Avoiding to get stuck in a successful business model: Dynamic business model adaptation from a path dependence perspective
Year: 2014
Type: article
Abstract: The phenomenon of business models is receiving increasing attention in entrepreneurship research. One central challenge in the literature on business models is the question how business models can remain flexible in a changing business context. While there is agreement among scholars that business models need to be adapted, experience shows that successful business models often become inert as firms mature. In this paper we draw upon path dependence literature to discuss how firms can avoid getting stuck in their business model. We identify the options of (1) either unlocking locked-in business models or (2) avoiding the occurrence of a lock-in. We elaborate on business model development along the cases of three Swedish textile companies. The pursuit of unplanned opportunities narrows down the scope of available options and leads to the emergence of a path. On the other hand, business models also include strategic options that widen the past or at least help avoiding a complete lock-in.
Authors: Olof Brunninge, Gunnar Wramsby
Institutions: Jönköping University, University of Borås
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1578976460