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Business model innovation from an open systems perspective: structural challenges and managerial solutions

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  • Henrik Berglund
  • Christian Sandström

Abstract

There is an emerging consensus that business models are systemic and transcend firm boundaries. Yet, existing research on Business Model Innovation (BMI) challenges focus almost exclusively on intra-firm factors such as capabilities, cognition and leadership. We explore challenges related to BMI by instead drawing on an open systems perspective on organisations. In particular, we argue that the systemic and boundary-spanning nature of business models imply that firms are forced to act under conditions of interdependence and restricted freedom, since they do not have executive control over their surrounding network. Consequently, we propose that suitable managerial solutions include the development of shared knowledge, appropriability regimes based on trust, network stability and the alignment of heterogeneous interests.

Suggested Citation

  • Henrik Berglund & Christian Sandström, 2013. "Business model innovation from an open systems perspective: structural challenges and managerial solutions," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 18(3/4), pages 274-285.
    • Handle: RePEc:ids:ijpdev:v:18:y:2013:i:3/4:p:274-285
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    Cited by:

    1. Agarwal, Renu & Mittal, Neeraj & Patterson, Eric & Giorcelli, Michela, 2021. "Evolution of the Indian LPG industry: Exploring conditions for public sector business model innovation," Research Policy, Elsevier, vol. 50(4).
    2. Patrick Spieth & Svenja Meissner Née Schuchert, 2018. "Business Model Innovation Alliances: How To Open Business Models For Cooperation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-26, May.
    3. Best, Bernadette & Miller, Kristel & McAdam, Rodney & Moffett, Sandra, 2021. "Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 643-657.
    4. Karami, Masoud & Baber, William W. & Ojala, Arto, 2022. "The effectual process of business model innovation for seizing opportunities in frontier markets," Technovation, Elsevier, vol. 117(C).
    5. Sébastien Caisse & Benoit Montreuil, 2014. "Polar Business Design," SAGE Open, , vol. 4(1), pages 21582440145, February.
    6. Ievoli Corrado & Belliggiano Angelo & Marandola Danilo & Milone Pierluigi & Ventura Flaminia, 2019. "Information and Communication Infrastructures and New Business Models in Rural Areas: The Case of Molise Region in Italy," European Countryside, Sciendo, vol. 11(4), pages 475-496, December.
    7. Ahlgren Ode, Kajsa & Lagerstedt Wadin, Jessica, 2019. "Business model translation—The case of spreading a business model for solar energy," Renewable Energy, Elsevier, vol. 133(C), pages 23-31.
    8. Maxime Thomas & Pascal Le Masson & Benoit Weil, 2017. "Why is Business Model Innovation so poorly innovative ? Uncovering the critical role of collaborative design in Business Model Innovation," Post-Print hal-01499143, HAL.
    9. Engwall, Mats & Kaulio, Matti & Karakaya, Emrah & Miterev, Maxim & Berlin, Daniel, 2021. "Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?," Technovation, Elsevier, vol. 108(C).
    10. Taewon Suh & Omar J. Khan & Benedikt Schnellbächer & Sven Heidenreich, 2019. "Strategic Accord And Tension For Business Model Innovation: Examining Different Tacit Knowledge Types And Open Action Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-29, July.
    11. Mostaghel, Rana & Chirumalla, Koteshwar, 2021. "Role of customers in circular business models," Journal of Business Research, Elsevier, vol. 127(C), pages 35-44.
    12. Bankel, Amanda & Mignon, Ingrid, 2022. "Solar business models from a firm perspective – an empirical study of the Swedish market," Energy Policy, Elsevier, vol. 166(C).
    13. Selma Leticia Capinzaiki Ottonicar & Paloma Marin Arraiza & Fabiano Armellini, 2020. "Opening Science and Innovation: Opportunities for Emerging Economies," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(4), pages 95-111.
    14. Sofia Mihaela Romanescu & Carmen Maria Mihalcea & Denisa Mihaela Sula, 2024. "Practices of Strategic Management For Romania's Small and Medium Enterprises in The Digital Age," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 509-516, August.
    15. Johannes Heck & Mirko Meboldt, 2016. "CURRENT CHALLENGES IN PRODUCT DEVELOPMENT PROCESSES OF SWISS SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(05), pages 1-19, June.
    16. Lukas Kung & George M. Giaglis, 2024. "DAOs' Business Value from an Open Systems Perspective: A Best-Fit Framework Synthesis," Papers 2406.12445, arXiv.org.
    17. Michael Sturm & Jörg Weking & Markus Böhm & Maximilian Schreieck & Helmut Krcmar, 2023. "How two leading partners learn to tango: The case of IoT-based business model co-innovation between a retailer and an electronics supplier," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    18. Mostaghel, Rana & Oghazi, Pejvak & Lisboa, Ana, 2023. "The transformative impact of the circular economy on marketing theory," Technological Forecasting and Social Change, Elsevier, vol. 195(C).

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