Hello Mohammad,

Your question cannot be answered in a few sentences as I think this was one of the main questions of recent business model research.

1. If you are looking for conceptual frameworks, you can virtually take any of the prominent business model frameworks and look for/measure change in the dimensions. Two overviews of frameworks are provided by

Lambert SC, Davidson RA (2013) Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010. European Management Journal 31:668-681.

and

Zott C, Amit R, Massa L (2011) The Business Model: Recent Developments and Future Research. Journal of Management 37:1019-1042. doi:10.1177/0149206311406265.

2. Business model research was often critisized for its very limited theoretical foundations. Recently, many papers link BMI to dynamic capability theory (e.g. Kindström D, Kowalkowski C, Sandberg E (2013) Enabling service innovation: a dynamic capabilities approach. Journal of Business Research 66:1063-1073.; Teece DJ (2010) Business models, business strategy and innovation. Long range planning 43:172-194.). It is very hard to identify a congruent theoretical basis for BMI. A promising attempt to link buyiness models with different theoretical roots was already propsed by Amit R, Zott C (2001) Value creation in E-business. Strategic Management Journal 22:493-520. doi:10.1002/smj.187. On page 511 they argue that their design themes can be linked to Value chain analysis; Schumpeterian innovation; Resource-based view; Theory of strategic networks and Transaction cost economics. This could be a starting point for further research.

Hope my ideas help!

Thomas

Hi Thomas,

Thanks a lot for such a detailed, comprehensive and insightful response. It is indeed very helpful, and I will surely dig into all these aspects to explore possibilities to conceptualize the foundations of BMI further.

Thanks once again :)

Best Regards,

Have a look at tools like the Business Model Canvas, which identifies the nine 'key' elements of a successful business model.  For insights into disruptive innovation, consider the work of Clayton Christensen.  Christensen suggests that your business model has to be able to cope with disruption.

Essentially, 'newer' successful companies realise that sustainable competitive advantage over the longer term is difficult to achieve; because of environmental turbulence, competitive advantage is at best somewhat transient.  This means that firms need to be agile to exploit new opportunities, and business models have to cope with that.

This is a very 'basic' response, but there is lots out there.  Rita McGrath's 'The End of Competitive Advantage' is also an insightful read in this area.

Dear Dr Khan,

You may find this interesting! A recent study (Cavalcante, 2014) suggested a process-based strategic analytical artefact for the design of business model change, consisting of three main phases.

Designing business model change as suggested in this study allows ex ante analysis of alternative scenarios of change in a structured and comprehensive way. Such a tool is useful for obtaining an overall view of the working logic of the firm and to facilitate innovation through change. The authors suggested to transform management theories into an instrument that can be helpful for companies to develop their capacity to change in a more focused and structured way!

In an another similar study (Cavalcante, 2014) suggested that managers' initiatives to occur in the context of a 'pre-stage' of potential business model change, which includes processes of experimenting and learning.

The author argued that the pre-stage finding gives a better understanding of when change initiatives affect a business model and when they do not, allowing managers to adopt a more proactive behaviour and guide their organizations towards effective business model change. The author suggest the inclusion of the pre-stage idea in research and practice, since it is an intermediary step in the process of business model change that has been overlooked!

• CAVALCANTE, S. A. (2014). DESIGNING BUSINESS MODEL CHANGE. International Journal Of Innovation Management, 18(2), -1.
• Cavalcante, S. (2014). Preparing for business model change: the 'pre-stage' finding. Journal Of Management & Governance, 18(2),449-469.

Hope this helps!

Nadeem

Hi Mohammad,

here are some literature we used in our courses and startup consultings. Business Model Innovation in Business-to-Business Markets - Procedure and Examples by Schallmo and Brecht. The purpose of this paper is to develop a stage-gate process for business model innovation and to apply the process to develop generic business-to-business models. The main findings were that although business model innovation has gained high attention within academia and practice a stage-gate process for business model innovation including future developments and customer orientation is, similar to generic business models for business-to-business markets, missing. The paper offers a new approach for a business model innovation stage-gate process and proposes seven generic business models for business-to-business markets that will be interesting to both researchers and practitioners.

