Internal factors & consequences of business model innovation

Abstract

Purpose The purpose of this paper is to propose a theoretical model of business model innovation based on evidences from the past literature. The paper established a link between business model innovation (BMI) strategic flexibility, competitive advantage and firm competence. Design/methodology/approach The study was approached from a theoretical perspective using previous literature on BMI from 2000 to 2017, as per the recommendations of Tranfield et al. (2003). A total of 104 conceptual and empirical articles on BMI research spanning from 2000 to 2017 were analyzed based on different classification schemes. Findings The study proposed a theoretical model of BMI and discussed how the various internal factors, such as organizational culture, organizational structure, organizational inertia, leadership and technology drive BMI. The study highlighted how BMI gives companies sustainable competitive advantage. The study also highlighted that the BMI is an important predictor of firm performance and strategic flexibility. Further, the study found that the firm size and firm inexperience mediate the influence of BMI on firm competence. Research limitations/implications The study highlights how BMI can be a source of sustainable competitive advantage and enhance the firm competitiveness and strategic flexibility of a firm. Originality/value This study is the first of its kind which has developed a conceptual model on the various internal factors and consequences of BMI. The study highlighted how BMI is an important predictor of firm performance, competitive advantage and strategic flexibility.

What Brings the Innovation in Business Model(s)? Evidence from Pakistan Mobile Banking Sector

“…The results revealed that service innovation success carries the positive mediation effect among the innovation capabilities and the innovation in business model. This finding is also found to in line with the existing literature that proposed and identified the theoretical logic for the possible relationship (Bashir & Verma, 2019).…”

“…Thus, it may not be wrong to state that the overall strength of innovation capabilities of an organization lies at the extent of the value it captures for itself and delivers for customer. This fact is also indicated by many other researchers that debated that innovation capabilities are truly reflected in the extent of value capture and value deliver by the organization (Bashir & Verma, 2019). This also indicates the persuasion of continuous innovation by the organization in development of new business model(s).…”

“…Saebi, Lien, and Foss (2017) also argued that more cross-cultural empirical researches are needed to validate this construct in different cultural contexts. There is a need for future researches to bring coherence and legalize the components that constitute the business model innovation through empirical analysis (Bashir & Verma, 2019). Thus, it can be stated that studying and validating the measures of business model innovation is of prime importance and attempts to fill this identified research gap in the existing body of knowledge.…”

Investigations on business model innovation and company’s development

“…Business model innovation can help to create competitive advantage not only locally, but also internationally. Autio (2017) examined business model innovation of international new ventures. He states that there are a few conditions that need to be met in order for INV to stay competitive in the international environment.…”

Risk framing and business model adaptation: A conceptualization based on threat-rigidity theory

“…Adapting the business model is a risky venture as there is no way of knowing whether one will succeed. Central themes in the field of strategy pertain to sustaining competitive advantage and creating value in firms and industries (Bashir & Verma, 2019). The business model has become an essential tool in achieving these factors.…”