Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception

Zhao, Wei; Yang, Te; Hughes, Karen D.; Li, Yixin

doi:10.1007/s11365-020-00637-2

Cited by 68 publications

(71 citation statements)

References 71 publications

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“…The TMT's strategic orientation largely shapes the BM configuration and directs managerial attention and effort [59]. Focus on large projects and only improving current BM performance creates unbalance in the portfolio [60], [61], both because resources are directed to these projects and because managerial attention will also be focused on fulfilling this goal [62].…”

Section: ) Sensing Capability For Bmimentioning

confidence: 99%

Opening the Dynamic Capability Black Box: An Approach to Business Model Innovation Management in the Digital Era

et al. 2021

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The digital era is reshaping the competitive landscape, creating a more turbulent environment where digital technologies play a significant role in enabling innovative business models. Companies need to promote business model innovations, readapting their business models, and create new digital business models to thrive in this scenario. The literature emphasizes that dynamic capabilities are the main antecedent to business model innovation. However, the dynamic capabilities construct is poorly operationalized, lacking proper measurements that effectively translate them to practice, remaining a black box. This paper aims to further understand, operationalize and measure the distinctive dimensions of dynamic capabilities for business model innovation. To this end, we follow the design science research methodology, building a tool for dynamic capabilities evaluation through a systematic literature review. We then evaluate the tool based on a three-year, in-depth case study of a software company. Our findings show that the current business model has a central role in shaping dynamic capabilities for business model innovation. The proposed measures encompass activities and practices and business model structure, highlighting the relevance of the co-evolution between business model and dynamic capabilities. Thus, we propose creating what we call a "business model innovation engine" as a function that reshapes the business model to incorporate dynamic capabilities as part of the value creation architecture. We contribute to theory by better translating dynamic capabilities for business model innovation to observable (and measurable) organizational phenomena, linking it to the extant strategic management literature, and elucidating how to measure and guide the build-up of such capabilities. We also add to practice by developing a practical tool for management to use as a means to evaluate their current dynamic capabilities state, therefore guiding for informed strategic action.INDEX TERMS Business model innovation, design science research, digital economy, dynamic capabilities, innovation management.

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Section: ) Sensing Capability For Bmimentioning

confidence: 99%

Opening the Dynamic Capability Black Box: An Approach to Business Model Innovation Management in the Digital Era

et al. 2021

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“…In this context, it is important to note that identifying and selecting the most appropriate and potentially profitable opportunities for a new business are among the most important activities carried out by entrepreneurs (Stevenson et al, 1985 ). However, little attention has been paid to the link between alertness and the pathways of entrepreneurs’ thought, namely decision making, and the effectiveness of decisions that allow entrepreneurs to be successful (Zhao et al, 2020 ).…”

Section: Introductionmentioning

confidence: 99%

The rhythm of effective entrepreneurs’ decision-making process. The pathways of alertness scanning and search and cognitive style. A mediation model

2021

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How can entrepreneurs be effective when making decisions? To enrich current research on entrepreneurship and cognition, the present study shows how alertness and decision making are closely related. Prompted by the scant attention that scholars have paid to the link between alertness and the pathways of entrepreneurs’ thought, it proposes that being alert by adequately scanning and searching for information is likely to increase decision-making effectiveness. Distinguishing between rational and intuitive cognitive styles and based on a sample of 98 Italian entrepreneurs from small and medium manufacturing companies, the analysis shows that while a rational cognitive style significantly mediated the relationship, intuition did not play a role in shaping entrepreneurial decision-making effectiveness. The results suggest that developing individual alertness might not be sufficient for entrepreneurs to make effective decisions; a rational cognitive style might also be a key mechanism shaping this association.

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“…In other words, innovation modes require entrepreneurs to use different cognitive mechanisms at different moments in order to materialize the entrepreneurial opportunity they have identified. Zhao et al (2020) mention that entrepreneurial alertness helps entrepreneurs to recognize the needs of customers, to identify new activities in the markets, and to determine the constraints in the external environment. All of these aspects, according to the authors, represent stimuli and challenges for innovation, and consequently, entrepreneurs explore new business models.…”

Section: Discussionmentioning

confidence: 99%

“…Therefore, entrepreneurial alertness helps individuals to understand how opportunities are initiated and pursued (Tang et al, 2012). Furthermore, entrepreneurial alertness has become related to other variables regarding recognizing influence at the organizational level, such as innovation (Urban, 2017), strategic decisions (Roundy et al, 2018), firm performance (Adomako et al, 2018), and business models (Zhao et al, 2020). Consequently, entrepreneurial alertness can not only help to understand the process of opportunity recognition, but also its effects on organizational processes.…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurial Alertness, Innovation Modes, And Business Models in Small- And Medium-Sized Enterprises: An Exploratory Quantitative Study

Montiel-Campos

2021

Journal of Technology Management & Innovation

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Entrepreneurial alertness refers to the ability to process information and signals from the environment so that individuals can recognize business opportunities, whereas innovation modes depict the variation in firms' approaches to innovation. Innovation modes have important implications in the way firms compete; however, little research has been done about the relationship among entrepreneurial alertness, innovation modes, and business model in firms. This study explores whether entrepreneurial alertness dimensions influence business models through their effect on firms' innovation modes. Using survey data from analysis of 119 manufacturing small and medium-sized enterprises in Mexico using structural equation modelling, this study shows that entrepreneurs' entrepreneurial alertness dimensions have different impacts on innovation modes, which thus have different effects on the efficiency and novelty of business models.

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Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception

Cited by 68 publications

References 71 publications

Opening the Dynamic Capability Black Box: An Approach to Business Model Innovation Management in the Digital Era

Opening the Dynamic Capability Black Box: An Approach to Business Model Innovation Management in the Digital Era

The rhythm of effective entrepreneurs’ decision-making process. The pathways of alertness scanning and search and cognitive style. A mediation model

Entrepreneurial Alertness, Innovation Modes, And Business Models in Small- And Medium-Sized Enterprises: An Exploratory Quantitative Study

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