Aligning firm's value system and open innovation: a new framework of business process management beyond the business model innovation

Abstract

PurposeBusiness process management (BPM) supports the creation and capture of firm value. In a dynamic context, the current approach to BPM appears to be limited and static in the face of the challenges posed by the firm's open innovation (OI) ecosystem. The main purpose of this paper is to shed light on the value co-creation through the integration of OI principles and mechanisms of value system.Design/methodology/approachTo this aim, the paper suggested a conceptual integration of strategy and operations literature on OI and the firm's value creation system. This analysis adopted BPM lenses with specific attention to the alignment between value creation and value capture. Applying BPM lenses to the process of creating shared value sought the attainment of a comprehensive system of decisions articulated between strategy and operations.FindingsThe paper pinpoints key links between strategy models and operational planning, thus proposing a new framework that integrates the characteristics of value system and OI. The paper elaborates a new theoretical framework rooted in the extant literature conducted in BPM, business strategy and business model innovation (BMI) fields.Originality/valueThis paper aims to fill the gap in the literature in which strategy models are separately treated from the operational ones. This conceptual effort contributes to the extant literature by drawing upon a comprehensive frameworkand mapping the complex set of interactions between the firm's value chain and its innovation ecosystem.

Can business model innovation help SMEs in the food and beverage industry to respond to crises? Findings from a Swiss brewery during COVID-19

“…Particularly, Kuckertz et al (2020) in a recent study on how start-ups cope with the COVID-19 crisis suggest that relational (e.g., goodwill of business partners, consultation of the business network) and financial (e.g., capital accumulation) resources help such firms to identify and pursue market opportunities, thereby introducing innovations and alternative products/services. The above remarks highlight that resilient and more flexible SMEs leveraging external relationships with partners and key-actors of their ecosystem can also rapidly adapt to changing and turbulent environments, thereby strengthening their competitive advantage (Sanchez and Ricart, 2010;Dayan et al, 2017;Abdulkader et al, 2020). Moreover, a knowledge-oriented strategy (Spender and Grant, 1996) can effectively help SMEs to exploit and recombine internal capabilities and competencies (Wernerfelt, 1984;Barney, 2001).…”

Open innovation upheavals

“…The work of Abdulkader et al . (2020) has identified four principles that aid the improvement of BPM in order to create a more dynamic approach to BPM: the more strategic value interchanges between the ABS and the OI ecosystem, the more the organization is able to create value through the new BPM approach; the more the external environment is interconnected with the organization through the innovation transfer (outbound and inbound), the more the organization is able to create shared value with the OI ecosystem through the new BPM approach; in a systematic perspective, the wider the degree of openness of the BM, the more the organization is able to create shared value with the organization’s OI ecosystem through the new BPM approach; and the larger the network of collaborations between organizations in the OI ecosystem, the greater the organizations’ ability to create shared value through the new BPM approach. …”

“…From the thinking of Abdulkader et al (2020), BPMs have been reconfigured in order to consider value chains as being an open system of multiple units, where each organization within an ecosystem understands and responds to the dynamic needs of the entire ecosystem. In order to do this, organizations need to layer three typically divergent managerial frameworks – value chain, OI, and BM with primary and secondary activities – in order to identify and improve strategic advantage within an organization.…”

“…In order to do this, organizations need to layer three typically divergent managerial frameworks – value chain, OI, and BM with primary and secondary activities – in order to identify and improve strategic advantage within an organization. By layering these three managerial frameworks, the concept of Abdulkader et al (2020) is that organizations will be able to focus on: the type of activities in which the organization can create value-seizing within the ecosystem’s various opportunities of open innovation; the type of activities in which the organization can uniquely process inputs; and acknowledging the critical forces that sustain the BM from the value capture perspective. …”

“…The review is based on “Aligning firm's value system and open innovation: a new framework of business process management beyond the business model innovation” by Abdulkader et al (2020) , published in the Business Process Management Journal.…”