Business Model Management by Bernd Wirtz (ISBN: 978-3834927927) The book gives a comprehensive overview of the state of the art. Moreover, it discusses management tools and successful case studies of business model management.

There is a number of very good literature, which is unfortunately only available in German. However, here are the references, maybe for the German followers of this thread:

Kompendium Geschäftsmodell-Innovation, Grundlagen, aktuelle Ansätze und Fallbeispiele zur erfolgreichen Geschäftsmodell-Innovation, Schallmo, Daniel R.A. (Hrsg.), Springer 2014

Entrepreneurial Business Modeling, Definitionen – Vorgehensmodell – Framework – Werkzeuge – Perspektiven, Rusnjak, Andreas, Springer 2014

Geschäftsmodell-Innovation, Grundlagen, bestehende Ansätze, methodisches Vorgehen und B2B-Geschäftsmodelle, Schallmo, Daniel, Springer 2013

Geschäftsmodelle erfolgreich entwickeln und implementieren- Mit Aufgaben und Kontrollfragen, Schallmo, Daniel R.A. , Springer 2013

Best Regards,

Matthias

Dear Mohammad,

I think you can check this reference in attached file. 

Regards.

Evo S. Hariandja

Dear Mohammad,

Building on Stephen's answer above, one way to find out more about this is to look at the dynamics underlying innovation and change in business models. I have found the work of Clayton Christensen in disruptive innovation, Stabell and Fjeldstadt in value configurations, and Verna Allee's work in value network anaysis especially helpful to understand and model change. Complemented with the business model canvas ontology (I recommend the original dissertation work rather than the management book for scholarly purpose). For an overview of the literature in value networks (including an in depth look at these authors), see the attached working paper.

Article Value networks in organization theory: An overview

Dear Mohammad,

Building also on Stephen's answer above, I found the work of Prof. Gassman at the St. Gallen Universitiy, with his Business Modell Navigator, also very interesting, especially may be for B2C... we are playing, trying to use it for B2B...

I hope it helps...

http://ec.europa.eu/information_society/newsroom/cf/dae/newsletter-item-detail.cfm?item_id=17059

http://www.bmi-lab.ch/

http://www.im.ethz.ch/education/HS13/MIS13/Business_Model_Navigator.pdf

Hi,

We made one categorization of business model approaches in our paper on the practices of business model creation and transformation. Please check here: http://journals.aau.dk/index.php/JOBM/article/view/719

;)

Petri

Dear Mohammad,

I agree with all answers you received so far. I would like to add the fact that from CHANGE perspective, some of the best works are those written by John P. Kotter, professor at Harvard University:

Kotter, J.P. (1996). Leading change. Boston, MA: Harvard Business School Press.

Kotter, J.P. & Cohen, D.S. (2002). The heart of change. Real-life stories of how people change their organizations. Boston, MA: Harvard Business school Press.

Kotter, J.P. (2008). A sense of urgency. Boston, MA: Harvard Business School Press.

Wishing you all the best in your research,

Constantin 

we are also working on it by using Dutch casestudies; hard to name a theory, as you see  from the other responses, there is a lot of literature on this. We submit our work in progress  next year.

This article may have some answers:

Osterwalder, Alexander; Pigneur, Yves; and Tucci, Christopher L. (2005) "Clarifying Business Models: Origins, Present, and Future of the Concept," Communications of the Association for Information Systems: Vol. 16, Article 1.

Available at: http://aisel.aisnet.org/cais/vol16/iss1/1

or

http://aisel.aisnet.org/cgi/viewcontent.cgi?article=3016&context=cais&sei-redir=1&referer=https%3A%2F%2Fscholar.google.pt%2Fscholar%3Fq%3Dyves%2Bpigneur%2Bbusiness%2Bmodel%26hl%3Den%26as_sdt%3D0%26as_vis%3D1%26oi%3Dscholart%26sa%3DX%26ved%3D0CB0QgQMwAGoVChMIj6X0yNaMyAIVBOkUCh29KQAR#search=%22yves%20pigneur%20business%20model%22

You may also want to read this book (by the same author(s) which targets practitioners:  

http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf

http://www.amazon.com/Business-Model-Generation-Visionaries-Challengers/dp/0470876417