Despite the increasing interest in business model innovation (BMI) as a way to improve the performance of firms, and the predominance of family firms (FFs) in modern economy, these two topics have so far not been combined. Drawing on socioemotional wealth (SEW) theory and the corporate social responsibility (CSR) concept, and on insights from research into BMI, we conduct a qualitative analysis using data from fifteen European FFs, examining the strategic and BM focus, the nature of the BM renewal, and the process and outcomes of BMI on their business models (BMs). Our results identify several BM configurations, with a focus on (1) growth by internationalization in combination with attention to increased quality in value creation, and (2) profit orientation based on increased efficiency, enabled by digitalization, mainly in the value delivery components of a BM. The latter reflects distinctive, innovative capabilities found in FFs, that contribute to the preservation of family objectives, as suggested by SEW theory and business orientation on CSR. Furthermore, there is a link between family involvement and limited, but specific, knowledge-related resources, and the way the dynamic BMI process is governed and executed.

Research has shown that business model innovation (BMI) can create competitive advantages and enhance firm performance. However, many small and medium-sized enterprises (SMEs) fail to supreme their performance. BMI can create unexpected consequences for businesses and their ecosystem. Therefore, knowing how and under what circumstances BMI affects a firm’s performance is a primary concern for managers/owners of SMEs. Using data from 460 European SMEs, this paper aims to examine three paths through which ICT-driven BMI can impact firm’s performance. Introducing organisational capabilities as a mediator, this study has extended prior literature on BMI by showing that organisational capabilities are as strong as other existing mediators of revenue and efficiency growth regarding improving the firm’s performance. The findings provide guidelines for practitioners to execute informed-decisions about the implementation of BMI based on their firm’s strategies and the available capabilities while considering contingent factors of firm size and age.

Although research has shown that business model innovation (BMI) can create a firm's competitive advantage and enhance its performance, many small and medium-sized enterprises (SMEs) fail to obtain the expected outcomes when innovating their business model. Business Model Innovation (BMI) leads to irreversible fundamental changes in key components of a company's business model, which means it carries with it a high level of risk, ambiguity and uncertainty. Drawing on the data from a cross-industry sample of 563 European SMEs, we apply structural equation modelling to examine how a firm's performance is affected by innovating its business model. A conceptual model is developed to examine how organisational capabilities and implementation of a profit- or growth-oriented strategy, as materialised in BMI, affect a firm's overall performance. The results indicate that, while the direct link between BMI and firm performance is not significant, this path is fully mediated through efficiency growth, organisational capabilities and revenue growth. Furthermore, there are significant direct effects from efficiency growth, organisational capabilities and revenue growth on firm performance. These findings confirm the validity of the model and contribute to existing literature on BMI efforts in SMEs and provide guidelines to help company owners/managers implement informed decisions about the implementation of BMI based on their firm's strategies.

Business model experimentation is an essential step for developing new business models. While the benefits of business model experimentation are increasingly studied, it is still poorly understood why companies engage in business model experimentation. This paper examines, starting from environmental turbulence reasoning, which external and internal drivers serve as antecedents for business model experimentation by firms that already have established business models. We do so by making use of a unique, quantitative data set based on a survey study among 929 European SMEs actively engaged in business model innovation. Using Dual Scaling, a procedure to scale categorical inputs that yields the least-squares lower-rank approximation to the elements of our data set, we find that external drivers relating to technological turbulence are the most important antecedents for business model experimentation. External competitive intensity doesn't motivate business model experimentation. Regarding internal drivers, strategic change, related to product innovation, is a significant antecedent, while innovative activities are less outspoken. By examining why companies engage in business model experimentation, the paper contributes to understanding the antecedents of business model innovation.

