Market orientation, strategic flexibility and business model innovation

2020 ◽  
Vol 35 (4) ◽  
pp. 771-784
Author(s):  
Dong Yang ◽  
Zelong Wei ◽  
Huibin Shi ◽  
Jie Zhao
Keyword(s):  
Market Orientation ◽  
Business Model ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Future Research ◽  
Strategic Flexibility ◽  
Internal Dynamic ◽  
Content Type ◽  
Resource Flexibility ◽  
Positive Effect

Purpose This study aims to investigate how market orientation (MO) motivates firms to develop business model innovation and how such effects are moderated by strategic flexibility. Design/methodology/approach In this study, a questionnaire-based survey was undertaken to test the proposed hypotheses. The empirical study was conducted on a sample of 204 firms using two key informants (408 respondents) in China. The regression model is used to test the proposed model. Findings This research finds that both responsive market orientation (RMO) and proactive market orientation (PMO) have a positive effect on business model innovation. The effects of RMO and PMO on business model innovation are contingent on resource (coordination) flexibility in different ways. More importantly, this study finds that resource flexibility enhances the positive effect of RMO and weakens the positive effect of PMO. The study also finds that coordination flexibility enhances the positive effect of PMO. Research limitations/implications Future research can explore the internal mechanisms through which RMO and PMO promote business model innovations. Although the study finds that both the MOs promote business model innovation, they may promote business model innovation through different mediating effects. Future research can explore the role of external dynamic capabilities. This research mainly focuses on the internal dynamic capability of focal firms. However, as a focal firm-centered boundary spanning activity system, to transform into a new business model, firms not only need to reconfigure internal resource base, but also need to realign external collaboration network. Practical implications This research also bears important managerial implications. First, firms should be aware of the positive effect of MO on business model innovation. Firms with higher level of RMO or PMO can promote business model innovation. Second, when firms implement RMO for business model innovation, managers should focus on resource flexibility. Where MO is responsive, marketing managers need to be concerned with ensuring various applications of existing resource so as to understand effectively the current customers and market domain. Third, to leverage PMO for business model innovation, firms should adopt coordination flexibility. For firms with higher level PMO, firms should try to find the new internal coordination process for customer latent needs. Originality/value The conclusion extends the business model innovation research from the view of dynamic capabilities. As one of types of dynamic capabilities, MO is also the important antecedent of business model innovation. Further, this research also discusses the role strategic flexibility plays in business model innovation.

Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

2019 ◽  
Vol 13 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Suqin Liao ◽  
Zhiying Liu ◽  
Lihua Fu ◽  
Peichi Ye
Keyword(s):  
Business Model ◽  
Distributed Leadership ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
High Tech ◽  
Strategic Flexibility ◽  
Environmental Dynamism ◽  
Content Type

PurposeThe purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.Design/methodology/approachA survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.FindingsThe analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.Originality/valueThis paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

BUSINESS MODEL INNOVATION AND STRATEGIC FLEXIBILITY: INSIGHTS FROM AN EXPERIMENTAL RESEARCH DESIGN

2014 ◽  
Vol 18 (06) ◽  
pp. 1440009 ◽  
Author(s):  
SABRINA SCHNEIDER ◽  
PATRICK SPIETH
Keyword(s):  
Research Design ◽  
Business Model ◽  
Experimental Research ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Environmental Turbulence ◽  
Strategic Flexibility ◽  
Resource Flexibility ◽  
The Individual ◽  
Managerial Capabilities

Firms engaging in business model innovation are likely to constantly experience environmental turbulence in which remaining strategically flexible is of crucial importance to ensure survival. Drawing on a dynamic capabilities perspective, a framework of hypotheses is established that emphasises the effects of business model innovation on a firm's managerial capabilities and its operational responsiveness that have been argued to antecede strategic flexibility. Using an experimental research design that is built on a between-subject analysis and embodies decision-scenarios, we show how three distinct types of business model innovation (value offering innovation, value architecture innovation, and revenue model innovation) impact on different dimensions of strategic flexibility (resource flexibility, coordination flexibility, and variety of managerial capabilities). Our findings indicate that remaining strategic flexibility is not an implicit result of business model innovation as we identify different effects of the distinct types of business model innovation on the individual dimensions of strategic flexibility.

