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Do All Roads Lead to Rome? The Effect of the Decision-Making Logic on Business Model Change

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  • Lasse Torkkeli

    (Lappeenranta University of Technology, School of Business and Management)

  • Hanna Salojärvi

    (Lappeenranta University of Technology, School of Business and Management)

  • Liisa-Maija Sainio

    (Lappeenranta University of Technology, School of Business and Management)

  • Sami Saarenketo

    (Lappeenranta University of Technology, School of Business and Management)

Abstract

Business models and business model change have drawn increasing attention from both researchers and practitioners across various disciplines, including the domain of entrepreneurship. However, even though the importance of business model innovation as a driver of firm performance has been widely acknowledged, empirical studies explaining the business model change remain limited. This study contributes to prior research by examining the effects of effectual and causation-based decision-making logics on the degree of business model change in the context of small and medium-sized enterprises in Finland. The findings of hierarchical regression analysis show that both causation and effectuation-based logics have positive effects on business model change, thereby highlighting the need for both strategizing and seizing of opportunities in business model development.

Suggested Citation

  • Lasse Torkkeli & Hanna Salojärvi & Liisa-Maija Sainio & Sami Saarenketo, 2015. "Do All Roads Lead to Rome? The Effect of the Decision-Making Logic on Business Model Change," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(3), pages 5-24.
    • Handle: RePEc:aae:journl:v:11:y:2015:i:3:p:5-24
    DOI: 10.7341/20151131
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    References listed on IDEAS

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    Cited by:

    1. Jennie Cederholm Björklund, 2018. "Barriers to Sustainable Business Model Innovation in Swedish Agriculture," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 14(1), pages 65-90.

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