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This study addresses the development of new integrated product–service systems (PSSs). Most empirical research on the organisation of development processes has focussed on new product development, new service development, software development and new business model development in isolation; however, the development of new, complex PSSs that require the integration of these development efforts has received limited research attention. We address this literature gap through a qualitative, in-depth study of five firms operating in the business-to-business context. The findings demonstrate that all new PSS development processes did not implement and use one specific process model. Instead, the organisation of new PSS development processes was contingent upon the type of services to be offered and the target business model. This study proposes a contingency framework for development processes that provides considerable guidance to managers searching for ways to facilitate the processes of developing new PSSs. [ABSTRACT FROM AUTHOR]

In this paper, a responsible business model innovation process is developed based on the existing process of the St. Gallen Business Model Navigator. For its development, a literature review was conducted to formulate requirements that a responsible business model innovation process should fulfil. In particular, the four guiding principles of responsible research and innovation were considered: anticipation, inclusion, reflection, and responsiveness. Based on these findings, several aspects were added to the Business Model Navigator. The focus was on extending the description of a business model along the magic triangle with two additional levels, the environmental one and the social one. Additionally a new step was added in the initiation phase to make the purpose of the process more visible. The results contribute to the current understanding of a responsible business model innovation process, where ethical, social, and environmental aspects are included as core parts of the business model itself. [ABSTRACT FROM AUTHOR]

Digital transformation is confronting traditional industrial companies with the challenge of not only optimising their internal processes, but also establishing entirely new, digital business models (DBM). In some cases, this requires different competences than in traditional business. In the AgilHybrid research project, a model of 20 key competences that are critical to the success of DBM development was developed. These competences can be bundled into the five areas of entrepreneurial capabilities, adaptability, agile capabilities, collaborative capabilities and digital capabilities. In a CATI survey of 200 German industrial companies, the relevance of the selected competences for DBM development was validated. A multivariate regression model reveals that in particular the equipment of the companies with digital competences as well as the use of agile development methods influence the probability that a company offers digital business models successfully on the market. These competences seem to contribute as important enablers to the dynamic capabilities of seizing and transforming in the context of developing new DBM. [ABSTRACT FROM AUTHOR]

Incremental innovation has become the norm as the influence of business and management disciplines and functions have come to dominate research and practice—for example, standard processes for product development, design-thinking to improve existing user practices and superficial business model variations. Such incremental approaches to managing innovation have merit, and can result in significant cumulative changes over time. However, the way in which such incremental innovation is resourced, organised and managed is fundamentally different to that for radical innovation, which is critical to address more significant commercial and social challenges. The cases of new product development (NPD) and business model innovation (BMI) are examined to identify the challenges researchers and managers face. We argue that to acquire a deeper understanding of how radical innovation works, more ambitious cross-disciplinary research is needed, rather than the current direction of travel in the literature towards single discipline studies and standard processes that apply primarily to incremental commercial innovations. [ABSTRACT FROM AUTHOR]

To implement a circular economy (CE), companies are pushed to innovate, respectively, their business models, from a micro-perspective, and their supply chains, from a meso-perspective. Despite the increasing research on both these perspectives, there is still a knowledge gap on how companies innovate business models and supply chains for circularity. In this study, we build on innovation management, circular business model (CBM), and circular supply chain (CSC) literatures and develop a theory-based framework where circularity leads to product/process/service innovation from a micro-perspective, and to possible innovation in companies' supply chains (retaining existing chains/renewing them) from a meso-perspective. Through a multiple-case study of Finnish and Italian CE pioneer companies, we validate this framework, find evidence on interplay between CBM and CSC innovation, and identify innovation strategy variants. The framework contributes to innovation management, CBM, and CSC literature works, and encourages managers willing to adopt circularity to consider innovating simultaneously both their business models and supply chains. [ABSTRACT FROM AUTHOR]

