Abstract
SMEs are widely recognised as the engines of economic development and progress of all nations, yet there is a high failure rate among SMEs in both developed and developing countries. Although there are numerous studies on the challenges resulting in the high failure rate of SMEs in South Africa, there is scant research on foreignowned SMEs operating in the country. This study developed a substantive grounded theory on the business models applied by successful foreign-owned SMEs in South Africa, with the aim of sharing this knowledge with the broader SME sector in the country. The result of this research is thus a grounded theory entitled Business Models of Successful Foreign-Owned SMEs. This research was founded on the theoretical approach proposed by Corbin and Strauss (2008). Data was collected from a sample of 42 foreign-owned SMEs using multi-case interviews. The findings revealed seven business model types applied by these SMEs, namely, Consultancy Business Models, Retail and Wholesale Business Models, Family Business Models, Self-Managed Business Models, Import and Export Business Models, Craft/Skill Business Models and Service Business Models. A conceptual analysis of these models revealed six common concepts. These were used to form an integrative framework of business models of successful foreign-owned SMEs using grounded theory techniques. This framework shows the interrelationships between value propositions and value mapping strategies, market penetration and market retention strategies, lean thinking, challenges specifically facing foreign-owned SMEs, survival, growth and expansion mechanisms and knowledge sharing mechanisms. These were the key constructs informing the business models of successful, foreign-owned SMEs in South Africa...
Ph.D. (Business Management)