IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v186y2025ics0148296324004715.html
   My bibliography  Save this article

Understanding data-driven business model innovation in complexity: A system dynamics approach

Author

Listed:
  • Wang, Fengquan
  • Jiang, Jihai
  • Cosenz, Federico

Abstract

With the growing complexity of today’s big data environments, data-driven business model innovation has shown the key features of a complex system, such as dynamics and non-linearity, but relevant research mainly draws a static and linear perspective, which necessitates unveiling data-driven business model innovation as a complex system. To this end, building on complexity theory, this study divides the complex system of data-driven business model innovation into three interdependent subsystems (i.e., big data, business model innovation, and data value). Each subsystem has its more granular components and elements. Then, the system dynamics approach is adopted to clarify the coevolution process and its key influencing factors of data-driven business model innovation. By conducting simulation and sensitivity analysis of key variables, the findings suggest that, like the “flywheel effect”, big data insight, value proposition, customer performance, and firm performance increase with time. Among them, big data insight, value proposition, and customer performance have a basically consistent pace. By contrast, firm performance grows much more slowly at the beginning but has a stronger acceleration in later stages. Besides, improving big data analytics cannot directly increase data value. Only when combined with businesses, it can create marginal benefits, among which business matching is the most salient. This study not only contributes to the advancement of complexity theory and data-driven business model innovation but also deepens business model research through holistic and systematic approaches.

Suggested Citation

  • Wang, Fengquan & Jiang, Jihai & Cosenz, Federico, 2025. "Understanding data-driven business model innovation in complexity: A system dynamics approach," Journal of Business Research, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324004715
    DOI: 10.1016/j.jbusres.2024.114967
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324004715
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2024.114967?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. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).
    2. Tabesh, Pooya & Mousavidin, Elham & Hasani, Sona, 2019. "Implementing big data strategies: A managerial perspective," Business Horizons, Elsevier, vol. 62(3), pages 347-358.
    3. Mostaghel, Rana & Oghazi, Pejvak & Parida, Vinit & Sohrabpour, Vahid, 2022. "Digitalization driven retail business model innovation: Evaluation of past and avenues for future research trends," Journal of Business Research, Elsevier, vol. 146(C), pages 134-145.
    4. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    5. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
    6. Gupta, Shivam & Justy, Théo & Kamboj, Shampy & Kumar, Ajay & Kristoffersen, Eivind, 2021. "Big data and firm marketing performance: Findings from knowledge-based view," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    7. Piepponen, Amanda & Ritala, Paavo & Keränen, Joona & Maijanen, Päivi, 2022. "Digital transformation of the value proposition: A single case study in the media industry," Journal of Business Research, Elsevier, vol. 150(C), pages 311-325.
    8. Haftor, Darek M. & Costa Climent, Ricardo & Lundström, Jenny Eriksson, 2021. "How machine learning activates data network effects in business models: Theory advancement through an industrial case of promoting ecological sustainability," Journal of Business Research, Elsevier, vol. 131(C), pages 196-205.
    9. 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.
    10. Gianvito Lanzolla & Constantinos Markides, 2021. "A Business Model View of Strategy," Journal of Management Studies, Wiley Blackwell, vol. 58(2), pages 540-553, March.
    11. Holmlund, Maria & Van Vaerenbergh, Yves & Ciuchita, Robert & Ravald, Annika & Sarantopoulos, Panagiotis & Ordenes, Francisco Villarroel & Zaki, Mohamed, 2020. "Customer experience management in the age of big data analytics: A strategic framework," Journal of Business Research, Elsevier, vol. 116(C), pages 356-365.
    12. Ghasemaghaei, Maryam & Calic, Goran, 2020. "Assessing the impact of big data on firm innovation performance: Big data is not always better data," Journal of Business Research, Elsevier, vol. 108(C), pages 147-162.
    13. Roberto Garcia-Castro & Ruth V. Aguilera, 2015. "Incremental value creation and appropriation in a world with multiple stakeholders," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 137-147, January.
    14. Ghasemaghaei, Maryam & Calic, Goran, 2019. "Does big data enhance firm innovation competency? The mediating role of data-driven insights," Journal of Business Research, Elsevier, vol. 104(C), pages 69-84.
    15. Martin Kunc & Frances A. O’Brien, 2019. "The role of business analytics in supporting strategy processes: Opportunities and limitations," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(6), pages 974-985, June.
    16. Ron Tidhar & Kathleen M. Eisenhardt, 2020. "Get rich or die trying… finding revenue model fit using machine learning and multiple cases," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1245-1273, July.
    17. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    18. Thomas Moellers & Lars von der Burg & Bastian Bansemir & Max Pretzl & Oliver Gassmann, 2019. "System dynamics for corporate business model innovation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(3), pages 387-406, September.
    19. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    20. Shivam Gupta & Théo Justy & Shampy Kamboj & Ajay Kumar & Eivind Kristoffersen, 2021. "Big data and firm marketing performance: Findings from knowledge-based view," Post-Print hal-03609916, HAL.
    21. Lee, In, 2017. "Big data: Dimensions, evolution, impacts, and challenges," Business Horizons, Elsevier, vol. 60(3), pages 293-303.
    22. Olabode, Oluwaseun E. & Boso, Nathaniel & Hultman, Magnus & Leonidou, Constantinos N., 2022. "Big data analytics capability and market performance: The roles of disruptive business models and competitive intensity," Journal of Business Research, Elsevier, vol. 139(C), pages 1218-1230.
    23. Yun, JinHyo Joseph & Won, DongKyu & Park, KyungBae & Jeong, EuiSeob & Zhao, Xiaofei, 2019. "The role of a business model in market growth: The difference between the converted industry and the emerging industry," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 534-562.
    24. Şimşek, Tolga & Öner, M Atilla & Kunday, Özlem & Olcay, Gökçen Arkalı, 2022. "A journey towards a digital platform business model: A case study in a global tech-company," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    25. Devereux, Luke & Melewar, T.C. & Dinnie, Keith & Lange, Thomas, 2020. "Corporate identity orientation and disorientation: A complexity theory perspective," Journal of Business Research, Elsevier, vol. 109(C), pages 413-424.
    26. John Sterman, 2018. "System dynamics at sixty: the path forward," System Dynamics Review, System Dynamics Society, vol. 34(1-2), pages 5-47, January.
    27. Samppa Suoniemi & Lars Meyer-Waarden & Andreas Munzel & Alex Ricardo Zablah & Detmar Straub, 2020. "Big data and firm performance: The roles of market-directed capabilities and business strategy," Post-Print hal-02957479, HAL.
    28. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    29. Boulton, Jean G. & Allen, Peter M. & Bowman, Cliff, 2015. "Embracing Complexity: Strategic Perspectives for an Age of Turbulence," OUP Catalogue, Oxford University Press, number 9780199565269, Decembrie.
    30. König, Marc & Ungerer, Christina & Baltes, Guido & Terzidis, Orestis, 2019. "Different patterns in the evolution of digital and non-digital ventures' business models," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 844-852.
    31. Federico Cosenz & Vinicius Picanço Rodrigues & Francesco Rosati, 2020. "Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 651-664, February.
    32. Cosenz, Federico & Bivona, Enzo, 2021. "Fostering growth patterns of SMEs through business model innovation. A tailored dynamic business modelling approach," Journal of Business Research, Elsevier, vol. 130(C), pages 658-669.
    33. Matthias Förster & Bastian Bansemir & Angela Roth, 2022. "Employee perspectives on value realization from data within data-driven business models," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 767-806, June.
    Full references (including those not matched with items on IDEAS)

