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1 results

  • Business Model Innovation and Experimentation in Transforming Economies: ByteDance and TikTok

  • Yulun Ma, Yue Hu
  • Journal:
    Management and Organization Review / Volume 17 / Issue 2 / May 2021
    Published online by Cambridge University Press:
    25 February 2021, pp. 382-388
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  • Firms from transforming economies can leverage the characteristics of their location to develop innovative business models before internationalizing. This note showcases ByteDance's innovative business model for its TikTok app, which became one of the most downloaded apps globally. ByteDance used its large and increasingly demanding home market to experiment with creative combinations of business model elements to develop a unique business proposition that positions the TikTok app as a hybrid of social networking and video-sharing. In addition, TikTok benefitted from China's IT strength supported by national high-tech policy to an AI-based recommendation algorithm as a non-location bound resource. TikTok shows that firms from transforming economies can launch successful global products through business model innovation.