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By Martin Trapp

Today’s profound environmental dynamics render it more and more tough for companies to maintain company versions with returns above the ordinary. company version innovation goals to grab a brand new chance via crafting definitely the right new enterprise version. It bargains organisations a direction again to excessive returns and ecocnomic development. despite the fact that, hazard aversion and organizational rigidities may perhaps immobilize validated avid gamers. Martin Trapp employs an explorative multiple-case research overlaying huge eu businesses to spot administration practices. those practices help enterprise unit managers in effectively figuring out enterprise version innovation and, jointly, identify a planned, strategic-level administration approach.

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Hence, the BMI-identification tool must clarify on this choice. Scholars see this particular aspect of BMI as rather controversial. 164 JOHNSON et al. 165 ABDELKAFI et al. 166 AMIT / ZOTT, on the other hand, emphasize that a new business model does not need to disrupt an industry to be classified as BMI. What is important is that it yields substantial benefits to the focal firm. 167 And since this dissertation’s aim is to support managers in achieving profitable growth through BMI, the new-to-the-firm perspective, rather than the newto-the-industry perspective, shall be adopted.

5 Normative Dimension: Is BMI successful? 2 relating to the normative dimension of BMI is listed below: x BMI leads to value enhancement for the firm. 184 185 Source: own Figure. Source: own Table. 35 One of the constitutive characteristics of innovation is success. 187 However, the extant literature on BMI does not provide a clear guideline on which measures to use for determining the success of new business models in multi-business firms. Notably, one measure of success to consider according to JOHNSON et al.

312. See Moingeon / Lehmann-Ortega (2010), pp. 271-275. Source: Yunus et al. (2010), p. 312. See Johnson (2010), p. 24. Johnson employs the term “job-to-be-done” instead of “customer needs addressed” because, in his opinion, “customer needs” are often defined too broadly. 143 In order to meet the criterion, at least one of these two indicators must be new or changed-to-become-new. The second BMI criterion relates to the development of an innovative value constellation. MOINGEON / LEHMANNORTEGA argue that innovativeness of the value constellation may originate from the creation or suppression of several activities in the value chain, from changes to several activities, and/or from changes in the order of activities.

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