Business Model Innovation for International Expansion in Electromobility - A Study of Swedish Manufacturing Firms

Abstract

In recent years, the commercial vehicle manufacturing industry has faced challenges transitioning from combustion engines to electric vehicles due to sustainability regulations, emission reductions, and evolving customer requirements. These challenges have created opportunities for firms to create new business models to achieve sustainable competitive advantage in international markets. While previous studies have explored business model innovation and internationalisation separately, little research focuses on the commercial electromobility transition. Thus, this study addresses that gap. Using a qualitative research design with a multiple case study approach involving nine interview participants from five Swedish manufacturing firms. This thesis explores how business model innovation uses international expansion in the context of the commercial electromobility transition. The study focuses on three dimensions of the business model innovation: value proposition, value creation and delivery, and value capture. The study shows that business model innovation is mainly impacted by both internal and external drivers, particularly country regulations and customer expectations. Firms greater focus on customer centric approaches and partnerships and business networks for international expansion. Additionally, local and regional adaptation strategies that further strengthen international expansion. Results suggest that firms need diversified, adaptable business model innovations to cater to international markets successfully in the electromobility manufacturing sector.