Managers' brokerage for business model innovation: A case study

Abstract

Business model innovation is recognized as a key process for strengthening firms' performance in situations of strong competitive pressure and environmental changes. This process is driven by intra-organizational advice networks between managers, which exchange different types of advice based on organizational learning mechanisms such as cognitive search (how to conceptualize and create a novel business model) and experiential learning (how to adapt and experiment a novel business model. Investigating what are the key figures emerging from such network is essential for an in-depth understanding of the business model innovation process. By focusing on a multi-unit firm operating in the personal care service industry, we use Social Network Analysis (SNA) to examine the brokerage role of managers when sharing different types of advice towards a novel business model. Our results show that middle-level managers connect different managerial groups in different networks; however, differences exist between groups of middle managers, confirming their peculiar nature within organizations.

Goal orientation and business model innovation in dynamic environments: Evidence from the creative industries

“…In this ecosystem, managers' decisions on BMI are influenced by customers, suppliers and partners' needs (Snihur & Tarzijan, 2018). All these actors are concerned by the changes entailed in BMI, and companies must take their insights into account (Demil et al, 2015; Ghinoi & Di Toma, 2022; Snihur & Zott, 2020). Under conditions of high environmental dynamism, insights from these actors evolve quickly (Hock‐Doepgen et al, 2021; Sosna et al, 2010) and, as such, flexibility and openness become crucial (Deligianni et al, 2017; Ricciardi et al, 2016).…”

“…Managers can update their knowledge base, making sense of changes and adapting the strategies of their companies (Hock‐Doepgen et al, 2021). In addition, learning‐oriented managers can understand when it is the right moment to shift to a new strategy, anticipating environmental challenges (Ghinoi & Di Toma, 2022; Pearce & Conger, 2003) and managing emerging opportunities (Uotila, 2017). Finally, prior research has also shown that the dynamism of the environment reinforces managers' learning orientation over time, as such increasing the possibility to engage in innovative activities (Mammassis & Kostopoulos, 2019).…”

Entrepreneurial alertness during severe crises: The effect on internal corporate venturing through business model innovation as a strategic response

“…The sudden extreme shock of the recent COVID‐19 crisis has notably caused SMEs to see their usual ways of doing business obstructed in an unprecedented way, which has directly affected and challenged the competitiveness of many firms' business models (Batjargal et al, 2023; Fairlie & Fossen, 2022). Recent studies have therefore suggested that engaging in business model innovation (BMI), which, according to the dominant view in the innovation management literature, involves making fundamental changes to one or more of the key elements of the firm's existing business model, can be for SMEs an important strategic response to address severe crises like COVID‐19 as it can create new competitive advantages for the firm (Breier et al, 2021; Ghinoi & Di Toma, 2022; Ireland, Covin, & Kuratko, 2009; Kraus et al, 2020; Menter, Göcke, Zeeb, & Clauss, 2023). However, BMI is a highly challenging and uncertain strategic undertaking, and empirical knowledge on its emergence, especially during crises, remains sparse as the field is still evolving and mainly studied qualitatively (Andersen, Aagaard, & Magnusson, 2022; Foss & Saebi, 2017; Zhang, Antonialli, Bonnardel, & Bareille, 2023).…”