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Managing business model renewal

Published Online:pp 461-474https://doi.org/10.1504/IJBSR.2011.042094

It is well-documented that firms often need to change their business model when introducing a new product, but more knowledge is needed regarding why they struggle when trying to do so. This paper explores the challenges related to renewing an established business model. Drawing upon a case study and industrial network theory, we argue that business models are difficult to change because they are based upon interdependence throughout a system of interrelated actors. Firms are interconnected with actors beyond its boundaries and thus, only a limited control can be imposed. Our findings also suggest that firms can change their business models by identifying critical actors and by aligning incentives throughout their network.

Keywords

innovation, discontinuous, systems, business model, interdependence, disruptive

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