IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v61y2018i4p555-566.html
   My bibliography  Save this article

Implementing new business models: What challenges lie ahead?

Author

Listed:
  • Broekhuizen, Thijs L.J.
  • Bakker, Tom
  • Postma, Theo J.B.M.

Abstract

What strategic choices do business leaders make when implementing new business models? This study tries to answer this question by analyzing the development of several business model innovations that were new to the industry. We find that business model innovators face four strategic trade-offs and accompanying tensions during the implementation of their business model innovation process: (1) the level of independence granted to the developer (independence vs. dependence), (2) the degree to which the roadmap is planned in advance (discovery vs. planned execution), (3) the degree to which the value proposition challenges the status quo (challenging vs. maintaining status quo), and (4) the rigor to which business model innovators preserve the logic of the initial value proposition (solid vs. fluid logic). Our in-depth analysis reveals that business model innovators make pragmatic decisions that may deviate from the guidelines offered by existing literature, and we offer insights into the drivers behind these decisions.

Suggested Citation

  • Broekhuizen, Thijs L.J. & Bakker, Tom & Postma, Theo J.B.M., 2018. "Implementing new business models: What challenges lie ahead?," Business Horizons, Elsevier, vol. 61(4), pages 555-566.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:4:p:555-566
    DOI: 10.1016/j.bushor.2018.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S000768131830034X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bushor.2018.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    2. Kesting, Peter & Günzel-Jensen, Franziska, 2015. "SMEs and new ventures need business model sophistication," Business Horizons, Elsevier, vol. 58(3), pages 285-293.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    2. Danuso, Anna & Giones, Ferran & Ribeiro da Silva, Elias, 2022. "The digital transformation of industrial players," Business Horizons, Elsevier, vol. 65(3), pages 341-349.
    3. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    4. Xi Zhang, 2022. "Incremental Innovation: Long-Term Impetus for Design Business Creativity," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    5. Haftor, Darek. M. & Climent Costa, Ricardo, 2023. "Five dimensions of business model innovation: A multi-case exploration of industrial incumbent firm’s business model transformations," Journal of Business Research, Elsevier, vol. 154(C).
    6. Tawse, Alex & Patrick, Vanessa M. & Vera, Dusya, 2019. "Crossing the chasm: Leadership nudges to help transition from strategy formulation to strategy implementation," Business Horizons, Elsevier, vol. 62(2), pages 249-257.
    7. Pankaj Tiwari & B Suresha, 2021. "Moderating Role of Project Innovativeness on Project Flexibility, Project Risk, Project Performance, and Business Success in Financial Services," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 179-196, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laudien, Sven M. & Reuter, Ute & Sendra Garcia, Francisco Javier & Botella-Carrubi, Dolores, 2024. "Digital advancement and its effect on business model design: Qualitative-empirical insights," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    2. Marko Peric & Jelena Durkin & Vanja Vitezic, 2017. "The Constructs of a Business Model Redefined: A Half-Century Journey," SAGE Open, , vol. 7(3), pages 21582440177, September.
    3. Vinicius Minatogawa & Matheus Franco & Orlando Durán & Ruy Quadros & Maria Holgado & Antonio Batocchio, 2020. "Carving out New Business Models in a Small Company through Contextual Ambidexterity: The Case of a Sustainable Company," Sustainability, MDPI, vol. 12(6), pages 1-34, March.
    4. Ionica Oncioiu & Sorinel Căpuşneanu & Dan Ioan Topor & Ana Maria Ifrim & Ramona Camelia Silvestru & Monica Ioana Toader, 2021. "Improving Business Processes in a Construction Project and Increasing Performance by Using Target Costing," SAGE Open, , vol. 11(1), pages 21582440219, February.
    5. Mara Del Baldo & Maria-Gabriella Baldarelli, 2017. "Renewing and improving the business model toward sustainability in theory and practice," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-13, December.
    6. Massa, Silvia & Testa, Stefania, 2011. "Beyond the conventional-specialty dichotomy in food retailing business models: An Italian case study," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 476-482.
    7. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    8. Patrick Spieth & Svenja Meissner Née Schuchert, 2018. "Business Model Innovation Alliances: How To Open Business Models For Cooperation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-26, May.
    9. Prpić, John & Shukla, Prashant P. & Kietzmann, Jan H. & McCarthy, Ian P., 2015. "How to work a crowd: Developing crowd capital through crowdsourcing," Business Horizons, Elsevier, vol. 58(1), pages 77-85.
    10. Catia Milena Lopes & Annibal José Scavarda & Mauricio Nunes Macedo de Carvalho & André Luis Korzenowski, 2018. "The Business Model and Innovation Analyses: The Sustainable Transition Obstacles and Drivers for the Hospital Supply Chains," Resources, MDPI, vol. 8(1), pages 1-17, December.
    11. Tim Benijts, 2014. "A Business Sustainability Model for Government Corporations. A Belgian Case Study," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 204-216, March.
    12. Stine Labes & Nicolai Hanner & Ruediger Zarnekow, 2017. "Successful Business Model Types of Cloud Providers," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(4), pages 223-233, August.
    13. Agnieszka Skala, 2022. "Sustainable Transport and Mobility—Oriented Innovative Startups and Business Models," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    14. Ben Roelens & Geert Poels, 2015. "The Development and Experimental Evaluation of a Focused Business Model Representation," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(1), pages 61-71, February.
    15. Alexis Laszczuk & Lionel Garreau & Bernard de Montmorillon, 2017. "Understanding emergence in business model development: how companies interact with stakeholders to deal with environmental ambiguity," Post-Print hal-01787276, HAL.
    16. Svetlana V. Orekhova & Andrey V. Misyura & Evgeny V. Kislitsyn, 2020. "Managing the increasing returns of a high-tech business model in industry: Classic and ecosystem effects," Upravlenets, Ural State University of Economics, vol. 11(4), pages 43-58, September.
    17. Wenyao Zhang & Tugrul Daim & Qingpu Zhang, 2019. "Exploring the Multi-Phase Driven Process for Disruptive Business Model Innovation of E-Business Microcredit: a Multiple Case Study from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 590-617, June.
    18. Zbysław Dobrowolski & Łukasz Sułkowski, 2021. "Business Model Canvas and Energy Enterprises," Energies, MDPI, vol. 14(21), pages 1-10, November.
    19. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    20. Kamel Ben Youssef & Giuseppe Giaccardi & Michela Pellicelli, 2016. "An Exploration on The use of Canvas’s Business Model to Create Value in a Food Sector," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 2(1), pages 180-193, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:61:y:2018:i:4:p:555-566. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.