Business models (BMs) help firms to translate abstract strategic decisions into their daily operations. Because BMs mediate between strategy and operations, BM innovation involves both high-level strategic experiments and low-level implementation into operations and technologies. However, most existing empirical studies regarding BM innovation focus exclusively on strategic management and marketing theory. This article examines whether the performance implications of BM experimentation are mediated by the time and effort spent on implementing BMs into operating models and enterprise architectures. We adopt an empirical approach, by analyzing the results of a large-scale, representative survey among European small and medium-sized enterprises (SMEs). In line with the existing literature, the research confirms that spending time and effort experimenting with new BMs has a positive impact on the firm performance. An important new finding is that impact is in part mediated by BM implementation (i.e., translating new BMs into operating models and enterprise architectures). This article provides empirical support for the argument that BM innovation is not just a matter of strategic thinking and experimenting with BM components and BM architecture, but that is also involve aligning BMs to operations and enterprise architectures. Our findings call for future research into the process of BM innovation from a business modeling, an enterprise architecting and engineering management perspective, with a focus on information exchange, business processes, and supporting IT applications and infrastructure.

Purpose: Prior research has reported the indirect implications of firm's dynamic capabilities on their competitive firm performance. Our attention now turns to open innovation since it has been confirmed to be an influential factor contributing to the superior performance of technological firms. So far there has been little research on assessing the relationship between a firm's dynamic capabilities as an antecedent of the competitive performance of the firm or investigations into the mediating role of open innovation in this relationship. Design/methodology/approach: Drawing on the theory of dynamic capabilities, we developed a framework as a way to better understand the role of open innovation, which could then help to better explain the relationship between firms' dynamics capabilities and their competitive firm performance. Based on the empirical data of 465 firms operating in innovative and non-innovative industries, we employed structural equation modelling (SEM) to examine the research hypotheses and the path relationships in the proposed model. Findings: The SEM analysis revealed that a firm's dynamic capabilities significantly impact its open innovation performance and that open innovation, consequently, impacts the competitive performance of the firm. Moreover, the results show that the path between dynamic capabilities and competitive firm performance is partially mediated through open innovation. Practical implications: The findings provide practical implications and draw managerial attention to the importance of: (1) investing in innovation, (2) engaging customers in the innovation process and (3) maintaining innovation management excellence as significant antecedent factors in increasing competitive firm performance. Originality/value: Considering the lack of empirical research in the literature on the links between dynamic capabilities and open innovation, this paper contributes to the dynamic capabilities and open innovation literature by confirming that open innovation not only mediates the relationship between these two aspects but also strengthens the effect the dynamic capabilities have on competitive firm performance. Besides, due to the significant impact of dynamic capabilities on open innovation, dynamic capabilities might be regarded as an antecedent of open innovation.

This study investigates if BMI helps business innovation to succeed. We analyzed 27 SME cases having differing combinations of Business Model Innovation (BMI), New Product Development (NPD) and effectuation methods. We also analyzed the drivers and market strategy of the SMEs. We found out that typical SME innovation success cases combine at least two methods of implementation, such as BMI and NPD, and focus on low-end market. Effectuation in combination with the aforementioned seems to play significant role as well.

Purpose: By drawing on various theoretical approaches and a gender perspective, this paper aims to examine business model (BM) experimentation as a step towards BM experimentation capabilities as an outcome and, as such, a key antecedent to firm performance. Design/methodology/approach: In this paper, using a unique data set of 444 European small and medium-sized enterprises (SMEs), the authors draw on various theoretical perspectives to devise a structural equation model that examines BM experimentation as a step towards business model innovation (BMI) as an outcome and, as such, a key antecedent to firm performance. Potential differences are examined between female-owned and non-female-owned businesses with regard to hypothesized relations. Findings: Multi-group analysis results reveal that drivers of BM experimentation and the paths linking BM experimentation to overall firm performance are different for female owners in comparison to male owners. Research limitations/implications: Theoretical and practical implications are various. For SME entrepreneurs, experimenting with their BMs does lead to improved performance. Practical implications: Theoretical and practical implications are various. For SME entrepreneurs, experimenting with their BMs does lead to improved performance. Originality/value: Despite the increasing number of papers focussing on the relationship between BM and firm performance, the focus on female entrepreneurship, gender differences and BMI, more specifically the process of BMI as BM experimentation, is relatively rare.

