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Achieving agility using business model stress testing

Author

Listed:
  • Harry Bouwman

    (Delft University of Technology
    Åbo Akademi University)

  • Jukka Heikkilä

    (University of Turku)

  • Marikka Heikkilä

    (University of Turku)

  • Carlo Leopold

    (Delft University of Technology)

  • Timber Haaker

    (Delft University of Technology)

Abstract

Business Model (BM) Innovations aim at making systemic changes in the business logic of companies when they are bringing innovative products and services to the market. Companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way. To assess the agility of BMI during specific market entry situations, this paper uses a method that stress tests the value proposition and the components of a BM against contingent uncertainties. We present three qualitative case studies of companies that differ in their market entry approach. Starting from their strategic orientation, these case companies’ stress test their Business models and BM components, using a scenario-based identification of uncertainties. The BM Stress Test method contributes to a quick understanding of the components their BM needs to monitor, reconsider, or improve. Such stress testing helps enhance business agility. The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.

Suggested Citation

  • Harry Bouwman & Jukka Heikkilä & Marikka Heikkilä & Carlo Leopold & Timber Haaker, 2018. "Achieving agility using business model stress testing," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 149-162, May.
    • Handle: RePEc:spr:elmark:v:28:y:2018:i:2:d:10.1007_s12525-016-0243-0
    DOI: 10.1007/s12525-016-0243-0
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    References listed on IDEAS

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    Cited by:

    1. Heim, Lars, 2020. "Analysing the impact of the implementation of a blockchain in an existing business model," MPRA Paper 115440, University Library of Munich, Germany.
    2. 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).
    3. Meier, Andre & Kock, Alexander, 2021. "Characteristics, Antecedents, and Consequences of Agile R&D Units' Organization - A Conceptual Framework," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 130791, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. João Paulo Santos Aragão & Marcele Elisa Fontana, 2022. "Outsourcing Strategies in Public Services under Budgetary Constraints: Analysing Perceptions of Public Managers," Public Organization Review, Springer, vol. 22(1), pages 61-77, March.
    5. Rainer Alt, 2018. "Electronic Markets and current general research," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 123-128, May.
    6. Latifi, Mohammad-Ali & Nikou, Shahrokh & Bouwman, Harry, 2021. "Business model innovation and firm performance: Exploring causal mechanisms in SMEs," Technovation, Elsevier, vol. 107(C).
    7. Harry Bouwman & Mark Reuver & Marikka Heikkilä & Erwin Fielt, 2020. "Business model tooling: where research and practice meet," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 413-419, September.
    8. Margherita, Alessandro & Heikkilä, Marikka, 2021. "Business continuity in the COVID-19 emergency: A framework of actions undertaken by world-leading companies," Business Horizons, Elsevier, vol. 64(5), pages 683-695.
    9. Nora Nahr & Marikka Heikkilä, 2022. "Uncovering the identity of Electronic Markets research through text mining techniques," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1257-1277, September.
    10. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    11. Alexia Athanasopoulou & Mark De Reuver, 2020. "How do business model tools facilitate business model exploration? Evidence from action research," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 495-508, September.
    12. Matarazzo, Michela & Penco, Lara & Profumo, Giorgia & Quaglia, Roberto, 2021. "Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 123(C), pages 642-656.

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    More about this item

    Keywords

    Business model; Business model innovation; Business modelling; Market entry; Agility; Stress testing;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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