Conclusions

Analysing the five perspectives, an attempt can be observed to answer the same type of questions: what a business model is and what the processes of business model innovation are, how does the company interact with the environment and how is this interaction influencing the internal innovation processes, what can be noticed as triggering innovation of business models,

what is the relation between business model and strategy, and what is the role of the manager in this process. These themes are summarized in table 2.3:

60 Perspectives/Variables Activity SystemDynamic Capabilities (including RBV) Discovery DrivenCognitiveActor Network Theory Definitionand focus inBMI “BM as a system ofinterdependent activities that transcends the focal firm and spans its boundaries” (Zott and Amit, 2010:2016).

A BM is the result of a set of “choices of activities, howthey are linked and who performs them” and has the role of securing a value chain positioning.

Business models are objects, “something real.” Create resources and capabilities that are not easilyimitated, while finding a space in the industry and defendingit.Business models are stable for a certain period; they are easyto emulate and are provisional, in a “permanent state of transitory disequilibrium”

BMI is considered more important than technological innovation.

BMI is considered a radical innovation, with the potential to change entire industries. Focus on trial and error, experimentation and modelling scenarios for generation, business model change and development.

A BM is a set of assumptions about how anorganization would perform. “Cognitive devices, heldin the minds of actors who influence technological outcome” (Baden-Fuller and Haefliger, 2013:423).

A business model is a subject, not an object.A business model schema can enact environments. Boundary objects

Calculative device, mediating the relationship between the agents involved.

“An artefact that createscommensurability.”

“A network of artefacts.”

Company- environment relations Boundary spanning nature: rely on third party resources and activities.

Firm is seen as part of an analysable network. Dynamic capabilities must be built inside the company. They cannot be bought or relyon externalities/ nor on the network.

Permanent internal refinements to create consistency with the The outside-in approachmakes the environment animportant source for BMI. Business model schemas can enact environments; they are not enacted byenvironments. Environment is a non-human actor, part of the business model network.

61 environment, as the firm is a bundle of resources.

Role ofmanagers inBMI To take rational decisions for creating an optimal business model design.

Designing relationships between activities anddetermining the links between these ones. Thus, linkages are planned.

To react to exogenous factors when redesigning a business model. BMI is responsibility of top management. The crucial role of top management in shaping values and routines to make it difficult to be copied.

Focus on the characteristics of senior managers.

Organizational design -as managers need to makechoices about how to organizetheir capabilities to effectively create and capture value.

Manage multiple business models. Assumptions-based decision making; business model cannot be foreseen.

Fear of change lessens as BM experimentation is pursued.

Have an outside-in rather than an inside-out approach.

Focus on creating looselycoupled organizations, reducing designcomplexity to increase strategic flexibility. Managers are sensemakers.

Managers’ visions determine the choice oftechnology.

Managers manipulate and enact within the limitations of their ownbounded rationality.

Inter-organizational cognition. Actors in the network

They have a role inproducing the materiality, the physical representation of a business model.

62 Triggers for BMI Triggered by xInternal causes: radical products, crisis, enteringa new market, change instrategy;xExternal environment: push from the environment to move upor down a value chain. Structural changes in revenue model and cost are the first symptoms of BMI.

BMI is a result of bothexogenous factors and intentional managerial decisions, change in strategyand technology. Leaders are the main drivers of innovation. Dependent on the “cognitive blindness” ofleaders.

Trial and error culture. Failure of the network.

Process ofBMI Novelty, lock-in, complementaries, andefficiency.

Adapting product innovationtools for a structured BMI approach (for example stage-gate, road mapping, front-end and back-endinnovative processes). Sensing, seizing and transforming.

Imitation of different capabilities: from same industry or cross-industry.

Abstraction, analogyidentification and adaptation.

Central position oforganizational design, as exploration and exploitationshould be built in, e.g. ambidextrous organizations. BMI demands consistent small investments.

Customers are central to innovating businessmodels. BMI is dependent onleadership, creatingcommitment, and effectuation.

Trial and error and experimentation.

Modularization.

Reputational ranking for which elements to copyand which to dismiss. Creating a network that allows the technological innovation to reach the market.

Linkages between Strong interdependencies between activities; links are designed and planned bymanagers. The elements result at the intersection betweenresources. Linkages emerge as a result of experimentation. Influenced by individuals and company’s belief No research available2

2As the result of my research

63 elementsOngoing interactionbetweenand within the core components of a businessmodel.

“Virtuous cycles”- eachchoice has a consequence. system. Performativity of the BMI There is a direct correlationbetween the degree ofbusiness model innovationand long-term survival of a firm.

A business model is gearedtowards value creation to all involved parties, thus it needs to yield financial performance and return to the stakeholders. Poor performance is expected at the beginning for start-ups or new business units.

Good performance is given bythe “creation and management of interactions between core components.”

Profit is the indicator of BMI consistency. The success of a business model design cannot be anticipated in advance. Challenges established, strong, system of believes. “The advantages and benefits of a given BM are generally onlyidentified and become obvious after its implementation” (Demil and Lecocq, 2015:53).

“Performative power to shape and influence the action of others” (Masonand Spring, 2011:1038).

Relationwithstrategy Strategy chooses the business model. Strategy decides whichdynamic capabilities to be developed (e.g. servitization), and which business model type to be employed. Business model thinkinghelps managers to understand that strategies are discovery driven, rather than planning-oriented. Strategy and business models are managers’mental representations. Strategy is part of the network.

Table 2. 3 Comparison of theoretical perspectives. Source: Own creation