Managing business model renewal

Christian Sandstrom and Ralf-Geert Osborne

International Journal of Business and Systems Research, 2011, vol. 5, issue 5, 461-474

Abstract: 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.

Keywords: business models; interdependence; model renewal; new product development; NPD; established models; industrial networks; interrelated actors; limited control; critical actors; incentive alignment; discontinuous innovation; disruptive innovation; personal care industry; incontinence products; systems research. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:5:y:2011:i:5:p:461-474

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