Session 3

Strategic Change, Resources, and Business Model Transitions

Track C

Date: Monday, October 8, 2012


Time: 09:30 – 10:45

Common Ground

Room: Meeting Room 2.1


  • Anita McGahan, University of Toronto

Title: Business Model Equilibrium: Delivering Value through Strategic Congruence


  • Brian Philip Massey, Trinity College Dublin
  • James Quinn, Trinity College Dublin

Abstract: The recent explosion of interest in business models is self-evident and much work is now focusing on business model innovation. However, work seems at an impasse due to a lack of workable definition. In response to this we propose a framework connecting the core aspects of a business model to its value based activity. We link the strategy, resources and capabilities of the firm with the external opportunity. We then set the value activity at the centre of these elements and express their interrelation as an equilibrium state. The nature of the changing model equilibrium is then explored. We propose this framework believing that it will contribute to discourses on model innovation, competition and evolution and aid the advancement of further research as a result.

Title: Competing Beyond the Network Effects: A Business Model Perspective on Competitive Dynamics in Platform Markets


  • Carmelo Cennamo, Bocconi University
  • Ivanka Visnjic, ESADE Business School

Abstract: The economics literature extensively focused on network effects as main instrument of platforms in two-sided markets to win over direct competitors. We use the lens of the business model construct and argue that platform competition unfolds in two distinct, though interdependent stages. At first, platform owners make business model choices aimed at attainment of network effects and enhanced user experience. At the second stage, platforms expand from their core by venturing into adjacent platform markets seeking to further enhance user-experience through cross-platform complementarities. Cross-platform competition leads to convergence of different markets and emergence of the dual and parallel competitive behavior characterized by pure competition with competitors from ‘core’ platform market and quasi-competition that contains elements of both competition and collaboration with cross-platform competitors.

Title: Contingency Business Model of Using External Slack Resources for Competitive Advantage


  • Torsten Klein, ThyssenKrupp Steel AG

Abstract: Modern economic markets are often characterized by high volatility. Therefore companies are looking for efficient solutions to manage dynamic challenges and to defend or increase competitive advantages. They try to dynamize internal processes and competencies. If we analyze organizational behavior we can note, that the resource base of a company is eminently important for gaining more flexibility. The specific resource availability is the foundation of energetic activities and generating competitive advantages. Additionally, we have to go adrift from the traditional perspective of resource theory. Instead, we have to be aware of the tremendous potential of external slack resources and of inactive resource functions. Thus this approach identifies four business models in an empirical study and describes the inherent relevancy of specific resource availability.

Title: Productization - The Transition from Services to Product Service Systems


  • Ruediger Klein, International Graduate School Zittau
  • Peter E. Harland, International Graduate School Zittau

Abstract: Focusing on the main research question: ‘How does productization differ from servitization?’, the aim is to analyze productization in the context of product service systems (PSS) and the applicability of the motivational drivers for servitization to productization. A literature search was carried out in order to identify expected effects from servitization. The analysis shows that the expected effects from servitization efforts can largely be expected to result from productization efforts as well. Service providers considering to add products to their offering will gain an understanding of the main factors contributing to the decision. The article contributes to the literature on product and service transition by showing that the expected effects from a productization strategy are similar to the expected effects from a servitization strategy.

Title: The Effects of Business Model Innovation: Remaining Strategically Flexible When It Is Needed Most?


  • Sabrina Schneider, EBS University
  • Patrick Spieth, University of Kassel

Abstract: Meanwhile strategic flexibility is argued to be indispensable for any firm operating in a volatile environment, only a vague understanding of how the conduction of business model innovation affects a firm’s strategic flexibility exists. Business model innovation particularly addresses firms in need to anticipate or respond to environmental dynamics. As these firms are likely to be continuously exposed to turbulence within their environment, the urgent need to gain a deeper understanding of this relationship emerges. An experimental research design was chosen to allow isolating distinct forms of business model innovation’s specific effects on a firm’s strategic flexibility. Theoretically developed hypotheses drawing from entrepreneurship and strategic management theories are tested and evaluated using analysis of variance.

Title: Value Creation in the Home-automation Industry: The Nice Case


  • Diego Campagnolo, University of Padova
  • Martina Gianecchini, University of Padova
  • Paolo Gubitta, University of Padova

Abstract: In this paper we apply the construct of business model to understand the sources of value creation in the Nice case. Nice is an Italian firm operating in the home-automation industry. It was established in 1993 and in less then 20 years it has gained a remarkable position worldwide through a deep innovation in the business model that was common industry-wise. Our analysis reveals that the sources of value creation in the business model of Nice are rooted on several interdependent value drivers including novelty at the customer value proposition level, lock-in at the supply-relationships, intermediate and end-customers level, complementarities at the product level and among internally performed activities and efficiency at the operations management level.

All Sessions in Track C...

Mon: 08:00 – 09:15
Session 2: Business Models: Transitioning from Research to Practice and Back
Mon: 09:30 – 10:45
Session 3: Strategic Change, Resources, and Business Model Transitions
Mon: 13:30 – 14:45
Session 4: Managerial Behavior and Business Model Transitions
Tue: 08:00 – 09:15
Session 5: Transitions in Governance and Business Models
Tue: 11:00 – 12:15
Session 6: Organizational Learning and Business Model Transitions
Tue: 14:15 – 15:30
Session 8: Business Model Transitions in Transitional Market Settings
Tue: 15:45 – 17:00
Session 9: Business Model Transitions As Industry Sector Phenomena

Strategic Management Society