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Despite the growing importance of digital transformation and the notion of disruptive innovation, strategy literature still lacks a more complete picture of how incumbent organizations adapt their business models after disruptions. This research sheds light on this important process by analyzing a major Italian news media publisher reacting to the...
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Citations
... After all, the entrepreneur, by definition, must always be innovative if he/she wants to persist in the market so that the constant adaptation of his business model becomes essential (Kraus et al., 2018. Today, innovation may not produce the desired effects if it does not correspond to a business model capable of effectively exploiting it and configuring an offer commensurate with the needs of customers, suppliers, and business partners (Cozzolino et al., 2018). In a market that is increasingly complex and dependent on a growing number of factors, the critical analysis of the activity in relation to the production objectives, the company organization, the use of resources and marketing are a necessity that cannot be postponed, particularly due to the advent of Industry 4.0 (Brettel et al., 2017;Ferrigno et al., 2022a;Tavoletti et al., 2021). ...
Purpose
The objective of this study is to examine current business and management research on “Industry 4.0 base technologies” and “business models” to shed light on this vast literature and to point out future research agenda.
Design/methodology/approach
The authors conducted a bibliometric analysis of scientific publications based on 482 documents collected from the Scopus database and a co-citation analysis to provide an overview of business model studies related to Industry 4.0 base technologies. After that a qualitative analysis of the articles was also conducted to identify research trends and trajectories.
Findings
The results reveal the existence of five research themes: smart products (cluster 1); business model innovation (cluster 2); technological platforms (cluster 3); value creation and appropriation (cluster 4); and digital business models (cluster 5). A qualitative analysis of the articles was also conducted to identify research trends and trajectories.
Research limitations/implications
First, the dataset was collected through Scopus. The authors are aware that other databases, such as Web of Science, can be used to deepen the focus of quantitative bibliometric analysis. Second, the authors based this analysis on the Industry 4.0 base technologies identified by Frank et al. (2019). The authors recognize that Industry 4.0 comprises other technologies beyond IoT, cloud computing, big data and analytics.
Practical implications
Drawing on these analyses, the authors submit a useful baseline for developing Industry 4.0 base technologies and considering their implications for business models.
Originality/value
In this paper, the authors focus their attention on the relationship between technologies underlying the fourth industrial revolution, identified by Frank et al . (2019), and the business model, with a particular focus on the developments that have occurred over the last decade and the authors performed a bibliometric analysis to consider all the burgeoning literature on the topic.
... In doing so, they can appeal to mainstream consumers and thus gain access to mainstream markets (Si et al. 2021). The performance of enterprises during this period determines whether they can commercialize the outcomes of their disruptive innovations successfully (Hwang and Christensen 2008;Cozzolino, Verona, and Rothaermel 2018). ...
... J€ ohnk et al. (2022) highlight how incumbents are required to manage multiple concurrent initiatives that are a complementary duality rather than a dualism, which means they are not deemed to cannibalise each other but, rather, are two facets of the same coin (J€ ohnk et al., 2022). Cozzolino et al. (2018) investigated the business model re-configuration of an Italian incumbent media player stemming from DT and related drivers, strategies and disruption processes (Cozzolino et al., 2018). ...
... J€ ohnk et al. (2022) highlight how incumbents are required to manage multiple concurrent initiatives that are a complementary duality rather than a dualism, which means they are not deemed to cannibalise each other but, rather, are two facets of the same coin (J€ ohnk et al., 2022). Cozzolino et al. (2018) investigated the business model re-configuration of an Italian incumbent media player stemming from DT and related drivers, strategies and disruption processes (Cozzolino et al., 2018). ...
... These topics highlight the trend of studying DT from a processual point of view. Hence, rather than focusing on DT implications, these studies propose various ways to achieve DT, unveiling the phenomenon's deep mechanisms and unfolding (Cozzolino et al., 2018;Markus and Rowe, 2021). ...
Purpose
Digital transformation (DT) is a major challenge for incumbent organisations, as research on this phenomenon has revealed a high failure rate. Given this consideration, this paper reviews the literature on DT in incumbent organisations to identify the main themes and research directions to be undertaken.
Design/methodology/approach
The authors adopt a systematic literature review (SLR) and computational literature review (CLR) employing a machine learning algorithm for topic modelling (LDA) to surface the themes discussed in 103 peer-reviewed studies published between 2010 and 2022 in a multidisciplinary article sample.
