How entrepreneurs make sense of International Business Model Innovation

Business models play a pivotal role in driving firm growth and fostering innovation, especially within the dynamic and ever-changing landscape of contemporary business environments. These models serve as the foundational blueprints that delineate how to operates to achieve multifaceted objectives, encompassing profitability, expansion, and impact. This study delves into the paramount significance of entrepreneurs' sensemaking in sculpting their international business models. By exploring four distinct sensemaking processes, this research conducts a longitudinal analysis encompassing seven small and medium-sized enterprises engaged in internationalization. The research shows a common thread among these international entrepreneurs—a resolute commitment to pragmatic sensemaking underpinning their actions across three of the four discerned styles. This pragmatic sensemaking is a powerful tool they employ to navigate the intricate web of complexities and uncertainties inherent to internationalization. The outcomes of their pragmatic sensemaking encompass the creation of innovative business models, and the deployment of cost-effective entry modes, contributing to their international growth. Two exceptional cases distinguish themselves by exhibiting heightened levels of entrepreneurial activity (Born Global) and an even more pronounced proactive sensemaking style. They effectively harness discovery and enactive approaches to international business model innovation to chart their rapid growth. These findings contributes both theoretical and practical insights.