Abstract

http://ssrn.com/abstract=1991809
 
 

Citations



 


 



Business Model Dynamics and Innovation: (Re)establishing the Missing Linkages


Sergio Cavalcante


University of Aarhus

Peter Kesting


University of Aarhus - Department of Organisation and Management; Handelshochschule Leipzig (HHL)

John P. Ulhøi


University of Aarhus - Aarhus School of Business

2011

Management Decision, Vol. 49, No. 8, pp. 1327-1342, 2011

Abstract:     
Purpose – This paper aims to discuss the need to dynamize the existing conceptualization of business model, and proposes a new typology to distinguish different types of business model change.

Design/methodology/approach – The paper integrates basic insights of innovation, business process and routine research into the concept of business model. The main focus of the paper is on strategic and terminological issues.

Findings – The paper offers a new, process-based conceptualization of business model, which recognizes and integrates the role of individual agency. Based on this, it distinguishes and specifies four different types of business model change: business model creation, extension, revision, and termination. Each type of business model change is associated with specific challenges.

Practical implications – The proposed typology can serve as a basis for developing a management tool to evaluate the impact of specific changes to a firm's business model. Such a tool would be particularly useful in identifying path dependencies and resistance at the process level, and would therefore allow a firm's management to take focused action on this in advance.

Originality/value – The paper makes two main contributions: first, it offers a new, process-based conceptualization of business models; second, it is the first paper to establish a direct link between business model change and the degree of innovation (such as 'incremental' vs 'radical'), and which distinguishes and specifies different types of business model change.

Keywords: business model, business processes, change management, individual agency, innovation, strategic maneuvering

Accepted Paper Series





Not Available For Download

Date posted: February 1, 2012  

Suggested Citation

Cavalcante, Sergio and Kesting, Peter and Ulhøi, John P., Business Model Dynamics and Innovation: (Re)establishing the Missing Linkages (2011). Management Decision, Vol. 49, No. 8, pp. 1327-1342, 2011. Available at SSRN: http://ssrn.com/abstract=1991809

Contact Information

Sergio Cavalcante (Contact Author)
University of Aarhus ( email )
Denmark
Peter Kesting
University of Aarhus - Department of Organisation and Management ( email )
Haslegaardsvej 10-12
DK-8210 Aarhus, 8210
Denmark
Handelshochschule Leipzig (HHL) ( email )
Leipzig Graduate School of Management - Departme
Jahnallee 59
04015 Leipzig
Germany
+49 341 9851760 (Phone)
John P. Ulhøi
University of Aarhus - Aarhus School of Business ( email )
Haslegaardsvej 10
DK-8210 Aarhus, 8210
Denmark
+45 8948 6688 (Phone)
Feedback to SSRN


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