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Business model innovations in high-velocity environments

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  • Sarangdhar, Vikas
  • Awate, Snehal
  • Mudambi, Ram

Abstract

High-velocity environments trigger Schumpeterian changes in industry structure, consumer preferences, and technological paths. The ensuing uncertainties lower entry barriers and diminish the efficacy of technological innovations in sustaining the competitive advantage. Further, lower entry barriers encourage forays by new entrants that may use existing technologies with business model innovations (BMI), posing a significant challenge for incumbents. Against this backdrop, our paper investigates the relatively unexplored role of BMI in high-velocity environments by studying three innovating firms from the global consumer devices industry. We propose that high-velocity environments not only necessitate but also facilitate BMI by enabling new and unexplored possibilities for value creation and appropriation. Our results underscore the role of BMI as a critical response strategy, particularly in high-velocity environments.

Suggested Citation

  • Sarangdhar, Vikas & Awate, Snehal & Mudambi, Ram, 2024. "Business model innovations in high-velocity environments," Journal of Business Research, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:jbrese:v:183:y:2024:i:c:s0148296324003680
    DOI: 10.1016/j.jbusres.2024.114864
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