Despite the extant literature studies on business model innovation in response to a single (rather than multiple) strategic goal, entrepreneurs mostly approach the business model innovation process as a portfolio of parallel initiatives and solutions to the problems that are to be implemented. In the VUCA (i.e., volatile, uncertain, complex, ambiguous) context, a problem-solving roadmap for business model innovation is particularly relevant. However, the process is far from being easy, and most research focusses on the organisational level of analysis. By building on the cognitive perspective of business model innovation, this study implements an action research methodology to develop a framework that aims to help entrepreneurs structure a business model innovation roadmap that entails the exploitation and exploration activities. The framework has three steps. The first step attempts to build consistency in the problems, strategic goals, and initiatives. The second clusters the initiatives around "Lighthouse Projects". The last step establishes a timeline and an action plan. [ABSTRACT FROM AUTHOR]

The disruptive character of digital technologies can lead to an existential threat for pre-digital firms when their managers do not assess the opportunities new digital technology can provide. Strategic actors rely on their technological frames to interpret a specific technology and whether and how they can benefit from it, which can explain why there is heterogeneity in such technology-driven Business Model Innovation (BMI). However, the literature lacks a comprehensive understanding of this critical management tool because the emotional grounding of technological frames has not been examined. We conducted a qualitative case study research. Our results are based on 36 interviews. It turns out that emotions impact how people respond to digital technologies. These insights extend our understanding of technological frames as well as emotional framing and their mutual relationship and how this affects technology-driven BMI. In addition, we provide practical implications. [ABSTRACT FROM AUTHOR]

Exogenous shocks and environmental changes may force small- and medium-sized enterprises (SMEs) to change and innovate their business models. However, their readiness and ability to do so could depend on firm-level characteristics. This paper investigates how two firm-level factors—size and age—impact SMEs' engagement in business model innovation in response to the COVID-19 crisis. Using World Bank Enterprise Survey data covering 2,115 SMEs from 12 countries, this study shows that the age of an SME is negatively associated with business model innovation. The finding also shows that, contrary to the hypothesis posed in this study, the size of an SME impacts business model innovation positively. The study contributes to the understanding of antecedents of business model innovation in times of environmental change and uncertainty. [ABSTRACT FROM AUTHOR]

Continuously innovating business models is necessary to leverage technological progress but remains a complex challenge for firms. Dynamic capabilities explain how organisations ensure long-term success by continuously transforming. Still, how continuous business model innovation unfolds and how dynamic capabilities might support remains understudied. Therefore, we use a 27-year old longitudinal case study of CEWE. CEWE transformed from an analog B2B2C business to a digital B2C and B2B brand in the photo industry. We derive a process model on continuous business model innovation, which explains how modular business model innovation builds dynamic capabilities and how architectural business model innovation utilises them. We enrich business model innovation and dynamic capabilities research by demonstrating how both enable and build on each other. For practice, we show explicit dynamic capabilities and routines to manifest them that guide firms to successfully navigate their business model innovation journey. [ABSTRACT FROM AUTHOR]

The main aim of this paper is to analyse the impact of a firm's alliance portfolio diversity and its barriers to innovation on the successful implementation of sustainable business model innovation. To achieve this goal, we propose a conceptual model that operationalises the following constructs: sustainable business model innovation, alliance portfolio diversity, and barriers to innovation. Additionally, the proposed model considers the moderating influence of absorptive capacity on the relationship between alliance portfolio diversity and sustainable business model innovation. The test of the model in 899 Chilean firms, using structural equation modelling, makes evident that alliance portfolio diversity has an inverted U-shaped impact on sustainable business model innovation, which is moderated by the firm's absorptive capacity. Moreover, it indicates that the influence of the firm's perception of barriers impacts sustainable business model innovation in different ways, depending on the nature of these barriers. Implications for theory and practice are also discussed. [ABSTRACT FROM AUTHOR]

This study investigates whether small- and medium-sized enterprises (SMEs) under family influence (FI) can achieve business model innovation (BMI) through dynamic capabilities (DCs) as promoted by prior research. Overall, 259 small and medium-sized family firms in Southeastern China were examined and analysed using the partial least squares structural equation modelling (PLS-SEM) method. The findings showed a direct negative link between FI-DCs (sensing, seizing, and transforming capabilities), sensing capabilities—value capture, transforming capabilities—value proposition/value creation, and a positive link between seizing capabilities—value creation. Additionally, the negative moderation effect of environment dynamism was found between sensing capabilities—value capture, seizing capabilities—value creation, and transforming capabilities—value proposition. This research provides various new insights for practitioners and researchers in small and medium-sized family firms to achieve BMI through DCs. It develops an empirical, multi-dimensional hypothetical model from a micro perspective that includes the moderating role of the influencing relationship. [ABSTRACT FROM AUTHOR]