This special issue bundles a series of papers on business model tooling. Business model tools are methods, frameworks or templates to facilitate communication and collaboration regarding Business Model analysis, (re-)design, adoption, implementation and exploitation. In this introduction to the special issue, we position business model tooling in the broader literature, going beyond the mere use of tooling to disseminate academic knowledge. We point out the unique contributions on business model tooling that information systems scholars can bring. After giving an overview of business model tools and ontologies, we sketch a brief research agenda comprising seven research directions: (1) design of tooling; (2) interfaces and usability; (3) evaluation and testing; (4) adoption, diffusion and commercialization of tooling; (5) privacy and security of tool users; (6) the use of tooling in business model education; and (7) future tooling enabled by big data and machine learning.

Computer interface signs, such as navigational links, thumbnails, small images, command buttons, symbols, icons, etc., which serve as communication artifacts between designers/systems and users, constitute an under-researched area. To design and evaluate intuitive interface signs, the Semiotic Interface Sign Design and Evaluation (SIDE) framework was developed. The aim of this study is to test the framework's applicability to evaluate web and mobile user interfaces. To that end, two empirical user studies were conducted among a total of 86 practitioners (n1 = 58, n2 = 28). The results show that the SIDE framework helps identify unique usability problems, such as the intuitiveness of interface signs in terms of their referential meaning, which would not have been detected with traditional heuristic evaluation methods. The paper increases our understanding of the intuitive nature of interface signs of web and mobile interfaces, and of the practical use of intuitive signs.

Purpose: Due to the convergence of rapid business developments and digitization challenges, service orientation is back on the research agenda as a concept to improve firms’ business services. Yet, little is known about the type of determinants that are relevant and to what degree they affect a firm’s service-oriented strategy. Design/methodology/approach: Building on structural equation modeling (SEM) and a unique data set of 131 international firms from different continents, the authors identify and analyze the key determinants in the context of a firm’s service-oriented strategy. Findings: The findings show that in order to cater for changes, organizations have to manage and adapt the coherence of the determinants’ business services, business processes and knowledge sharing continuously. Moreover, the results show that a service-oriented strategy is not only influenced by business services as such, but business services mediate the relationships between business processes, governance and process-aware information systems to a service-oriented strategy. Research limitations/implications: A limitation is imposed by the limited sample size and the unbalanced response of participants (executive management). In future research, a more extensive survey among a broader group of participants will help the authors to develop their model further in order to generalize the results, as well as more finely grained research related to geography and size might be pursued. Future empirical research is necessary to identify and test the relationships between other constructs and study their effect on a firm’s service-oriented strategy. Practical implications: On a practical level, the authors postulate that an organization’s executive management should pay attention to invest in an organizational entity (department) that manages business services continuously. This organizational entity has to ensure that related processes and knowledge sharing are in place to establish and maintain a service-oriented strategy. Originality/value: This research contributes to service-oriented literature by operationalizing the implementation of an organization’s service-oriented strategy. The authors’ insights go beyond the findings of Aier et al. (2011). The authors found that a service-oriented strategy influences service-oriented project success positively. The authors extended these findings, based on a unique data set, by studying business services and influencing determinants (i.e. business processes, governance, PAIS and knowledge sharing) within the context of service orientation. The renewed attention to the concept of service orientation provides insights into critical determinants that influence the implementation of a service-oriented strategy.

Purpose: Because of the attention increasingly being focused on digital transformation, interest in business models of platform-enabled ecosystems is rising rapidly. Although there are different theoretical views on the role of ecosystems, a synthesis of research, with a focus on governance and orchestration in dynamic, multi-industry eco-systems, is lacking. Design/methodology/approach: A systematic literature review was conducted by following a rigorous search protocol in the scholarly databases covering both journal articles and conference papers These papers were subsequently filtered, and finally, 48 relevant papers were selected for analysis. Findings: The review identifies five key aspects of platform governance design that need close consideration: the meta-organisation or ecosystem design, coordination mechanisms, mechanisms for value co-creation, value appropriation mechanisms and architectural principles. To achieve balance among a set of competing demands, platform leaders need to devote adequate attention to these aspects. Practical implications: Based on a literature review, the authors provide an overview of underlying theoretical views, research methods and key trends to develop a sound theoretical grounding for research on platform governance design. The paper also suggests research gaps in the existing literature and sets directions for researchers to strengthen the understanding of effective platform governance design. The paper also provides valuable information to managers in developing or leading a successful platform ecosystem. Originality/value: The paper uses existing literature published in this topic and original in nature.

