The goal of this Master’s thesis is to examine the relationship between managerial OR and business model innovations (BMIs) in established organizations. In order to meet the complexity of the topic, this thesis is focused on factors that hinder or help managers in recognizing business opportunities. Focusing on incumbent firms, this paper conducts further research to identify the main influencing factors, including challenges, vulnerabilities, and obstacles.
The thesis is divided into six parts, starting with a brief description of the research topic, including the problem position and objective. Second, a literature review is conducted to summarize the state of research, including theoretical foundations. In today's scientific literature the two fields of research BMI & OR are by no means treated independently from each other. For the time being BMI and OR are considered independently of each other. It is then shown exactly how current literature treats managerial OR with respect to BMI. The results are then synthesized into a summary, highlighting what is known and not known. The areas of controversy in the literature are identified and questions are formulated that need further research.
The third part of the thesis consists of expert interviews. Derived from the literature review, a guideline for interviews is developed to treat the research gaps in an appropriate way and to meet the complexity of the task setting. The explorative survey aims to identify the challenges and drivers of managerial OR in BMI and to identify approaches that have not yet been addressed in scientific literature to a significant extent. The core of the analysis is the splitting of the BM into the elements value proposition, value creation, and value capture. This ensures that all the facets of a company ́s BM are accurately addressed and form the basis for high-quality results. In order to cover a broad range, the paper does not focus on a certain industry. The interviews are conducted with an array of decision-makers in organizations that have attempted or are currently attempting to innovate their BM at the business unit level or the corporate level. [...]
Table of Contents
1 Introduction
1.1 Problem position
1.2 Objective and course of the work
2 Literature Review
2.1 Goals, structure and rationale for structure
2.2 Methodology of the literature review
2.3 Identification and selection of relevant journals and articles
2.4 Reviewing the current state of research
2.4.1 Business Model literature
2.4.1.1 Understanding & Rise of Business Model
2.4.1.2 Definition of the term Business Model
2.4.1.3 Business models as role models, scale models and recipes
2.4.2 Innovation and Innovation Management
2.4.3 Business Model Innovation
2.4.3.1 Understanding of Business Model Innovation
2.4.3.2 Degree and competitive advantage of BMI
2.4.4 Opportunity recognition
2.4.4.1 Opportunity recognition: Basics and definition
2.4.4.2 Managerial Opportunity recognition & BMI
2.5 Literature findings and uncovering research gaps
3 Methodology of the expert interviews
3.1 Research Design
3.2 Data collection
3.3 Data analysis
4 Results
4.1 Background and conceptual understanding of the interview partners
4.2 Results: Managerial OR in Business Model Innovation
4.2.1 Main Drivers of managerial OR in BMI
4.2.2 Sources of Information of managerial OR in BMI
4.2.3 Deliberate vs. systematic processes of managerial OR in BMI
4.2.4 External help of managerial OR in BMI
4.2.5 Problems and hurdles of managerial OR in BMI
5 Discussion
5.1 Lessons Learned
5.1.1 Understanding of the interviewees regarding BM, BMI & OR
5.1.2 Main sources for information and data
5.1.3 Managerial OR as a process
5.1.4 The concept of dominant logic and its influence in practise
5.1.5 Key factors influencing managerial OR in BMI
5.2 Implementation/transfer of ‘lessons learned’ in practice
6 Conclusion
6.1 Summary & outlook
6.2 Limitations & uncovering research gaps
Objective and Thematic Focus
The primary objective of this master's thesis is to investigate the relationship between managerial opportunity recognition (OR) and business model innovation (BMI) within established organizations, specifically focusing on the factors that hinder or facilitate managers in identifying new business opportunities.
- The theoretical interplay between managerial opportunity recognition and the components of a business model (value proposition, value creation, and value capture).
- Identification of key drivers, both proactive and reactive, that influence how managers recognize opportunities for business model innovation.
- Examination of internal and external hurdles to innovation, including the concept of "dominant logic" as a barrier to recognizing change.
- Exploration of practical processes, tools, and sources of information used by executives in incumbent firms to systematically identify and realize innovative opportunities.
