IDEAS home Printed from https://ideas.repec.org/a/ids/ijbenv/v10y2018i1p14-34.html
   My bibliography  Save this article

Does business model experimentation in dynamic contexts enhance value capture?

Author

Listed:
  • Ferran Vendrell-Herrero
  • Glenn Parry
  • Marco Opazo-Basáez
  • Francisco J. Sanchez-Montesinos

Abstract

Established theory suggests that firms experiment with business models in dynamic contexts. However, the relationship between business model experimentation and organisational performance remains unclear. For this purpose, we propose an assessment of the economic value of business model experimentation in dynamic contexts by defining the unit of analysis at the industry level. Analysis draws upon a unique panel dataset from the recorded music industry composed of 414 observations from 32 countries for the period 1998-2010. The results show two optimal modes for maximising value capture in dynamic contexts. First, if a dominant format exists, a 'network' effect becomes prevalent which has a positive impact upon revenue. Second, when firms engage in experimentation leading to a highly diversified set of business models the industry sector becomes better able to capture value from diverse and changing consumer needs.

Suggested Citation

  • Ferran Vendrell-Herrero & Glenn Parry & Marco Opazo-Basáez & Francisco J. Sanchez-Montesinos, 2018. "Does business model experimentation in dynamic contexts enhance value capture?," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 10(1), pages 14-34.
    • Handle: RePEc:ids:ijbenv:v:10:y:2018:i:1:p:14-34
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=93301
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Citations

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


    Cited by:

    1. Josip Marić & Marco Opazo-Basáez, 2019. "Green Servitization for Flexible and Sustainable Supply Chain Operations: A Review of Reverse Logistics Services in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 65-80, 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:ids:ijbenv:v:10:y:2018:i:1:p:14-34. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=69 .

    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.