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The impact of Digitalization on Business Models: How IT Artefacts, Social Media, and Big Data Force Firms to Innovate Their Business Model

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  • Bouwman, Harry
  • de Reuver, Mark
  • Nikou, Shahrokh

Abstract

Digital technology has forced entrepreneurs to reconsider their business models (BMs). Although research on entrepreneurial intention and business models is gaining attention, there is still a large knowledge gap on both fields. In this paper, we specifically address the impact of digitalization on business model innovation (BMI). Based on data collected from 338 European small- to medium-sized enterprises (SMEs) actively using IT artefacts, social media, or big data to innovate their business model, we study antecedents of BM experimentation and BM innovation practices, as well as overall business performance. We carried out four in-depth case studies of companies in which BM innovation is related to IT artefacts and more specifically to social media and big data. The findings from the quantitative study show that BMI is related to IT artefacts, social media, and big data. Use of IT artefacts, social media, and big data is mainly driven by strategic and innovation-related internal motives, although external technology turbulence plays a role too. BM innovation driven by IT artefacts, social media, and big data has an impact on performance. Although the case studies show that this is more evident for IT artefacts and big data than for social media.

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  • Bouwman, Harry & de Reuver, Mark & Nikou, Shahrokh, 2017. "The impact of Digitalization on Business Models: How IT Artefacts, Social Media, and Big Data Force Firms to Innovate Their Business Model," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168475, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsp17:168475
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    Cited by:

    1. Axel Jacob & Frank Teuteberg, 2020. "Towards a Taxonomy for Design Options of Social Networking Technologies in Sustainable Business Models," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    2. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    3. Wolfgang Becker & Oliver Schmid, 2020. "The right digital strategy for your business: an empirical analysis of the design and implementation of digital strategies in SMEs and LSEs," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 985-1005, November.
    4. Ioana BORCAN, 2021. "The Role Of Dynamic Capabilities, Business Model And Organizational Culture In The Digital Transformation Of A Traditional Organization," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 108-124, May.
    5. TARTARIN Thierry & ȚICHINDELEAN Mihai & HAAKER Timber, 2020. "Effects Of Covid-19 On Business Models In Romania And The Netherlands, A Digitalization Perspective," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(3), pages 115-131, December.
    6. Bouwman, Harry & Nikou, Shahrokh & de Reuver, Mark, 2019. "Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?," Telecommunications Policy, Elsevier, vol. 43(9).

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    Keywords

    big data; business model innovation; digitalization; IT artefacts; social media;
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