Abstract
When SME´s practice business model (BM) innovation (BMI), leading strategically BMs through the innovation process can be the difference between success and failure to a BM. Business Model Innovation Leadership (BMIL) is however extremely complex to carry out especially to small and medium size enterprises (SME). There are so many opportunities, pitfalls and strategies to consider while “the business” has to be operated simultaneously. The paper provides a study of BMIL in practise in SME´s and show different ways of how they handle BMIL
and BMIL strategies. The SME´s were examined through a framework model called the BMIL strategy canvas. The research approach was action research carried out from 2008 - 2012. Intense study of 35 US and EU SME´s and 97 of their different BM´s form the empirical background. The findings represent learning and characteristic of BMIL with a strong reference to state of the art theory in BM and BMI. The research reveals that SME´s focus on very classic BMI approaches and BMIL strategies. SME´s focus in most cases on reactive “outside in and reactive “inside in” BMIL strategies. SME´s are primarily focusing on meeting needs and demands of an inside out “predefined” set of user and/or customer groups. SME´s are reacting to a specific customer or market demand but the BMIL strategies do often not put them in a better or more central strategic position in their market and industry – and in the BMI process.
The research shows some common approaches about SME´s BMI and BMIL strategy - Specifically, 1) Most SME´s do not formulate explicitly a BMIL strategy – they are doing BMI rather blindly 2) Very few SME´s are structured about their BMIL strategy and BMIL strategy process 3) SME´s focus in their BMIL on very few and often the same building blocks of the BM - especially the building blocks value proposition, target customer and value chain [Internal] – often regardless of the actual specific BMIL task, market demand and context of BMI 4) SME´s often leaves big BM potential behind because they cannot see the potential and are often not able to capitalised upon these 5) SME´s is generally in lack of BMIL skills.
and BMIL strategies. The SME´s were examined through a framework model called the BMIL strategy canvas. The research approach was action research carried out from 2008 - 2012. Intense study of 35 US and EU SME´s and 97 of their different BM´s form the empirical background. The findings represent learning and characteristic of BMIL with a strong reference to state of the art theory in BM and BMI. The research reveals that SME´s focus on very classic BMI approaches and BMIL strategies. SME´s focus in most cases on reactive “outside in and reactive “inside in” BMIL strategies. SME´s are primarily focusing on meeting needs and demands of an inside out “predefined” set of user and/or customer groups. SME´s are reacting to a specific customer or market demand but the BMIL strategies do often not put them in a better or more central strategic position in their market and industry – and in the BMI process.
The research shows some common approaches about SME´s BMI and BMIL strategy - Specifically, 1) Most SME´s do not formulate explicitly a BMIL strategy – they are doing BMI rather blindly 2) Very few SME´s are structured about their BMIL strategy and BMIL strategy process 3) SME´s focus in their BMIL on very few and often the same building blocks of the BM - especially the building blocks value proposition, target customer and value chain [Internal] – often regardless of the actual specific BMIL task, market demand and context of BMI 4) SME´s often leaves big BM potential behind because they cannot see the potential and are often not able to capitalised upon these 5) SME´s is generally in lack of BMIL skills.
| Originalsprog | Engelsk |
|---|---|
| Tidsskrift | International Journal of Business and Management |
| Vol/bind | 7 |
| Udgave nummer | 14 |
| Sider (fra-til) | 53-66 |
| ISSN | 1833-3850 |
| DOI | |
| Status | Udgivet - jul. 2012 |