How can we see what they say? : On the use of visual representations in qualitative interviewing

The innovation of an incumbent firm’s business model is one of today’s most important, yet challenging tasks. However, current literature has only scarcely addressed the issues of how a firm’s management can foster business model innovation, and specifically, what the role of leadership is in business model innovation. We address this research gap by developing a conceptual model of the impact of top level leader behavior on business model innovation of incumbent firms. Specifically, we establish a theoretical linkage between top level leader behavior and business model innovation from a cultural historical activity system perspective of organizational learning and development. We propose that transformational and transactional leader behaviors of top level management are likely to have a positive impact on business model innovation by developing learning activity of the subject and by instructing the development of new forms of activity, such as a new business model of the incumbent firm as the learning subject. We also propose that transactional and transformational leader behaviors mediate the positive impact of instrumental leader behavior on business model innovation. From our model, we propose that laissez-faire leader behavior of a firm’s top management is negatively associated with business model innovation of incumbent firms.