Findings
The authors identify and discuss the five main themes emerging from the studies, offering the state-of-the-art of DT in established firms' literature. The authors find that the most discussed topics revolve around the DT of healthcare, the process of renewal and change, the project management, the changes in value performances and capabilities and the consequences on the products of DT. Accordingly, the authors identify the topics overlooked by literature that future studies could tackle, which concern sustainability and contextualisation of the DT phenomenon.
Practical implications
The authors further propose managerial insights which equip managers with a revolutionary mindset that is not constraining but, rather, integration-seeking. DT is not only about technology (Tabrizi B et al ., 2019). Successful DT initiatives require managerial capabilities that foster a sustainable departure from the current organising logic (Markus, 2004). This study pinpoints and prioritises the role that paradox-informed thinking can have to sustain an effective digital mindset (Eden et al ., 2018) that allows for the building of momentum in DT initiatives and facilitates the renewal process. Indeed, managers lagging behind DT could shift from an “either-or” solutions mindset where one pole is preferred over the other (e.g. digital or physical) to embracing a “both-and-with” thinking balancing between poles (e.g. digital and physical) to successfully fuse the digital and the legacy (Lewis and Smith, 2022b; Smith, Lewis and Edmondson, 2022), enact the renewal, and build and maintain momentum for DTs. The outcomes of adopting a paradox mindset in managerial practice are enabling learning and creativity, fostering flexibility and resilience and, finally, unleashing human potential (Lewis and Smith, 2014).
Social implications
The authors propose insight that will equip managers with a mindset that will allow DT to fail less often than current reported rates, which failure may imply potential organisational collapse, financial bankrupt and social crisis.
Originality/value
The authors offer a multidisciplinary review of the DT complementing existing reviews due to the focus on the organisational context of established organisations. Moreover, the authors advance paradoxical thinking as a novel lens through which to study DT in incumbent organisations by proposing an array of potential research questions and new avenues for research. Finally, the authors offer insights for managers to help them thrive in DT by adopting a paradoxical mindset.
... But little attention has been given to entrants' success in disrupting incumbents (Ansari et al., 2016;Hopp et al., 2018). Researchers emphasise that disruptors strategically position an innovation disruptively compared to existing mainstream alternatives through designing disruptive business models (Cozzolino et al., 2018;Schmidt and van der Sijde, 2022). A better understanding of how disruptors disrupt is relevant, a.) to develop the theory of disruptive innovation by explaining the dynamics underlying the disruptive path (Danneels, 2004, Van de Ven et al., 2005Petzold et al., 2019, Kumaraswamy et al., 2018 and b.) for entrepreneurs seeking to disrupt or for managers to identify and respond to disruptive developments, such as Airbnb disrupting the hotel industry (Forbes, 2018), Zoom disrupting the airline industry (Markman, 2020), and Lemonade challenging the insurance industry (Forbes, 2019). ...
... Recent empirical studies by Cozzolino et al. (2018) and Snihur et al. (2018) have highlighted the role of the entrants' business models that challenge incumbents. Teece (2010, p. 172) defines a business model as an organisation's "design […] of the value creation, delivery, and capture". ...
... The entrant shifted to a cooperative strategy, reframing its business model in a sustaining way to secure incumbents' cooperation. Studies on incumbents' responses to disruption mirror these findingsincumbents reduce threats from disruptive business models by competing, acquiring, or allying with entrants (Christensen et al., 2018;Cozzolino et al., 2018). ...
... Others have investigated environmental disruption, disruption caused by natural disasters, or technological change and their effect on organizational productivity and performance (e.g., Anderson and Lewis, 2014;Dwivedi et al., 2022). The literature has also started to investigate how organizations respond to changes in dominant logics that underpin industries (e.g., Cozzolino et al., 2018;Markides and Oyon, 2010;Khanagha et al., 2018). ...
... Thus, organizational collaborations might provide the opportunity to review organizational purpose, strategy, and decisions and re-configure their internal resources and capabilities in response to DMS (Cozzolino et al., 2018). Furthermore, collaborations ensure that organizations complement their resource base and capabilities with those of other organizations to retain market position and competitive advantage. ...
... The widespread diffusion of digital technologies has become one of the key drivers and enablers of BMI at the firm level (Holmström et al., 2019). Exploiting digital technologies through innovative business models has been distinguished from innovation in which new technologies are developed within the product innovation process (Caputo et al., 2021;Cozzolino et al., 2018). Furthermore, digitalisation grants opportunities for BMI beyond firmlevel changes to cross multiple industries and ecosystems (Kamalaldin et al., 2021;Leminen et al., 2020;Sjödin et al., 2020). ...
