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Learning while (re)configuring: Business model innovation processes in established firms
Hans Berends1, Armand Smits2, Isabelle Reymen3
1VU University Amsterdam, The Netherlands.
Strategic Organization
|June 10, 2017
Summary
Established organizations develop new business models through two distinct learning patterns: "drifting" and "leaping." These trajectories, rooted in experiential and cognitive learning, can lead to radical business model innovation.
Area of Science:
- Business and Management
- Organizational Studies
Background:
- Organizations face challenges in developing new business models over time.
- Understanding the process of business model innovation is crucial for sustained growth.
Purpose of the Study:
- To investigate the process patterns of business model innovation in established organizations.
- To identify distinct trajectories of business model development.
Main Methods:
- Employed a process research approach.
- Traced the unfolding of four business model innovation trajectories.
- Utilized organizational learning as an analytical lens.
Main Results:
- Identified two distinct process patterns: 'drifting' and 'leaping'.
- 'Drifting' emphasizes experiential learning initially, shifting to cognitive search.
- 'Leaping' emphasizes cognitive search initially, shifting to experiential learning.
- Both patterns can lead to radical business model innovations, influenced by the new model's origin and operationalization.
Conclusions:
- Organizational learning significantly shapes business model innovation trajectories.
- The 'drifting' and 'leaping' patterns offer insights into how established firms innovate business models.
- Findings contribute to theories on business models and organizational learning.