Designing and developing a local business model for knowledge-based companies in the field of medicinal plants: Analysis of the technological ecosystem and mixed entrepreneurial strategies

Despite Iran’s rich biodiversity and recent policy support, the medicinal plants industry still holds a minor share of global markets and remains largely focused on raw-material production. This study aims to design and develop a localized, flexible business model for knowledge-based firms in the medicinal plants domain to help them move from commodity sales toward technology-driven value creation, market development, and exports. An exploratory–sequential mixed-methods approach was used. In the qualitative phase, content analysis of documents and semi-structured interviews with 17 participants—including managers of knowledge-based firms, technology experts, and science and technology park specialists—identified six key dimensions: (1) capital and financial resources, (2) technological linkages and infrastructure, (3) regulation and policy, (4) market and marketing, (5) open innovation and network collaboration, and (6) business model flexibility. Based on these findings, a survey instrument was developed and the quantitative data were analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3. Results show that all six dimensions significantly influence the design of business model components—value proposition, customer segments, key resources, and channels—which, in turn, improve firms’ innovation performance, market development, and export capability. Theoretically, the proposed model integrates causation and effectuation perspectives in entrepreneurship while emphasizing open innovation and network interaction, offering a comprehensive, context-specific view of business model development.