IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v112y2020icp502-520.html
   My bibliography  Save this article

The logic of innovative value proposition: A schema for characterizing and predicting business model evolution

Author

Listed:
  • To, Chester K.M.
  • Chau, K.P.
  • Kan, Chi Wai

Abstract

Innovations in business models involve a dynamic process that makes business values resilient against market and technology changes. We propose a schema that supports predicting the effect of innovation on business model values. The schema redefines the value proposition logic in business model innovations with five primary variables: business dependence structure, business value dominance, innovation dynamics, innovation domains, and innovation-resources-agility. Based on the schema, we have tested a set of hypotheses for 474 cases of business model innovations in four textile processing technology markets. We have estimated and modeled the data using two techniques: Cox modeling and temporal qualitative comparative analysis. The former predicts the business model that is destructed by innovation over time and the latter assesses the configurative conditions for innovation during the destruction period. The findings offer insights for predicting business model innovation as a value creation platform and for predicting innovative business models in industrial technology markets.

Suggested Citation

  • To, Chester K.M. & Chau, K.P. & Kan, Chi Wai, 2020. "The logic of innovative value proposition: A schema for characterizing and predicting business model evolution," Journal of Business Research, Elsevier, vol. 112(C), pages 502-520.
    • Handle: RePEc:eee:jbrese:v:112:y:2020:i:c:p:502-520
    DOI: 10.1016/j.jbusres.2019.10.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319306125
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2019.10.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kilkki, Kalevi & Mäntylä, Martti & Karhu, Kimmo & Hämmäinen, Heikki & Ailisto, Heikki, 2018. "A disruption framework," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 275-284.
    2. Engel, Yuval & Kaandorp, Mariëtte & Elfring, Tom, 2017. "Toward a dynamic process model of entrepreneurial networking under uncertainty," Journal of Business Venturing, Elsevier, vol. 32(1), pages 35-51.
    3. Ko, Krista K.B. & To, Chester K.M. & Zhang, Z.M. & Ngai, Eric W.T. & Chan, Theresa L.K., 2011. "Analytic collaboration in virtual innovation projects," Journal of Business Research, Elsevier, vol. 64(12), pages 1327-1334.
    4. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    5. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    6. Ashish Sood & Gerard J. Tellis, 2011. "Demystifying Disruption: A New Model for Understanding and Predicting Disruptive Technologies," Marketing Science, INFORMS, vol. 30(2), pages 339-354, 03-04.
    7. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    8. Mary M. Crossan & Marina Apaydin, 2010. "A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    9. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    10. To, Chester Kin-man & Yee, Rachel W.Y. & Mok, P.Y. & Chau, K.P. & Wong, Man Chong & Cheung, N.M., 2018. "Collaboration reasoning or social heuristics? Value proposition validity in omnium-gatherum business models," Journal of Business Research, Elsevier, vol. 88(C), pages 550-559.
    11. Mas-Verdú, Francisco & Ribeiro-Soriano, Domingo & Roig-Tierno, Norat, 2015. "Firm survival: The role of incubators and business characteristics," Journal of Business Research, Elsevier, vol. 68(4), pages 793-796.
    12. Kim, Youngok & Lui, Steven S., 2015. "The impacts of external network and business group on innovation: Do the types of innovation matter?," Journal of Business Research, Elsevier, vol. 68(9), pages 1964-1973.
    13. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    14. To, Chester K.M., 2016. "Collaboration modes, preconditions, and contingencies in organizational alliance: A comparative assessment," Journal of Business Research, Elsevier, vol. 69(11), pages 4737-4743.
    15. Huarng, Kun-Huang, 2013. "A two-tier business model and its realization for entrepreneurship," Journal of Business Research, Elsevier, vol. 66(10), pages 2102-2105.
    16. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    17. Lloria, M. Begoña & Moreno-Luzon, Maria D., 2014. "Organizational learning: Proposal of an integrative scale and research instrument," Journal of Business Research, Elsevier, vol. 67(5), pages 692-697.
    18. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    19. Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
    20. Levinthal, Daniel A, 1998. "The Slow Pace of Rapid Technological Change: Gradualism and Punctuation in Technological Change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 217-247, June.
