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Business Model Innovation Process

abstract From time to time, every company faces external environmental developments which challenge the core assumptions of its business activities (Casadesus-Masanell & Ricart, 2010; Hamel & Valikangas, 2003). In such a situation, the ability to adapt the business model is essential for the company’s long-term survival (e.g., Sosna, Trevinyo-Rodriguez, & Velamuri, 2010; Teece, 2010).

Business model innovation (abbr. BMI) is one particular way of business model adaptation that scholarly publications (e.g., Markides, 2006; Voelpel, Leibold, Tekie, & von Krogh, 2005; Zott & Amit, 2007) and management publications (e.g., Mark. W Johnson, Christensen, & Kagermann, 2008; Pohle & Chapman, 2006) respectively consider to be very promising. Despite BMIs’ vital relevance, management has just started to explore BMI to address environmental threats such as changing regulatory environments or disruptive technologies (Casadesus-Masanell & Ricart, 2010; Demil & Lecocq, 2010). It is not well understood why only few incumbent companies succeed to adapt their business model to such changes (Chesbrough, 2010; Markides, 2006; Sosna, et al., 2010). Furthermore, the topic is not well grounded in existing literature on organizational change and innovation (Sosna, et al., 2010).

The purpose of this thesis project is to inquire how incumbent organizations innovate their business model when changes in their external environment question the core logic of their business activities. The dissertation project aims to make a contribution to the discussion on dynamic aspects of business models (e.g., Demil & Lecocq, 2010) by connecting business model innovation to research on organizational innovation and change. Longitudinal case studies on the BMI process in the media industry will allow to theorize this particular process with reference to existing process theories and key concepts from innovation management research (cf. Van de Ven & Angle, 2000). This will enhance our understanding of the phenomenon and provide vital insights in how to design project initiatives that aim to introduce BMI.
   
keywords Business Model, Innovation, Change, Process, Organization Theory, Media Industry, Incumbent Organizations
   
partner
type dissertation project
status ongoing
start of project 2011
end of project 2013
additional informations
topics Business Model Innovation and Change
methods Qualitative: longitudinal, retroductive case studies; event structure analysis.
contact Stephan Reinhold