Abstract
Adapting existing business models for use in developing economies poses particular challenges for established firms. Yet, few studies have separated stable internal factors from the novel external factors that drive change in the existing business model. The Bosch Group's investment in the Chinese automobile aftermarket highlights the impact of four principal external factors—industry, technology, institutions, and market—on business model innovation. A proposed framework comprising these factors offers managers who are charged with expanding into a developing economy guidance in modifying an existing business model to suit local conditions. By so doing, they will be better equipped to ensure the attainment of organizational objectives in their new setting.