Session 455

Selected topics on Business models

Track A

Date: Monday, September 22, 2014


Time: 16:30 – 17:45

Common Ground

Room: Viena


  • Michael G. Jacobides, London Business School

Title: A Look at the Dark Side: Financial Innovation, Business Model Change and the 2008 Crisis


  • Michael G. Jacobides, London Business School

Abstract: Innovation, and more recently business-model innovation, has been a perennial topic of interest for strategy researchers. But while the challenges of adopting innovations or new business models have been well covered, the question of whether innovation inherently and invariably adds value has been neglected. A similarly benign view of innovation prevails in the financial sector – in spite of the disastrous economic impacts of the 2008 crisis, which can be traced to the introduction of innovative financial instruments and business models. This paper builds on a thorough examination of the historical record and our own original research to show how business-model innovation led to the financial crisis, and suggest new directions for policymakers that could avoid future catastrophes.

Title: Analysing the Disruptive Potential of Business Model Innovation in Two-Sided Service Markets


  • Sabine Pur, University of Regensburg
  • Stefan Huesig, University of Regensburg
  • Hans-Georg Mann, Roland Berger Strategy Consultants
  • Christoph Schmidhammer, Deutsche Bundesbank

Abstract: In this paper we explore how the disruptive potential can be analysed in the context of business model innovation in two-sided service markets with considerable firm heterogeneity. We propose a framework based on the disruptive potential concept and extend it to two-sided service markets to cope with different levels of disruptive potential on each market side. We illustrate this enhanced approach by applying it to the case of p2p lending marketplaces and their disruptive potential for established banks in Germany. Finally, we provide research implications together with managerial options for the future of the retail banking industry in the German context and beyond.

Title: How Do the Franchisees Differ in the International and Local Market? An Inductive Profile Derivation


  • Jaynne Rivas, Institute of Management Studies (IESA)

Abstract: Franchisees have to rigorously implement the routines of the franchise system in order to be successful. However, they have also to know the local environment in order to adapt such routines. Thus, what is the desirable franchisee profile to solve this paradox? First, I derive an implicit franchisee profile as tacitly held by the franchise systems, which is constructed by franchisors via social interaction and training. