Strategies for business model innovation: How firms reel in migrating value
Journal article, 2018

This paper brings together firm-level research on business models and industry-level research on value migration to examine patterns of business model innovation. We draw on qualitative data from 14 cases and 68 interviews in the computer and telecommunications industries to demonstrate how business model innovation is sensitive to industry-wide forces of value migration. Based on our analysis we conclude that when value is rapidly migrating across industries and between firms, proactively substituting key elements of the primary business model provides a better fit with the new value landscape than launching secondary business models in parallel. We suggest four underlying mechanisms that link business model innovation, value migration and subsequent outcomes. Unpacking business model innovation allows us to discuss contingencies for the main business model strategies, specifically in terms of limitations to—and opportunities of—changing the primary business model and the practice of parallel business models.

business model innovation

value migration

business model


Fredrik Hacklin

Swiss Federal Institute of Technology in Zürich (ETH)

Joakim Björkdahl

Chalmers, Technology Management and Economics, Entrepreneurship and Strategy

Martin Wallin

Chalmers, Technology Management and Economics, Entrepreneurship and Strategy

Longe Range Planning

0024-6301 (ISSN) 18731872 (eISSN)

Vol. 51 1 82-110

Subject Categories

Other Mechanical Engineering

Business Administration



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