul s in a con-
s an ly efined model ha is ha de o imi a e, he second allows he
fi m o “p o ec o egain i s ma ke posi ion and p ofi abili y in i s
exis ing ma ke s”(Heij e al., 2014, p. 1506). A ecen s udy (Ch is ofi
e al., 2024) ound ha , in he con ex o he COVID-19 c isis, BMI in
he o eign ma ke con ibu es o in e na ional pe o mance. In hei
s udy wi h SMEs, Lew e al. (2023) ound ha BMI significan ly medi-
a es he ela ionship be ween en ep eneu ial capabili y and SMEs’
in e na ionaliza ion scope. Fu he mo e, when domes ic ma ke
dynamism is high, he e ec o BMI on in e na ionaliza ion scope is
s eng hened. Based on hese a gumen s, we ad ance he ollowing
hypo hesis:
H4. In e na ional BMI is posi i ely ela ed o in e na ional
pe o mance.
Se e al s udies (e.g., Asemokha e al., 2019;Ch is ofie al., 2024)
conclude ha he e is a posi i e ela ionship be ween BMI and in e -
na ional pe o mance. Hence, BMI is expec ed o posi i ely influence
he expec a ion o c isis su i al. Su i al can be iewed as a measu e
o pe o mance (Naidoo, 2010;Sinha & Noble, 2008). Thus, an exami-
na ion o he e ec o BMI on su i al is p oposed o confi m whe he
he ela ionship emains posi i e despi e he concep ual di e ences
be ween su i al and in e na ional pe o mance. A s udy de eloped
wi h I alian manu ac u ing a e he 2009 ecession ound ha BMI
posi i ely con ibu es o pos -c isis su i al (Cucculelli &
Pe uzzi,2020). In he same ein, modifica ion o he BM is among he
possible success ul s a egies ha SMEs can adop o cope wi h he
COVID-19 c isis, no only o aid su i al bu also o enhance in e nal
ope a ions (Akpan e al., 2023). The e o e, we a gue ha :
H5. In e na ional BMI is posi i ely ela ed o he expec a ion o c isis
su i al.
The hypo heses p esen ed abo e can be o ganized in a comp e-
hensi e concep ual model (Fig. 1).
Me hodology
Sample and da a collec ion
This s udy’s da a come om Po uguese fi ms wi h mo e han fi e
employees and a posi i e pe cen age o expo s in hei o al sales.
The da abase o fi ms mee ing hese c i e ia was p o ided by In o ma
D&B (Dun & B ads ee ), which ensu ed he anonymi y o he compa-
nies. This da abase included email add esses o 21,256 companies.
A ques ionnai e was designed and sen o he email add esses
p o ided, accompanied by an in i a ion message o he owne s, gen-
e al manage s, and expo /in e na ional manage s, explaining he
Fig. 1. Concep ual model.
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
s udy’s pu pose and eques ing hei pa icipa ion. Be o e conduc ing
he main s udy, a wo-s ep app oach was ollowed o e iew and
e ise he ques ionnai e. Fi s , h ee academic expe s in in e na-
ional business we e consul ed o assess he con en alidi y o he
scales. Based on hei eedback, he ques ionnai e was e ised. Then,
he e ised ques ionnai e was pilo es ed wi h indus ial expe s
h ough ace- o- ace semi-s uc u ed in e iews. These in e iews
in ol ed h ee expo manage s om di e en indus y sec o s,
whose eedback u he efined he ques ionnai e’s con en and
wo ding.
The ques ionnai e was a ailable on he LimeSu ey pla o m om
Ma ch o Ap il 2021. To inc ease he esponse a e, a ou -s ep p oce-
du e was implemen ed (ini ial email plus h ee ollow-ups). Ou o
he ini ial 21,256 con ac s, 1832 emails bounced back, 1534 fi ms
esponded o he ques ionnai e, and 361 fi ms sen emails indica ing
hey we e una ailable o did no fi he sample c i e ia. A e a
sc eening p ocess, 79 esponses we e elimina ed due o lack o in o -
ma ion abou expo ac i i ies o because he esponses we e unen-
gaged. Consequen ly, he final numbe o alid esponses was 1455
fi ms, esul ing in a esponse a e o 7.7 % (1455/18,984).
