IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v108y2021ics0166497221001115.html
   My bibliography  Save this article

Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?

Author

Listed:
  • Engwall, Mats
  • Kaulio, Matti
  • Karakaya, Emrah
  • Miterev, Maxim
  • Berlin, Daniel

Abstract

To navigate sustainability transitions, firms are often prompted to take an active role in business model innovation. Previous research has shown, however, that when attempting to change business models, incumbent firms frequently face challenges concerning the ambiguity of transition pathways. This paper is an inquiry into this intersection between business model innovation and sustainability transitions. Anchored in three case studies of sustainability-driven, pre-commercial projects of emerging technologies, it reveals how groups of organizations collaborate in time-limited, cross-industry networks, to explore potential business models for anticipated, profound, changes in socio-technical systems. Drawing on these findings, the paper introduces the concept of experimental networks and illustrates how experimental networks can facilitate business model innovation in relation to systemic change. By outlining the constituents of the experimental network concept, the paper contributes to theory by uncovering the interplay of interorganizational collaboration and network level business model innovation. In addition, it reveals how experimental networks constitute one way for incumbents to claim agency with respect to emerging sustainability transitions.

Suggested Citation

  • Engwall, Mats & Kaulio, Matti & Karakaya, Emrah & Miterev, Maxim & Berlin, Daniel, 2021. "Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?," Technovation, Elsevier, vol. 108(C).
  • Handle: RePEc:eee:techno:v:108:y:2021:i:c:s0166497221001115
    DOI: 10.1016/j.technovation.2021.102330
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497221001115
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.technovation.2021.102330?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. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    2. Doganova, Liliana & Eyquem-Renault, Marie, 2009. "What do business models do?: Innovation devices in technology entrepreneurship," Research Policy, Elsevier, vol. 38(10), pages 1559-1570, December.
    3. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    4. Berggren, Christian & Magnusson, Thomas & Sushandoyo, Dedy, 2015. "Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry," Research Policy, Elsevier, vol. 44(5), pages 1017-1028.
    5. Bohnsack, René & Pinkse, Jonatan & Kolk, Ans, 2014. "Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles," Research Policy, Elsevier, vol. 43(2), pages 284-300.
    6. Johanson, Jan & Mattsson, Lars-Gunnar, 1987. "Interorganizational relations in industrial systems : a network approach compared with the transaction cost approach," Working Papers 1987:7, Uppsala University, Department of Business Studies.
    7. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Post-Print hal-00430782, HAL.
    8. Wells, Peter & Nieuwenhuis, Paul, 2012. "Transition failure: Understanding continuity in the automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 79(9), pages 1681-1692.
    9. Geels, Frank W. & Schot, Johan, 2007. "Typology of sociotechnical transition pathways," Research Policy, Elsevier, vol. 36(3), pages 399-417, April.
    10. Zolfagharian, Mohammadreza & Walrave, Bob & Raven, Rob & Romme, A. Georges L., 2019. "Studying transitions: Past, present, and future," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    11. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    12. Sabatier, Valerie & Craig-Kennard, Adrienne & Mangematin, Vincent, 2012. "When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry," Technological Forecasting and Social Change, Elsevier, vol. 79(5), pages 949-962.
    13. Dijk, Marc & Orsato, Renato J. & Kemp, René, 2013. "The emergence of an electric mobility trajectory," Energy Policy, Elsevier, vol. 52(C), pages 135-145.
    14. Turnheim, Bruno & Geels, Frank W., 2013. "The destabilisation of existing regimes: Confronting a multi-dimensional framework with a case study of the British coal industry (1913–1967)," Research Policy, Elsevier, vol. 42(10), pages 1749-1767.
    15. Berggren, Christian & Karabag, Solmaz Filiz, 2019. "Scientific misconduct at an elite medical institute: The role of competing institutional logics and fragmented control," Research Policy, Elsevier, vol. 48(2), pages 428-443.
    16. Geels, Frank W., 2012. "A socio-technical analysis of low-carbon transitions: introducing the multi-level perspective into transport studies," Journal of Transport Geography, Elsevier, vol. 24(C), pages 471-482.
    17. Bergek, Anna & Berggren, Christian & Magnusson, Thomas & Hobday, Michael, 2013. "Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?," Research Policy, Elsevier, vol. 42(6), pages 1210-1224.
    18. Sengers, Frans & Wieczorek, Anna J. & Raven, Rob, 2019. "Experimenting for sustainability transitions: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 153-164.
    19. 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.
    20. Magda M. Smink & Marko P. Hekkert & Simona O. Negro, 2015. "Keeping sustainable innovation on a leash? Exploring incumbents’ institutional strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 86-101, February.
    21. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Grenoble Ecole de Management (Post-Print) hal-00430782, HAL.
