FEATURE PAPER

The Role of Business Model Innovation In The Emergence Of Markets: A Missing Dimension of Entrepreneurial Strategy?

The followingpaper was written by Samuel S. Holloway from The University of Portland, and by Helder J. Sebastiao from the University of San Diego. It was presented at the 2010 USASBE conference in Nashville, TN.

ACADEMIC ABSTRACT

We propose that entrepreneurs who successfully introduce new business models that significantly alter existing market preferences and structures do so through a process that aligns collective interests with their strategic vision of the business model and market. This process combines the experimental and iterative nature of effectuation with a strategic orientation that is fundamentally market driving.

EXECUTIVE SUMMARY

While the business model literature effectively explains how existing market conditions influence business model development and implementation, it does not seem to account for situations where a new business model actually influences market conditions. In addition, despite a rich literature describing the interactions among institutional entrepreneurs that shape new markets (Aldrich & Fiol, 1994; Fligstein, 2001), much less has been written about the specific role of individual actors in influencing and shaping emerging markets in their favor (Santos & Eisenhardt, 2005). Examining business model development and evolution in the emerging market context provides a critical link between the collective actions that facilitate new markets (Aldrich & Fiol, 1994; Fligstein, 2001) and individual firm actions seeking to co-opt market preferences, define firm and market boundaries, and control competitors, suppliers, and future outcomes (Santos & Eisenhardt, 2005). In other words, in the emerging market context the development and execution of a business model requires interaction and alignment between collective interests and those of the entrepreneur, which in turn influences market definition and structure. This suggests that business models are a key dimension in developing and analyzing entrepreneurial strategy in emerging markets.
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TIP OF THE WEEK

What Are the Main Components of Attitudes?

Typically, researchers have assumed that attitudes have three components: cognition, affect, and behavior. Let's look at each.
The statement "My pay is low" is the cognitive component of an attitude - a description of or belief in the way things are. It sets the stage for the more critical part of an attitude - its affective component. Affect is the emotional or feeling segment of an attitude and is reflected in the statement "I am angry over how little I'm paid." Finally, affect can lead to behavioral outcomes. The behavioral component of an attitude describes an intention to behave in a certain way toward someone or something - to continue the example, "I'm going to look for another job that pays better."
Viewing attitudes as having three components - cognition, affect, and behavior - is helpful in understanding their complexity and the potential relationship between attitudes and behavior. Keep in mind that these components are closely related, and cognition and affect in particular are inseparable in many ways. For example, imagine you concluded that someone had just treated you unfairly. Aren't you likely to have feelings about that, occurring virtually instantaneously with the though? Thus, cognition and affect are intertwined.
In organizations, attitudes are important for their behavioral component. If workers believe, for example, that supervisors, auditors, bosses, and time-and-motion engineers are all in conspiracy to make employees work harder for the same or less money, it makes sense to try to understand how these attitudes formed, their relationship to actual job behavior, and how they might be changed.

ANNOUNCEMENTS

SBI Journal - Request for Papers And Reviewers

The Small Business Institute is now requesting papers and reviewers for the fifth volume of the Small Business Institute Journal. If you are interested in submitting a paper please visithttp://www.sbaer.uca.edu/sbij/about.phpto see the guidelines and submission procedure. If you are interested in becoming a reviewer or would like more information please email us atsbij@uca.edu.The fifth issue is to be published April 2010.

Student Case Writing Competition

The Baylor University Entrepreneurship Program and USASBE are jointly sponsoring a student case writing competition in conjunction with USASBE's annual meetings beginning in 2011 at USASBE's 25th Annual Conference to be held January 13-16, 2011 in Hilton Head, South Carolina. This is an innovative international event that supports and encourages undergraduate and graduate students who wish to engage in case research and case writing. Submitted cases are suitable if they advance the field of entrepreneurship, broadly defined, and contribute to an understanding of entrepreneurial phenomena. For more informationClick Here

CDI Central 2010 at the University of Central Arkansas

The Community Development Institute Central is a unique training program offering a comprehensive curriculum of professional knowledge and skills inc community and economic development and capacity building. To complete the program, students attend one-week sessions for three consecutive years. There are also "fast track" options where students can complete the entire program in a year or less.
Click Here

ICSB 2010: "Entrepreneurship: Bridging Global Boundaries"

The ICSB World Conference 2010 will be taking place June 24-27, 2010. It will be held in Cincinnati, Ohio, USA. The Early Registration Deadline is April 30th, 2010. Topics will deal directly or indirectly with: * Entrepreneurship Education * Individual Entrepreneurship * Women and Minority Entrepreneurship * Small Business and SME's in Developing Economies * Public Policy * Entrepreneurship and Technology * Family Business * Corporate Entrepreneurship * International Entrepreneurship * Entrepreneurship in the Arts * Entrepreneurship Across the Curriculum * Social Entrepreneurship * Additional topics of interest and value to ICSB's membership.
For more informationClick Here.

Canadian Council for Small Business & Entrepreneurship

CCSBE is seeking to explore the multifaceted impact entrepreneurs and small businesses have on their communities through their new ventures, business and community outreach.
There is growing recognition by policy makers, members of society, business leaders and youth, that creative approaches are needed to address environmental, economic, and societal issues. The conference program highlights the research, educational methods, and community practices pertaining to venture sustain ability and social entrepreneurship. In support of the theme we have attracted an array of plenary and guest speakers, and developed workshops which will contribute to the dialogue.

The conference (October 28th - 30th) offers several opportunities for you to contribute. We encourage you to submit to our Program Committee:

1. A full paper for blind review
2. An Abstract for blind review
3. Or a workshop proposal idea

Submission Deadline: May 1st, 2010. For instructions on how to submit a proposal, and for more informationClick Here.

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