The esponden s a e mainly men (59 %), and he age ange is om
20 o 83 yea s old. The bigges pe cen age o esponden s (app oxi-
ma ely 39 %) is in he in e al be ween 41 and 50 yea s old, ollowed
by he in e al be ween 51 and 60 yea s old (27.1 %). As ega ds he
educa ional le el, abou 66 % o esponden s ha e a college deg ee,
21.1 % comple ed high school, and 5.2 % ha e p o essional educa ion.
On posi ions wi hin he fi m, abou 30 % a e managing di ec o s, chie
execu i es o adminis a o s, 29 % o he esponden s a e business
owne s, managing pa ne s o CEOs and 28 % o he esponden s a e
manage s ( esponsible o he a eas o sales, expo , ma ke ing o
financial). O he posi ions conside ed a e financial o fice s o ce ified
accoun an s.
The majo i y o esponding companies a e amily owned (69 %),
wi h amily managemen being he mos common ype (60 %). As
ega ds he in e na ionaliza ion expe ience, app oxima ely 13.8 % o
he fi ms in he sample in e na ionalized in he las fi e yea s, 20.9 %
ha e an expe ience be ween 6 and 10 yea s, 34.3 % an expe ience
be ween 11 and 20 yea s, and 31.0 % mo e han 20 yea s’expe ience
wo king in in e na ional ma ke s. Rega ding he deg ee o in e na-
ionaliza ion, measu ed as he weigh o expo s in he o al u no e ,
almos 37 % o he sample show less han 5 % o expo s, 20.4 % show
a weigh o expo s be ween 5 % and 20 %, 22.6 % show a weigh o
he expo s be ween 20.1 % and 60.0 %, and only 20.2 % o he compa-
nies expo mo e ha 60.1 %. Table 1 p esen s he sample cha ac e i-
za ion.
Measu es
The scales used o measu e each cons uc we e adop ed om he
exis ing li e a u e (see Appendix A). All a iables we e assessed using
mul iple i ems.
Exploi a ion and explo a ion s a egies we e measu ed using a six-
i em scale adap ed om Osiye skyy e al. (2020). The fi e i ems used
o measu e in e na ional BMI we e adap ed om Asemokha e al.
(2019), aking in o accoun in e na ional ma ke s and he con ex o
he c isis pe iod. In e na ional pe o mance was measu ed using six
i ems adap ed om Knigh and Ca usgil (2004) and Acos a e al.
(2018). Expec a ions conce ning c isis su i al was measu ed using
ou i ems adap ed om Naidoo (2010). All a iables, excep in e na-
ional pe o mance, we e measu ed using a Like scale (1 = “s ongly
disag ee” o 7 = “s ongly ag ee”). To measu e in e na ional pe o -
mance, wo complemen a y pe spec i es we e combined. Fi s , a
h ee-i em scale was used o assess he expec a ion pe spec i e, and
esponden s we e asked o a e hei sa is ac ion wi h he company’s
pe o mance in in e na ional ma ke s du ing he c isis pe iod, aking
in o accoun hei expec a ions a he beginning o he COVID-19
c isis, on a se en-poin Like scale anging om 1 (“ex emely dis-
sa isfied”) o7(“ex emely sa isfied”). On he o he hand, a h ee-
i em scale accoun s o he compa a i e pe spec i e. Responden s
we e asked o a e how he company had pe o med in in e na ional
ma ke s du ing he c isis pe iod compa ed o i s main compe i o s
since he s a o he COVID-19 c isis, on a se en-poin Like ype
scale anging om 1 (“Much wo se”) o7(“Much be e ”).
