Network configuration, customer centricity, and performance of open business models : A solution provider perspective

Item Type Journal paper
Abstract While research has shown a positive impact of open business models on value creation, it has remained silent on the configuration of the corresponding partner networks and their effect on performance. Studying three cases of solution providers which involve external service partners for solution delivery, we find that solution customer centricity - the degree to which the focal firm focuses on solution customers in the joint delivery of solutions - moderates the relationship between partner networks and open business model performance. For open business models with low solution customer centricity, a network configuration characterized by many weak ties to service partners leads to superior performance. Conversely, for open business models with high solution customer centricity, few but strong ties to partners lead to superior performance. Based on these findings, three ideal configurations of networks for open business models are derived: the controlled, the joint, and the supported model. The findings of this paper are especially relevant for managers of product-focused firms who seek guidance in evolving their business models into solution providers. The paper also contributes to business model research by linking extant insights from network research to open business model performance.
Authors Frankenberger, Karolin; Weiblen, Tobias & Gassmann, Oliver
Journal or Publication Title Industrial Marketing Management
Language English
Keywords Open business model; Solution provider; Customer centricity; Business model performance; Networks
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date July 2013
Publisher Elsevier
Place of Publication Amsterdam
Volume 42
Number 5
Page Range 671-682
Number of Pages 12
ISSN 0019-8501
ISSN-Digital 1873-2062
Publisher DOI
Depositing User Dr. Tobias Weiblen
Date Deposited 27 May 2013 16:12
Last Modified 20 Jul 2022 17:16


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Frankenberger, Karolin; Weiblen, Tobias & Gassmann, Oliver (2013) Network configuration, customer centricity, and performance of open business models : A solution provider perspective. Industrial Marketing Management, 42 (5). 671-682. ISSN 0019-8501

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