National identity and culture grounded competitive advantage: innovative business models

Abstract

Fastest growing and most successful firms appear to have taken advantage of environmental changes and developed novel business models to create and sustain competitive advantages. This research aims to present the close interconnectedness of the issues of cultural and national identity with globalization, and reveal opportunities for business organisations. Grounding on qualitative analysis of 35 cases and national identity scale (NATID) new approach to business model innovation is proposed. This study contributes to business strategy for SMEs by highlighting four step process for culture grounded capability building, unique value proposition to customers and culture grounded competitive advantage creation enabling SMEs to compete with multinationals both, in local and international marketplace.