The People-side of Implementing Business Model Innovation
A study on the role of employee motivation, development & readiness to change in implementing business model innovation
S. Raguraman (TU Delft - Technology, Policy and Management)
Harry Bouwman – Mentor (TU Delft - Information and Communication Technology)
R.M. Verburg – Mentor (TU Delft - Economics of Technology and Innovation)
Mohammad Ali Latifi Rostami – Coach (TU Delft - Information and Communication Technology)
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Abstract
The concept of business model innovation (BMI) has taken off significantly over the last decade in the academic as well as the business environment. It is seen as an important source of competitive advantage and is increasingly being used to achieve superior firm performance. Nevertheless, the field is yet to embrace the organizational dimension, especially in the BMI implementation phase. There is more focus given towards the technical aspect than the people aspect of BM implementation. Therefore, this research draws attention towards the people-side of implementing BMI, more specifically the role of employee motivation, development and readiness to change during BM implementation and how it influences the link between BMI and firm performance. First, a set of propositions, based on literature review, are used to develop a conceptual model that depicts the role of employee’s motivation, development and readiness to change in the BMI process. Thereafter, this model is used to analyze two cases of BMI in SMEs using a semi-structured interview method, to attest and refine the propositions. Besides obtaining a better understanding of the role of employees during BM implementation, this research provides empirical evidence that explains how certain employee characteristics influence the link between BMI and firm performance. Finally, the insights obtained has practical relevance as it stimulates better organizational practices when it comes to the people-side of implementing BMI.