Previous studies have addressed the importance of business model innovation (BMI) for established firms. However, there are limited studies on BMI in digital startups. Due to their characteristics, established firms differ from startups; thus, the findings of the previous studies cannot be applied straightforwardly to such startups. Because each startup experiences different types of BMI, they presumably possess varying types of technological capability and adopt market orientation differently. The links among technological capability, market orientation, and BMI, nevertheless, are not clearly articulated in the literature. Therefore, it is necessary to conduct further investigations. Using four Indonesia's digital startups as cases, two research questions are posed: (1) What kinds of technological capability and market orientation are needed for digital startups to conduct their BMI? (2) How can a set of technological capability and market orientation lead to different BMIs experimented by digital startups? The findings reveal that a certain type of BMI demanded startups possess a certain type of technological capability and adopt a peculiar type of market orientation. These refer to ecosystem- and specialisation-focused technological capability, and market orientation toward specialisation and ecosystem. Based on these findings, practical implications are presented at the end of this paper. [ABSTRACT FROM AUTHOR]

Driven by technological progress, new market trends, and deregulation, business model innovations (BMI) are becoming increasingly important for entrepreneurs, established companies, and corresponding researchers. Against the background of the vast number of current studies and research reviews and a resulting lack of oversight, this study aims to systematically analyse previous literature studies on BMI to find out which and to what extent specific BMI research topics are considered. This novel meta-literature study provides a systematic analysis of 34 selected review studies by comparing their research approach, focus and findings, citation success, and open research questions. In this context, 12 key areas could be derived, which can be grouped under the following headings: BMI definitions and terminology, BMI determinants, BMI configurations and processes, and BMI outcomes and impacts. The systematic and detailed analysis of the studies allows conclusions to be drawn about identified research gaps and helps to derive recommendations for future research and practical developments in the field of BMI. [ABSTRACT FROM AUTHOR]

This study investigated the relationships between transformational leadership (TL), entrepreneurial leadership (EL), business model innovation (BMI) and competitive advantage, as well as the role of environmental uncertainty in these relationships. The importance of BMI and leadership style for the firms and the gaps identified in literature motivated the need for this paper. Previous literature has not fully explained in detail the antecedents of BMI or how BMI improves competitive advantage of organisations. Thus, an empirical model was used to analyse data gathered from a survey of 474 small- and medium-sized enterprises (SMEs) from several sectors in Greece. The findings reveal the contribution of leadership styles on BMI, the direct contribution of TL and EL on competitive advantage, as well as the contribution of BMI in competitive advantage in all responding SMEs, those SMEs with low scores of business environmental uncertainty and those SMEs with high scores of business environmental uncertainty. [ABSTRACT FROM AUTHOR]

Firms jointly conduct business model innovation (BMI) through business model innovation alliances (BMIAs). However, the understanding of how BMIA partnerships evolve and how different partners contribute to the inter-organisational BMI process remains vague. Building on process theory, our study addresses this gap by adopting a processual stance towards the evolution of a successful BMIA. Three main propositions emerge from our findings. First, BMIA evolution follows the progression of an alliance-level BMI process that can entail nested firm-level BMI processes aimed at making the partners' BMs more functional within the overarching inter-organisational BMI. Second, relatively small changes in BMs at the member level can lead to significant and novel changes in the BM at the alliance level. Third, BMIA evolution builds on leveraging complementarities amongst firms of different sizes and at different stages of development, and on resolving conflictual attitudes amongst similar partners. [ABSTRACT FROM AUTHOR]

