526: Global Scaling of Disruptive Business Models (14447)

How do new venture’s disruptive business models expand globally? Drawing upon the recent global scaling literature, we theorize that business model scalability is a key enabler of foreign market entries. We find that it is easier for newly public firms with more scalable business models to replicate and reconfigure across national borders, since core activities of highly scalable business models do not need to be adapted; only peripheral activities need adjustment. In comparison, both core and peripheral activities of less scalable business models need to be adapted. We find that the disruptive business model has high scalability and the positive relationship between the disruptive business model and scalability is strengthened by VC support. We further examine the positive association between business model scalability and foreign market entries and find that this relationship is magnified by the economic distance but weakened by the institutional distance between the host and home countries.

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