Organizing for parallel business models in established firms

• Prior business model innovation research has paid little attention to the various choices and decisions of organizing for parallel business models. This paper explores how established firms organize for new business models that are to be run in parallel with their primary business model. Empirically we study how Skanska and IKEA, two multinational corporations developed new business models by industrializing construction. Neither full separation nor full integration was a panacea for how to organize a new business model running in parallel with the primary because the firms were unable to determine what to organizationally integrate or separate prior to implementation of the new business model. The paper argues that firms are unlikely to know how to organize for parallel business models before they know how the new business model will operate.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Annan teknik -- Övrig annan teknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Other Engineering and Technologies -- Other Engineering and Technologies not elsewhere specified (hsv//eng)

Keyword

Business model

innovation

implementation

collaboration

ambidexterity

Publication and Content Type

ref (subject category)

kon (subject category)