Organisational unlearning has received increased attention in management and organisation literature. In this paper, I explore the role of organisational unlearning as a facilitator of business model innovation. I argue that managers should engage in a prior step of unlearning to innovate outdated business models. In doing so, managers need to legitimise the unlearning process by scrutinising and discarding their own cognitive views about the business model. Further, managers should provide boundary conditions for other organisational actors to eliminate actions, practices, and routines associated with the outdated business models. Engaging in an additional process of organisational unlearning helps managers to identify and remove outdated business models and facilitate business model innovation. [ABSTRACT FROM AUTHOR]

Informed by the knowledge-based theory of the firm, the study explores how internal absorptive capacity and external inter-organisational collaboration jointly promote business model innovation (BMI). Drawing on the relevant existing literature, a model linking collaboration breadth, collaboration depth, absorptive capacity, and BMI was constructed and tested. Hierarchical multiple regression analysis of the results of a questionnaire-based survey of 317 senior managers in manufacturing firms revealed that both collaboration breadth and collaboration depth are positively related to BMI. Collaboration depth has no significant moderating effect on the collaboration breadth–BMI relationship, and absorptive capacity has no significant moderating effect on relations between BMI and collaboration breadth or collaboration depth. However, the joint moderating effects of absorptive capacity and collaboration depth on the collaboration breadth–BMI relationship were positively significant. These results have a number of implications for research on BMI and innovation management and for the development of knowledge-based theory. [ABSTRACT FROM AUTHOR]

Business model innovation (BMI) is a subject that has been much investigated in recent decades. Despite this growing interest, and the general assumption that BMI contributes to business performance (BP), an absence of scale remains as a limitation, and more research is required regarding this correlation. We analysed the correlation of BMI, in terms of value creation, proposition and capture, and BP regarding consumer satisfaction, market effectiveness and current profitability. Our samples consist of 51 companies located in technological parks in Brazil and we used self-reported data to conduct the study. As a result, it was identified that there is a positive correlation regarding BMI and BP as main concepts. Value creation and proposition are also positively correlated, with BP as an aggregated variable and with customer satisfaction. Value capture, market effectiveness and current profitability do not present a positive correlation with the other variables. [ABSTRACT FROM AUTHOR]

A stream of servitisation research has focused on the construction of taxonomies and typologies of product–service system business models (BMs). However, their relevance in the context of increased utilisation of digital technologies may be questioned. Thus, the purpose of this paper is to empirically revisit the existing product–service system BM taxonomies to explore the following research question: How can the BMs of servitised manufacturing firms be categorised in the digital era? The question is addressed through an embedded case study of five servitised firms. We found that the firms' BMs varied with regard to the degree of the suppliers' ownership of delivered products, degree of smartness of the services provided and degree of performance orientation of contracts. Based on these findings, we derived a new product–service system BM taxonomy with eight categories, presented in a 2 × 2 × 2 matrix, that significantly extends earlier taxonomies. [ABSTRACT FROM AUTHOR]

Both academics and practitioners are underlining the relevance of business model innovation in unlocking lasting, competitive advantages. To understand how business model innovation is achieved in the team level and which contingency factors drive or inhibit the process, this study scrutinizes the strategic accord and tension of analogous and opposing action strategies, as potential contingency factors controlling and balancing the effects of external and internal tacit knowledge on business model innovation. Using a research sample of 162 team projects, our empirical study supported the research hypotheses regarding how tacit knowledge fuels business model innovation, highlighting differed moderating roles of three open action strategies (team autonomy, team creativity, and team diversity) on the relationship between two transferred knowledge types and business model innovation of technology-intensive companies. This study shed light on how team management strategies, namely manifestations of open action strategies, moderate the effectiveness of tacit knowledge on business model innovation. [ABSTRACT FROM AUTHOR]

We study the intricate relationship between business model innovation and the relevant organisational changes that can facilitate the renewal of a traditional business model. To do so, we build on the inductive, longitudinal single case study of an energy utility, describing the mechanisms through which the business model has been innovated over time, and the organisational changes that enabled and fostered such innovation. The innovation itself was a result of the need to face the current digital transformation that is compelling energy utilities to renew their traditional business models and offer customers a new value proposition. This study therefore contributes to the ongoing academic debate on business model innovation and its practical application, adding to the broad discussion on organisational ambidexterity and the analysis of the most relevant organisational changes adopted to implement effective business model innovation. [ABSTRACT FROM AUTHOR]