The con ol a iables conside ed in his s udy we e fi m size, fi m
age, in e na ional expe ience, and indus y. Fi m size is posi i ely
ela ed o he in e na ional pe o mance o fi ms, independen o
conside ing financial o non-financial measu es. On he o he hand,
fi m age a ec s in e na ional pe o mance nega i ely (Do
gan, 2013;
Vu e al., 2019). This las beha io is ela ed o he ac ha , o e
ime, fi ms end o be less dynamic, which can esul in mo e di ficul-
ies when acing en i onmen al changes. In e na ional expe ience,
measu ed in yea s, was ope a ionalized as he di e ence be ween
he yea he su ey was launched (2021) and he yea he company
fi s in e na ionalized (Sapienza e al., 2005). In e na ional expe i-
ence is posi i ely ela ed o fi m’s su i al and success (Mudambi &
Zah a, 2007). Las ly, indus y was measu ed as a dummy a iable ha
assumes he alue o “10’i he fi m belongs o a manu ac u ing sec o
and “00’i he fi m is om a non-manu ac u ing sec o . E idence in
he li e a u e indica es ha di e en indus ies p esen di e en
in e na ionaliza ion pa e ns, and di e en le els o in e na ional
pe o mance.
Non- esponse and common-me hod bias
To assess he no mali y o he da a, he skewness and ku osis
measu es we e analyzed (Kline, 2015). Acco ding o Kline (2015),
no mali y issues may a ise when he skewness index exceeds |3.0|
and he ku osis index exceeds |10.0|. In his s udy, he skewness
Table 1
Sample cha ac e iza ion.
Cha ac e is ics F eq. % F eq. %
Responden s’Posi ion Educa ion le el
Business Owne 330 22.7 % Elemen a y school 22 1.5 %
P esiden / CEO 93 6.4 % Junio high 93 6.4 %
Adminis a o 151 10.4 % P o essional educa ion 75 5.2 %
Gene al Manage 325 22.3 % High School 308 21.2 %
Senio Manage 251 17.2 % Bachelo 588 40.4 %
O he 305 21.0 % Mas e deg ee 191 13.1 %
Responden s’Gende Pos g adua e deg ee 162 11.1 %
Male 858 59.0 % PhD 16 1.1 %
Female 597 41.0 % Founde
Responden s’Age Yes 586 40.3 %
≤30 yea s 108 7.4 % No 869 59.7 %
31−40 yea s 268 14.4 % Family Owne ship
41−50 yea s 569 39.1 % Yes 997 68.5 %
51−60 yea s 394 27.1 % No 458 31.5 %
>60 yea s 116 8.0 % Family Managemen
Fi m age Yes 876 60.2 %
≤5 yea s 69 4.7 % No 579 39.8 %
6−10 yea s 206 14.2 % Numbe o employees
11−15 yea s 220 15.1 % 6−10 employees 522 35.9 %
16−20 yea s 164 11.3 % 11−25 employees 491 33.7 %
21−30 yea s 345 23.7 % 26−50 employees 237 16.3 %
31−40 yea s 223 15.3 % 51−100 employees 117 8.0 %
41−50 yea s 112 7.7 % 101−250 employees 62 4.3 %
51−60 yea s 53 3.7 % >250 employees 26 1.8 %
>60 yea s 63 4.3 %
Fi m’s In e na ional Expe ience In e na ionaliza ion deg ee
1−5 yea s 201 13.8 % <5,0 % 535 36.8 %
6−10 yea s 304 20.9 % 5,0−10,0 % 144 9.9 %
11−15 yea s 324 22.3 % 10,1−20,0 % 153 10.5 %
16−20 yea s 175 12.0 % 20,1−40,0 % 178 12.2 %
21−30 yea s 287 19.7 % 40,1−60,0 % 152 10.4 %
31−40 yea s 116 8.0 % 60,1−80,0 % 113 7.8 %
>40 yea s 48 3.3 % >80,1 % 180 12.4 %
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
alues anged om 0.01 o 1.286, and he ku osis alues anged
om 0.02 o 2.046, bo h o which a e wi hin accep able limi s. The e-
o e, he da a o his s udy ha e no no mali y p oblems.
