Project brief

Developments like globalization, convergence of technologies and industries, shorter product life cycles, deregulation, demographic changes, and changing customer preferences provide firms with potential avenues for future growth, but may also threaten firms’ existing business models. How do firms change their business model? Which technological, management and organizational competencies are required for transforming existing business-models? What type of leadership style (transactional/ transformational) is appropriate for successful business model transformation and what are the required roles for the different management levels (front-line, middle line and top management)? Expanding worldwide competition, fragmenting markets, and emerging technologies force established firms to renew themselves continuously by transforming stagnant businesses and creating new sources of wealth through new combinations of resources.

From the mid ’90 onwards, the business model concept has received increased attention from academics and practitioners. Business model innovation is a necessity to survive in today’s turbulent environments. Recently, scholars highlighted even that firms should have more than one business model. For instance, the introduction of online news next to its traditional newspaper business enabled USA Today to deal with the rise of the Internet. Similarly, traditional airliners introduced a low-cost business model to compete with Southwest Airlines, Ryanair, and/or Easyjet. However, it is a very challenging managerial task to successfully realize such a dual business model focus. In this research project, we focus on this challenge. Research questions include: how should multiple business models within a firm be related to one another? How can firms ensure that their business models do not only create value, but also capture value? What managerial and leadership characteristics (e.g., transformational leadership) are required to realise such a dual business model focus?

The empirical research consists of a large scale survey data, but also involves in-depth case studies in, for instance, the consulting industry, financial services industry, publishing industry, creative industry and aviation industry. The master thesis will consist of theoretical and empirical contributions to the business model innovation literature. Students will have to opportunity to participate in the ongoing research programs on business model innovation (disruptive innovation in professional services; dual business models; new business models in the financial service sector), participate in research projects with companies (e.g., Accenture, Alliander, Deloitte, DSM, Ericsson, Festo, NXP, Port Authority Rotterdam, Randstad, Roland Berger, Siemens, Tebodin) and use the ACBI database on business model innovation.

References

Casadesus-Masanell R, Tarziján J. 2012. When one business model isn't enough. Harvard Business Review 90(1-2): 132–137.

Chesbrough H. 2010. Business model innovation: opportunities and barriers. Long range planning 43(2): 354-363.

Demil B, Lecocq X. 2010. Business model evolution: in search of dynamic consistency. Long Range Planning 43(2): 227-246.

Dunford R, Palmer I, Benveniste J. 2010. Business model replication for early and rapid internationalisation: The ING direct experience. Long Range Planning 43(5): 655-674.

Gambardella A, McGahan AM. 2010. Business-model innovation: General purpose technologies and their implications for industry structure. Long Range Planning 43(2): 262-271.

Gilbert C, Bower JL. 2002. Disruptive change. When trying harder is part of the problem. Harvard business review 80(5): 95-100.

Govindarajan V, Trimble C. 2011. The CEO’s role in business model reinvention. Harvard Business Review 89(1-2): 108 – 114.

Hamel G, Välikangas L. 2003. The quest for resilience. Harvard Business Review 81(9): 52 – 63.

Khanagha, S., Volberda, H.W. & Oshri, I. (2014), Business model renewal and ambidexterity: structural alteration and strategy formation process during transition to a Cloud business model, R&D Management, 44(3): 322-340.

Markides C, Charitou CD. 2004. Competing with dual business models: A contingency approach. The Academy of Management Executive 18(3), 22-36.

McGrath RG. 2010. Business models: A discovery driven approach. Long range planning 43(2): 247-261.

Nunes P, Breene T. 2011. Reinvent your business before it’s too late. Harvard Business Review, 89(1/2): 80-87.

Smith WK, Binns A, Tushman M L. 2010. Complex business models: Managing strategic paradoxes simultaneously. Long Range Planning 43(2): 448-461.

Teece, D.J. 2010. Business models, business strategy and innovation. Long Range Planning, 43: 172- 194.

Volberda, Henk W., Van den Bosch, F.A.J., Heij, C.V. Re-inventing business: hoe bedrijven hun businessmodel innoveren, Assen: Koninklijke Van Gorcum BV, ISBN: 978 90 232 5146 0, 2013.

Volberda, H., Van den Bosch, F., and Heij, K. (2018). Reinventing Business Models: How firms cope iwth disruption, Oxford: Oxford University Press.

Volberda, H.W., Baden-Fuller, Ch., & Van Den Bosch, F.A.J. 2001. Mastering strategic renewal: Mobilizing renewal journeys in multi-unit firms. Long Range Planning, Special Theme: Mastering Strategic Renewal: Lessons from Financial Services, 34: 159-178.

Zook C. 2007. Finding your next core business. Harvard Business Review 85(4): 66-75.

Zook C, Allen J. 2011. The Great Repeatable. Harvard Business Review 85(11): 107-114.

Zott, C., Amit, R., Massa, L. 2011. The business model: Recent developments and future research. Journal of Management, 37, 1019-1042.