    22. Raghu Garud & Joel Gehman & Thinley Tharchen, 2018. "Performativity as ongoing journeys : Implications for strategy, entrepreneurship, and innovation," Post-Print hal-02312375, HAL.
    23. Jan Rotmans & Derk Loorbach, 2009. "Complexity and Transition Management," Journal of Industrial Ecology, Yale University, vol. 13(2), pages 184-196, April.
    24. Sam Solaimani & Harry Bouwman & Timo Itälä, 2015. "Networked enterprise business model alignment: A case study on smart living," Information Systems Frontiers, Springer, vol. 17(4), pages 871-887, August.
    25. Arun Kumaraswamy & Raghu Garud & Shahzad (Shaz) Ansari, 2018. "Perspectives on Disruptive Innovations," Journal of Management Studies, Wiley Blackwell, vol. 55(7), pages 1025-1042, November.
    26. Smith, Adrian & Stirling, Andy & Berkhout, Frans, 2005. "The governance of sustainable socio-technical transitions," Research Policy, Elsevier, vol. 34(10), pages 1491-1510, December.
    27. Desyllas, Panos & Sako, Mari, 2013. "Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance," Research Policy, Elsevier, vol. 42(1), pages 101-116.
    28. Geels, Frank W. & Kern, Florian & Fuchs, Gerhard & Hinderer, Nele & Kungl, Gregor & Mylan, Josephine & Neukirch, Mario & Wassermann, Sandra, 2016. "The enactment of socio-technical transition pathways: A reformulated typology and a comparative multi-level analysis of the German and UK low-carbon electricity transitions (1990–2014)," Research Policy, Elsevier, vol. 45(4), pages 896-913.
    29. Hans-Gerd Ridder, 2017. "The theory contribution of case study research designs," Business Research, Springer;German Academic Association for Business Research, vol. 10(2), pages 281-305, October.
    30. ., 1998. "Technological Change," Chapters, in: Heinz D. Kurz & Neri Salvadori (ed.), The Elgar Companion to Classical Economics, volume 0, chapter 127, Edward Elgar Publishing.
    31. Bergek, Anna & Jacobsson, Staffan & Carlsson, Bo & Lindmark, Sven & Rickne, Annika, 2008. "Analyzing the functional dynamics of technological innovation systems: A scheme of analysis," Research Policy, Elsevier, vol. 37(3), pages 407-429, April.
    32. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    33. van der Laak, W.W.M. & Raven, R.P.J.M. & Verbong, G.P.J., 2007. "Strategic niche management for biofuels: Analysing past experiments for developing new biofuel policies," Energy Policy, Elsevier, vol. 35(6), pages 3213-3225, June.
    34. Henrik Berglund & Christian Sandström, 2013. "Business model innovation from an open systems perspective: structural challenges and managerial solutions," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 18(3/4), pages 274-285.
    35. Valérie Sabatier & Adrienne Kennard & Vincent Mangematin, 2012. "When technological discontinuities and disruptive business models challenge dominant industry logics: insights from the drugs industry," Grenoble Ecole de Management (Post-Print) hal-00658727, HAL.
    36. Valérie Sabatier & Adrienne Kennard & Vincent Mangematin, 2012. "When technological discontinuities and disruptive business models challenge dominant industry logics: insights from the drugs industry," Post-Print hal-00658727, HAL.
    37. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    38. Nill, Jan & Kemp, Ren, 2009. "Evolutionary approaches for sustainable innovation policies: From niche to paradigm?," Research Policy, Elsevier, vol. 38(4), pages 668-680, May.
    39. Markard, Jochen & Raven, Rob & Truffer, Bernhard, 2012. "Sustainability transitions: An emerging field of research and its prospects," Research Policy, Elsevier, vol. 41(6), pages 955-967.
    40. Hakansson, Hakan & Ford, David, 2002. "How should companies interact in business networks?," Journal of Business Research, Elsevier, vol. 55(2), pages 133-139, February.
    41. Håkansson, Håkan & Snehota, Ivan, 1989. "No business is an island: The network concept of business strategy," Scandinavian Journal of Management, Elsevier, vol. 5(3), pages 187-200.
    42. Bolton, Ronan & Hannon, Matthew, 2016. "Governing sustainability transitions through business model innovation: Towards a systems understanding," Research Policy, Elsevier, vol. 45(9), pages 1731-1742.
    43. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    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. Ebru Susur & Mats Engwall, 2023. "A transitions framework for circular business models," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 19-32, February.
    2. Gomes, Leonardo Augusto de Vasconcelos & Castillo-Ospina, Danika A. & Facin, Ana Lucia Figueiredo & Ferreira, Camila dos Santos & Ometto, Aldo Roberto, 2023. "Circular ecosystem innovation portfolio management," Technovation, Elsevier, vol. 124(C).
    3. Sarpong, David & Boakye, Derrick & Ofosu, George & Botchie, David, 2023. "The three pointers of research and development (R&D) for growth-boosting sustainable innovation system," Technovation, Elsevier, vol. 122(C).
    4. Bocken, Nancy & Konietzko, Jan, 2022. "Circular business model innovation in consumer-facing corporations," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Han, Myat Su & Ma, Shuang (Sara) & Wang, Yonggui & Tian, Qinghong, 2023. "Impact of technology-enabled product eco-innovation: Empirical evidence from the Chinese manufacturing industry," Technovation, Elsevier, vol. 128(C).
    6. Pauline C. Reinecke & Jill A. Küberling-Jost & Thomas Wrona & Alice K. Zapf, 2023. "Towards a dynamic value network perspective of sustainable business models: the example of RECUP," Journal of Business Economics, Springer, vol. 93(4), pages 635-665, May.

