Adapt and strive - How ventures under resource constraints create value through business model
Journal
Creativity and innovation management
ISSN
0963-1690
ISSN-Digital
1467-8691
Type
journal article
Date Issued
2017-08-16
Author(s)
Abstract
This paper explores the business model changes of new ventures. It employs the new venture as unit of analysis to investigate the role and nature of business model adaptation as a coping mechanism with resource constraints. By drawing on a case study of two ventures starting with different resources, the paper shows how the two ventures use business model adaptation under resource constraints as a way to create similar offerings. Business model adaptation involves a process of continuous search, selection, and improvement in value creation, value proposition, and value capture, based on the surrounding environment. For the two new ventures included in this study, early business model adaptations were related to (1) market — geography and customer, (2) strategy — marketing, sales, and growth, (3) profit — profit formula and cost structure, and (4) structures, processes, and capabilities. This paper contributes to business models by presenting how ventures can aim for the same offering based on different resources through clever business model adaptation.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Publisher
Willey-Blackwell
Publisher place
Oxford [u.a.]
Volume
26
Number
3
Subject(s)
Division(s)
Eprints ID
251341