Figure - uploaded by Alessio Cozzolino
Content may be subject to copyright.
Source publication
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...
Similar publications
Additive manufacturing (AM) has matured rapidly in the past decade and has made significant progress towards a reliable and repeatable manufacturing process. The technology opens the doors for new types of innovation in engineering product development. However, there exists a need for a design process framework to efficiently and effectively explor...
Citations
... Diese mentalen Modelle begünstigen eine Konzentration nach innen sowie ein konservatives Festhalten an bewährten Prozessen, die die Führungskräfte daran hindern, an neue Geschäftsideen anzuknüpfen (DaSilva et al. 2013). Stattdessen sehen sich Unternehmen in ihrem eigenen erfolgreichen Geschäftsmodell gefangen (Cozzolino et al. 2018;Kammerlander et al. 2018). Denn je erfolgreicher ein Unternehmen in der Vergangenheit war, desto starrer werden diese mentalen Modelle und desto schwieriger wird es, Neues zu erkunden. ...
Zusammenfassung
Dieser Artikel untersucht, wie Unternehmen Open Strategy als transparenten und inklusiven Ansatz der Strategiearbeit nutzen können, um disruptiven Gefahren erfolgreich zu begegnen. Es werden verschiedene offene Strategieformate vorgestellt, die es Unternehmen ermöglichen, neue disruptive Geschäftslogiken zu entwickeln und zu implementieren. Anhand von Praxisbeispielen werden die Chancen und Herausforderungen für Unternehmen bei der Öffnung ihrer Strategieprozesse diskutiert und fünf Erfolgsfaktoren einer offenen Strategie identifiziert. Der Artikel schließt mit der Erkenntnis, dass Open Strategy ein effektives Instrument sein kann, um potenziell disruptive Geschäftslogiken zu realisieren.
... Environmental changes and challenges constitute a major external antecedent that drives BMI. This category subsumes research that examined BMI as a response to changing ecosystem conditions (Laudien & Daxböck, 2017), exogenous crises (Averina et al., 2022;Clauss et al., 2022;Osiyevskyy & Dewald, 2018), competitive pressure (Wang & Habibulla, 2021;Zhao et al., 2020), changing customer preferences and demand conditions (Iheanachor et al., 2021;Klein, Schneider, & Spieth, 2021;Sebastiani et al., 2013), legal and regulatory aspects (Peprah et al., 2022;Tykkyläinen & Ritala, 2021), market characteristics and conditions (Holzmann et al., 2020;Landau et al., 2016), and technological progress (Cachon, 2020;Lubik & Garnsey, 2016) including digital transformation (Bohnsack et al., 2021;Cozzolino et al., 2018;Guo et al., 2020;Haaker et al., 2021). ...
... For instance, the new BM can either have a novelty-oriented or an efficiency-oriented design, which is determined by several influencing factors (Frankenberger & Sauer, 2019). The resulting BMI can also represent a novel BM for a specific purpose, such as a circular economy (Franzò et al., 2021;Gandolfo & Lupi, 2021), sustainability (Stål et al., 2022), and digital platform-based BMs (Cozzolino et al., 2018). ...
... Examination of BMI as a systematic process, emphasizing trial-and-error and experimentation concerning the BM design options for the development of new BMs. Identification of possible sources of reluctance to BM changes as well as tools and factors that may support or hinder the BMI process and the implementation of new BMs (e.g., Cosenz et al., 2020;Cozzolino et al., 2018;Franzò et al., 2021;Gandolfo & Lupi, 2021;McDonald & Eisenhardt, 2020;Willemstein et al., 2007;Zott & Amit, 2007). ...
The business model innovation (BMI) concept has become a well-established phenomenon of current academic research. While Foss and Saebi's (Journal of Management, 2017, 43, 200-227) seminal literature review on BMI revealed 349 articles on BMI published between 1972 and 2015, an additional number of 1727 articles on the topic have been published since 2016. In contrast to this overall interest in the BMI phenomenon, innovation-focused journals include only a limited number of publications on BMI. Further, besides the valuable insights and fruitful research directions of extant literature reviews, they tend also to overlook the linkages between traditional innovation management and the majority of BMI research. Given this underrepresentation of BMI research in the innovation management literature, we conduct an integrative literature review to bring the disconnected literature closer together and offer directions for future research. Our literature review applies the review strategy of blending and merging the literature across domains. First, we blend the knowledge base of the BMI domain by applying the Product Development and Management Association (PDMA) Body of Knowledge categories. Second, we merge the literature across domains by developing an integrative framework. As recent BMI literature increasingly converged to two lines of research, our framework differentiates between the relatedness of the BMI and BMI openness. Thereby, we offer new avenues for future research that can enrich the dialogue on BMI research in the innovation management community. These results demonstrate how the BMI domain covers aspects that fit, contribute to, and extend classical innovation-focused research, how both research domains can be merged to enrich each other, and how future research can foster the dialogue across disconnected domains.
... The pervasive emergence of digital technologies has hugely impacted the business sphere (Cozzolino et al. 2018;Nambisan et al. 2019;Hanelt et al. 2021;Kindermann et al. 2021). Organizations are increasingly embracing digital technologies to build ever efficient, intelligent, and self-learning business models (Verhoef et al. 2021). ...
... CIOs create shared vision for strategic alignment of IT strategy with business strategy (Preston and Karahanna 2009) and educate TMT about what digital technologies can offer to the business (Weill and Woerner 2013). The rise of new competitors who use disruptive business strategies frequently poses a threat (Cozzolino et al. 2018) to the organizations. Therefore, many times, even though the TMT members may have heard about competitor's technological success stories, they may not be sure how to replicate it at their business place (Leidner and Mackay 2007). ...
... Our findings suggest that all our case organizations have realized the importance of DT and have made DT initiatives their strategic priority. A plethora of factors such as competitive pressure, customer demands, employee expectations, and legal compliances to pandemic push have accelerated the need for DT (Cozzolino et al. 2018;Verhoef et al. 2021). We also find that The CIOs are being relied upon to bring digital-oriented transformations into the business 2 (Singh and Hess 2017). ...
With a continuous stream of emerging technologies, organizations are increasingly seeking to digitally transform their business towards ever efficient, intelligent, and self-learning business models. As the recognized head of IT, the Chief Information Officer (CIO) is often tasked with the responsibility of successfully implementing Digital Transformation (DT) initiatives. While there are independent studies on CIO role, and on the impact of DT, the role of CIO is not sufficiently examined in the DT context. This study fills this gap by conducting multiple case study of six organizations engaged in DT. Following the role theory, the study emphasizes the CIO as an actor focused on digital strategy and empirically delineates the multidimensional task demands associated with DT regarding the CIO role under the new strategic realities of the digital age. We find that while traditional CIO roles still apply, the DT context adds more nuances in such roles. Moreover, some new roles (e.g., legacy systems integration, risk management and IT security) have become crucial that are not adequately captured in extant literature on CIO roles.
... Adner and Kapoor, 2016), not, as in this present paper, that parties are interdependent with the incumbent. The process of disruption has been explored in the literature, but the focus has been on the disruption caused by a new entrant in the sector (Fichman et al., 2014), incumbents' adaptation processes (Cozzolino et al., 2018;Fraser and Ansari, 2021), or, as described by Snihur et al. (2018), how the ecosystem shifts from incumbent-to disruptor-centered during a disruption, denoting how the incumbent is forsaken by past stakeholders. With digital disruption taking place across industry sectors, and ecosystems becoming important units in organizing business, this paper's practical relevance lies in how it highlights an ecosystem role process that is relevant for many firms now and in the future. ...
... 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.