This article explores digitalisation’s potential to change
traditional business models in the context of RoPax (roll-on, rolloff
passenger vessels) ports in four Northern European
countries. The study examines digitalisation’s role in addressing
business model change drivers, focusing on the perspective of
port authorities (PAs). While digitalisation slowly affects
operations at RoPax ports and PAs’ business models, the
research data exhibits no radical business model innovation.
Instead, the findings indicate that PAs introduce new
digitalisation and business activities, potentially leading to
business model renewal. However, the current digitalisation is
inefficient, as technology providers lack an in-depth
understanding of the port business and its ecosystem, and PAs
have scarce knowledge of digitalisation’s business impact. The
article concludes that connecting digitalisation strongly to the
business model and strategic renewal is the way to overcome this
challenge.
... However, since 2006, researchers have begun to examine the role of the business model (Christensen, 2006;Markides, 2006), which surrounds and builds on a technological basis. Those studies argue for the business model as the relevant unit of analysis to understand how businesses are unfolding disruptive potential, ultimately transforming entire industries (Ansari et al., 2016;Cozzolino et al., 2018). In this regard, disruptive innovation is conceptualised as a process that describes how a new market entrant with fewer resources effectively challenges established businesses in the mainstream market through introducing and growing a disruptive business model (Christensen et al., 2018). ...
... Thus, this study contributes to the research question: How does an entrant disrupt the hotel business through digital business model innovation? This study contributes to an ongoing theoretical exploration of digital business model disruptions (Cozzolino et al., 2018;Schmidt, 2021;Snihur et al., 2018). Moreover, this study equips practitioners with insights on how to perform business model innovation to unlock disruptive potential based on digital technologies in the hospitality industry and beyond. ...
... However, since 2006, scholars and practitioners have argued that disruptive innovation is indeed more of a strategic management process than a matter of technological inventions (Christensen, 2006;Hopp et al., 2018). Thus, debates have shifted from a technological to a business model focus when discussing the impact of disruptive dynamics on market developments (Cozzolino et al., 2018;Schmidt & van der Sijde, 2022;Snihur et al., 2018). Consequently, while digital technologies are a significant enabler for digital transformation, solely focusing on the technological aspects misses large parts of the competitive dynamics. ...
Both managers of hospitality businesses and researchers are discussing how hospitality businesses manage digital transformation. While recent contributions focus on technological innovations and their impact on optimising existing operational processes, we lack insights into how hospitality businesses build on digital technologies for continuous business model innovations. Recent reviews highlight the need to better understand shifts in competitive positioning based on technological innovations.This paper investigates how citizenM, a Netherlands-based hotel business, designs a disruptive business model based on digital technology. To this end, secondary data has been systematically collected to analyse citizenM’s strategic decisions and business model innovation activities. This study presents in-depth insights into the disruptive mechanisms based on qualitative content analysis. Moreover, it is showcased how the case company operationalises a business model of a ‘performance reducer’.This study makes a twofold contribution to the ongoing debates. First, this paper delivers knowledge which furthers our understanding of the intertwined mechanisms of digital disruption in hospitality. Second, a tentative framework is presented to understand the performance reducer’s digital disruption.KeywordsBusiness modelDigital technologyDisruptionDisruptive innovationHospitalityHotel business
... While scholars have criticized a variety of imprecise and inconsistent definitions, these different conceptualizations appear to be rather complementary than competing (Goyal et al., 2017;Landau et al., 2016;Wirtz et al., 2016). For understanding how digital disruption impacts professional sports, BM approaches provide a number of analytical advantages: First, BM approaches emphasize two key dimensions, that is, value creation and value capture (Cozzolino et al., 2018;Teece, 2010). Hence, a BM perspective stresses that a focal firm has to create value for all stakeholders and to capture value for itself (Sosna et al., 2010, p. 401). ...
... Accordingly, the advent of digitization has created new interest in BM dynamics (Christensen et al., 2018). After scholars have focused on disruptive BM innovations, which affect entire industries and ecosystems, they examine now externally driven BM adaptation by incumbents, which seeks to align a BM with a new environment (Cozzolino et al., 2018;Peñarroya-Farell & Miralles, 2021). If such efforts are not completely imitative, the exploration of new ways of value creation and capture does not start with a full-formed BM but requires fine-tuning and updating (Bocken & Snihur, 2020;Sosna et al., 2010). ...