    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. Laudien, Sven M. & Reuter, Ute & Sendra Garcia, Francisco Javier & Botella-Carrubi, Dolores, 2024. "Digital advancement and its effect on business model design: Qualitative-empirical insights," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    2. Jianmin Song & Senmao Xia & Demetris Vrontis & Arun Sukumar & Bing Liao & Qi Li & Kun Tian & Nengzhi Yao, 2022. "The Source of SMEs’ Competitive Performance in COVID-19: Matching Big Data Analytics Capability to Business Models," Information Systems Frontiers, Springer, vol. 24(4), pages 1167-1187, August.
    3. Sun, Pengfei & Yuan, Chunhui & Li, Xiaolong & Di, Jia, 2024. "Big data analytics, firm risk and corporate policies: Evidence from China," Research in International Business and Finance, Elsevier, vol. 70(PB).
    4. Acciarini, Chiara & Cappa, Francesco & Boccardelli, Paolo & Oriani, Raffaele, 2023. "How can organizations leverage big data to innovate their business models? A systematic literature review," Technovation, Elsevier, vol. 123(C).
    5. Oesterreich, Thuy Duong & Anton, Eduard & Teuteberg, Frank & Dwivedi, Yogesh K, 2022. "The role of the social and technical factors in creating business value from big data analytics: A meta-analysis," Journal of Business Research, Elsevier, vol. 153(C), pages 128-149.
    6. Alshawawreh, Ali Ra’Ed & Liébana-Cabanillas, Francisco & Blanco-Encomienda, Francisco Javier, 2024. "Impact of big data analytics on telecom companies' competitive advantage," Technology in Society, Elsevier, vol. 76(C).
    7. Imran M. Ilyas & Nadine Kammerlander & Roxana Turturea & Marc van Essen, 2024. "When Business Model Innovation Creates Value for Companies: A Meta‐Analysis on Institutional Contingencies," Journal of Management Studies, Wiley Blackwell, vol. 61(5), pages 1825-1883, July.
    8. Jorzik, Philip & Klein, Sascha P. & Kanbach, Dominik K. & Kraus, Sascha, 2024. "AI-driven business model innovation: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 182(C).
    9. Zeng, Huixiang & Ran, Hangxin & Zhou, Qiong & Jin, Youliang & Cheng, Xu, 2022. "The financial effect of firm digitalization: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    10. Maryia Zaitsava & Elona Marku & Maria Chiara Guardo & Azar Shahgholian, 2023. "A fine-grained perspective on big data knowledge creation: dimensions, insights, and mechanism from a pilot study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(2), pages 547-573, June.
    11. Haftor, Darek. M. & Climent Costa, Ricardo, 2023. "Five dimensions of business model innovation: A multi-case exploration of industrial incumbent firm’s business model transformations," Journal of Business Research, Elsevier, vol. 154(C).
    12. Oduro, Stephen & De Nisco, Alessandro & Mainolfi, Giada, 2023. "Do digital technologies pay off? A meta-analytic review of the digital technologies/firm performance nexus," Technovation, Elsevier, vol. 128(C).
    13. 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.
    14. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    15. Jia, Yibo & Su, Jingqin & Cui, Li & Wu, Lin & Hua Tan, Kim, 2023. "Platform business model innovation in the digitalization era: A “driver-process-result” perspective," Journal of Business Research, Elsevier, vol. 160(C).
    16. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    17. Baabdullah, Abdullah M. & Alalwan, Ali Abdallah & Algharabat, Raed S. & Metri, Bhimaraya & Rana, Nripendra P., 2022. "Virtual agents and flow experience: An empirical examination of AI-powered chatbots," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    18. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    19. Anna M. Hansson & Eja Pedersen & Niklas P. E. Karlsson & Stefan E. B. Weisner, 2023. "Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8083-8106, August.
    20. 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).

    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:186:y:2025:i:c:s0148296324004715. 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.