Toward a Theory of Business Model Innovation within Incumbent Firms

Santos, José António C.; Spector, Bert; Heyden, Ludo Van der

doi:10.2139/ssrn.1362515

Cited by 109 publications

(112 citation statements)

References 65 publications

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“…In sum, the literature on business model literature clearly indicates that companies can choose from a variety of business models (Zott & Amit, 2008;Santos et al, 2009)-that have to match the company's overall (innovation) strategy (Margretta, 2002;Casadesus-Masanell & Ricart, 2010). Relatedly, originating from organization and innovation management literature, an emerging research stream strongly suggest that companies that adopt open innovation practices need to carefully design the internal organizational aspects of their business models to positively influence the sourcing of knowledge from external parties and its subsequent exploitation for innovation (e.g., Foss et al, 2011, Salge et al, 2012Hienerth et al, 2011;Keinz et al, 2012 and business models need to be aligned.…”

Section: Specifying the Characteristics Of Business Models For Open Imentioning

confidence: 99%

“…We define business models as the content, structure, and governance of transactions inside the company and between the company and its external partners in support of the company's creation, delivery and capture of value (Santos, Spector & van der Heyden, 2009;Zott & Amit, 2008. As business models reflect the strategic choices of the company (Margretta, 2002;Zott & Amit 2008), the choice of open innovation requires that the company defines those ways to create, deliver and capture value in conjunction with external partners that are consistent with open innovation (Hienerth et al, 2011;Vanhaverbeke, 2006).…”

Section: Introductionmentioning

confidence: 99%

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Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions

Saebi

Foss

2015

European Management Journal

381

258

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Section: Specifying the Characteristics Of Business Models For Open Imentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions

Saebi

Foss

2015

European Management Journal

381

258

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“…Study Four showed that incremental innovation within the business model is sufficient for performance improvement at the firm level, but this may not be the case for business model innovation as scholars are divided. At one end of the spectrum, Schumpeter (1934) first described business model innovation as the creation of new markets and new industry organisation (Crossan & Apaydin, 2010;Santos, Spector & Van Der Heyden, 2009), thereby emphasising the degree of novelty to extend to the market and industry level. Similarly, practitioners and some scholars currently view business innovation to be associated with disruptive, discontinuous and radical rather than incremental innovation and thus "a fundamental rethink of the firm's value proposition in the context of new opportunities" (Bock et al, 2012, p. 290;Crossan & Apaydin, 2010;Mitchell & Coles, 2003;Santos et al, 2009).…”

Section: Avenues For Future Researchmentioning

confidence: 99%

SME performance: the role of networking, innovation breadth, and business model design

Gronum¹

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Because small and medium-sized enterprises (SMEs) are pivotal to the health and vibrancy of economies, it is crucial for researchers to understand the factors that significantly underlie SME performance. Two of the most widely identified antecedents to SME performance are innovation and networking. However, despite widespread attention, the theoretical and empirical status of the relationships between innovation, networks and SME performance remain uncertain. Some researchers note that claims regarding a direct positive relationship between innovation and networks with performance fail to adequately account for the variables that mediate this relationship.In contrast, while much research has been undertaken into the performance benefits of innovation and networks, the exponential increase in the number of publications heralding the performance benefits of business model design and business model innovation received very scant empirical support, almost non-existent for SMEs. Business model design is seen as a powerful mechanism for unlocking and enhancing the value of business processes, including innovation.Empirical evidence presented in this thesis tangibly supports this assertion and thus creates a more solid foundation for future development of the business model view of the firm.The purpose of this thesis, comprising four studies, is to theorise and research the nature of the relationship between innovation breadth, networks and business model design with SME performance. The central research question of this thesis asks: How do innovation breadth, networks and business model design relate to SME performance?Study One systematically reviews a large sample of SME growth and performance literature to identify and interpret emergent concepts, themes, trends and gaps. Study One backgrounds the three empirical studies that that follow to argue, using Resource-Based Theory, that the resources required for developing competitive advantage are both physical and intangible; of the two, intangible resources have the greatest strategic potential. In other words, the thesis finds that SMEs lacking physical resources could develop more sustainable competitive advantage by relying more heavily on leveraging path dependent, socially complex, and causally ambiguous intangible resources. Social capital and technological competence, associated with networks and innovation, represent highly desired intangible resources. Business model design organises these resources to create value for the customer. Therefore, innovation across the elements of the business model when designing or reconfiguring the SME's business model acts as dynamic capabilities that enhance SME performance.iii The systematic literature review is followed by three empirical studies that use longitudinal and cross-sectional datasets of Australian SMEs. Study Two introduces the concept of innovation breadth, as the number of distinct types of innovation that firms use, or their innovation diversity, and examines the linearity and temporality of its re...

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“…The reference also emphasizes the importance of the behavioral aspects involved in business model innovation. They suggest that mutual engagement and organizational justice are needed and that managers should focus on the relational dynamics at the level of informal organization [25] . Since business model innovation is so important for firms according to these literatures and the current context of logistics and e-business development, it is inevitable for present firms, of course including in commercial clusters, because commercial cluster is positively related to firm's business model.…”

Section: Introductionmentioning

confidence: 99%

Research of Commercial Cluster Development Risk Estimate Base on Business Model Innovation

Zhang¹

2014

Proceedings of the 2014 International Conference on Education Technology and Information System (ICETIS 2014)

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Abstract. Business model innovation is helpful to consumer and company because of price, transaction time, convenience, and company's cost, but it may bring business firms of commercial cluster more risk when the client change their purchase channel. This paper presents a risk estimate for commercial cluster development using Random Variation of demand, to estimate the risk loss of demand fluctuation for the commercial cluster, and adopting Logit Model and Maximum Likelihood Method to estimate demand fluctuation because of business model innovation. Base on these two methods, we can get the approach to effectively estimate the incidence that the business model innovation would bring risk to commercial cluster, then, we can give the early warning to the commercial cluster and explore the ways according to the risk probability.

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Toward a Theory of Business Model Innovation within Incumbent Firms

Cited by 109 publications

References 65 publications

Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions

Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions

SME performance: the role of networking, innovation breadth, and business model design

Research of Commercial Cluster Development Risk Estimate Base on Business Model Innovation

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