Business Model Evolution, Adaptation or Innovation? A Contingency Framework on Business Model Dynamics, Environmental Change and Dynamic Capabilities

Abstract

This paper puts forward a contingency framework on business model dynamics. Examining three different forms of business model dynamics, namely business model evolution, adaptation and innovation, the author addresses the questions which environmental conditions prompt different types of business model change and by means of which dynamic capabilities firms can support change in their business models. The author argues and demonstrates how and why a fit between business model dynamics, environmental change and dynamic capabilities is likely to be an important antecedent to firm performance.

Keywords: business model innovation, business model evolution, business model adaptation, dynamic capabilities, environmental shifts