Managing business model renewal
Journal article, 2010

It is well-documented that firms often need to change their business model when introducing a new product, but more knowledge is needed regarding why they struggle when trying to do so. This paper explores the challenges related to renewing an established business model. Drawing upon a case study and industrial network theory, we argue that business models are difficult to change because they are based upon interdependence throughout a system of interrelated actors. Firms are interconnected with actors beyond its boundaries and thus, only a limited control can be imposed. Our findings also suggest that firms can change their business models by identifying critical actors and by aligning incentives throughout their network.

new product development

interrelated actors

discontinuous innovation


established models

business models

incentive alignment

limited control

model renewal

industrial networks


disruptive innovation

systems research

critical actors

personal care industry

incontinence products


Christian Sandström

Chalmers, Technology Management and Economics, Innovation and R&D Management

Ralf-Geert Osborne

Delft University of Technology

International Journal of Business and Systems Research

1751-200X (ISSN) 1751-2018 (eISSN)

Vol. 5 5 461 - 474

Subject Categories

Other Social Sciences not elsewhere specified



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