Responding to business model innovation: organizational unlearning and firm failure

2018 ◽  
Vol 25 (3) ◽  
pp. 190-198 ◽  
Author(s):  
Yuliya Snihur
Keyword(s):  
Business Model ◽  
Organizational Identity ◽  
Extreme Case ◽  
Business Model Innovation ◽  
Identity Change ◽  
Content Type ◽  
Top Managers ◽  
The Right ◽  
Practical Implications ◽  
Shed Light

Purpose This paper aims to examine Borders response to business model innovation (BMI) by Amazon in the bookselling industry. The case illuminates potential causes for protracted periods of organizational unlearning, explaining why organizational unlearning, although beneficial in many documented cases, can also be insufficient to prevent failure. Design/methodology/approach Archival data are used to study Borders’s historical evolution from 1995 to its 2011 bankruptcy. Theoretical inferences are drawn from this case to shed light on the process of organizational unlearning. Findings Borders failed because its top managers were unable to adjust its traditionalist superstore identity to respond in an adequate manner to the changes in their environment. Instead, the company went through protracted phases of weathering the storm, denial and unlearning, resulting in bankruptcy. This extreme case of failure explains why sometimes, organizational unlearning might be insufficient, resulting in organizational demise rather than renewal. Research limitations/implications A longitudinal study of an extreme case allows the author to build links between the research on organizational unlearning and the scholarship on organizational identity. Practical implications Organizations may survive longer if their top managers engage in the process of organizational identity change in response to BMI in their industry. The article proposes a few actions that organizations might usefully take to react to BMI before it is too late. Social implications Better understanding of failure may enable preventive behavior. Originality/value This article explains how organizational identity prevents learning the right things and augments the dangers organizations face during unlearning.

How to build a business

2015 ◽  
Vol 31 (11) ◽  
pp. 33-36
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Illustrative Case ◽  
Conceptual Approach ◽  
Model Framework ◽  
Content Type ◽  
The Right ◽  
Entrepreneurial Activities ◽  
The Relationship ◽  
Practical Implications

Purpose – This paper aims to deconstruct entrepreneurial orientation (EO) using a business model framework. Design/methodology/approach – Develops a conceptual approach supported by illustrative case studies that show how five Swedish small-to-medium-sized enterprises identified entrepreneurial opportunities and how they then modified their business model to exploit them. Findings – What makes an enterprise enterprising? What distinguishes these firms from the conservative, steady-as-she-goes, take-no-risks company quietly supplying its chosen market and expecting to do so for many more? Intuitively you might expect that entrepreneurial activities would be better rewarded – but researchers evaluating the link between EO and firm performance have found ambiguous results. So are we asking the right questions? And are we measuring the right things? Practical implications – Shows that companies can be entrepreneurial in some parts of their business model and more cautious in their approach to other activities. Social implications – Draws attention to the way that differences in entrepreneurs’ background, skills and growth ambitions affect their firm’s activities. Originality/value – Highlights opportunities for further research clarifying the relationship between EO and firm performance.

Bridging the gap between potential and innovation

2016 ◽  
Vol 32 (3) ◽  
pp. 4-6
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Reading Time ◽  
Business Model Innovation ◽  
Search System ◽  
Content Type ◽  
New Ideas ◽  
Pertinent Information ◽  
Practical Implications ◽  
Blind Spots

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Solid business model innovation (BMI) is one of the ways through which – especially where new ideas and technologies are concerned – companies can find ways towards commercialization via capturing value. The main barriers would appear to be lack of awareness, search, system, logic and culture. There are blind spots in every organization, such as having too narrow a focus, and this article provides insights into the ways by which business model innovation can be made to work. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Improving your business posture

2018 ◽  
Vol 34 (5) ◽  
pp. 31-33
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Business Model ◽  
Design Methodology ◽  
Reading Time ◽  
Business Model Innovation ◽  
Cutting Edge ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Business model innovation can be a key facet to gaining a competitive advantage and subsequent success of any organization. This is investigated in this paper through French manufacturing SMEs with a turnover of less than €50m. Originality/value The paper saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent, information and presenting it in a condensed and easy-to-digest format.

Business model innovation: a review and research agenda

2018 ◽  
Vol 11 (4) ◽  
pp. 348-369
Author(s):  
Wahyono Wahyono
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Evolutionary Process ◽  
Business Model Innovation ◽  
Fine Tuning ◽  
Single Element ◽  
Content Type ◽  
Factors Associated ◽  
Practical Implications

Purpose This paper aims to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model, or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously, and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, this review synthesises these approaches and provide a clear guidance as to the ways through which business model innovation can be undertaken.