Research question: Digital disruption is heavily impacting incumbent sports media business models. While major sports seem to cope with digital disruption, the challenges appear much bigger for minor sports. Therefore, the contribution focuses on the efforts of smaller European football leagues to adapt their business models. Two research questions follow: RQ1: What are the most important challenges to the BMs of smaller football leagues? RQ2: Which approaches to adapt BMs are explored by the smaller leagues examined?
Research methods: A comparative case study was conducted. The sample consisted of eight European smaller football leagues, which are characterized by substantial diversity in terms of population size, wealth and sporting quality. The empirical material consists of document analyses and expert interviews with league managers exploring broadcasting rights, revenues, the competition within the media environment and future broadcasting strategies.
Results and Findings: Aggressive global competition and changing media consumption patterns and behaviors challenges the incumbent business models. The leagues are actively exploring new business models, although these efforts are rather conservative. Most successful is the collective marketing of overseas rights and the selling of betting rights. The leagues struggle to capture value from datafication and new media outlets.
Implications: The leagues face a complex challenge to increase local interest to combat interest from globally dominant leagues. They have to develop a ‘digital mindset’ and to balance value creation and capture. The hybrid strategy using traditional distribution channels as ‘backbone’ while exploring new BMs should occur. They should consider intensifying collective marketing efforts.
... The integration of digital technologies enables the internal organization of knowledge, which can be rearranged and processed to create new, valuable knowledge (Tortora et al., 2021). It also allows for collaboration between functional departments to transform and commercialize recently acquired external knowledge (Cozzolino et al., 2018;Tortora et al., 2021). Digital transformation is the most pervasive phase describing a companywide change that leads to the development of new business models (Pagani & Pardo, 2017), which may be novel to the target organization or industry. ...
Despite substantial efforts to examine the factors driving green supply chain management practices and environmental performance in emerging markets, the roles of green digital learning orientation and digital transformation facilitating these practices are still not fully understood. Utilizing the resource-based view strategy, we investigated how green digital learning orientation impacts environmental performance through green supply chain management practices, while also exploring the moderating effect of digital transformation in the green digital learning orientation and green supply chain management practices link. Our findings, based on data collected from 212 Vietnamese enterprises, indicate that that green digital learning orientation has a positive impact on green supply chain management practices, which in turn leads to improved environmental performance. Additionally, the study reveals that digital transformation plays a significant moderating role in the relationship between green digital learning orientation and green supply chain management practices. These findings make a notable contribution to the existing digital transformation and sustainable supply chain literature. The study provides both theoretical and managerial implications, which are discussed in detail.
... During the last decade, there has been increasing interest in how firms engage in business model innovation, defined as the development of business models that are either new to the world, new to the product market, or significantly new to a focal firm (Foss & Saebi, 2017;Snihur & Zott, 2020). The development of business model innovation is of course challenging, but it enhances a firm's ability to adapt to rapidly changing environments (Bock et al., 2012;Cozzolino et al., 2018;Narayan et al., 2021). ...
... In addition to business model innovation antecedents and consequences, several studies in our collection examine platforms as an important new business model Cozzolino et al., 2018;Snihur et al., 2018), with particular interest in their scaling (Zeng et al., 2022) and performance consequences (Jiang et al., 2021). Platforms differ from pipeline business models that consist of a linear value chain of activities. ...
... Research on digital platform business models emphasizes the importance of continuous learning and morphing of a firm's business model as well as the role of openness and porous boundaries that allow generative interactions with the surrounding ecosystem (Cozzolino et al., 2018;Zeng et al., 2022). For instance, Tencent grew exponentially from its original QQ social network platform business model to manage a portfolio of platforms including QQ, WeChat, and MyApp, that in turn, provided increasing access to data and helped improve its artificial intelligence (AI) competence (Zeng et al., 2022). ...
Business model research has grown into an insightful area of inquiry, and articles in the Journal of Management Studies (JMS) have greatly contributed to this topical area. This introductory article to the thematic collection of business model research offers an overview of the pertinent literature as well as foundational knowledge, so it is suitable for scholars who are familiar with the topic, but it is also helpful for those wishing to join the conversation. Business model research has thrived at the intersection of strategy, innovation management, and entrepreneurship studies. This body of research is characterized by both a bold vision to improve our understanding of the architecture and building blocks of business models as well as conceptual and empirical debates about the way forward in the digital age of continuing disruption, platformization, and ecosystem transformations. We suggest three promising areas for future research: business model portfolios, competitive dynamics between heterogeneous business models, and business model design for more sustainable economy.
