Sandström, C., & Osborne, R-G. (2011). Managing business model renewal. International Journal of Business and Systems Research, 5(5), 461-474. DOI: 10.1504/IJBSR.2011.042094

Abstract: It is well-documented that firms often need to change their business model when introducing a new product, but more knowledge is needed regarding why they struggle when trying to do so. This paper explores the challenges related to renewing an established business model. Drawing upon a case study and industrial network theory, we argue that business models are difficult to change because they are based upon interdependence throughout a system of interrelated actors. Firms are interconnected with actors beyond its boundaries and thus, only a limited control can be imposed. Our findings also suggest that firms can change their business models by identifying critical actors and by aligning incentives throughout their network.