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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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A Corporate View of Business Model Innovation

A Corporate View of Business Model Innovation

Chapter:
(p.64) 4 A Corporate View of Business Model Innovation
Source:
Business Model Innovation
Author(s):

Ramon Casadesus-Masanell

Joan E. Ricart

Jorge Tarziján

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198701873.003.0004

This chapter analyses the fundamental economics underlying corporate business model innovations. The chapter describes how by choosing internally consistent configurations of policies, assets, and governance structures, innovative business models integrate business units in ways that create compelling new value propositions able to fill important spaces in already crowded environments and to capture value. Their chapter analyzes the fundamental economics underlying such corporate model innovations and highlights their organizational implications. The analysis reveals that TCE’s recommendations as to which transactions to conduct inside the firm through authority and which ones to outsource through contracts are qualified when a business model lens is applied to corporate level choices.

Keywords:   transaction cost theory, business model innovation, corporate level strategy, static reinforcement, dynamic reinforcement, systemic reinforcement

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