Leveraging diverse knowledge sources through proactive behaviour: How companies can use inter‐organizational networks for business model innovation

Abstract

model innovation, Diversity, Inter-organizational networks, ProactivenessThe relevance of business model innovation (BMI) for strategic renewal and competitive advantage has been increasingly recognized by both strategy scholars and managers. In this paper, we explore how inter-organizational networks and firms' proactiveness influence BMI. By examining Dutch design companies, we show that having a network of companies with different sizes has a positive effect on BMI. We also observe a positive effect of ties change. Finally, we show the importance of firms' proactiveness. Through the discussion of network elements and proactiveness as antecedents of BMI, we contribute to the business model and social network literature.

Customer entrepreneurship on digital platforms: Challenges and solutions for platform business models

“…Third, the aforementioned “bottom‐up” change in platform business models, by implication, forces platform providers to modify a revenue model that represents a central component of business models (Andries & Debackere, 2013; Micheli et al, 2020). Our simulation results propose that platform providers may generate revenue from customer entrepreneurship through two different approaches.…”

“…Platform research tends to address the issues associated with two components of the business model: (a) activities undertaken by “the focal firm, its partners, vendors or customers”; and (b) “what prices can be charged” (DaSilva & Trkman, 2014; Micheli et al, 2020; Zott & Amit, 2010, p. 217). Specifically, as outlined in Table 1, the first research stream on platforms examines “design elements—content, structure and governance” coordinating the activities and interplays of platform participants in a value‐creating manner (Rysman, 2009; Stummer, Kundisch, & Decker, 2018; Zott & Amit, 2010, p. 216); and the second research stream probes viable revenue models that enable platform providers to generate sustainable profits.…”

“…As Saadatmand et al (2019, p. 2) recount, platform providers typically resolve the aforementioned choice calculus and make decisions about how to design their business models “prior to going live”. Recent platform studies, however, have suggested that platform providers often enact business model innovation––changes to the “cost structure, revenue system and value proposition” of platform hosts (Micheli et al, 2020, p. 198). For example, platforms may choose to change the orientation and recipient of the value proposition to capitalize on the business side of the platforms (Muzellec et al, 2015).…”

“…Customer entrepreneurship presents challenges for platform providers because it renders a situation in which customers shift away from their roles that are pre‐defined in the business models of platform providers (Cusumano, Yoffie, & Gawer, 2020; Saadatmand, Lindgren, & Schultze, 2019). Therefore, the intake of customer–entrepreneurs in platforms requires platform operators to enact business model innovation: changes to the elements of business models, such as (a) target customers and their roles, and (b) the revenue model (e.g., Micheli, Berchicci, & Jansen, 2020; Zott, Amit, & Massa, 2011). However, the extant platform studies may not explain the practice of customer–entrepreneurs on platforms and a viable revenue system in response to the emerging customer entrepreneurship.…”

Opening the Dynamic Capability Black Box: An Approach to Business Model Innovation Management in the Digital Era

“…Network relationships represent the extent to which the company's partners and stakeholders (i.e., suppliers, clients, other organizations in the same industry, or other industries) improve knowledge deepness and broadness. Strong ties mean knowledge redundancy and deepness, whereas diverse ties mean knowledge broadness [52]. Usually, this is a sideeffect of the current BM evolution and is path-dependant [53].…”