Abstract:
Firms exist in a world where change is no longer incremental but rather discontinuous, abrupt and seditious. A firm's survival is dependent on its ability to adapt to these changing factors to achieve better alignment between the firm and its environment.
Business model innovation, defined as an innovative way to create and capture value, can allow firms to recreate themselves in a way that leads to sustained competitive advantage. Change creates uncertainty, which may impact performance and as change becomes more rapid and more sophisticated, embracing business model innovation as a core competency may assist firms in successfully managing these changes.
This qualitative exploratory study, through 14 interviews with C-suite executives from a range of industries, sought to understand the components, drivers, enablers and inhibitors of business model innovation, and how these aspects were navigated by firms. The objective was to gain a deeper insight of the concept and to highlight those aspects that should be considered when designing business model innovation processes.
The findings show that business model innovation is a complex and intricate pursuit, one fraught with a multitude of pieces that needs to be managed both individually and as part of the whole.