Digital transformation is requiring companies to rethink and innovate their business models (BMs). However, small- and medium-sized enterprises (SMEs)have scarce time and resources for experimenting with their BMs and implementing new strategies. This paper examines whether SMEs that undergo digital transformation perform better if they allocate more resources for BM experimentation and engage more in strategy implementation. An empirical study was conducted on 321 European SMEs that actively use social media, big data, and information technology to innovate their BMs. Furthermore, structural equation modelling showed positive overall firm performance effects of more resource allocation to BM experimentation and more engagement in practices of strategy implementation. These effects were mediated by BM experimentation practices and company innovativeness. Moreover, fuzzy-set qualitative comparative analysis (fsQCA)revealed the presence of equifinality by identifying different configurations in which these antecedent conditions affect overall firm overall performance. The results of two methodological approaches showed that SMEs may take different routes to improve their performance when digital transformation is changing their BM. This paper is one of the first to analyse how SMEs can handle the impact of digitalization by spending more time and effort on innovating their BMs. Practical and policy implications are discussed.

The automotive industry is experiencing a phase of rapid innovation, with emergent technologies underpinning the realisation of self-driving cars, increased use of data and data analytics, sensors to enable car components to connect to the Internet-of-Things and the use of alternative energy sources, such as electric vehicles. Such innovations enable novel services, which in turn require actors within the automotive industry to change their business models. In this paper, we aim to identify novel automotive services that impact business models within the automotive industry. We use Q-methodology to explore and analyse the opinions of researchers and experts from the automotive industry. We find that four groups of services are expected to impact the business models in the automotive industry most: (1) personalised services, (2) generic mobility services; (3) shared mobility, and (4) connected cars. These are services at the level of the end-user, while more fundamental technology-based innovations, such as electrical driving, autonomous driving and Internet-of-Things applications, are scattered over different groups of end-user services. From these results, current business models can be analysed, and possible roadmaps for business model innovation can be developed.

The efficient delivery of government services to the poor, or Bottom of the Pyramid (BOP), faces many challenges. While a core problem is the lack of scalability, that could be solved by the rapid proliferation of platforms and associated ecosystems. Existing research involving platforms focus on modularity, openness, ecosystem leadership and governance, as well as on their impact on innovation, scale and agility. However, existing studies fail to explore the role of platform in scalable e-government services delivery on an empirical level. Based on an in-depth case study of the world's largest biometric identity platform, used by millions of the poor in India, we develop a set of propositions connecting the attributes of a digital platform ecosystem to different indicators for the scalability of government service delivery. We found that modular architecture, combined with limited functionality in core modules, and open standards combined with controlled access and ecosystem governance enabled by keystone behaviour, have a positive impact on scalability. The research provides insights to policy-makers and government officials alike, particularly those in nations struggling to provide basic services to poor and marginalised. This is also one of the few studies to apply platform theory empirically to the e-government domain.

Existing literature on control in software development considers only the principal-agency relationship between controller and controlee and this view does not hold true between ecosystems leader and partners, which are independent organizations. This chapter aims to study the critical role played by inter-organizational control mechanisms in the context of mobile platform ecosystems. By utilizing opinions of 38 experts and employing an Analytic Hierarchy Process (AHP) approach, this chapter identifies and ranks the most important roles played by control mechanisms in digital platform. The findings show that ecosystems´ leaders primarily use control to manage or improve its central position in the network to capture a higher share of value of the service. The findings provide further insights on two other roles of control in platform ecosystems: (1) accessing complementary resources and (2) managing interdependency between partners. This chapter contributes to organizational control theory in the context of emerging platform-based ecosystem.

In this paper we analyse Business Model Innovation (BMI) in European micro, small and medium sized enterprises (SME). We present descriptive findings from our quantitative survey and qualitative case survey on how SMEs are innovating their Business Models. Our survey indicates that 37% of European SMEs innovate their Business Model. We found some differences in BMI depending on the age and industry sectors. We also describe the changes the SMEs make in differing Business Model components when they are improving their Business Model.