Business model innovation: past research, current debates, and future directions

2017 ◽  
Vol 10 (3) ◽  
pp. 342-359 ◽  
Author(s):  
Mokter Hossain
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Current Knowledge ◽  
Past Research ◽  
Business Model Innovation ◽  
The Body ◽  
Future Research ◽  
Content Type ◽  
Body Of Knowledge

Purpose The purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research. Design/methodology/approach A systematic literature review approach was adopted with thematic analysis being conducted on 92 articles. Findings The body of knowledge for this concept is in its infancy and is highly fragmented. This study therefore attempts to consolidate this fragmented knowledge. It reveals dominant themes, establishes coherence, and identifies conflicting arguments in the current literature. It also points out gaps in the research and highlights new directions for research. Research limitations/implications This study analyzed articles that were found based on a systematic literature review approach. Practical implications This study identifies some fundamental issues that managers need to understand regarding BMI. Originality/value The main value of this study lies in its synthesis of the current knowledge of BMI.

An empirical study of the relationship between inclusive leadership and business model innovation

2021 ◽  
Vol 42 (3) ◽  
pp. 480-494
Author(s):  
Yangchun Fang ◽  
Xinxing Dai ◽  
Xudong Zhang
Keyword(s):  
Employee Engagement ◽  
Business Model ◽  
Primary Source ◽  
Boundary Spanning ◽  
Business Model Innovation ◽  
Zhejiang Province ◽  
Inclusive Leadership ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

PurposeTo better understand factors that lead to business model innovation (BMI) in organizations, this study argues that inclusive leadership is the primary source that motivates employee engagement in boundary-spanning activities, which fosters BMI by generating and integrating employee knowledge through boundary-spanning exploration.Design/methodology/approachThis paper analyzes the relationships between inclusive leadership, boundary-spanning exploration and BMI to discover how they influence each other. This is achieved by a survey of more than 30 enterprises in Zhejiang Province, China. The survey data are analyzed using SPSS.FindingsInclusive leaders who display characteristics of openness, accessibility and availability have a positive effect on BMI and boundary-spanning exploration; openness and accessibility have more significant positive effect on BMI and boundary-spanning exploration.Research limitations/implicationsBecause this study covers only in Zhejiang Province, in China, the findings may not be easily generalizable to other contexts. Other factors, such as organizational structure and contextual characteristics, could also be added as antecedents in a future investigation. Moreover, the scales could be revised more suitable for China in the future.Practical implicationsThe empirical findings can be used as guidelines for firms seeking to take advantage of inclusive leadership and to help firms motivate their employees to engage in boundary-spanning exploration to acquire, generate and integrate knowledge from diverse sources to promote BMI.Originality/valueThis study provides insights that will be of value by adding to the theoretical foundation of our understanding of the antecedents to firms' BMI. This study argues that employees' boundary-spanning exploration is important to BMI as well. Inclusive leadership is crucial to stimulate boundary-spanning exploration by employees. Therefore, how to encourage inclusive leadership in firms is well worth examining.

Proactive market orientation and business model innovation to attain superior new smart connected products performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shashishekar M.S. ◽  
Sandip Anand ◽  
Arun Kumar Paul
Keyword(s):  
Product Development ◽  
Market Orientation ◽  
New Product Development ◽  
Business Model ◽  
New Product ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
Content Type ◽  
Proactive Market Orientation ◽  
Structural Relationships

