IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v46y2021i3p548-577.html

Theorising business model innovation: An integrated literature review

Author

Listed:
  • Mark Loon

    (Research and Graduate Affairs, Bath Spa University, Bath, UK)

  • Xiaohong Iris Quan

    (Lucas College and Graduate School of Business, San Jose State University, San José, CA, USA)

Abstract

The aim of this article is to theorise the business model innovation (BMI) phenomenon as we explore why and how BMI occurs, specifically to answer the question, What are the mechanisms involved? We evaluate extant research by adapting the context-intervention-mechanism-output framework, and adopting a mechanism-based theory building approach for synthesising our findings. This study makes three contributions: first, we enrich epistemology by adopting a process view as we show that BMI is a series of interdependent mechanisms. Second, we identify six mechanisms unique to the phenomenon. Third, we offer a prescient outlook of BMI change as a metatheory. JEL Classifications: M10, O30, O31, O39

Suggested Citation

  • Mark Loon & Xiaohong Iris Quan, 2021. "Theorising business model innovation: An integrated literature review," Australian Journal of Management, Australian School of Business, vol. 46(3), pages 548-577, August.
    • Handle: RePEc:sae:ausman:v:46:y:2021:i:3:p:548-577
    DOI: 10.1177/0312896220976751
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0312896220976751
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0312896220976751?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
    ---><---

