Organizational Aspects of Business Model Innovation: The Case of the European Postal Industry

Kristian J. Sund, Juan Andrei Villarroel, Marcel Bogers

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Abstract

Organizations are often challenged to find new ways of creating and capturing value to compete with new entrants and disruptive technologies. Several studies have addressed some of the organizational barriers that incumbents face when developing new business models, but our understanding of the organizational (re)design aspects inherent to business model innovation is still very incomplete. In this study, we investigate the organizational (re)design challenges for incumbent organizations in mature industries when they need to reinvent their business model in reaction to disruptive changes in their environment. Our empirical setting focuses on national postal operators in the European postal industry. Using an inductive case study we distinguish between two stages within business model innovation: namely, business model exploration and business model exploitation. Focusing on the former, our findings shed new light on the existence of four key organizational issues: (1) organizational conflicts for scarce resources, (2) cognitive limitations in terms of a persistent dominant logic, (3) design of organizational structure, and (4) the sourcing and development of new capabilities.
Original languageEnglish
Title of host publicationAcademy of Management Proceedings
EditorsJohn Humphreys
Volume2014
Place of PublicationBirmingham (AL)
PublisherAcademy of Management
Publication date2014
ISBN (Print)0065-0668
Publication statusPublished - 2014
EventAcademy of Management Annual Meeting - Philadelphia, United States
Duration: 4 Aug 20145 Aug 2014
Conference number: 5010039

Conference

ConferenceAcademy of Management Annual Meeting
Number 5010039
CountryUnited States
CityPhiladelphia
Period04/08/201405/08/2014
SeriesAcademy of Management. Annual Meeting Proceedings
ISSN2151-6561

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