Implementing new business models: What challenges lie ahead?

Thijs L.J. Broekhuizen, Tom Bakker, Theo J.B.M. Postma

Research output: Contribution to journalArticleAcademicpeer-review

12 Citations (Scopus)
147 Downloads (Pure)

Abstract

What strategic choices do business leaders make when implementing new business models? This study tries to answer this question by analyzing the development of several business model innovations that were new to the industry. We find that business model innovators face four strategic tradeoffs during the implementation of their business model innovation process and that they deal with resulting tensions concerning: (1) the level of independence granted to the developer, (2) the degree to which the roadmap is planned in advance, (3) the degree to which the value proposition challenges the status quo, and (4) the rigor to which business model innovators preserve the logic of the initial value proposition. Our in-depth analysis reveals that business model innovators make pragmatic decisions that may deviate from the guidelines offered by the literature, and it offers insights into the drivers behind these decisions.
Original languageEnglish
Pages (from-to)555-566
JournalBusiness Horizons
Volume61
Issue number4
Early online date5-Apr-2018
DOIs
Publication statusPublished - Jul-2018

Keywords

  • Business model innovation
  • Customer value analysis
  • Exploration and exploitation
  • Value proposition
  • Organizational form
  • Roadmap planning
  • INNOVATION

Cite this