Path dependence as a barrier to business model change in manufacturing firms: insights from a multiple-case study

Business model change processes are a still underresearched phenomenon. Especially barriers to business model change and in this context path dependence of business models lack a deeper understanding. We address this issue by examining business model change processes of manufacturing firms that pursue service transition against the background of a multiple-case study. The contribution of our paper is twofold: (1) We show how business model change processes take place in detail. In doing so, we considerably enhance business model literature that employs a processual perspective on business model change. (2) Our findings allow for a new perspective on business model change as we provide empirical evidence that path dependence needs to be considered in this context. We are able to identify determinants and mechanisms that influence to which extent path dependence affects business model change processes. Hence, we enrich business model literature by applying the path dependence concept on a business model level.