Circular economy business model for smart tourism: the case of Ecobnb

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale del Vecchio ◽  
Caterina Malandugno ◽  
Giuseppina Passiante ◽  
Georgia Sakka
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Social Implications ◽  
Content Type ◽  
Tourism Management ◽  
Practical Implications ◽  
Smart Tourism

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

Responding to open business models

2017 ◽  
Vol 38 (2) ◽  
pp. 33-40
Author(s):  
Louis-David Benyayer ◽  
Martin Kupp
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Community Action ◽  
Content Type ◽  
Five Dimensions ◽  
The Right ◽  
Practical Implications ◽  
Selection Of ◽  
Open Business Models

Purpose The purpose of this paper is to provide guidelines for practitioners in choosing the right response to potential threats by open business models. Design/methodology/approach The study focuses on identifying the dimensions of open business models. It consisted of 32 interviews with experts on open business models complemented by panel discussions with a selection of experts to validate the findings. Findings Five dimensions of open business models are identified: motivation, object, community, action and governance. Based on those dimensions, three responding strategies are proposed. Practical implications This paper offers insights for strategists and entrepreneurs who consider developing open business models or are attacked by competitors or other market players with open business models. Originality/value Complementing previous research, this paper highlights how the five dimensions of open business model can serve as a tool to design appropriate strategies when confronted with new forms of competition.

scholarly journals Business model innovation: a review and research agenda

2019 ◽  
Vol 22 (2) ◽  
pp. 89-108 ◽  
Author(s):  
Boumediene Ramdani ◽  
Ahmed Binsaif ◽  
Elias Boukrami
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Evolutionary Process ◽  
Business Model Innovation ◽  
Fine Tuning ◽  
Single Element ◽  
Content Type ◽  
Factors Associated ◽  
Practical Implications

Purpose The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their existing business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, the review synthesises these approaches and provides a clear guidance as to the ways through which business model innovation can be undertaken.

Business model innovation as a turnaround strategy

2020 ◽  
Vol 13 (2) ◽  
pp. 241-253
Author(s):  
Masoumeh Hosseinzadeh Shahri ◽  
Maryam Nematollahi Sarvestani
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Model Innovation ◽  
Point Of View ◽  
Content Type ◽  
Semistructured Interviews ◽  
Turnaround Strategies ◽  
Business Practitioners ◽  
Model Components ◽  
Practical Implications

PurposeThe purpose of this research is to determine the firms, innovations in the cases that have successfully overcome a decline and also to assess whether these innovations can be considered as business model innovations.Design/methodology/approachIn this paper, the data was collected from analyzing four case studies in different businesses through semistructured interviews with relevant internal experts.FindingsThe findings revealed that the innovation that had been taken was related to the constructs of their existing business model. Therefore, the business model innovation functions as a critical practice of turnaround strategy in the decline period.Research limitations/implicationsThe article provides the most important business model constructs in each business through which the related firm could overcome a decline in their life cycle. Since this paper has been studied in different unrelated businesses and due to the qualitative research nature, generalization cannot be ensured.Practical implicationsFrom the practical and managerial point of view, this article is useful as it defines the most important business model components in each industry and based on it, the similar companies can do innovation in their business model. It also helps the related companies in the same industry to develop and design their specific turnaround strategies.Originality/valueSo far, rare research has seen business model innovation as a turnaround strategy, and it can be claimed that till now, no research has been conducted in Iran in this context. Therefore, the business practitioners can employ innovation on the components of their existing business model to overcome a decline.

The middle manager’s role in business model innovation

2019 ◽  
Vol 35 (3) ◽  
pp. 10-12
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Reading Time ◽  
Middle Managers ◽  
Business Model Innovation ◽  
Content Type ◽  
Meaningful Involvement ◽  
Stakeholder Support ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This paper concentrates on delivering a framework to assist middle managers in contributing to their organization in a more entrepreneurial fashion. This is achieved by giving them steps against which to assess opportunities for business model change and innovation, as well as steps that provide clarity on how to gain key stakeholder support for their more meaningful involvement. Originality/value The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

“Reinventing the wheel” as an emerging business model innovation paradigm

2017 ◽  
Vol 33 (5) ◽  
pp. 1-4 ◽  
Author(s):  
Antonio Ghezzi
Keyword(s):  
Business Model ◽  
Historical Analysis ◽  
Time Frame ◽  
Big Bang ◽  
Business Model Innovation ◽  
Content Type ◽  
Alternative Practices ◽  
Innovation Patterns ◽  
Original Approach ◽  
Practical Implications

Purpose This study aims to discuss how business model innovation from both incumbents and startups growingly may stem from past products, services, and approaches reinvented. This results in what is labeled the “Reinventing the Wheel (RTW)” innovation paradigm, where the future is seen through the lenses of the past. Design/methodology/approach This study is based on historical analysis of common business model innovation patterns found in a longitudinal sample of both incumbent companies and startups in the time frame 2008-2016. Findings The RTW paradigm unlocks business model innovation through: the reinvention of past resources and competencies; the use of digital technologies; and the centrality given to customer experience and customer journey. The resulting RTW cycle is made of five steps to follow in the attempt to make the most out of this paradigm: survey, learn, disclose, exploit, and reinvent. Practical implications Entrepreneurs and managers are presented with the key elements, steps, and implications of an emerging business model innovation paradigm to possibly apply in their incumbent or startup context. Originality/value This study presents an original approach to look at business model innovation, in a way that is complementary to alternative practices like the blue ocean strategy, big-bang disruption, and lean startup.

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