Management and Organization Review · 2021 · 98 citations · 2 references
BusinessInformation TechnologyInnovation ManagementBusiness StrategyInnovationInnovation StrategyBusiness Model ChangeBusiness Model InnovationDigital Business ModelsMobile CommercePlatform Business ModelsAi Business Model InnovationBusiness Model Adaptation Under Technological ChangeBusiness Model Innovation CapabilityBusiness Model PrototypingDigital Innovation InternationalizationInternational Business Model InnovationInternationalization Through Social MediaMarket Creation
ABSTRACT Firms from transforming economies can leverage the characteristics of their location to develop innovative business models before internationalizing. This note showcases ByteDance's innovative business model for its TikTok app, which became one of the most downloaded apps globally. ByteDance used its large and increasingly demanding home market to experiment with creative combinations of business model elements to develop a unique business proposition that positions the TikTok app as a hybrid of social networking and video-sharing. In addition, TikTok benefitted from China's IT strength supported by national high-tech policy to an AI-based recommendation algorithm as a non-location bound resource. TikTok shows that firms from transforming economies can launch successful global products through business model innovation.
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