Business model innovation: a typology
DOI:
https://doi.org/10.7433/s97.2015.11Keywords:
business model innovation, strategy, configuration, entrepreneurshipAbstract
Purpose of the paper: The aim of the paper is to provide a typology of business model innovation (BMI) and to clarify its link with strategy. In particular, it focuses on the servitization strategy and shows multiple business model configurations that entrepreneurs may choose from when changing their strategy.
Methodology: After a literature review conducted through ISI Web of Science database on 14 ABS grade four and grade three leading journals, published between 2000 and 2014, a new theoretical framework is presented. Baden-Fuller’s and Haefliger’s (2013) business model (BM) dimensions were selected in order to build the theoretical framework and Neeley’s (2008) identified servitization strategies were used in order to clarify the link between business model innovation and strategy.
Findings: The literature reviewed shows that extant research has mainly focused on the capabilities and processes behind BMI, but has not provided a typology for BMI. The typology proposed consists of 16 business model configurations that may serve for both academics and practitioners in configuring a business model following a change in the firm’s strategy. Considering the servitization strategy, it is suggested that different servitization strategies require from entrepreneurs to choose between alternative business model configurations.
Research limitations: The literature reviewed is limited to top international journals and the paper provides only ad hoc created examples in order to show how different servitization strategies require alternative business model configurations.
Research and managerial implications: The theoretical framework proposed might be used as a means of analysing alternative business model configurations by entrepreneurs, and as a means of comparing alternative business model configurations by academics.
Originality of the paper: The paper complements existing literature reviews on business model, focusing on BMI. Moreover, it provides a first attempt to link the servitization concept to the business model theme, hence contributing to bridging marketing and strategic management literatures.
References
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DEMIL B., LECOCQ X. (2010), “Business model evolution: in search for dynamic consistency”, Long Range Planning, vol. 43, n. 2-3, pp. 227-246.
DI MAGGIO P.J., POWELL W.W. (1983), “The iron cage revisited: institutional isomorphism and collective rationality in organizational fields”, American Sociological Review, vol. 48, n. 2, pp. 147-160.
DOGANOVA L., EYQUEM-RENAULT M. (2009), “What Do Business Models Do? Innovation Devices in Technology Entrepreneurship”, Research Policy, vol. 38, n. 10, pp. 1559-70.
DOZ Y.L., KOSONEN M. (2010), “Embedding strategic agility. A leadership agenda for accelerating business model renewal”, Long Range Planning, vol. 43, n. 2-3, pp. 370-382.
DRAZIN R., VAN DE VEN A. (1985), “Alternative forms of fit in contingency theory”, Administrative Science Quarterly, vol. 30, n. 4, pp. 514-539.
DUNFORD R., PALMER I., BENVENISTE J. (2010), “Business model replication for early and rapid internationalization. The ING Direct Experience”, Long Range Planning, vol. 43, n. 5-6, pp. 655-674.
FANG E., PALMANTIER R.W., STEENKAMP J.B. E.M. (2008), “Effect of service transition strategies on firm value”, Journal of Marketing, vol. 72, n. 5, pp. 1-14.
FISS P.C. (2011), “Building Better Causal Theories: A Fuzzy Set Approach to Typologies in Organization Research”, Academy of Management Journal, vol. 54, n. 2, pp. 393-420.
GAMBARDELLA A. (2014), “L’imprenditore innovatore come agente dello sviluppo tecnico, economico e sociale”, Sinergie, n. 93, pp. 3-18.
GAMBARDELLA A., MCGAHAN A.M. (2010), “Business-model innovation: general purpose technologies and their implications for industry structure”, Long Range Planning, vol. 43, n. 2-3, pp. 267-271.
GARNSEY E., LORENZONI G., FERRIANI S. (2008), “Specialization through entrepreneurial spin-off: the Acorn-ARM story”, Research Policy, vol. 37, n. 2, pp. 210-224.
GEBAUER H., FLEISCH E., FRIEDLI T. (2005), “Overcoming the service paradox in manufacturing companies”, European Management Journal, vol. 23, n. 1, pp. 14-26.
GELFOND R. (2013) “The CEO of IMAX on how to became a Hollywood Powerhouse”, Harvard Business Review, vol. 91, n. 7-8, pp. 36-39.
GEORGE G., BOCK A.J. (2011), “The Business Model in Practice and Its Implications for Entrepreneurship Research”, Entrepreneurship Theory and Practice, vol. 35, n. 1, pp. 83-111.
GOVINDARAJAN V., TRIMBLE C. (2011), “The CEO’s role in business model reinvention”, Harvard Business Review, vol. January-February, pp. 108-114.
