Main Challenges of Established Companies in Business Model Innovation

Research Paper (postgraduate) from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Mendel University (Economics), language: English, abstract: The goal of this paper is to outline the main challenges of established companies in the field of business model innovation. By conducting an empirical analysis through 30 expert interviews insights are generated in the field of dealing with disruptive innovation, dominant mindset and business model innovation.

At first, the focus of the research is to identify the main levers for enabling disruptive innovation through the eyes of established companies. Secondly, a special focus of the interviews is to identify how an established organizational mindset affects the organizations behavior towards disruption. Finally the main difficulties of established organizations regarding business model innovation is outlined.

According to the research goal, the main insight regarding disruptive innovation is that 25 percent of the experts point out that they are lacking a supportive environment for dealing with disruptive innovation in the correct way. In the area of dominant logic, over 50 percent are concerned how their large, traditional and process-heavy firms can overcome their dominant mindset in order to stay competitive. Finally, 60 percent highlighted in the area of business model innovation that business innovation projects with experimentation without a reporting structure is key.

The analysis of the expert interviews reveal that established companies are aware of disruptive trends, however are not sure how to design the right environment for building the right capabilities. Secondly, it also highlights that the companies are aware of their dominant mindset as a key success factor for their business model innovation initiatives, but do not know how to create cultural shift to overcome it.

Finally, the research clearly demonstrates that the main challenges of established companies in business model innovation lays in the interlinkage between disruptive innovation, dominant mindset and business model innovation itself which needs more attention by research in the future.