PurposeMany barriers prevent firms from changing their business models. Inertia, as it accumulates over time, transforms into organizational routines that doom change; however, it can also be a source of organizational flexibility. How does a business model evolve in interaction with organizational routines? This paper aims to study the interactions between forms of participative innovation (PI) and existing business models.Design/methodology/approachThe exploratory approach includes interviews, participant and non-participant observations and archive analysis. It adapts an existing framework, based on the notion of scripts, to the evolutionary dynamic of organizational routines at the French railway company SNCF. The analysis of a set of contextual elements clarifies events over time and interactions between PI and the company’s business model.FindingsThe empirical insights indicate how existing routines can help reinvent business models. Business model components evolve along the transformation phases of PI. The case reveals co-evolutionary dynamics: evolution of the organizational routine from bureaucratic suggestion, to structured innovation, to PI leads to the transformation of the business model from functionalist, to customer-centric, to open business model.Practical implicationsFirm managers can think more proactively about how to reinvent established business models by innovating their existing routines, according to the position and role of routines, shifting from sources of rigidity and inertia to levers for innovation and change.Originality/valueThe business model concept serves as a prism of analysis for organizational routines. Organizational routines are sources of flexibility, strategic renewal and business model reinvention.
European Business Review – Emerald Publishing
Published: Jun 13, 2016
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera