The Role of Timing in the Business Model Evolution of Spinoffs

Axelson, Mattias; Bjurström, Erik

doi:10.1080/08956308.2019.1613116

Cited by 17 publications

(19 citation statements)

References 25 publications

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“…Only having cognition and strategizing processes is not enough to develop BMI. The literature highlights the importance of testing BMI and disseminating the underlying knowledge throughout the entire organization (Axelson & Bjurström, 2019 ; McGrath, 2001 ). Knowledge processes refer to the processes that the departments, divisions, and teams within an organization can use to generate innovative ideas and innovations (Nonaka, 1994 ).…”

Section: Identifying Bmi Processesmentioning

confidence: 99%

Business model innovation: a review of the process-based literature

et al. 2021

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Research on business model innovation (BMI) processes is blossoming and expanding in many directions. Hence, the time is ripe to summarize and systematize this body of knowledge for the benefit of current and future BMI scholars. In this article, we take stock of the current literature to clarify the concept of a BMI process, develop a categorization scheme (a “BMI process framework”), and discuss future research possibilities. Building on a systematic literature review of 114 papers, our categorization delineates different types of BMI processes and corresponding sub-processes. Moreover, we develop a framework that illustrates how BMI processes are interrelated and interconnected. Finally, we identify the main process-related research gaps in BMI research and provide directions for future research that emerge from our categorization and discussion.

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Section: Identifying Bmi Processesmentioning

confidence: 99%

Business model innovation: a review of the process-based literature

et al. 2021

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“…Researchers such as Brenk et al (2019) identified that a pivot means a change in strategy by a startup. Moreover, Axelson and Bjurstr€ om (2019) explained the pivot as a change in approach towards an idea. Teece (2018) defined the pivot as a substitution of the existing business model, whereas Shepherd and Gruber (2020) called it an organised way of rectification to test new hypotheses.…”

Section: Entrepreneurial Pivotingmentioning

confidence: 99%

A qualitative research study of the tech startup journey through entrepreneurial pivoting

Sala

Philbin

Barikzai

2022

IJEBR

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PurposeAs part of the entrepreneurial journey, high-tech entrepreneurs are faced with the need to develop a competitive value proposition and leverage emerging technology to strengthen the value proposition. Entrepreneurial pivoting can be adopted to address this requirement since it enables the startup to validate and refine the company’s strategy and business model. Therefore, this research study provides an empirical investigation of the pivoting concept explained in the context of the lean startup approach (LSA) and technology entrepreneurship to improve the understanding of the entrepreneurial journey for high-tech entrepreneurs.Design/methodology/approachA qualitative research method was conducted by interviewing 30 high-tech entrepreneurs across the United Kingdom to validate the theories behind the LSA and identify new insights on entrepreneurial pivoting.FindingsThe research study has validated the existing types of pivots and identified two new pivots (giving 16 in total). The study has validated the existing 11 factors that trigger a tech startup to change its direction and identified three new factors (giving 14 in total). The research study also determined that there can be a domino effect in pivoting and the value proposition can be created and sustained through pivoting.Originality/valueThis study provides empirical evidence on pivots and the factors associated with pivots. Furthermore, it helps in understanding the influence of the phases of technology entrepreneurship on pivoting. The study also discusses the challenges faced by tech startups while pursuing pivots, the domino effects in pivoting and has found evidence that pivoting eventually leads to achieving the desired results.

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“…Entrepreneurs can also look for new opportunities by focusing on their current resources and capabilities and identifying, by trial and error, in what manner these resources and capabilities can be rearranged into a potential new offer that fits the market (Manolova et al, 2020). In addition, several authors suggest the options may arise from third parties such as investors, advisors or team members, as in the case reported by Axelson and Bjurstr€ om (2019), wherein a team member of a startup identified a possible new market niche. Options can also result from a co-creation process in line with effectuation reasoning.…”

Section: Generating Optionsmentioning

confidence: 99%

“…Reconfiguring the resource base may alter the BM, which entails the value proposition, profit formula, key resources and processes (Johnson et al, 2008). Pivots also may alter aspects that are more intangible but strongly affect the company, such as business ideas or beliefs (Axelson and Bjurstr€ om, 2019), attention and mindset (Brenk et al, 2019), firm image (Domurath et al, 2020) or the entrepreneur's passion (McMullen, 2017), self-concepts and identity (Grimes, 2018;Mmbaga et al, 2020). After the reconfiguration, entrepreneurs may be faced once again with failure or the potential for failurea situation that may lead to a new pivoting process.…”

Section: Reconfigurationmentioning

confidence: 99%

Pivot decisions in startups: a systematic literature review

Chaparro

Gomes

2021

IJEBR

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PurposeEntrepreneurs' pivot decisions are poorly understood. The purpose of this paper is to review the existing literature on pivot decisions to identify the different conceptualizations, research streams and main theoretical building blocks and to offer a baseline framework for future studies on this phenomenon.Design/methodology/approachA systematic literature review of 86 peer-reviewed papers published between January 2008 and October 2020, focusing on the pivot decision in startups, was performed through bibliometric, descriptive and content analyses.FindingsThe literature review identifies four research streams concerning the pivot concept – pivot design, cognitive, negotiation and environmental perspectives. Building on previous studies, this paper provides a refined definition of a pivot that bridges elements from the four research streams identified: a pivot comprises strategic decisions made after a failure (or in the face of potential failure) of the current business model and leads to changes in the firm's course of action, resource reconfiguration and possible modifications of one or more business model elements. This study proposes a framework that elaborates the pivot literature by identifying four stages of the pivot process addressed in the existing literature: recognition, generating options, seizing and testing and reconfiguration.Originality/valueThis study provides a comprehensive review, enabling researchers to establish a baseline for developing future pivot research. Furthermore, it improves the conceptualization of pivots by summarizing prior definitions and proposing a refined definition that places decision-making and judgment at its center. That introduces new contextual and behavioral elements, contributing to a better understanding of how entrepreneurs assess alternative courses of action and envision possible outcomes to redirect a venture after failure.

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The Role of Timing in the Business Model Evolution of Spinoffs

Cited by 17 publications

References 25 publications

Business model innovation: a review of the process-based literature

Business model innovation: a review of the process-based literature

A qualitative research study of the tech startup journey through entrepreneurial pivoting

Pivot decisions in startups: a systematic literature review

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