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The Role of Business Model Innovation for Product Innovation Performance

Author

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  • Bengtsson, Lars

    (Faculty of Engineering, Lund University)

  • Tavassoli, Sam

    (RMIT)

Abstract

We analyze the effect of Business Model Innovation (BMI) on the product innovation performance of firms, based on a dynamic capabilities theoretical framework. Our empirical study is based on a large-scale representative sample of cross-industry Swedish firms participating in the last three waves of the Community Innovation Survey (CIS) from 2006–2012. Our findings provide support for the dynamics capabilities theoretical framework as well as broad evidence of a significant and positive association between BMI and product innovation performance. Our results imply that BMI in the form of product innovations combined with different complementary innovations will act as isolating mechanisms towards replication by competitors. Therefore, managers should frame product innovations as part of a business model innovation and dynamically adapt the key elements of the firm’s business model.

Suggested Citation

  • Bengtsson, Lars & Tavassoli, Sam, 2018. "The Role of Business Model Innovation for Product Innovation Performance," Papers in Innovation Studies 2018/4, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2018_004
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    Cited by:

    1. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    2. Tavassoli, Sam & Karlsson, Charlie, 2021. "The role of location on complexity of firms’ innovation outcome," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    3. 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 -.
    4. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    5. Elena Freisinger & Sven Heidenreich & Christian Landau & Patrick Spieth, 2021. "Business Model Innovation Through the Lens of Time: An Empirical Study of Performance Implications Across Venture Life Cycles," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 339-380, December.
    6. Hua Zhang & Shaofeng Yuan, 2023. "How and When Does Big Data Analytics Capability Boost Innovation Performance?," Sustainability, MDPI, vol. 15(5), pages 1-19, February.

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    More about this item

    Keywords

    Business model innovation; Business models; Dynamic capabilities; product innovation; Innovation performance; Community Innovation Survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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