Current literature suggests that the innovation of a business model is among the most important success factors for organizations and has a positive influence on their performance. What is not yet clear, however, is how this relationship unfolds during an organization’s life cycle. We posit that business model innovation strongly contributes to firm performance in earlier phases, but ultimately gets less important. We therefore collected data on 250 organizations in Germany and used structural equation modeling for analytical purposes. We make the following two main contributions to the literature: (1) We confirm recent findings about the positive impact of business model innovation on performance; (2) we provide first empirical evidence for the important role of life cycle stages as moderator with regard to this relationship. With respect to the latter, our findings show that business model innovation is an important pathway of organizations, especially in their early years of existence, yet somewhat diminishing over time. In conclusion, this study opens new research avenues by extending and incorporating explanations for the life cycle theory and business model innovation.
In the past decade, a core assumption of research on business model innovation (BMI) has been its beneficial character. However, studies have shown that potentially disrupting BMI is not immune to failure. Still, studies that investigate the causes of BMI failures are lacking. This article shifts the focus to the dark side of BMI by using a demand‐side approach, which cross‐fertilizes on the new product development (NPD) research stream of passive innovation resistance. We argue that BMI, like any other type of innovation, imposes change on the customer, which endangers the status quo. As a result, passive innovation resistance evolves, potentially disrupting continuous adoption. Thus, the main goal of the current study is to investigate whether and how BMI evokes negative effects of passive innovation resistance on customers' adoption behavior (Study 1) and to determine which marketing instruments can be used as countermeasures (Study 2). Our findings confirm that passive innovation resistance is a strong inhibitor of continuous BMI adoption. However, the detrimental effects of passive innovation resistance on continuous BMI adoption can be attenuated by employing benefit comparisons or testimonials in business model (BM) announcements. From a theoretical perspective, this study enhances the current knowledge on how stable customer predispositions affect the adoption process of BMI. By so doing, our study confirms the applicability of passive innovation resistance beyond the NPD domain but also sheds light on differences in the cause‐effect mechanism between BMI and product innovation contexts. From a managerial perspective, this study equips managers with effective countermeasures to passive innovation resistance that should reduce the probability of BMI failure.
Der Wechsel von Netflix von einem analogen Geschäftsmodell zu einer datenzentrierten Sichtweise stellt ein Paradebeispiel für einen Paradigmenwechsel der digitalen Transformation für viele etablierte Unternehmen dar. Geschäftsmodelle, die auf (Massen-)Daten basieren, verändern nicht nur die Analyse selbst, sondern auch deren Parameter. Das Controlling steht somit vor neuen Herausforderungen. In diesem Artikel werden das datenzentrierte Geschäftsmodell von Netflix sowie dessen Steuerungsmechanismen analysiert und Handlungsanweisungen für ein datengetriebenes Controlling formuliert.
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