Abstract

This research undertakes a longitudinal, case-based research to explore how a less wellendowed product supplier chooses a dual business model, which simultaneously engages both own-brand and original equipment manufacturing (OEM) businesses, and its associated decision rationales. Based on in-depth study on multiple product line cases sampled from a single organizational context, we are able to propose two decision constructs: segment-making capabilities and product/service innovation potential, which various types of dual business models are intertwined with. In addition, we find that in the case of exploratory products, the product supplier adopts a model where the organizational learning effect is more pronounced, while in the case of exploitative products, balancing long and short-term outcomes is the primary motive for model choice. Overall, our research adds new insight to the existing paradoxical conversation of dual business models by offering a useful decision framework with a theoretical foundation and practical guidance.  

Keywords

dual business modelcapabilities-based viewOEM businessbusiness model