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Business Model Innovation for IoT Solutions: An Exploratory Study of Strategic Factors and Expected Outcomes

Author

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  • Sabin Foltean

    (West University of Timisoara, Romania)

  • Bogdana Glovatchi

    (West University of Timisoara, Romania)

Abstract

Business model innovation is a key success factor for IT companies competing in technologically uncertain environments. Despite the need of IoT solution developers to renew their business models to effectively create value for customers and capture value for the company, the strategic factors of business model innovation for IoT solutions have remained under-researched so far. The paper addresses this knowledge gap by exploring the strategic factors of business model innovation and its results from the perspective of RBV (Resource-Based View) theory. The theoretical foundation of this research is based on the literature of the business model innovation and the strategic marketing literature. In the empirical exploration of the strategic factors of the business model innovation, we adopted a qualitative research strategy having as methodological basis Grounded theory. More precisely, we conducted 12 semi-structured interviews with top managers at IT companies operating in Romania that have successfully developed IoT solutions. Proactive market orientation, technology orientation, entrepreneurial orientation, and adaptive marketing capabilities have been identified as strategic factors of business model innovation for IoT solutions, while competitive advantage and customer satisfaction as the main expected outcomes.

Suggested Citation

  • Sabin Foltean & Bogdana Glovatchi, 2021. "Business Model Innovation for IoT Solutions: An Exploratory Study of Strategic Factors and Expected Outcomes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(57), pages 392-392.
    • Handle: RePEc:aes:amfeco:v:23:y:2021:i:57:p:392
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    References listed on IDEAS

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    Cited by:

    1. Atik Kulakli & Cenk Lacin Arikan, 2023. "Research Trends of the Internet of Things in Relation to Business Model Innovation: Results from Co-Word and Content Analyses," Future Internet, MDPI, vol. 15(2), pages 1-17, February.
    2. Cheng Lu & Tongyu Gu & Jie Chen & Zunli Liu, 2021. "Will Internet Market Newness Improve Performance? An Empirical Study on the Internet Market Innovation of Offline Retailers in China," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    3. Adam Dymitrowski & Paweł Mielcarek, 2024. "Innovation Business Model Based on New Technologies and Company Relationships," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2341-2360, March.
    4. Mariani, Marcello M. & Machado, Isa & Nambisan, Satish, 2023. "Types of innovation and artificial intelligence: A systematic quantitative literature review and research agenda," Journal of Business Research, Elsevier, vol. 155(PB).
    5. Daniel RUSU, 2021. "The Effect Of Internal And External Factors On Strategic Management For Innovation Processes At The Company Level," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 408-418, November.

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    More about this item

    Keywords

    Proactive market orientation; technology orientation; entrepreneurial orientation; adaptive marketing capabilities; business model innovation; Internet of Things (IoT);
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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