Previous studies often assume that business model innovation (BMI) is reflected in an entrepreneurial business model design. We assume that business model reconfiguration (BMR) takes place in more nuanced types and does not always lead to (radical) BMI. By undertaking a mixed methods study with 213 respectively 16 SMEs from the electronic industry, we uncover six basically different types of BMRs and discuss their performance implications. By this, we shape the current understanding of BMR and shed light on variety and implications of different types of BMRs. Our configuration study indicates that firms achieve superior performance when implementing a radically new business model reflected in a new configuration of all three components of the business model: value creation, value proposition, and value capture. Second, BMR can take place in types where only some parts of the business model are extensively changed, while others are only slightly adapted. [ABSTRACT FROM AUTHOR]

Rapid changes in the external environment and dynamic markets have challenged the survival of every kind of organizations. Many business firms fail due to lack of managerial skills and an ineffective business model to adjust their operations in line with the competitive environment. This study examines the influence of owners and top managers' "Big Five" personality traits on business model innovation. Data were collected through structured questionnaires using a sample size of 343 owners and senior managers of SMEs operating in the emerging economy Pakistan. Hypotheses were tested using structural equation modeling (SEM) in AMOS.21. The results indicate that managers with extroversion, agreeableness, and openness to experience personality have a significant positive influence on business model innovation. However, neuroticism personality has a significant negative while conscientiousness has an insignificant positive influence on business model innovation. Implications for practice are also discussed. [ABSTRACT FROM AUTHOR]

We analyse the effect of business model innovation (BMI) on the product innovation performance of firms, based on a dynamic capabilities theoretical framework. Our empirical study is based on a large-scale representative sample of cross-industry Swedish firms participating in three waves of the Community Innovation Survey (CIS) from 2008 to 2012. We hypothesise that BMI in the form of product innovations combined with different complementary and simultaneous innovations in processes, marketing and organisation will act as isolating mechanisms towards replication by competitors, resulting in superior firm performance. Our findings provide support for such hypothesis. BMI is significantly and positively associated with superior product innovation performance. Managers should frame and align product innovations in BMI context, i.e., dynamically adapting product innovations with process, marketing and organisation innovations. [ABSTRACT FROM AUTHOR]

In the era of globalisation and dynamic market, firms look for competitive advantage and survival using different sources and resources. Prior studies have indicated that Business Model Innovation (BMI) is a core driver for firm's survival and superior performance especially in growing industries. However, the role of BMI has been discussed theoretically and exploratory while empirical studies are still lacking. Hence, this study examines the importance of BMI in SME performance and the mediating role of competitive advantage. Data were collected through structured questionnaires using a sample size of 303 manufacturing SMEs operating in the emerging market of Pakistan. Hypotheses were tested through Structural Equation Modelling (SEM) using AMOS.21. The results indicate that BMI has a significant positive impact on competitive advantage and SME performance. Competitive advantage partially mediates the relationship between BMI and SME performance. Firms are required to create an effective business model to acquire competitive advantage and superior financial performance. Implications for practice have been discussed. [ABSTRACT FROM AUTHOR]

Innovation management is inherently inter-disciplinary, but it is much more than simply applying business and management disciplines to innovation, and over time the field has developed a distinct body of knowledge. However, in this paper, we argue that the field of innovation management has failed to fully benefit from the proliferation of relevant research because much of this work has not been sufficiently coherent and cumulative. One reason for this, we propose, is the propensity to follow and fit research and publications into contemporary fads rather than to ground work in more fundamental themes and challenges. We present two examples of such fads, open innovation and business model innovation, to illustrate the trend. Finally, we suggest some more fundamental integrating themes and management challenges, drawing upon the latest edition of Managing Innovation (Tidd, J and J Bessant (2018). Managing Innovation: Integrating Technological, Market and Organizational Change, Sixth Edition. New York: Wiley). [ABSTRACT FROM AUTHOR]