Purpose Smart connected products (SCP) are the new archetype of products evolving. SCP are subtly changing the product-centric business to system-centric. Development and monetization of new SCP is an uphill task, it necessitates unique market orientation and business models. The purpose of this study is to establish a framework of variables influencing new smart connected products performance (NSCPP) at the market place, suggest methods to operationalize the framework. Design/methodology/approach The study identified key variables influencing NSCPP from existing literature. Conceptualized unique theoretical frameworks of these variables and empirically validated structural relationships. The study performed structural equation modeling using the data collected from 163 respondents having managed the development and monetization of 138 new SCP launches. Findings The study established structural relationships among selected variables proactive market orientation (ProMO), new product development proficiency (NPDPro) and business model innovation (BMoI). It revealed that the effect of ProMO is manifested through NPDPro. BMoI and NPDPro significantly influence NSCPP. Practical implications The study presented “ProMO Canvas” to plan and operationalize ProMO integrated with new product development (NPD) stage-gate activities. The study suggested the practitioners to execute ProMO activities preceding NPD activities and execute NPD, business model development activities in parallel to attain superior NSCPP. Originality/value This study is a novel effort to derive a unique empirical framework of variables ProMO, NPDPro and BMoI to attain superior NSCPP.

scholarly journals Exploring the Impact of Strategic Flexibility on Business Model Innovation under the Open Innovation Activity: The Moderating Roles of Multiple Factors with Competitive Ties and Cooperative Ties

2020 ◽  
Vol 13 (7) ◽  
pp. 80
Author(s):  
Wang Xin
Keyword(s):  
Business Model ◽  
Open Innovation ◽  
Business Model Innovation ◽  
Innovation Activity ◽  
Strategic Flexibility ◽  
Internal Resources ◽  
Resource Flexibility ◽  
Innovation Activities ◽  
The Impact ◽  
The Relationship

This paper proposed a research model exploring the link among strategic flexibility, innovation openness, business model innovation, and introduced two moderating roles into this model. The result shows that innovation openness plays a partly mediating role between strategic flexibility and business model innovation. Collaborator ties negatively moderating the relationship between resource flexibility and innovation openness, positively moderating the relationship between coordination flexibility and innovation openness; The moderating effect of competitor ties is the same. In addition, the results of three interaction shows that the relationship between resource flexibility and innovation openness is negatively moderated by high collaborator ties and high competitor ties, while positively moderated by high collaborator ties and high competitor ties. It’s suggested that enterprises effectively integrate the relationship between internal resources with external competitors and cooperators according to their own strategic flexibility characteristics, embedded open innovation activities in business.

Tactical and strategic choices in business models: evidence from a Danish fashion outlet

2015 ◽  
Vol 19 (3) ◽  
pp. 274-289 ◽  
Author(s):  
Anders P. Haubro ◽  
Henrik A. Lomholt ◽  
Rainer Lueg ◽  
Sverre V. Nielsen ◽  
Ulrik Knudsen
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Future Research ◽  
Small Company ◽  
Strategic Choices ◽  
Content Type ◽  
Competitive Process ◽  
Process Framework ◽  
Positive Effect

Purpose – The purpose of this paper is to explain how tactical choices create value within a business model of a small company in the fashion outlet industry. Design/methodology/approach – The generic two-staged competitive process framework from Casadesus-Masanell is used to analyze the fashion retailer MyFashionOutlet. Findings – This paper argues that tactical choices made within a business model have a positive effect on the revenue of this company. Originality/value – As to practice, the findings provide better insights into the levers of change within a constant business model. For academics, the authors provide guidelines for applying the framework to future research and identify potential limitations of the use.

TOWARD A RESEARCH MODEL OF MARKET ORIENTATION AND DYNAMIC CAPABILITIES

2008 ◽  
Vol 36 (9) ◽  
pp. 1251-1268 ◽  
Author(s):  
Jia-Jeng Hou
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Market Orientation ◽  
Dynamic Capabilities ◽  
Mediating Effect ◽  
Future Research ◽  
Compelling Evidence ◽  
Research Model ◽  
The Impact ◽  
Positive Effect

In the majority of studies on market orientation it is claimed that compelling evidence exists that market orientation has a positive effect on firm performance. It is important to investigate the mediating effect of market orientation on firm performance. Drawing on the dynamic capabilities perspective, in this paper, the view is taken that market orientation is a rare, valuable, and inimitable firm resource; and furthermore is a set of dynamic capabilities. In light of conceptual and empirical advancement, a research model about the impact of market orientation and dynamic capabilities on firm performance is proposed and delineated. With the conceptual model that is developed, the author shows how market orientation can be transformed into dynamic capabilities and it is argued that the competitive value of market orientation is positively mediated by dynamic capabilities. Finally, some research hypotheses for future research are discussed.

