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Business Model InnovationThe Organizational Dimension$
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Nicolai J Foss and Tina Saebi

Print publication date: 2015

Print ISBN-13: 9780198701873

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:oso/9780198701873.001.0001

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Toward a Theory of Business Model Change

Toward a Theory of Business Model Change

(p.43) 3 Toward a Theory of Business Model Change
Business Model Innovation

Jose Santos

Bert Spector

Ludo Van der Heyden

Oxford University Press

Despite the continuing attention being paid to business models and the promise of business model innovation, a significant gap in the literature remains: what is the relationship between a company’s business model and the organizational context in which that business model is embedded. This chapter addresses this gap by analyzing the dynamics of the change process required to implement a new business model in a company with an incumbent model. The chapter generates a series of typologies and propositions regarding the business model change process. Its approach has both academic and applied implications. Much of the extant academic literature on business models focuses on models developed by start-ups. Managers of start-ups face numerous challenges, of course. Addressing the requirement to change an incumbent business model is not among them and adds little to an understanding of business model change and the organizational context in which that process unfolds.

Keywords:   business model change, business model innovation, incumbent firms, organizational theory, organizational change

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