    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. Mark Loon & Roy Chik, 2019. "Efficiency-centered, innovation-enabling business models of high tech SMEs: Evidence from Hong Kong," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 87-111, March.
    2. Wesseling, Joeri H. & Bidmon, Christina & Bohnsack, René, 2020. "Business model design spaces in socio-technical transitions: The case of electric driving in the Netherlands," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    3. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    4. Turnheim, Bruno & Nykvist, Björn, 2019. "Opening up the feasibility of sustainability transitions pathways (STPs): Representations, potentials, and conditions," Research Policy, Elsevier, vol. 48(3), pages 775-788.
    5. Cheng Wang & Tao Lv & Rongjiang Cai & Jianfeng Xu & Liya Wang, 2022. "Bibliometric Analysis of Multi-Level Perspective on Sustainability Transition Research," Sustainability, MDPI, vol. 14(7), pages 1-31, March.
    6. Niklas Fernqvist & Mats Lundqvist, 2021. "Entrepreneurial Sustainability Engagement of Insiders Initiating Energy System Transition," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    7. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    8. von Delft, Stephan & Zhao, Yang, 2021. "Business models in process industries: Emerging trends and future research," Technovation, Elsevier, vol. 105(C).
    9. Thomas Magnusson & Viktor Werner, 2023. "Conceptualisations of incumbent firms in sustainability transitions: Insights from organisation theory and a systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 903-919, February.
    10. René Bohnsack & Francesca Ciulli & Ans Kolk, 2021. "The role of business models in firm internationalization: An exploration of European electricity firms in the context of the energy transition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 824-852, July.
    11. Lehoux, P. & Daudelin, G. & Williams-Jones, B. & Denis, J.-L. & Longo, C., 2014. "How do business model and health technology design influence each other? Insights from a longitudinal case study of three academic spin-offs," Research Policy, Elsevier, vol. 43(6), pages 1025-1038.
    12. Attila Havas & Doris Schartinger & K. Matthias Weber, 2022. "Innovation Studies, Social Innovation, and Sustainability Transitions Research: From mutual ignorance towards an integrative perspective?," CERS-IE WORKING PAPERS 2227, Institute of Economics, Centre for Economic and Regional Studies.
    13. Weigelt, Carmen & Lu, Shaohua & Verhaal, J. Cameron, 2021. "Blinded by the sun: The role of prosumers as niche actors in incumbent firms’ adoption of solar power during sustainability transitions," Research Policy, Elsevier, vol. 50(9).
    14. Geels, Frank W., 2020. "Micro-foundations of the multi-level perspective on socio-technical transitions: Developing a multi-dimensional model of agency through crossovers between social constructivism, evolutionary economics," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    15. Nikas, A. & Koasidis, K. & Köberle, A.C. & Kourtesi, G. & Doukas, H., 2022. "A comparative study of biodiesel in Brazil and Argentina: An integrated systems of innovation perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    16. Rosenbloom, Daniel & Berton, Harris & Meadowcroft, James, 2016. "Framing the sun: A discursive approach to understanding multi-dimensional interactions within socio-technical transitions through the case of solar electricity in Ontario, Canada," Research Policy, Elsevier, vol. 45(6), pages 1275-1290.
    17. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    18. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    19. Thomas Moellers & Lars von der Burg & Bastian Bansemir & Max Pretzl & Oliver Gassmann, 2019. "System dynamics for corporate business model innovation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(3), pages 387-406, September.
    20. Turnheim, Bruno & Geels, Frank W., 2019. "Incumbent actors, guided search paths, and landmark projects in infra-system transitions: Re-thinking Strategic Niche Management with a case study of French tramway diffusion (1971–2016)," Research Policy, Elsevier, vol. 48(6), pages 1412-1428.

    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:techno:v:108:y:2021:i:c:s0166497221001115. 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.sciencedirect.com/science/journal/01664972 .

    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.