Academic literature survey to conceptualize business model renewal for established firms, which goes beyond the literature merely featuring the 'business model innovation' keyword. Presented at the 2013 Academy of Management Annual Meeting in Orlando, FL.

1. SERGEJS GROSKOVS
PHD FELLOW
DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL:
A LITERATURE SURVEY
1
Based on paper “Business Model Renewal: Process, Barriers and
Drivers” by S. Groskovs, J. P. Ulhøi and P. Kesting. Presented at the
2013 Academy of Management Annual Meeting.

2. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
ABOUT THE PAPER
SELECTION
• «Business Model
Innovation»
beyond the
keyword:
• classic, seminal
works (31 paper)
• systematic
literature survey
(82 papers)
SYNTHESIS
• Possible process of
business model
renewal
• Potential barriers
and drivers of
business model
renewal
IMPLICATIONS
• Further action
research studies
beneficial
• List of issues to
direct attention to
for managers
2

3. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
WHY THIS PAPER?
Business models are of
strategic importance
(Zott & Amit 2007)
Business model
innovation →
competitive advantage
(Teece 2010)
BUT lack of unity and
understanding:
› Business model
(Zott, Amit & Massa 2011)
› Business model
innovation
(Bucherer, Eisert & Gassmann 2012;
Schneider & Spieth 2013)
3

4. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
BUSINESS MODEL
Core business
processes assoc. with
› value creation,
› value delivery and
› value capture
allowing the firm to
benefit financially from
opportunity exploitation.
(cf. Amit & Zott 2001; Osterwalder &
Pigneur 2010; Teece 2010)
Value creation
› Input → Output
Value delivery
› Output → Customers
Value capture
› Customers → Profit
4

5. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
BUSINESS MODEL RENEWAL
Business
Model B
?
Business
Model A
5

6. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
IDEAS FOR BM RENEWAL?
Entrepreneurship
literature
Organization
theories
6
→ 31 classic,
seminal works

7. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
USEFUL IDEAS FOR BM RENEWAL
Simon 1960
Cyert & March 1963
Duncan 1967
Thompson 1967
Child 1972
Galbraith 1973
Abell 1978
Miles & Snow 1978
Hedberg 1981
Nelson & Winter 1982
Levitt & March 1988
March 1988
Eisenhardt 1989
Orton & Weick 1990
March 1991
Thomas 1994
Van de Ven & Poole 1995
Volberda 1996
Teece et al 1997
Blank 2005
Morris et al 2005
Nelson & Baker 2005
Chesbrough 2006
Sarasvathy 2008
Chesbrough 2010
McGrath 2010
Sosna et al 2010
Osterwalder & Pigneur 2010
Schreyögg & Sydow 2010
Cavalcante et al 2011
Huber 2011
Ries 2011
Blank & Dorf 2012
7
1960s 1970s 1980s 1990s 2000s 2010s

8. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
USEFUL IDEAS FOR BM RENEWAL
› Automation of production and decision-making
routines vs systems design by humans (Simon 1960)
› Organizations as shifting dominant coalitions
(Cyert & March 1963; Thomas 1994)
› Organizational ambidexterity (Duncan 1967; March 1991)
› Organization’s institutional level to initiate large-
scale change (Thompson 1967)
› Buffering the core from environment (Thompson 1967)
› Strategic choice (Child 1972)
› Organizational slack (Galbraith 1973) supporting
organizational experimentation and learning
(Cyert & March 1963; Levitt & March 1988)
› Strategic windows (Abell 1978)
› Cycles of solving entrepreneurial, engineering
and administrative problems (Miles & Snow 1978)
› Experiential learning vs long-term planning
(Hedberg 1981; March 1988)
› Tacit knowledge of workforce (Nelson & Winter 1982)
› Speed of strategic change (Eisenhardt 1989)
› Loose coupling (Orton & Weick 1990)
› Four motors of organizational change: life-cycle,
teleology, dialectics, evolution (Van de Ven & Poole 1995)
› Four types of organizational forms: rigid, planned,
flexible, chaotic (Volberda 1996)
› Dynamic capabilities (Teece, Pisano & Shuen 1997)
› Business model life-cycle (Morris et al 2005)
› Bricolage (Nelson & Baker 2005)
› Business model search (Blank 2005; Blank & Dorf 2012),
lean startup (Ries 2011), business model canvas
(Osterwalder & Pigneur 2010)
› Open innovation (Chesbrough 2006)
› Effectuation (Sarasvathy 2008)
› Experimentation and discovery-driven approach
(Chesbrough 2010; McGrath 2010; Sosna, Trevinyo-Rodríguez &
Velamuri 2010)
› Concurrent balancing of stability and change
(Schreyögg & Sydow 2010)
› Business model change typology
(Cavalcante, Kesting, Ulhøi 2011)
› Goodness of fit (Huber 2011)
8

9. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
A WAY TO LOOK AT BM RENEWAL
Search
Business
Model
Change
Business
Model
Exploit
Business
Model
9

10. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
BARRIERS AND DRIVERS?
10
Business
Develop-
ment
Corporate
Entrepre-
neurship
Business
Model
Innovation
Org
Change
Renewal /
Turnaround
→ 82 papers
(of 13,369)
(firm OR compan* OR corporat*
OR organization* OR
organisation* OR strateg*) AND
(renewal OR turnaround)
“business model innovation” OR
“business model change”
“corporate entrepreneurship” OR
intrapreneurship
“organisational change” OR
“organizational change”
“business development”
DRIVERS
driv* OR enabl* OR facilitat* OR speed* OR
accelerat* OR fast OR success* OR succeed*
BARRIERS
barrier* OR obstacle* OR break* OR
prevent* OR imped* OR slow* OR fail*
− +

11. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
…OF BUSINESS MODEL SEARCH
› Capability to host intrapreneurship
› Understanding of and interacting
with environment
› Senior management involvement,
commitment, receptiveness
› Access to and nurturing of
entrepreneurially minded people
› Funding availability
› Presence of entrepreneurial activity
creation and termination process
11
Search
Business
Model
Change
Business
Model
Exploit
Business
Model

12. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
…OF BUSINESS MODEL CHANGE
› Capability and readiness to change
› Justification of change necessity
› Senior management involvement,
commitment, replacement
› Middle management quality and
involvement
› Employees and their human nature,
resistance and motivation
› Change process implementation
› Introduction of new technology
12
Search
Business
Model
Change
Business
Model
Exploit
Business
Model

13. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
IMPLICATIONS
For researchers
› Action research case studies
› Real-time inside access
› Creation of knowledge plus
solution of practical problem
For managers
› Overview of the complexity
› Key drivers and barriers of
business model renewal
› Focusing decision-making
AR
Plan
ActReflect
13

14. DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS AND SOCIAL SCIENCES
AARHUS UNIVERSITY
BUSINESS MODEL RENEWAL
SERGEJS GROSKOVS
13/8/2013
14
Thank you
and keep in touch
SERGEJS GROSKOVS
sgros@asb.dk