The rapidly changing economic landscape, coupled with transformational advances in information and communication technologies, presents many challenges to managers of large and small enterprises alike. They need to adopt a holistic approach to continuously renew and innovate their organizations’ capabilities, their product and service mix, their product-market strategies, their activity systems, and more. In response to such challenges, two perspectives have emerged in the strategic management literature in the last two decades: the dynamic capabilities paradigm and the business model perspective. With few exceptions, these viewpoints have been kept separate. In this chapter, we explore the rich links between these two perspectives and suggest that business model design, when viewed through a process lens, is in fact a dynamic capability. Our contribution is to elaborate on the mechanisms of this capability.
Understanding the influence of digitalization on service firm business model design: a qualitative-empirical analysis