Drivers like competitive pressure and technological change push organisations to innovate their business model (BM). However, this complex form of innovation not only offers many chances but also involves several risks. Value creation in complex and dynamic value networks with a multitude of different actors leads to a higher level of uncertainty and a larger number of risks. To build profitable and sustainable BMs, the relevant risk factors need to be identified, analysed, and managed. By applying and adapting the value network analysis (VNA), this work creates a methodology for identifying BM risk factors within the value network of a BM and unveils a set of general BM risk factors within the value network. Results are based on a detailed literature review and the use of the Action Design Research (ADR). [ABSTRACT FROM AUTHOR]

What role does the board of directors play in fostering organisational innovation? This study contributes to this conversation by exploring the relationship between board characteristics and business model innovation adoption. Drawing from resource dependence theory and using the smart home business model as our context, we examined the relationship among board size, CEO duality and proportion of outside directors on the likelihood of business model innovation adoption. Our analysis of 96 firms indicates that both board size and CEO duality significantly increase the likelihood of business model innovation adoption. Our findings highlight the important resource provision role boards play in promoting organisational innovation. [ABSTRACT FROM AUTHOR]

Business model innovation (BMI) is the process of integrating a new logic of doing business into an established firm to improve profitability or to capitalise on new business opportunities. However, existing research offers only limited clarity on BMI compared to business model upgrades or a specific product innovation. From a body of extant literature, we develop a BMI identification tool which is then tested by senior managers from four large European corporations to assess whether innovation efforts represent BMI. The tool operationalises BMI and offers straightforward criteria and indicators to assist researchers but especially practitioners at accelerating BMI in established firms. This paper closes with recommendations for future research and limitations. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to clarify the definition of digital transformation (DT) and to introduce a structured approach with phases, activities and results. Our research is based on a literature review which provides insight into the basic understanding of DT. Examples complete the research and show the practical application of DT. The main findings are that although DT is a widely known concept, an approach for the structured DT of business models is missing. The paper offers a clear definition of the DT of business models and phases for the DT of business models. Moreover, the paper offers examples of enablers and DT. [ABSTRACT FROM AUTHOR]

Large manufacturing companies will in future be continuously challenged to develop and implement new IoT-related business models. Existing research offers interesting insights on high-level stages of business model innovation (BMI) processes in general. However, only little is known about the presence of main gates in BMI processes and even less about the underlying decision criteria applied at these gates. To shed more light on this research field, 27 expert interviews with employees from eight companies across the IoT ecosystem were conducted. The expert interviews reveal that, despite the increasing popularity of (radically) new innovation approaches, two main decision points can be identified across BMI processes. These findings are a first explorative step towards a better understanding of IoT adoption and provide a starting point for interesting future research avenues. [ABSTRACT FROM AUTHOR]

Companies are more frequently seen shifting their focus from technological innovation towards business model innovation. One efficient option for business model innovation is to learn from existing solutions, i.e., business model patterns. However, the various understandings of the business model pattern concept are often confusing and contradictory, with the available collections incomplete, overlapping, and inconsistently structured. Therefore, the rich body of literature on business model patterns has not yet reached its full potential for both practical application as well as theoretic advancement. To help remedy this, we conduct an exhaustive review, filter for duplicates, and structure the patterns along several dimensions by applying a rigorous taxonomy-building approach. The resulting business model pattern database allows for navigation to the relevant set of patterns for a specific impact on a company's business model. It can be used for systematic business model innovation, which we illustrate via a simplified case study. [ABSTRACT FROM AUTHOR]

The Industrial Internet of Things is recently a widely discussed phenomenon. However, business level effects of this phenomenon are by now underresearched. We tackle this research gap by presenting an in-depth analysis of business model changes manufacturing firms employ to adequately react to this technological development. Against the background of a multiple-case study we identify and characterise three archetypes of business models manufacturing firm implement in order to benefit from opportunities provided by the Industrial Internet of Things. Furthermore, we present insights on how firms innovate their extant business model in this context. Thereby, our study considerably contributes to business model research and additionally bolsters up a strategic firm level perspective on the Industrial Internet of Things. [ABSTRACT FROM AUTHOR]