Purpose: The purpose of this paper is to analyse how different strategic goals of (micro-, small- and medium-sized firms=SMEs) relate to the business model innovation (BMI) paths that SMEs take when improving their business. Design/methodology/approach: The authors conducted 11 in-depth case studies involving SMEs innovating their business models (BMs). Findings: The authors found evidence that strategic goals of SMEs (start new business, growth and profitability) lead them to alternative innovation path in terms of BM components affected. Growth seekers start from the right-hand side of a BM Canvas, while profitability seekers start from the back end, the left side of a Canvas; and new businesses adopt a cyclical approach considering BM components in turn, while at the same time redesigning and testing the BM. The findings of this study also indicate that all three paths gradually lead to improvement in several BM components. Research limitations/implications: Findings indicate that a strategic management view in which strategic goals define BMI also applies to SMEs. The distinctive BMI paths that the authors identified provide evidence to suggest that, although the SMEs may not have an explicitly formulated strategy, their strategic goals determine the type of improvements they make to their BM. All three SME groups started their improvements from different BM components and changed several elements in their BMs in a specific order, forming distinctive BMI paths. Finally, to understand the BMI in SMEs better, more research is needed into BMI processes and into the way BMI is managed in SMEs. Practical implications: The findings of this study help SMEs to anticipate the next steps in their path towards an improved BM. By mirroring their approach to the BMI paths, they can better manage their BM makeover process and focus on their innovation activities. For providers of BMI tools and methods, the study indicates which SME innovation tasks could be supported by tools and how the tools should be aligned with the BMI paths. Originality/value: BMI is attracting growing attention in both research and practice. However, knowledge concerning BMI in SMEs is limited. The authors contributed to BMI research by focussing on the BMI paths of SMEs, i.e. the often sequential, non-linear and iterative steps taken to improve the business by making changes to specific BM components.

The flexibility offered by the combination of platform and enabling ecosystems allows multiple competing and collaborating organizations from different industries to achieve rapid innovations. This article highlights key technical and business model attributes of the platform and how these can be exploited by the platform leader for achieving improved performance with limited coordination overhead. Research shows that only a few platforms are managed effectively; as it involves balancing conflicting demands related to the platform owner’s interest and overall health of the ecosystems. We discuss the key governance challenges for a sustainable platform leadership strategy that leads to benefits for the platform leader as well as for the ecosystem partners. Research shows that an effective platform governance i.e. decision rights and accountability to encourage desirable behavior in the use of the platform, addresses the above challenges effectively. This article goes on to identify different types of control mechanisms used in the context of platform ecosystem. While doing so, we highlight the important contextual differences related to the application of control mechanism in platform-centric ecosystems. Unlike other inter-organizational partnership (i.e. outsourced software development); ecosystem leaders do not have formal authority over a large number of application developers and other partners (Mukhopadhyay et al., 2016a). We conclude by proposing several complementary research questions for better understanding of the control–governance dimensions of platform ecosystem business models.

Purpose: This paper aims to explore how digital technologies have forced small- to medium-sized enterprises (SMEs) to reconsider and experiment with their business models (BMs) and how this contributes to their innovativeness and performance. Design/methodology/approach: An empirical study has been conducted on 338 European SMEs actively using social media and big data to innovate their BMs. Four in-depth case studies of companies involved in BM innovation have also been carried out. Findings: Findings show that the use of social media and big data in BMI is mainly driven by strategic and innovation-related internal motives. External technology turbulence plays a role too. BMI driven by social media and big data has a positive impact on business performance. Analysis of the case studies shows that BM is driven by big data rather than by social media. Research limitations/implications: Research into big data- and social media-driven BMs needs more insight into how components are affected and how SMEs are experimenting with adjusting their BMs, specifically in terms of human and organizational factors. Practical implications: Findings of this study can be used by managers and top-level executives to better understand how firms experiment with BMI, what affects business model components and how implementation might affect BMI performance. Originality/value: This paper is one of the first research contributions to analyse the impact of digitalization, specifically the impact of social media and big data on a large number of European SMEs.