Starjournal Quotation Peprah, Augustine Awuah, Giachetti, Claudio, Larsen, Marcus M., Rajwani, Tazeeb S. 2021. How Business Models Evolve in Weak Institutional Environments: The Case of Jumia, the Amazon.Com of Africa. Organization Science.


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Abstract

We advance research on the antecedents of business model design by integrating institutional and imitation theories to explore how the business model of new ventures evolves in a weak institutional environment. Based on a case study of Jumia—an online retailing company in Africa established with the aim to emulate the success of Amazon.com—we propose a process model entitled “imitate-but-modify” that explains how business models evolve through four distinct phases (i.e., clarification, legitimacy, localization, and consolidation). In essence, this model explains how new ventures surrounded by considerable uncertainty deliberately seek to learn vicariously by imitating the business model template of successful firms. However, because of significant institutional voids, the ventures’ intentional imitation is progressively replaced by experiential learning that blends business model imitation with innovation.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Organization Science
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title How Business Models Evolve in Weak Institutional Environments: The Case of Jumia, the Amazon.Com of Africa
Year 2021
DOI http://dx.doi.org/10.1287/orsc.2021.1444
Open Access N

Associations

People
Peprah, Augustine Awuah (Details)
External
Giachetti, Claudio (Department of Management, Ca’ Foscari University of Venice, Italy)
Larsen, Marcus M. (Department of Strategy and Innovation, Copenhagen Business School, Denmark)
Rajwani, Tazeeb S. (Department of Strategy and International Business, University of Surrey, United Kingdom)
Organization
Institute for International Business (Dikova) (Details)
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