The Industrial Internet of Things (IIoT) poses large impacts on business models (BM) of established manufacturing companies within several industries. Thus, this paper aims at analyzing the influence of the IIoT on these BMs with particular respect to differences and similarities dependent on varying industry sectors. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 69 manufacturing companies from the five most important German industries. Owing the lack of previous research, our study contributes to the current state of management literature by revealing the following valuable insights with regard to industry-specific BM changes: The machine and plant engineering companies are mainly facing changing workforce qualifications, the electrical engineering and information and communication technology companies are particularly concerned with the importance of novel key partner networks, and automotive suppliers predominantly exploit IIoT-inherent benefits in terms of an increasing cost efficiency. [ABSTRACT FROM AUTHOR]

Prior research on the modularity-performance nexus is heavily biased towards product innovation, leaving the impact of modularity on other types of innovation such as business model innovation unknown. This study seeks to address this gap. To do so, we develop and test a parsimonious model which examines whether a firm's pursuit of business model innovation serves as a salient conduit through which modular product and process translate to firm performance. In addition, we examine environmental dynamism as a contingency that to further illuminate these associations. Using data from 87 manufacturing SMEs in Australia we find partial support for our model. Specifically, we find that pursuit of BMI is a missing mechanism only in the process modularity-performance nexus not the product modularity. In addition, contrary to predictions, we observe that environmental dynamism negatively moderates this relationship. These findings have important implication for theory and practice of innovation management. We discuss these implications and suggest several directions for future research. [ABSTRACT FROM AUTHOR]

While collaborative business modeling (CBM) constitutes a promising new approach for opening up a company's innovation process, existing literature lacks empirical evidence of the effects related to this approach. Drawing on related literature on the quality of creative output, this paper proposes that in the context of a CBM initiative, the integration of customers will improve the quality of the generated output. As indicated by the results of our empirical evaluation, customers are indeed capable of developing high quality business models and are able to outperform company experts when it comes to the task of developing new business models. [ABSTRACT FROM AUTHOR]

Firms engaging in business model innovation are likely to constantly experience environmental turbulence in which remaining strategically flexible is of crucial importance to ensure survival. Drawing on a dynamic capabilities perspective, a framework of hypotheses is established that emphasises the effects of business model innovation on a firm's managerial capabilities and its operational responsiveness that have been argued to antecede strategic flexibility. Using an experimental research design that is built on a between-subject analysis and embodies decision-scenarios, we show how three distinct types of business model innovation (value offering innovation, value architecture innovation, and revenue model innovation) impact on different dimensions of strategic flexibility (resource flexibility, coordination flexibility, and variety of managerial capabilities). Our findings indicate that remaining strategic flexibility is not an implicit result of business model innovation as we identify different effects of the distinct types of business model innovation on the individual dimensions of strategic flexibility. [ABSTRACT FROM AUTHOR]

Business model innovations are recognised as a key to the creation of sustainable business, but their adoption by firms has been slow. Organisations can only be sustainable when the whole societal system is sustainable. Both structural and cultural changes are required to facilitate firm- and system-level sustainability. The central idea of this paper is to examine how societal transition towards sustainable business models (SBMs) can be achieved. Through a qualitative Delphi study, we assess and categorise the key structural and cultural barriers to sustainable business model innovation (SBMI). By applying the innovation system approach, we explain how to overcome existing barriers by strengthening the functions of the innovation system. We analyse how these barriers can be overcome through the activities of governments, firms, and consumers, and discuss the wider implications of our research for practitioners, policy-makers, and researchers. [ABSTRACT FROM AUTHOR]

Motivated by the high ubiquity of the term "business models" and its increasing proliferation in terms of the transition from a measure to commercialise innovations to the subject of innovations, this paper provides a systematic review of extant academic literature on business model innovation. The particular characteristics of business model innovation are discussed and three distinct research streams addressing prerequisites, process and elements, and effects of business model innovation are identified. A tentative theoretical framework emphasising the need to distinguish between developing and innovating business models as well as to apply an entrepreneurial perspective for further research on business model innovation is proposed. An integrated research agenda emphasising the need to further enhance our understanding of the process and elements of business model innovation as well as its enablers and effects in anticipation and response to increasing environmental volatility is suggested. [ABSTRACT FROM AUTHOR]

