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Business Model and Operational Adaptation in Cross-Cultural Service Internationalization —— A Case Study of Haidilao in Europe

Cui, Yuze LU and Wang, Xinxuan LU (2026) MGTN59 20261
Department of Business Administration
Abstract
Despite China’s rapid outward foreign direct investment growth, existing international business research has largely focused on capital-intensive, goods-producing sectors, leaving the internationalization of service industries, particularly catering, comparatively underexplored. This study examines why and how Chinese catering firms adapt their business models and operations when entering the European markets, using Haidilao as a single case.Drawing on 12 semi-structured interviews, the findings reveals that Haidilao reconfigured its value proposition by retaining its service identity
while adapting service delivery and operational practices to local cultural and
institutional conditions. The study extends firm-specific advantage... (More)
Despite China’s rapid outward foreign direct investment growth, existing international business research has largely focused on capital-intensive, goods-producing sectors, leaving the internationalization of service industries, particularly catering, comparatively underexplored. This study examines why and how Chinese catering firms adapt their business models and operations when entering the European markets, using Haidilao as a single case.Drawing on 12 semi-structured interviews, the findings reveals that Haidilao reconfigured its value proposition by retaining its service identity
while adapting service delivery and operational practices to local cultural and
institutional conditions. The study extends firm-specific advantage perspectives by showing that competitive advantage in culturally embedded service firms is not derived solely from transferable organizational capabilities but is co-constructed through customers’ cultural interpretations, requiring active reconstruction in host markets. Based on these findings, the study proposes a four-stage internationalization pathway model, challenges the assumption that cultural distance is uniformly constraining, and demonstrates that for firms whose competitive identity is grounded in cultural distinctiveness, foreignness can be reframed as a source of differentiation rather than a liability. (Less)
Please use this url to cite or link to this publication:
author
Cui, Yuze LU and Wang, Xinxuan LU
supervisor
organization
course
MGTN59 20261
year
type
H1 - Master's Degree (One Year)
subject
keywords
Internationalization, Cultural adaptation, business model adaptation, Firmspecific advantages, Chinese catering firms, service operations, value co-creation
language
English
id
9237360
date added to LUP
2026-06-29 14:35:56
date last changed
2026-07-01 01:42:33
@misc{9237360,
  abstract     = {{Despite China’s rapid outward foreign direct investment growth, existing international business research has largely focused on capital-intensive, goods-producing sectors, leaving the internationalization of service industries, particularly catering, comparatively underexplored. This study examines why and how Chinese catering firms adapt their business models and operations when entering the European markets, using Haidilao as a single case.Drawing on 12 semi-structured interviews, the findings reveals that Haidilao reconfigured its value proposition by retaining its service identity 
while adapting service delivery and operational practices to local cultural and 
institutional conditions. The study extends firm-specific advantage perspectives by showing that competitive advantage in culturally embedded service firms is not derived solely from transferable organizational capabilities but is co-constructed through customers’ cultural interpretations, requiring active reconstruction in host markets. Based on these findings, the study proposes a four-stage internationalization pathway model, challenges the assumption that cultural distance is uniformly constraining, and demonstrates that for firms whose competitive identity is grounded in cultural distinctiveness, foreignness can be reframed as a source of differentiation rather than a liability.}},
  author       = {{Cui, Yuze and Wang, Xinxuan}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Business Model and Operational Adaptation in Cross-Cultural Service Internationalization —— A Case Study of Haidilao in Europe}},
  year         = {{2026}},
}