THE EVOLUTION OF CAPABILITIES UNDERPINNING BUSINESS MODEL INNOVATION FOR SUSTAINABILITY IN LARGE INCUMBENT FIRMS

Jessica Lagerstedt Wadin and Lars Bengtsson ()
Additional contact information
Jessica Lagerstedt Wadin: Associate Professor Innovation Engineering, Lund University, Sweden
Lars Bengtsson: ��Professor Industrial Management, Department of Design Sciences, Lund University, Sweden

International Journal of Innovation Management (ijim), 2022, vol. 26, issue 05, 1-37

Abstract: Many studies in traditional business model (BM) literature acknowledge that it is hard for incumbent firms to change their business models, a finding echoed in the business model innovation for sustainability (BMIfS) literature. Large incumbent firms often lack or have weak capabilities needed for sustainability-driven business model innovation. This paper addresses how capabilities for such innovation evolve in large incumbent firms. The research builds on a longitudinal case study in the energy utility industry, and on two theoretical frameworks advanced in previous literature: values-based business model innovation, and capability lifecycles. We conceptually propose a stage-based maturity model of BMIfS. Our model highlights three types of research contributions. First, we propose that the capability development underpinning BMIfS is a nonlinear process of distinct maturity stages. Second, the maturity stages have intermediate transformation junctures that the firm must go through. These junctures either change or initiate the conditions for capability development to be able to advance to the next BMIfS maturity level. Third, the shift in societal, regulatory, competitor, and customer expectations and interests triggers strategic decisions and early development of capabilities that start and push the firm into the transformation junctures.

Keywords: Business model innovation for sustainability; evolutionary paths of capabilities; stakeholder expectations; large incumbent firms (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1363919622400060
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijimxx:v:26:y:2022:i:05:n:s1363919622400060

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1363919622400060

Access Statistics for this article

International Journal of Innovation Management (ijim) is currently edited by Joe Tidd

More articles in International Journal of Innovation Management (ijim) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().