Literature on business models deals extensively with how to design new business models, but hardly with how to make the transition from an existing to a newly designed business model. The transition to a new business model raises several practical and strategic issues, such as how to replace an existing value proposition with a new one, when to acquire new resources and capabilities, and when to start new partnerships. In this paper, we coin the term business model roadmapping as an approach to define the transition path from a current to a desired business model. We develop our approach based on core concepts from business model literature as well as technology roadmapping. The approach is illustrated using a simplified case study. We find that visualizing business model road maps elicits how operational actions and business model impacts are interrelated. The merits of business model roadmapping not only lie in defining a road map of actions and business model changes, but also in identifying and discussing trade-offs between strategic business model issues and operational activities. Especially if an organization still has to choose between different alternative business models, business model roadmapping may help to identify overlapping paths, path dependencies and points of no return. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to investigate the approach of imitation (across industry boundaries) on business models. We analyzed nine case studies of firms that introduced breakthrough business models by transferring and adapting characteristic business model components of other industries. Our results show that companies can facilitate cross-industry innovation on business model level through a process of abstraction, analogy identification and adaptation. Imitation is realized by deconstructing and mapping business model components based on their contribution to abstract, generic elements of the value proposition. We propose a systematic process model for business model innovation analyzing structural similarities between industries on the level of these abstract elements linked to specific other components of the business model. Firms can leverage this process by transformative learning processes, especially provided through a broad industrial and functional experience of members in business model innovation teams. [ABSTRACT FROM AUTHOR]

The paper aims to generate systematically business model innovations in the field of electric mobility. It introduces a new framework, in which a business model denotes a value-focused concept with five value dimensions: value proposition, value communication, value creation, value delivery and value capture. The framework enables the classification of business model patterns, identified in the literature, according to five categories. The combination of patterns from different dimensions can lead to the systematic generation of business model innovations. But the number of business models that can result from pattern combinations can be overwhelming. Subsequently, the paper only evaluates the extent to which business model patterns that are not necessarily observed in the automotive sector can be useful for the field of electric mobility, and how they can be adapted to fit into the new context. We find that the transferability strongly depends on the actor's role in the system, if it is a manufacturer, supplier or service provider. More importantly, our analysis shows that some models such as product-to-service (e.g., car sharing service), already implemented in the automotive industry, will continue to be successful in the future because of their potential of increasing customer acceptance and technology diffusion. Many other business models -- so far used in other sectors, but not in the automotive industry -- may integrate the field of electric mobility. Razor and blades, own the undesirable concept, and leverage new influencers are all promising business models, if they can be fitted adequately to the new context induced by the new technology. [ABSTRACT FROM AUTHOR]

Business model innovation is becoming a central research topic in management. However, a lack of a common understanding of the nature of the business model leads to disregarding its multifaceted structure when analyzing the business model innovation process. This article proposes a more detailed understanding of the business model innovation process by drawing on existing knowledge from new product development literature and examining the front-end and the back-end of business model innovation of three leading Danish newspapers. We studied how changes introduced during the development of digital news production and delivery have affected key components of these business models, namely value creation, proposition, delivery and capture in the period 2002-2011. Our findings suggest the need to distinguish between front-end and back-end business model innovation processes, and to recognize the importance of organizational learning when incumbents are faced with disruptive technologies. [ABSTRACT FROM AUTHOR]

Generating novel and sustainable business model ideas is a crucial yet challenging innovation task. A growing body of literature shows that artefacts, such as visual templates, objects and sketches, can enhance team collaboration and creativity in innovation activities. Drawing on literature from diverse fields we propose a model that aims to explain how artefacts can affect the team processes in developing new business model ideas, positing that they have an impact on creativity and collaboration. We report the results of an illustrative experimental study comparing the team processes of managers working on a business model innovation task. Teams were supported by different types of artefacts (a business model template; physical objects with sketching; or PowerPoint). The results indicate that using the template significantly increases perceived collaboration and decreases perceived creativity, hence showing that artefacts can have the power to shape team work for innovation tasks. [ABSTRACT FROM AUTHOR]