To es o non- esponse bias, we compa ed he esponses o ea ly
and la e pa icipan s ( he fi s 75 % e sus he las 25 % o he sample),
and we also compa ed esponden s wi h non- esponden s using a
numbe o con ol a iables. In bo h compa isons, he means o he
a iables we e calcula ed and compa ed, and no significan di e en-
ces we e ound. This indica es ha non- esponse bias is no a po en-
ial p oblem.
Wi h ega d o common me hod bias, he Ha man single ac o
es was pe o med. P oblems can be conside ed o exis i a single
ac o explains he majo i y o he a iance. The esul s o his s udy
show six ac o s wi h eigen alues g ea e han 1. The fi s ac o
accoun s only o 29.18 % o he o al a iance, and he combined ac-
o s accoun o 72.46 % o he a iance. These esul s sugges ha
common me hod bias is no an issue in his s udy.
Da a analysis and esul s
The da a was analyzed using s uc u al equa ion modeling (SEM)
wi h he AMOS so wa e, a me hod ha allows o simul aneous es -
ing o mul iple ela ionships be ween a ious independen and
dependen a iables (Ullman & Ben le , 2012). SEM is conside ed a
second-gene a ion s a is ical analysis echnique (Low y & Gaskin,
2014) ha has he abili y o accoun o bo h andom and sys ema ic
measu emen e o s (MacKenzie, 2001). Fu he mo e, SEM p o ides
a mo e obus app oach o assess eliabili y and alidi y (MacKenzie,
2001).
Assessmen o measu emen model
Confi ma o y ac o analysis (CFA) using maximum likelihood
(ML) es ima ion was used o assess he eliabili y and alidi y o he
cons uc s. The model fi indices we e: x
2
/d = 4.3041, GFI = 0.942,
NFI = 0.962, CFI = 0.970, PGFI = 0.745 and RMSEA = 0.048. Excep o
he no med Chi-squa e, all goodness o fi indices exceeded he
defined h esholds. Specifically, he RMSEA was below 0.07, while
he CFI, GFI, and NFI we e all abo e 0.9, and he PGFI exceeded 0.5
(Hai e al., 2018). Al hough he no med chi-squa e should ypically
be below 3.0, excep ions a e made o la ge samples (g ea e han
750), as in he case o ou s udy wi h a sample size o 1455 (Hai
e al., 2018).
The s anda dized ac o loadings, as shown in Appendix A, a e
gene ally abo e 0.7 (Hai e al., 2018). Appendix A shows he C on-
bach’s coe ficien alphas (a), composi e eliabili y (CR), and a e age
a iance ex ac ed (AVE). The C onbach’s alpha and CR alues bo h
exceed he sugges ed h eshold o 0.70, wi h he CR no exceeding
0.95 (Hai e al., 2018). The AVE alues o each cons uc exceed he
ecommended h eshold o 0.5 (Bagozzi & Yi, 1988,2012) and a e
g ea e han he co esponding CR alues, confi ming con e gen
alidi y and in e nal consis ency.
The Fo nell−La cke c i e ion was used o assess disc iminan
alidi y. This c i e ion compa es he squa e oo o he AVE o each
cons uc wi h he co ela ions be ween ha cons uc and all o he
cons uc s (Fo nell & La cke , 1981). The esul s, shown in Table 2,
indica e ha he squa e oo o he AVE o each cons uc is highe
han i s highes co ela ion wi h any o he cons uc , hus confi ming
disc iminan alidi y (Fo nell & La cke , 1981).
Assessmen o s uc u al model
As analyzed o he measu emen model, he alidi y o he s uc-
u al model should also be assessed. As obse ed in he measu emen
model, he no med chi-squa e (4.297) is highe han he limi p o-
posed (3.00) o he same eason as men ioned p e iously: he
sample size dimension. The emaining indices p esen alues wi hin
he limi s sugges ed by he li e a u e and, he e o e, indica e a good
fi o he model (x
2
/d = 4.297; CFI = 0.959, GFI = 0.931 NFI = 0.947,
RMSEA = 0.048). The esul s o he s uc u al model a e p esen ed in
Table 3 below.
