The ROAD to Continuous Business Model Innovation: A Longitudinal Study Unveiling Patterns of Cognitive Sensing Dynamic Capabilities

Bitetti, Leandro and Gibbert, Michael (2021) The ROAD to Continuous Business Model Innovation: A Longitudinal Study Unveiling Patterns of Cognitive Sensing Dynamic Capabilities. Creativity and Innovation Management.

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Abstract

The dynamic capabilities of sensing, seizing and transforming enable business model innovation. The emerging literature on the cognitive antecedents of business model innovation identifies several sensing capabilities that could facilitate the design of a new business model. However, little attention has been paid to the configuration of different patterns of sensing capabilities as enablers of business model innovations over time. This longitudinal case study uses a cognitive perspective to explore such sensing dynamic capabilities across three generations of business owners of a butcher's shop that has engaged in four business model innovations over 80 years. The innovations allowed the firm to grow, whereas most of its competitors faced severe crises or even failed because they decided to retain the same business model. Our cognitive perspective allows us to unveil different patterns of four sensing capabilities (i.e. Responding, Overturning, Anticipating and Dribbling) that allowed us to describe the ‘ROAD’ the business owners travelled to initiate their business model innovation processes. This ROAD to business model innovation and the detailed patterns underlying the four capabilities may help other small business owners develop viable business models and overcome the challenges of business model innovations.

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