Session 9

Business Model Transitions As Industry Sector Phenomena

Track C

Date: Tuesday, October 9, 2012


Time: 15:45 – 17:00


Room: Dressing Room 221

Session Chair:

  • Joseph Lampel, University of Manchester

Title: Alternative Business Models in the Private Equity Industry


  • Matthias Kruehler, Boston Consulting Group

Abstract: There is an ongoing debate whether Private Equity firms are behaving like locusts, i.e. descending on and devouring companies or may be better described as honeybees, as they add value to the majority of their portfolio firms and their shareholders. Building on a theoretically based framework of different value added activities and a corresponding empirical study of 143 global PE firms the paper provides evidence for the fact that instead of transitioning towards a superior business model that relies mainly on imposing governance pressure on the management of their portfolio firms, the PE industry is characterized by coexistence of different business models that create economic value. The final paper compares these business models and respective strategic groups of PE firms with regard to performance, too.

Title: New Horizons or a Strategic Mirage? Artist-led-distribution versus Alliance Strategy in the Video Game Industry


  • Thijs Broekhuizen, University of Groningen
  • Joseph Lampel, University of Manchester
  • Joost Rietveld, Erasmus University Rotterdam

Abstract: In this paper we examine the debate between researchers who argue that the emergence of online distribution allows content producers in the creative industries to bypass powerful publishers and distributors, and researchers who argue that this strategy cannot succeed without the complementary assets that these intermediaries provide. We use a case study of the Dutch video games developer (DVGD) bringing to market an identical game using two different but comparable distribution channels as a quasi-experiment. We find that, while the alliance required DVGD to share with the publisher a substantial fraction of the value generated by the game, DVGD nevertheless did better in terms of profitability. We conclude that the differences in performance can be traced to ex-ante complementary assets required for successful commercialization.

Title: The Dark Side of Public Money? Exploring the Effects of Public Sponsorship on Firm Performance


  • Julien Jourdan, Bocconi University
  • Ilze Kivleniece, INSEAD

Abstract: We examine the influence of public sponsorship on focal firm capabilities and performance by studying the impact of public subsidies in the French film industry. Building on insights from economic and institutional theories, we argue that a recurring engagement in public sponsorship will be associated with a gradual decline in the firm’s market-based capabilities, and as a consequence, a curvilinear effect on the focal firm’s performance. We further argue that this curvilinear relationship will be significantly attenuated by the strength of the signaling effect that the underlying sponsorship carries. Our findings illustrate the trade-offs associated with public resource commitments to private organizations, and contribute to the nascent insights on the tensions between the resource-altering and signaling effects in firm linkages to public actors.

Title: Value Creation Innovation in Business to Business, Fast Moving Industries


  • Magnus Johansson, Lund University
  • Martin Zander, Ericsson

Abstract: This article recognizes the importance of Christensen et al (2009) in the field of business model innovation by focusing on value configurations and different types of innovation. As this paper indicates, there is much to be done in developing the field of value configurations in association with innovation. This paper expands the set of value configurations (Stabell and Fjeldstad, 1998) utilized by Christensen et al (2009) with a new value configuration. It then applies this expanded set to the mobile platform industry and shows how business to business firms in fast moving industries create unique positions by innovating their value creation model.

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