The esul s show ha explo a ion has a significan posi i e e ec
on in e na ional BMI (b= 0.311, p<0.001), suppo ing Hypo hesis 1
(H1). Simila ly, exploi a ion has a significan posi i e e ec on in e -
na ional BMI (b= 0.116, p<0.01), suppo ing Hypo hesis 2 (H2).
To es he hypo hesized di e ence in he s eng h o he explo a-
ion and exploi a ion e ec s on in e na ional BMI, a chi-squa ed di -
e ence es was pe o med be ween he o iginal model and a model
in which bo h coe ficien s we e cons ained o be equal. The con-
s ained model pe o med wo se han he uncons ained model, and
he di e ence was significan (p<0.001). Thus, he di e ence
be ween he e ec s o he explo a ion s a egy (b= 0.311, p<0.001)
and he exploi a ion s a egy (b= 0.116, p<0.01) on in e na ional
BMI is significan , suppo ing Hypo hesis 3 (H3). This indica es ha
explo a ion s a egy has a s onge ela ionship wi h in e na ional
BMI han exploi a ion s a egy.
Mo eo e , he esul s show ha in e na ional BMI has a posi i e
impac on in e na ional pe o mance (b= 0.465, p<0.001) and
expec a ions conce ning c isis su i al (b= 0.124, p<0.001), sup-
po ing Hypo heses 4 (H4) and 5 (H5), espec i ely.
Rega ding he con ol a iables, only he a iable ela ed o indus-
y p esen s a posi i e and significan ela ionship wi h in e na ional
pe o mance (b= 0.092, p<0.001), meaning ha manu ac u ing
fi ms exhibi be e pe o mances in he o eign ma ke s han non-
manu ac u ing fi ms.
Discussion o findings
In line wi h he fi s esea ch ques ion o his s udy, we in es i-
ga ed how wo di e en s a egic app oaches (explo a ion and
exploi a ion) o in e na ionalized fi ms a ec hei in e na ional busi-
ness model inno a ion du ing a global c isis, such as he COVID-19
pandemic.
We ound ha bo h explo a ion and exploi a ion s a egies
enhance in e na ional BMI. Al hough his ela ionship has been p e-
iously in es iga ed in he li e a u e (Ahokangas & Myllykoski, 2014;
Anzenbache & Wagne , 2020;Colo ic, 2022;Smi h e al., 2010),
esea ch assessing how in e na ional fi ms eac o a majo c isis is
s ill sca ce (A ah-Boakye e al., 2023;Ch is ofie al., 2024;E e s
e al., 2023;Lew e al., 2023). Fu he mo e, while he e a e some
s udies assessing he ole o explo a ion, exploi a ion, and ambidex-
e i y s a egies du ing a c isis pe iod (e.g., Beliae a e al., 2020;Chou
e al., 2024;Ibo a e al., 2020), he ocus is placed on pe o mance
e ec s, neglec ing he impac on in e na ional BMI.
Hence, his s udy is dis inc in examining he way hose s a egies
ela e o in e na ional BMI du ing an uns able pe iod. The esul s o
his s udy a e consis en wi h p e ious wo ks (e.g., Ahokangas & Myl-
lykoski, 2014;Anzenbache & Wagne , 2020), showing a posi i e sig-
nifican e ec o bo h s a egies on in e na ional BMI among
Po uguese fi ms du ing he COVID-19 pandemic. Mo eo e , he
esul s suppo Colo ic’s (2022) conclusions ega ding his
Table 2
Co ela ion Ma ix.
1. 2. 3. 4. 5.
1. Explo a ion 0.738
2. Exploi a ion 0.711 0.745
3. In e na ional BMI 0.404 0.321 0.864
4. In e na ional Pe o mance 0.144 0.153 0.464 0.831
5. Expec a ion abou c isis su i al 0.215 0.259 0.113 0.25 0.894
No es: Bolded numbe s a e he squa e oo s o AVE.
N.F. C espo, C.F. C espo, G. Sil a e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100584
