Business model design and innovation: unlocking the performance benefits of innovation

Gronum, Sarel, Steen, John and Verreynne, Martie-Louise (2016) Business model design and innovation: unlocking the performance benefits of innovation. Australian Journal of Management, 41 3: 585-605. doi:10.1177/0312896215587315


Author Gronum, Sarel
Steen, John
Verreynne, Martie-Louise
Title Business model design and innovation: unlocking the performance benefits of innovation
Journal name Australian Journal of Management   Check publisher's open access policy
ISSN 0312-8962
1327-2020
Publication date 2016-01-01
Year available 2015
Sub-type Article (original research)
DOI 10.1177/0312896215587315
Open Access Status Not yet assessed
Volume 41
Issue 3
Start page 585
End page 605
Total pages 21
Place of publication London, United Kingdom
Publisher Sage Publications
Language eng
Abstract We investigate the relationships between innovation in the business model, business model design themes, and firm performance. The ‘business model view’ and the related ‘business model innovation’ as emerging strategy, and innovation research domains, remain both ill-defined and marred by vague construct boundaries and limited empirical support. We build on existing theory to test our research model in a sample of 331 Australian firms. We find that business model design themes, which we argue are mechanisms for appropriating value from the firm’s business model, mediate the relationship between innovation and firm performance. Innovation without clarity in the business model leads to modest or negligible performance outcomes. We advocate for novelty-centered design themes because they unlock and translate the value from innovation to firm performance to a greater extent than transaction efficiency and user simplicity. We contend that broad innovation within the business model matters to performance but only if firms focus their business model design efforts more narrowly on coherently entrenching novelty and efficiency within their activity and transaction architecture.
Keyword Business model design
Firm performance
Innovation
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
 
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Created: Sat, 15 Aug 2015, 00:28:25 EST by Karen Morgan on behalf of UQ Business School