The Dual Process of Dissonance Resolution on Business Model Components.

Dominant logic is a barrier that hinders most steps of business model innovation (i.e., initiation, ideation, and implementation). The extant literature addresses how to challenge the dominant logic in the early stages of the process. However, little knowledge has been produced about how business owners face dominant logic during the implementation of a new business model. Moreover, dominant logic is generally applied to the entire business model, and we found scant analysis about the role of single business model components. Employing cognitive dissonance as theoretical approach and through an action research with forty butcher’s shops, we shed light on how business owners developed a set of elements at the different business model components that allowed both innovators and non-innovators to regain consistency between action (i.e., keeping the current business model, consistent with the dominant logic) and their belief (i.e., business model innovation is necessary, and requires a new logic). [ABSTRACT FROM AUTHOR]