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The role of entrepreneurial orientation and modularity for business model innovation in service companies

Author

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  • Ricarda B. Bouncken
  • Christian Lehmann
  • Katharina Fellnhofer

Abstract

The phenomenon of business model innovation (BMI) is taking up speed in researchers' attention. Specifically service firms find it difficult to protect their intellectual property and need dynamic capabilities to invent and launch their new business models. This study on service firms' BMI applies the dynamic capability view (DCV) to understand how two capabilities, entrepreneurial orientation (EO) and modularity produce BMI. These two capabilities consider two sides of BMI. BMI relates to opportunity-seeking behaviour, creating new values and opportunity exploitation that then allows monetising and capturing value. In this respect, BMI takes advantage of the two dynamic capabilities: EO and modularity. The results of our study of 299 international service firms show that EO and modularity trigger BMI, and that EO is especially favourable for BMI in the context of high environmental uncertainty.

Suggested Citation

  • Ricarda B. Bouncken & Christian Lehmann & Katharina Fellnhofer, 2016. "The role of entrepreneurial orientation and modularity for business model innovation in service companies," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 8(3), pages 237-260.
    • Handle: RePEc:ids:ijeven:v:8:y:2016:i:3:p:237-260
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    Citations

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    Cited by:

    1. Ciampi, Francesco & Demi, Stefano & Magrini, Alessandro & Marzi, Giacomo & Papa, Armando, 2021. "Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 123(C), pages 1-13.
    2. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Business model innovation in alliances: Successful configurations," Journal of Business Research, Elsevier, vol. 69(9), pages 3584-3590.
    3. Alfaro-Ramos, Alfredo Elías & Ferreras-Méndez, José Luis, 2022. "Knowledge management and intellectual capital in the business model innovation of Costa Rican manufacturing firms," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 16(2), pages 18-33.
    4. Bouncken, Ricarda B. & Fredrich, Viktor & Pesch, Robin, 2016. "Configurational answer to the ongoing riddle of formal and/or emergent planning practices," Journal of Business Research, Elsevier, vol. 69(9), pages 3609-3615.
    5. Olaleye Dotun Faloye & Owoeye Idowu, 2021. "Business Model Innovation and Micro and Small Enterprises’ Performance in Nigeria: Does Entrepreneurial Orientation Mediate?," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 7, January -.
    6. Ferreras-Méndez, José Luis & Olmos-Peñuela, Julia & Salas-Vallina, Andrés & Alegre, Joaquín, 2021. "Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 108(C).
    7. Andreas Reuschl & Victor Tiberius & Matthias Filser & Yixin Qiu, 2022. "Value configurations in sharing economy business models," Review of Managerial Science, Springer, vol. 16(1), pages 89-112, January.

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