Theory Building- Towards an understanding of business model innovation processes

Companies today, in some industries more than others, invest more capital and

resources just to stay competitive, develop more diverse solutions, and increasingly

start to think more radically, when considering to innovate their business model.

However, the development and innovation of business models is a complex venture and

has not been widely researched yet.

The objective of this paper is therefore 1) to build a [descriptive] theoretical

understanding, based on Christensen's (2005) three-step procedure, to business models

and their innovation and, as a result of that, 2) to strengthen researchers' and

practitioners' perspectives as to how the process of business model innovation can be

realized. By using various researchers' perspectives and assumptions, we identify

relevant inconsistencies, which consequently lead us to propose possible supplementary

solutions. We conclude our paper by proposing a generic process to business model

innovation, supported by risk management processes.

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