    References listed on IDEAS

    as
    1. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Business model innovation in alliances: Successful configurations," Journal of Business Research, Elsevier, vol. 69(9), pages 3584-3590.
    2. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    3. 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.
    4. Adam J. Bock & Tore Opsahl & Gerard George & David M. Gann, 2012. "The Effects of Culture and Structure on Strategic Flexibility during Business Model Innovation," Journal of Management Studies, Wiley Blackwell, vol. 49(2), pages 279-305, March.
    5. 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.
    6. Bertrand Moingeon & Muhammad Yunus & Laurence Lehmann-Ortega, 2010. "Building Social Business Models: Lessons from the Grameen Experience," Post-Print hal-00528385, HAL.
    7. 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.
    8. Ricciardi, Francesca & Zardini, Alessandro & Rossignoli, Cecilia, 2016. "Organizational dynamism and adaptive business model innovation: The triple paradox configuration," Journal of Business Research, Elsevier, vol. 69(11), pages 5487-5493.
    9. Robledo, Marco Antonio, 2014. "Building an integral metatheory of management," European Management Journal, Elsevier, vol. 32(4), pages 535-546.
    10. Ward, Thomas B., 2004. "Cognition, creativity, and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(2), pages 173-188, March.
    11. Laurent Muzellec & Sébastien Ronteau & Mary Lambkin, 2015. "Two-sided Internet platforms: A business model lifecycle perspective," Post-Print hal-03718529, HAL.
    12. Brayden G. King & Teppo Felin & David A. Whetten, 2010. "Perspective---Finding the Organization in Organizational Theory: A Meta-Theory of the Organization as a Social Actor," Organization Science, INFORMS, vol. 21(1), pages 290-305, February.
    13. Lars Schweizer & Shalini Rogbeer & Björn Michaelis, 2015. "The dynamic capabilities perspective: from fragments to meta-theory," Management Research Review, Emerald Group Publishing Limited, vol. 38(7), pages 662-684, July.
    14. Rothmann, Wasko & Koch, Jochen, 2014. "Creativity in strategic lock-ins: The newspaper industry and the digital revolution," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 66-83.
    15. Kent D. Miller & Shu-Jou Lin, 2015. "Analogical reasoning for diagnosing strategic issues in dynamic and complex environments," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 2000-2020, December.
    16. Souto, Jaime E., 2015. "Business model innovation and business concept innovation as the context of incremental innovation and radical innovation," Tourism Management, Elsevier, vol. 51(C), pages 142-155.
    17. Raphael Amit & Christoph Zott, 2001. "Value creation in E‐business," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 493-520, June.
    18. Lars Schweizer & Shalini Rogbeer & Björn Michaelis, 2015. "The dynamic capabilities perspective: from fragments to meta-theory," Management Research Review, Emerald Group Publishing Limited, vol. 38(7), pages 662-684, July.
    19. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Post-Print hal-00430782, HAL.
    20. Kulins, Christopher & Leonardy, Hannes & Weber, Christiana, 2016. "A configurational approach in business model design," Journal of Business Research, Elsevier, vol. 69(4), pages 1437-1441.
    21. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    22. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Post-Print hal-00869707, HAL.
    23. Mark Loon & Lilian Otaye‐Ebede & Jim Stewart, 2020. "Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review," Journal of Management Studies, Wiley Blackwell, vol. 57(3), pages 698-726, May.
    24. Martina K Linnenluecke & Mauricio Marrone & Abhay K Singh, 2020. "Conducting systematic literature reviews and bibliometric analyses," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 175-194, May.
    25. Moti Frank, 2010. "Assessing the interest for systems engineering positions and other engineering positions' required capacity for engineering systems thinking (CEST)," Systems Engineering, John Wiley & Sons, vol. 13(2), pages 161-174, June.
    26. Gerald F. Davis & Christopher Marquis, 2005. "Prospects for Organization Theory in the Early Twenty-First Century: Institutional Fields and Mechanisms," Organization Science, INFORMS, vol. 16(4), pages 332-343, August.
    27. 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.
    28. Philip M. Podsakoff & Scott B. MacKenzie & Daniel G. Bachrach & Nathan P. Podsakoff, 2005. "The influence of management journals in the 1980s and 1990s," Strategic Management Journal, Wiley Blackwell, vol. 26(5), pages 473-488, May.
    29. Corinne Post & Riikka Sarala & Caroline Gatrell & John E. Prescott, 2020. "Advancing Theory with Review Articles," Journal of Management Studies, Wiley Blackwell, vol. 57(2), pages 351-376, March.
    30. Scott L. Newbert, 2007. "Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 121-146, February.
    31. 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.
    32. Oleksiy Osiyevskyy & Jim Dewald, 2015. "Inducements, Impediments, and Immediacy: Exploring the Cognitive Drivers of Small Business Managers' Intentions to Adopt Business Model Change," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(4), pages 1011-1032, October.
    33. Ramon Casadesus‐Masanell & Feng Zhu, 2013. "Business model innovation and competitive imitation: The case of sponsor‐based business models," Strategic Management Journal, Wiley Blackwell, vol. 34(4), pages 464-482, April.
    34. 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.
    35. Eva Boxenbaum & Linda Rouleau, 2011. "New knowledge products as bricolage: Metaphors and scripts in organizational theory," Post-Print hal-00719599, 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," Grenoble Ecole de Management (Post-Print) hal-00658727, HAL.
    37. Sorescu, Alina & Frambach, Ruud T. & Singh, Jagdip & Rangaswamy, Arvind & Bridges, Cheryl, 2011. "Innovations in Retail Business Models," Journal of Retailing, Elsevier, vol. 87(S1), pages 3-16.
    38. Dobusch, Leonhard & Schüßler, Elke, 2014. "Copyright reform and business model innovation: Regulatory propaganda at German music industry conferences," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 24-39.
    39. Ernkvist, Mirko, 2015. "The double knot of technology and business-model innovation in the era of ferment of digital exchanges: The case of OM, a pioneer in electronic options exchanges," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 285-299.
    40. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    41. 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.
    42. Lars Schweizer & Shalini Rogbeer & Björn Michaelis, 2015. "The dynamic capabilities perspective: from fragments to meta-theory," Management Research Review, Emerald Group Publishing Limited, vol. 38(7), pages 662-684, July.
