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
interdependence
established models
business models
incentive alignment
limited control
model renewal
industrial networks
NPD
disruptive innovation
systems research
critical actors
personal care industry
incontinence products
Author
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 - 474Subject Categories
Other Social Sciences not elsewhere specified
DOI
10.1504/IJBSR.2011.042094