Abstract:
Escaping the commodity trap remains an ongoing challenge for New Zealand’s primary sector in its engagement with China. The motivation of this study is to learn from a successful firm that has navigated this challenge and created additional value by building a strong understanding of market demands. Drawing on the emergent business model literature, this study progresses a framework that integrates the theoretical perspectives of the resource based view (the resource structure), transaction cost economics (the transactive structure) and the demand side perspective (the value structure). The aim is to build a more holistic view of value creation. The study adopts a single case study approach. The case selected is Zespri International Ltd, the largest global kiwifruit marketer and one of New Zealand’s leading exporters to China. The company displays a strong commitment to brand development and consumer engagement through its strong in-market presence. The main data source is eleven semi-structured interviews conducted primarily in China. Informal interviews, observations and document analysis were also use to triangulate the findings. The results of the study find that some elements of Zespri’s business model for China required careful calibration. While the resource structure remained largely constant, the transactive and value structures were significantly aligned to the external environment. The consolidation of the industry, and Zespri’s global presence, is an important enabler for this alignment. Success in the market emerges from the ability to create additional value from these resources. Zespri has had to build relationships and develop compelling value propositions in light of the unfamiliar business context. This study highlights the additional explanatory power from taking a holistic view of the business model, which can be gained by examining all three structures and their interplay. Using the business model as a framework offers further opportunities for research that is theoretically relevant and practically useful.