HENDERSON R.M., CLARK K.B. (1990), “Architectural Innovation: the reconfiguration of existing product technologies and the failure of established firms”, Administrative Science Quarterly, vol. 35, n. 1, pp. 9-30.
HIENERTH C., KEINZ P., LETTL P. (2011), “User-centric business models”, Long Range Planning, vol. 44, n. 5-6, pp. 344-374.
JACOBIDES M.G., WINTER S.G. (2012), “Capabilities: structure, agency, and evolution”, Organization Science, vol. 23, n. 5, 1365-1381.
MCNAMARA P, PECK S.I., SASSON A. (2013), “Competing business models, value creation and appropriation in English football”, Long Range Planning, vol. 46, n. 6, pp. 475-487.
MAGLIO P.P., SPOHRER J. (2008), “Fundamentals of service science”, Journal of the Academy of Marketing Science, vol. 36, n. 1, pp. 18-20.
MAGLIO P.P., SPHORER J. (2013), “A service perspective on business model innovation”, Industrial Marketing Management, vol. 42, n. 5, pp. 665-670.
MAGRETTA, J. (2002), “Why business models matter”, Harvard Business Review, May, pp. 86-92.
MANGEMATIN V., LEMARIÉ S., BOISSIN J.P., CATHERINE D., COROLLEUR F., CORONINI R., TROMMETER M. (2003), “Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France”, Research Policy, vol. 32, n. 4, pp. 621-638.
MARKIDES C.C. (2013), “Business model innovation: what can the ambidexterity literature teach us?”, The Academy of Management Perspectives, vol. 27, n. 4, pp. 313-323.
MASON K.J., LEEK S. (2008), “Learning to Build a Supply Network : An Exploration of Dynamic Business Models”, Journal of Management Studies, vol. 45, n. 4, pp. 774-99.
MATHIEU V. (2001), “Service strategies within the manufacturing sector: benefits, costs and partnership”, International Journal of Service Industry Management, vol. 12, n. 5, pp. 451-475.
MCGRATH R.G. (2012), “When your business model is in truble”, Harvard Business Review, vol. January-February, pp. 96-98.
MCNAMARA P., PECK S.I., SASSON A. (2013), “Competing business models, value creation and appropriation in English football”, Long Range Planning, vol. 46, n. 6, pp. 475-487.
NEELY A. (2008), “Exploring the Financial Consequences of the Servitization of Manufacturing”, Operations Management Research, vol. 2, n. 1, pp. 103-118.
OSTERWALDER A., PIGNEUR Y. (2010), Business model generation, Wiley, New Jersey.
PORAC J.F., THOMAS H., BADEN-FULLER C. (2011), “Competitive Groups as Cognitive Communities: The Case of Scottish Knitwear Manufacturers Revisited”, Journal of Management Studies, vol. 48, n. 3, pp. 646-64.
PUCCI T., SIMONI S., ZANNI L. (2013), “Modelli di business e strategie di marketing nelle medie imprese. La gestione della crisi tra continuità e cambiamento”, Mercati e Competitività, n. 3, pp. 25-46
SABATIER V., MANGEMATIN V. ROUSSELLE T. (2010), “From Recipe to Dinner: Business Model Portfolios in the European Biopharmaceutical Industry”, Long Range Planning, vol. 43, n. 2-3, pp. 431-47.
SHANE S., VENKATARAMAN S. (2000), “The Promise of Entreprenuership as a Firled of Research”, Academy of Management Review, vol. 25, n. 1, pp. 217-26.
SOSNA M., TREVINYO-RODRÌGUEZ R.N., VELAMURI S.R. (2010), “Business model innovation through trial-and-error learning. The Naturhouse case”, Long Range Planning, vol. 43, n. 2-3, pp. 383-407
SUAREZ F.F., CUSUMANO M.A., KAHL S.J. (2013), “Services and the business models of product firms: an empirical analysis of the software industry”, Management Science, vol. 59, n. 2, pp. 420-435.
TEECE D.J. (1986), “Profiting from technological innovation: implications for integration, collaboration, licensing and public policy”, Research Policy, vol. 15, n. 6, pp. 285-305.
TEECE D.J. (2010), “Busines Models, Business Strategy and Innovation”, Long Range Planning, vol. 43, n. 2-3, pp. 172-194.
VANDERMERWE S., RADA J. (1988), “Servitization of businesses: adding value by adding services”, European Management Journal, vol. 6, n. 4, pp. 314-324.
VELAMURI V.K., NEYER A.K., MOSLEIN K.M. (2011), “Hybrid value creation: a systematic review of an evolving research area”, J. Betriebswirtsch, vol. 61, n. 1, pp. 3-35.
VELU C., STILES P. (2013), “Managing decision-making and cannibalization for parallel business models”, Long Range Planning, vol. 46, n. 6, pp. 443-458.
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2015-08-29
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