Business model innovation: a systematic review and future research directions

2020 ◽  
Vol 12 (4) ◽  
pp. 457-476
Author(s):  
Makhmoor Bashir ◽  
M. Muzamil Naqshbandi ◽  
Rayees Farooq
Keyword(s):  
Systematic Review ◽  
Business Model ◽  
Empirical Studies ◽  
Business Model Innovation ◽  
Future Research ◽  
Content Type ◽  
New Horizons ◽  
Innovation Research ◽  
Future Research Directions ◽  
New Perspective

Purpose The purpose of this paper is to systematically analyze the literature on business model innovation by identifying its triggers, enablers, barriers, dimensions, outcomes and highlight avenues for future research. Design/methodology/approach A systematic literature review of papers on business model innovation was conducted based on the recommendations of Tranfield et al. (2003) from 2000–2019. A total of 70 conceptual and empirical studies on business model innovation research spanning from 2000 to 2019 were analyzed based on different classification schemes. Findings The systematic review approach of this paper offers a new perspective in understanding business model innovation, bridges the gap in the extant literature by providing consolidation regarding the triggers, enablers, barriers, dimensions and outcomes of business model innovation and indicating avenues for future research. Research limitations/implications A review of literature on business model innovation carried out in this paper is expected to open up new horizons for future researchers to develop and empirically test frameworks related to business model innovation. The five themes identified to shed light on important aspects of business model innovation. These themes are expected to not only strengthen the theoretical foundations of business model innovation but also help practitioners develop and implement business model innovations in their organizations. In particular, the themes related to the enablers, barriers, triggers and outcomes of business model innovation can provide useful insights for practitioners. Originality/value This study is the first of its kind that has provided consolidation regarding the triggers, enablers, barriers, dimensions and outcomes of business model innovation.

The positive effect of the financial crisis on the dynamic capabilities of international intermediaries

2014 ◽  
Vol 5 (1) ◽  
pp. 70-94
Author(s):  
David Glattstein ◽  
Jia Su Lei
Keyword(s):  
Financial Crisis ◽  
Impression Management ◽  
Dynamic Capabilities ◽  
Case Analysis ◽  
Network Capacity ◽  
Internal Dynamic ◽  
Additional Source ◽  
Content Type ◽  
Source Data ◽  
Positive Effect

Purpose – This study aims to explore the dynamic capabilities of international intermediaries that cooperate with Chinese factories. The authors determine the structure of these dynamic capabilities and inquire into the manner in which they allow an intermediary to respond to external change. Furthermore, the authors examine these capabilities both before and during a financial crisis in order to better understand how an international manufacturing intermediary can succeed during a poor economic situation. Design/methodology/approach – Based on a case analysis involving multiple organizations, the authors use triangulated data from a variety of sources: five American intermediaries, 28 Chinese factories, and additional source data. Findings – Results from this study show that, compared to other firms, intermediary organizations contain additional dynamic capabilities. This allows for the creation of a new three-tier model of intermediary capabilities: internal dynamic capabilities, external network capacity, and external dynamic capabilities. Furthermore, the authors demonstrate that impression management, guanxi, and other external dynamic capabilities can be used to influence how external firms allocate and re-allocate their resources and thus become a crucial dynamic capability. This case analysis also determines that the financial crisis actually strengthened the dynamic capabilities of these intermediaries. Originality/value – This paper is the first to determine the structure of the dynamic capabilities for this type of intermediary and to demonstrate that they possess dynamic capabilities that can influence how an external firm re-allocates resources. Additionally, the authors extend the dynamic capabilities literature to the type of firm that operates in an emerging economy.

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