Purpose-This paper aims to discuss the need to dynamize the existing conceptualization of business model, and proposes a new typology to distinguish different types of business model change. Design/methodology/approach-The paper integrates basic insights of innovation, business process and routine research into the concept of business model. The main focus of the paper is on strategic and terminological issues. Findings-The paper offers a new, process-based conceptualization of business model, which recognizes and integrates the role of individual agency. Based on this, it distinguishes and specifies four different types of business model change: business model creation, extension, revision, and termination. Each type of business model change is associated with specific challenges. Practical implications-The proposed typology can serve as a basis for developing a management tool to evaluate the impact of specific changes to a firm's business model. Such a tool would be particularly useful in identifying path dependencies and resistance at the process level, and would therefore allow a firm's management to take focused action on this in advance. Originality/value-The paper makes two main contributions: first, it offers a new, process-based conceptualization of business models; second, it is the first paper to establish a direct link between business model change and the degree of innovation (such as "incremental" vs "radical"), and which distinguishes and specifies different types of business model change.

PurposeThe purpose of this paper is to identify the impact of a new global positioning technology on firms’ business models.Design/methodology/approachThe empirical setting was a consortium of Danish organizations, established to develop a positioning‐based technology platform as a basis for innovative commercial products and/or services. Three of the consortium companies were selected for case‐study research.FindingsThe main findings were that companies will use the new technology to extend their existing business models, and that the technology platform potentially represents the creation of a new business model for the partner companies in the consortium.Practical implicationsThis paper is important in that it will help companies understand technological impact from a business model perspective, thereby enabling them to manage innovation better by distinguishing between the creation, extension, revision or termination of business models.Originality/valueThe main contribution of this study is its use of the business model perspective to analyse the impact of an emergent technology on companies’ innovation activities. This perspective makes it easier to develop strategic initiatives while managing innovation, and underlines the importance of purposive human action in adopting a proactive behaviour, reducing deterministic views on technological impact.

The aim of this paper is to base organisational change on the firm's business model, an approach that research has only recently start to address. This study adopts a process-based perspective on business models and insights from a variety of theories as the basis for the development of ideas on the design of business model change. This paper offers a new, process-based strategic analytical artefact for the design of business model change, consisting of three main phases. Designing business model change as suggested in this paper allows ex ante analysis of alternative scenarios of change in a structured and comprehensive way. Such a tool is useful for obtaining an overall view of the working logic of the firm and to facilitate innovation through change. The main contribution of this paper is to transform management theories into an instrument that can be helpful for companies to develop their capacity to change in a more focused and structured way.

No abstract

No abstract