How Business Model Innovation Can Support Resilience and Fast Recovery: Lessons Learned from the Pandemic

Volatile business events and environmental disruptions as the coronavirus pandemic, significantly question existing organizational business models. They impose the need for adjustment of organizational practices, capabilities and value creation processes in order for organizations to perform in their optimal manner. In this chapter, authors study the process of business model innovation from the aspect of strategic thinking. Cognitive framework of radical and adaptive business model innovation as new model of business model innovation is proposed. In it, the leader’s business model cognitive framework is considered as a key influence in the process in which novel information is introduced, leading to the development of the new business model. Additionally, two case studies related to strategic responses of companies to the crisis caused by the coronavirus pandemic are analysed. Examples of two Croatian companies provide illustrations how resilience in the face of new and unexpected business disruptions can lead to strategic business model innovations that consequently lead to improved performance. By analysing two different approaches to business model change the objective of this chapter is to provide insight into how strategic thinking of business leaders can affect business model innovation and change in response to unpredicted events.