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Learning, signaling, and convincing: The role of experimentation in the business modeling process

Author

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  • Neva Bojovic

    (MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management, IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Corine Genet

    (MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

  • Valerie Sabatier

    (MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

Abstract

This study examines experimentation in the business modeling process, unpacking three different roles of experimentation: learning, signaling, and convincing. Learning is an inherent role of experimentation, as managers typically experiment to engage with the environment and to obtain knowledge. This study uncovers another set of roles, which have a symbolic nature. These roles show that experimentation is not just a learning process, but also a strategic legitimation process, aimed at enacting the environment. Experimentation serves the purpose of signaling to potential customers and other stakeholders, and of convincing them to embrace the business model. Furthermore, this study shows that experimentation takes two forms—purposeful interactions and experimental projects—and that these forms can support the different roles of experimentation.

Suggested Citation

  • Neva Bojovic & Corine Genet & Valerie Sabatier, 2018. "Learning, signaling, and convincing: The role of experimentation in the business modeling process," Grenoble Ecole de Management (Post-Print) hal-01591698, HAL.
    • Handle: RePEc:hal:gemptp:hal-01591698
    DOI: 10.1016/j.lrp.2017.09.001
    Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-01591698
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    Citations

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    Cited by:

    1. 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).
    2. Nancy M. P. Bocken & Ilka Weissbrod & Maria Antikainen, 2021. "Business Model Experimentation for the Circular Economy: Definition and Approaches," Circular Economy and Sustainability, Springer, vol. 1(1), pages 49-81, June.
    3. Marc Dressler & Ivan Paunovic, 2021. "Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    4. Moroz, Peter W. & Gamble, Edward N., 2021. "Business model innovation as a window into adaptive tensions: Five paths on the B Corp journey," Journal of Business Research, Elsevier, vol. 125(C), pages 672-683.
    5. Marius Cîmpan & Cătălin-Paul Păcuraru-Ionescu & Sorin Nicolae Borlea, 2023. "The value of public audit - theories and empirical evidence," Journal of Financial Studies, Institute of Financial Studies, vol. 14(8), pages 24-36, May.
    6. Neva Bojovic & Valérie Sabatier & Emmanuel Coblence, 2019. "Becoming Through Doing: How Experimental Spaces Enable Organizational Identity Work," Grenoble Ecole de Management (Post-Print) halshs-02376220, HAL.
    7. Guo, Jingjing & Zhou, Shasha & Chen, Jin & Chen, Qi, 2021. "How information technology capability and knowledge integration capability interact to affect business model design:A polynomial regression with response surface analysis," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    8. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    9. Virginie Svenningsen, 2018. "Use of institutional logics in business models of new hybrids for sustaining stakeholders’ engagement: A case in renewable energy," Working Papers hal-01714696, HAL.
    10. Neva Bojovic & Valérie Sabatier & Emmanuel Coblence, 2019. "Becoming Through Doing: How Experimental Spaces Enable Organizational Identity Work," Post-Print halshs-02376220, HAL.
    11. Yli-Renko, Helena & Denoo, Lien & Janakiraman, Ramkumar, 2020. "A knowledge-based view of managing dependence on a key customer: Survival and growth outcomes for young firms," Journal of Business Venturing, Elsevier, vol. 35(6).
    12. repec:fst:rfsisf:v:8:y:2023:i:14:p:24-36 is not listed on IDEAS
    13. Burnell, Devin & Stevenson, Regan & Fisher, Greg, 2023. "Early-stage business model experimentation and pivoting," Journal of Business Venturing, Elsevier, vol. 38(4).

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