    43. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    44. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Grenoble Ecole de Management (Post-Print) hal-00869707, HAL.
    45. Tierney, Robert & Hermina, Wahid & Walsh, Steven, 2013. "The pharmaceutical technology landscape: A new form of technology roadmapping," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 194-211.
    46. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    47. 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.
    48. Xiaohong Iris Quan & Mark Loon & Jihong Sanderson, 2018. "Innovation in the Local Context: A Case Study of BYD in China," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-23, April.
    49. Minet Schindehutte & Michael H. Morris & Akin Kocak, 2008. "Understanding Market‐Driving Behavior: The Role of Entrepreneurship," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(1), pages 4-26, January.
    50. Garnsey, Elizabeth & Lorenzoni, Gianni & Ferriani, Simone, 2008. "Speciation through entrepreneurial spin-off: The Acorn-ARM story," Research Policy, Elsevier, vol. 37(2), pages 210-224, March.
    51. Loon, Mark, 2019. "Knowledge management practice system: Theorising from an international meta-standard," Journal of Business Research, Elsevier, vol. 94(C), pages 432-441.
    52. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    53. 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.
    54. Karl E. Weick & Kathleen M. Sutcliffe & David Obstfeld, 2005. "Organizing and the Process of Sensemaking," Organization Science, INFORMS, vol. 16(4), pages 409-421, August.
    55. Buket Avci & Karan Girotra & Serguei Netessine, 2015. "Electric Vehicles with a Battery Switching Station: Adoption and Environmental Impact," Management Science, INFORMS, vol. 61(4), pages 772-794, April.
    56. Yuliya Snihur, 2016. "Developing optimal distinctiveness: organizational identity processes in new ventures engaged in business model innovation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(3-4), pages 259-285, March.
    57. Brettel, Malte & Strese, Steffen & Flatten, Tessa C., 2012. "Improving the performance of business models with relationship marketing efforts – An entrepreneurial perspective," European Management Journal, Elsevier, vol. 30(2), pages 85-98.
    58. Sabrina Schneider & Patrick Spieth, 2013. "Business Model Innovation: Towards An Integrated Future Research Agenda," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34.
    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. Loon, Mark & Otaye-Ebede, Lilian & Stewart, Jim & Ahlstrom, David, 2026. "Business model innovation in traversing developed and emerging economies: An integrated systematic literature review," Technovation, Elsevier, vol. 149(C).
    2. Steven Lui & Salih Zeki Ozdemir & Chris J. Jackson & George A. Shinkle & Benjamin R. Walker, 2025. "Managing the innovation process of small and medium-sized enterprises: The important roles of reflecting and employee involvement," Australian Journal of Management, Australian School of Business, vol. 50(3), pages 917-938, August.
    3. Lingjia Li & Shuo Shan & Yongyi Shou & Mingu Kang & Young Won Park, 2023. "Sustainable sourcing and agility performance: The moderating effects of organizational ambidexterity and supply chain disruption," Australian Journal of Management, Australian School of Business, vol. 48(2), pages 262-283, 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. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    2. 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.
    3. Imran M. Ilyas & Nadine Kammerlander & Roxana Turturea & Marc van Essen, 2024. "When Business Model Innovation Creates Value for Companies: A Meta‐Analysis on Institutional Contingencies," Journal of Management Studies, Wiley Blackwell, vol. 61(5), pages 1825-1883, July.
    4. Run Wang & Abdella Kosa Chebo, 2021. "The Dynamics of Business Model Innovation for Technology Entrepreneurship: A Systematic Review and Future Avenue," SAGE Open, , vol. 11(3), pages 21582440211, July.
    5. von Delft, Stephan & Zhao, Yang, 2021. "Business models in process industries: Emerging trends and future research," Technovation, Elsevier, vol. 105(C).
    6. 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).
    7. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    8. Göran Roos, 2014. "Business Model Innovation to Create and Capture Resource Value in Future Circular Material Chains," Resources, MDPI, vol. 3(1), pages 1-27, March.
    9. Patrizia Di Tullio & Diego Valentinetti & Michele Antonio Rea, 2018. "Integrating The Business Model Puzzle: A Systematic Literature Review," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 9(1), pages 1-46, June.
    10. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    11. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    12. 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.
    13. Balboni, Bernardo & Bortoluzzi, Guido & Pugliese, Roberto & Tracogna, Andrea, 2019. "Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups," Journal of Business Research, Elsevier, vol. 99(C), pages 115-124.
    14. Elena Freisinger & Sven Heidenreich & Christian Landau & Patrick Spieth, 2021. "Business Model Innovation Through the Lens of Time: An Empirical Study of Performance Implications Across Venture Life Cycles," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 339-380, December.
    15. Dimitris Manolopoulos & Michail S. Xenakis, 2025. "The Business Model Conundrum: A Systematic Theme-Centric Literature Review and Future Research Directions," SAGE Open, , vol. 15(2), pages 21582440251, May.
    16. Marlena Ciechan-Kujawa & Michal Buszko, 2020. "The Susceptibility of the Business Model to Changes - Empirical Analysis of Internal Determinants of Variability," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 739-757.
    17. Zhang, Hongfang & Xiao, Huilin & Wang, Yanling & Shareef, Mahmud A. & Akram, Muhammad Shakaib & Goraya, M. Awais Shakir, 2021. "An integration of antecedents and outcomes of business model innovation: A meta-analytic review," Journal of Business Research, Elsevier, vol. 131(C), pages 803-814.
    18. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    19. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    20. Chammassian, Raffi Gabriel & Sabatier, Valerie, 2020. "The role of costs in business model design for early-stage technology startups," Technological Forecasting and Social Change, Elsevier, vol. 157(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

    Statistics

    Access and download statistics

    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:sae:ausman:v:46:y:2021:i:3:p:548-577. 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: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    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.