Business model innovation and competitive imitation: The case of sponsor‐based business models

Casadesus-Masanell, Ramón; Zhu, Feng

doi:10.1002/smj.2022

Cited by 613 publications

(428 citation statements)

References 66 publications

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“…This holds also true for eBay as both revenues and profits of the marketplace section were growing at the time the management decided to build up eBay classifieds. In addition, our findings are in line with Casadesus-Masanell and Zhu (2013) who found that incumbents (in our case eBay) will react to threats to their core business by competitors. Second, our analysis supports Markides and Charitou (2004) by confirming that competing with dual business models can create great rewards in terms of additional revenues and competitive advantages for the entire firm.…”

Section: Discussionsupporting

confidence: 91%

“…He therefore suggests focusing on the strategic health of a company, as the short term financial health might not be a good measurement for BMI decisions. As indicated in Figure 1, in response to innovative competitors that threaten their core business, incumbents will react by either incrementally adjust or radically innovate their business models, which might lead to operating dual business models (Casadesus-Masanell and Zhu, 2013). However, there are significant trade-offs, that make it difficult for established firms to respond to disruptive innovations effectively.…”

Section: Dual Business Modelsmentioning

confidence: 99%

“…As these technology behemoths once shifted the commerce paradigm by disrupting incumbent brick and mortar model, they now have to also reinvent themselves. In response to innovative competitors who threaten their core businesses; incumbents react by either incrementally adjusting or radically changing their business models (Casadesus-Masanell and Zhu, 2013). BMI in incumbent firms can often result in establishing a new business model next to the established one, which is also referred to as operating dual business models (Markides and Charitou, 2004).…”

Section: Introductionmentioning

confidence: 99%

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The introduction of a competing business model: the case of eBay

Comberg

Velamuri

2017

IJTM

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In today's highly competitive business environment, the reasons for companies to engage in business model innovation (BMI) are manifold. The pressure on firms to innovate their business models results in either an adaptation of the incumbent business model, or the introduction of a new competing business model. Based on extant theory, we found that the reasons for a firm to engage in BMI can be clustered into three categories: 1) increased profitability; 2) improved strategic positioning; 3) customer attraction. By conducting an exploratory single case study approach, we confirmed these categories by identifying the distinct reasons for eBay to introduce a competing business model. We then highlight the impacts on the focal firm as a result of the new business model. We find that the introduction of a competing business model can create novel sources of value for the company and its customers. In total, the study emphasises that when firms launch competing business models, intended and unintended consequences can be both positive and negative.

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Section: Discussionsupporting

confidence: 91%

Section: Dual Business Modelsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The introduction of a competing business model: the case of eBay

Comberg

Velamuri

2017

IJTM

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“…Previous studies have shown that technological change [71] and new capabilities [30] enable the development of new BM. "Know-how and SB solutions of architects and designers" (TL2) is ranked as the fourth important factor.…”

Section: Technology and Industrymentioning

confidence: 99%

Critical Factors Influencing Business Model Innovation for Sustainable Buildings

et al. 2017

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Despite significant policy drives, the wide adoption of sustainable building (SB) is hindered by factors such as high upfront cost and long payback period. Business model (BM) innovation is therefore highly demanded to help SB professionals to cope with the challenges and convert the value of SB into profit. Nevertheless, few studies examined BM innovation in the building sector and factors influencing BM innovation for SB are unclear. This paper aims to identify the critical factors that propel companies to innovate BM for SB. First, a literature review and expert interviews were conducted to identify and filter the drivers for BM innovation within the SB context. Second, a questionnaire survey was conducted to collect data on the significance of the selected influencing factors from 132 SB professionals. Finally, a model based on fuzzy set theory was used to ascertain the critical factors influencing BM innovation for SB. Twenty-four critical influencing factors in six categories from the external environment and internal organization were finalized, namely, market and economic, policy and legislation, technology and industry structure, social-culture, entrepreneurship, and organizational learning. The findings illuminate the motivations when developing BM for sustainability and provide strategies on BM innovation for practitioners and policy makers.

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“…Despite growing popularity, business model research area attracts academic exploration as according to , this area resides somewhere between economics and business strategy and more elaborated research is needed. The related area is business model innovation, which according to , remains "a slippery construct to study" (Casadesus-Masanell & Zhu, 2013). Within our research context, it is considered that platforms bring new opportunities for value creation and capture, and companies need to rethink their business model logic.…”

Section: Business Implications Of Digital Platformsmentioning

confidence: 99%