The goal of this paper is to outline the main challenges of established companies in the field of business model innovation. By conducting an empirical analysis through 30 expert interviews insights are generated in the field of dealing with disruptive innovation, dominant mindset and business model innovation.
At first, the focus of the research is to identify the main levers for enabling disruptive innovation through the eyes of established companies. Secondly, a special focus of the interviews is to identify how an established organizational mindset affects the organizations behavior towards disruption. Finally the main difficulties of established organizations regarding business model innovation is outlined.
According to the research goal, the main insight regarding disruptive innovation is that 25 percent of the experts point out that they are lacking a supportive environment for dealing with disruptive innovation in the correct way. In the area of dominant logic, over 50 percent are concerned how their large, traditional and process-heavy firms can overcome their dominant mindset in order to stay competitive. Finally, 60 percent highlighted in the area of business model innovation that business innovation projects with experimentation without a reporting structure is key.
The analysis of the expert interviews reveal that established companies are aware of disruptive trends, however are not sure how to design the right environment for building the right capabilities. Secondly, it also highlights that the companies are aware of their dominant mindset as a key success factor for their business model innovation initiatives, but do not know how to create cultural shift to overcome it.
Finally, the research clearly demonstrates that the main challenges of established companies in business model innovation lays in the interlinkage between disruptive innovation, dominant mindset and business model innovation itself which needs more attention by research in the future.
Table of Contents
1. INTRODUCTION
2. RESEARCH MATERIALS AND METHODS
2.1 Defining Business Model Innovation and Dominant Logic
2.1.1 Business Model
2.1.2 Business Model Innovation
2.1.3 Dominant Logic
2.1.4 The Role of the Dominant Logic within an Organization
2.1.5 The Influence of Dominant Logic on Business Model Innovation
2.2 Research Method
2.2.1 Selection of Research Strategy
2.2.2 Methodology of Expert Interviews
2.2.3 Expert Interview Guideline
2.2.4 Expert Sampling and Acquisition
2.2.5 Data Collection
2.2.6 Data Analysis and Data Interpretation
2.2.7 Qualitative Content Analysis
3. RESULTS
3.1 Descriptive Results of Studies (n=30)
3.2 Disruptive Innovation
3.3 Dominant Logic
3.4 Business Model Innovation
4. DISCUSSIONS AND CONCLUSION
Research Goal and Thematic Focus
This paper aims to identify and outline the primary challenges faced by established organizations when engaging in business model innovation. By conducting an empirical study based on 30 expert interviews, the research explores how disruptive innovation, existing organizational mindsets (dominant logic), and business model frameworks interact, ultimately providing insights into the barriers preventing traditional companies from successfully innovating.
- The role of dominant logic in hindering organizational agility.
- Challenges associated with implementing disruptive innovation in established firms.
- The necessity of a supportive environment for business model experimentation.
- The impact of internal and external antecedents on corporate innovation capability.
- Methodological application of qualitative expert interviews for data gathering.
Excerpt from the Book
Dominant Logic
Dominant logic is the prevailing thinking and behavioral patterns of decision makers in an organization based on experience. It contains key assumptions about its identity and is the basis of important decision making (Prahalad&Bettis, 1986).
Dominant logic includes the following dimensions and elements:
Level of application: Dominant logic prevails in the entire organization (Prahalad& Bettis, 1986).
Underlying theory: Dominant logic has its roots in cognitive psychology (Bettis, 2000).
Elements: Dominant logic combines behavioral and cognitive elements (Bettis, 2000).
The objective of the dominant logic is to describe the dominant way how decision makers in organizations think and act (Bettis, Wong&Blettner, 2011, p.351).
Summary of Chapters
1. INTRODUCTION: This chapter highlights the struggles of incumbent companies against new market disruptors and establishes the research goal of identifying the core challenges in business model innovation within a VUCA environment.
2. RESEARCH MATERIALS AND METHODS: This section provides the theoretical foundation for business models and dominant logic, while detailing the methodology, including the selection of expert interviews as a qualitative research strategy.
3. RESULTS: This chapter presents the empirical findings from the 30 expert interviews, categorized into challenges regarding disruptive innovation, dominant logic, and the design of business model innovation frameworks.
4. DISCUSSIONS AND CONCLUSION: This final chapter synthesizes the research results and concludes that addressing the interlinkage between disruptive innovation, dominant logic, and business model innovation is essential for established companies to remain competitive.
Keywords
business strategy, business model, business innovation, dominant logic, expert interview, disruptive innovation, organizational mindset, qualitative research, incumbent companies, business transformation, value proposition, innovation management
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on identifying the main challenges established companies face when attempting business model innovation, specifically analyzing the interplay between disruptive innovation and established organizational mindsets.
What are the central thematic fields covered?
The research covers three main areas: the impact of disruptive innovation, the role of dominant logic as a filter or barrier to change, and the structural requirements for effective business model innovation.
What is the primary research question?
The primary goal is to determine what established companies view as the main levers for disruptive innovation, what the challenges of current organizational mindsets are, and what the specific difficulties in executing business model innovation are.
Which scientific methodology is employed?
The study utilizes a qualitative research approach based on 30 semi-structured, systematizing expert interviews, analyzed through a summarizing qualitative content analysis.
What does the main body address?
The main body addresses the theoretical definitions of business models and dominant logic, the influence of culture on strategic decisions, and the practical findings obtained from industry experts.
Which keywords best characterize this work?
Key terms include business strategy, dominant logic, business model innovation, disruptive innovation, and expert interview.
How does dominant logic influence an organization's ability to innovate?
Dominant logic acts as a filter that reinforces existing behaviors and structures, often causing management to ignore disruptive trends because they fall outside the current resource base or traditional business scope.
What did the experts identify as the most significant challenge regarding experimentation?
Sixty percent of the experts highlighted that a major challenge is the lack of a "safe" environment for experimentation that operates without the pressure of traditional corporate reporting structures.
- Citar trabajo
- Michael Lang (Autor), 2020, Main Challenges of Established Companies in Business Model Innovation, Múnich, GRIN Verlag, https://www.grin.com/document/520348
