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Implementing new business models: What challenges lie ahead?

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  • 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
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    References listed on IDEAS

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    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.
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    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. 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).
    4. 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.
    5. 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.
    6. 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.
    7. Xi Zhang, 2022. "Incremental Innovation: Long-Term Impetus for Design Business Creativity," Sustainability, MDPI, vol. 14(22), pages 1-24, November.

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