Being Different by Being Yourself: Identity as a Driver of Business Model Innovation

• While the concept of business models as a source of competitive advantage is noticeably established, we have a paucity in understanding how new business models are created and existing ones changed. In line with some recent studies, we draw attention to endogenous processes of business model innovation (as opposed to the more prominent logic of exogenous motivation). Following the notion that identity is central to an organization’s self-concept and control for appropriate action, we develop a model of how organizational identity affects the motivation (i.e., what triggers the need for innovation) and sourcing (i.e. where do constituents of the new business model come from) of business model innovation. Based on a longitudinal case study of an open source company, we highlight how a distinct choice for a hybrid identity (i.e. multiple, possibly conflicting organizational claims) drove the design and subsequent innovation of three different business models over the course of a 14 year period. This study contributes to the behavioral perspective in strategy by analyzing business models as reflections of an organization's self-concepts.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Publication and Content Type

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