The paper "Value Creation of an Internationalizing Entrepreneurial Firm by Sainio" is an outstanding example of a business article. In the article, Sainio et al. begin by stating the aim of the research which is to elucidate the necessity of incorporating business model in International entrepreneurship. They seek to at least close the gap that exists after the preceding studies. They purpose to have research that has a dual contribution to International Entrepreneurship. The first one is the building blocks of the business model while the second one is the value creation Sainio et al say that there are gaps that exist from a Literature review of previous works done with regard to the business model.
They point out that in as much as research has been done in connection with the concept, it has never been fully incorporated in business especially in International Entrepreneurship. It has its way in a general view across various subjects of study. Sainio et al. decide to adopt a business model definition whose main focus is on value addition in all undertakings of the focal firm (Al-Debei & Avison, 2010).
Since it is a system of activities, it entails three variables which entail: value creation driver, design elements and value exchange. In value Creation drivers, Originality is the main point that focuses on the need to have a product of your own. Realization of quality end products with minimal input costs is also a concept in this criterion which ensures increased profits. The second criterion focuses on the essence of pronounced and calculated collaborations globally. Sainio et al. point out the shortcomings which encompass a company that does not benchmark or even builds on partner relationships.
Strong ties created through partnerships are foundations of success among the partners hence value creation. As the saying goes: united we stand; divided we fall Sainio et al, propose the inclusion of the final criterion which is a value exchange. They outline the necessity of examining value exchange from target customers, suppliers of products and sales partners. It is essential as it will help in pointing out which areas need adjustments or some value-added.
Al-Debei, M. M., & Avison, D. (2010). Developing a unified framework of the business model concept. European Journal of Information Systems, 19(3), 359-376.
EISENHARDT, K. M., & GRAEBNER, M. E. (2007). THEORY BUILDING FROM CASES: OPPORTUNITIES AND CHALLENGES. Academy of Management Journal, 50(1), 25-32.
Osterwalder, A., & Pigneur, Y. (2013). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.