Reaching for the stars: How should established firms organize to radically renew their business models?
Type
conference paper
Date Issued
2018-09
Author(s)
Abstract (De)
Business model innovation as a phenomenon lies at the intersection of strategy and entrepreneurship fields of study. Faced with the threat of nimble new entrants with powerful new business models, managers of established firms need to find ways to renew their own business models. However, how can hey achieve this? In particular, how should they organize the renewal initiative to ensure a high degree of novelty in the new business model? This question is of high practical as well as theoretical relevance. Anchored in corporate entrepreneurship theory we develop and test a model that explains how the degree of novelty in the resulting new business model depends on the alignment among an initiative’s differentiation from the main business, its social integration with the rest of the organization, and the adoption of relevant governance mechanisms at the initiative and business unit levels. We test our model using data from a unique hand-collected set of 141 business model innovation initiatives in large established firms. The study represents one of the rare large-scale empirical research efforts on business model innovation in established firms. Its main theoretical contribution is to explain how initiative governance serves as a crucial mechanism to unlock the power of combining differentiation with integration – two seemingly opposing forces – in corporate entrepreneurship initiatives.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Event Title
Strategic Management Society Annual Conference 2018
Event Location
Paris
Event Date
Sep 2018
Subject(s)
Division(s)
Eprints ID
255686