Excerpt from the Book
1.1 Problem position
In the last few decades, drivers such as globalization, technological change, rapid development, and open innovation systems have profoundly changed the competitive game (Casadesus-Masanell & Ricart, 2010, p. 195). Due to these changes, previously closed competitive structures and value chains have been reorganized and new business opportunities have arisen (Bengtsson & Johansson, 2014, p. 418).
There are many examples to show how much a company’s success depends on the recognition of business opportunities. One famous example is the case of Apple. Near the end of the 1990s, the music industry was changing revolutionarily. The digitalization of the music data with new formats like MP3 and the illegal distribution of music CDs caused losses to run into billions. At this time, the California-based technology company Apple was under a lot of pressure. In contrast to competitors such as Dell and IBM, Apple was unable to use the booming PC market in its favour, and the company’s market share did not grow beyond its loyal followers (Goldstein & Rodriguez, 2012, p. 178). The turning point in the history of Apple was the recognition of a business opportunity that had not yet been identified by its competitors in the music industry. The opportunity to have direct access to and easy availability of music through its own, easy-to-use Internet music store (iTunes) and an innovative device (iPod) was the beginning of a business development that would be very successful in the following years. The case of Apple shows how much corporate success depends on a company’s ability to recognize opportunities in an external environment and to make use of these changes for its own benefit. At the same time, this example clearly illustrates the competitive disadvantage that other music industry companies had to endure due to Apple's advance thinking, because they recognized this business opportunity much later than Apple and did not properly estimate its potential.
Summary of Chapters
1 Introduction: Provides an overview of the research topic, defines the problem of missed opportunities in incumbent firms, and outlines the objectives of the master's thesis.
2 Literature Review: Synthesizes scientific literature on business models, innovation management, and opportunity recognition to build a theoretical framework for the study.
3 Methodology of the expert interviews: Describes the research design, data collection, and analysis methods used, including the execution of 10 expert interviews with decision-makers.
4 Results: Details the empirical findings from the interviews, structured around key drivers, information sources, processes, external support, and hurdles regarding opportunity recognition.
5 Discussion: Interprets the empirical findings in relation to existing theory, focusing on lessons learned regarding managerial opportunity recognition and dominant logic.
6 Conclusion: Summarizes the study’s main contributions, highlights practical implications for managers, and addresses study limitations and future research needs.
Keywords
Business Model Innovation, BMI, Opportunity Recognition, OR, Managerial Opportunity Recognition, Strategic Management, Incumbent Firms, Value Proposition, Value Creation, Value Capture, Dominant Logic, Expert Interviews, Corporate Innovation, Innovation Management.
Frequently Asked Questions
What is the central focus of this master's thesis?
The thesis focuses on the role of managers in recognizing business opportunities within established companies, specifically examining how this activity relates to business model innovation.
What are the primary themes discussed in this work?
The work covers business model definitions, the distinction between product innovation and business model innovation, the underlying processes of opportunity recognition, and organizational barriers like "dominant logic."
What is the primary objective of this research?
The main goal is to identify the factors—both internal and external—that either hinder or help managers in identifying business opportunities that can lead to successful business model innovation.
Which research methodology does the author use?
The author employs a qualitative research design, specifically conducting 10 semi-structured expert interviews with CEOs, managing directors, and founders from various German and Austrian industries.
What does the main part of the analysis cover?
The analysis treats the business model as a system composed of three elements: value proposition, value creation, and value capture, and examines how opportunity recognition interacts with these elements.
How is the thesis characterized by its keywords?
The thesis is best described by terms such as Business Model Innovation, Opportunity Recognition, Managerial Decision-Making, Incumbent Firms, and Dominant Logic.
How does the author explain the "dominant logic" concept?
The concept is described as the totality of thought patterns anchored in managers' minds that guide decision-making, which can act as a cognitive filter that inadvertently leads to organizational blindness regarding new opportunities.
What conclusion does the author draw regarding customer integration?
The study concludes that the customer is the central "nodal point" in the opportunity recognition process; companies that integrate customer needs systematically in a "people-focused" fashion have a significantly higher success rate in developing innovative business models.
- Arbeit zitieren
- Marijan Topic (Autor:in), 2017, Managerial Opportunity Recognition in Business Model Innovation, München, GRIN Verlag, https://www.grin.com/document/372482