    21. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    22. Saras Sarasvathy & K. Kumar & Jeffrey G. York & Suresh Bhagavatula, 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities," Entrepreneurship Theory and Practice, , vol. 38(1), pages 71-93, January.
    23. Baraldi, Enrico & Gressetvold, Espen & Harrison, Debbie, 2012. "Resource interaction in inter-organizational networks: Foundations, comparison, and a research agenda," Journal of Business Research, Elsevier, vol. 65(2), pages 266-276.
    24. Balboni, Bernardo & Bortoluzzi, Guido & Pugliese, Roberto & Tracogna, Andrea, 2019. "Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups," Journal of Business Research, Elsevier, vol. 99(C), pages 115-124.
    25. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    26. To, Chester K.M. & Au, Joe S.C. & Kan, C.W., 2019. "Uncovering business model innovation contexts: A comparative analysis by fsQCA methods," Journal of Business Research, Elsevier, vol. 101(C), pages 783-796.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Yan & Zhang, Lei & Zhao, Yulu & Xu, Bing, 2022. "Implementation of penalized survival models in churn prediction of vehicle insurance," Journal of Business Research, Elsevier, vol. 153(C), pages 162-171.
    2. Costa Climent, Ricardo & Haftor, Darek M., 2021. "Value creation through the evolution of business model themes," Journal of Business Research, Elsevier, vol. 122(C), pages 353-361.
    3. Veronika Jezkova & Zuzana Rowland & Veronika Machova & Jan Hejda, 2020. "The Intrinsic Value of an Enterprise Determined by Means of the FCFE Tool," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    4. Cillo, Paola & Priem, Richard L. & Verona, Gianmario & Zanella, Paola, 2021. "Consumer-CEO interaction as catalyst for business model innovation in established firms," Journal of Business Research, Elsevier, vol. 131(C), pages 241-253.
    5. Fredrich, Viktor & Bouncken, Ricarda B. & Tiberius, Victor, 2022. "Dyadic business model convergence or divergence in alliances? – A configurational approach," Journal of Business Research, Elsevier, vol. 153(C), pages 300-308.
    6. Marc Dressler & Ivan Paunovic, 2021. "Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    7. Aarthi Raghavan & Mehmet Akif Demircioglu & Serik Orazgaliyev, 2021. "COVID-19 and the New Normal of Organizations and Employees: An Overview," Sustainability, MDPI, vol. 13(21), pages 1-19, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    2. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    3. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    4. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    5. Randhawa, Krithika & Wilden, Ralf & Gudergan, Siegfried, 2021. "How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation," Journal of Business Research, Elsevier, vol. 130(C), pages 618-634.
    6. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    7. Gliga, Gabriela & Evers, Natasha, 2023. "Marketing capability development through networking – An entrepreneurial marketing perspective," Journal of Business Research, Elsevier, vol. 156(C).
    8. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    9. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    10. Inigo, Edurne A. & Albareda, Laura, 2019. "Sustainability oriented innovation dynamics: Levels of dynamic capabilities and their path-dependent and self-reinforcing logics," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 334-351.
    11. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    12. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    13. Chao Zhang & Jiancheng Guan, 2017. "How to identify metaknowledge trends and features in a certain research field? Evidences from innovation and entrepreneurial ecosystem," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(2), pages 1177-1197, November.
    14. Daliborka Witschel & Aaron Döhla & Maximilian Kaiser & Kai-Ingo Voigt & Thilo Pfletschinger, 2019. "Riding on the wave of digitization: insights how and under what settings dynamic capabilities facilitate digital-driven business model change," Journal of Business Economics, Springer, vol. 89(8), pages 1023-1095, December.
    15. Payam Hanafizadeh & Mohammad Mehrabioun & Kambiz Badie & Jahanyar Bamdad Soofi, 2018. "A Systemic Framework for Business Model Design and Development -Part A: Theorizing Perspective," Systemic Practice and Action Research, Springer, vol. 31(4), pages 437-461, August.
    16. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    17. Yang, Yi & Narayanan, V.K. & Zahra, Shaker, 2009. "Developing the selection and valuation capabilities through learning: The case of corporate venture capital," Journal of Business Venturing, Elsevier, vol. 24(3), pages 261-273, May.
    18. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    19. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    20. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:112:y:2020:i:c:p:502-520. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.