Cognitive Paths of Business Model Innovation in Small Traditional Firms: How Customers' Jobs to be Done are Processed by Small Businesses' Owners

Bitetti, Leandro and Gibbert, Michael (2020) Cognitive Paths of Business Model Innovation in Small Traditional Firms: How Customers' Jobs to be Done are Processed by Small Businesses' Owners. In: 21st International CINet Conference, 20-22.09.2020, Politecnico di Milano. (Unpublished)

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Abstract

Despite being a complex change process, continuous business model innovation allows companies to stay competitive over time. As business model innovation is deeply studied in big firms, small businesses have not received yet the same attention. The present study takes a cognitive perspective on business models and business model innovation within small firms, with the goal to deeper understand how small businesses in traditional industries (i.e. butcher’s shops) engage in continuous business model innovation over the years. Extant literature already assesses that customer’s jobs to be done are significant antecedent of business model innovation and presents different framework describing the business model innovation process. Nevertheless, we found a gap about connecting how jobs to be done are processed by business owners through their cognition as a facilitator of the initiation of the business model innovation process. To respond to this identified gap, we present a longitudinal study of eighty years of history of a small butcher's shop, which engaged in four business model innovation and two ownership successions within the family. Findings reveal four cognitive mechanisms - we labelled “anticipate”, “stimulate”, “dribble”, and “overturn” - as mediators between the job to be done and business model innovation.

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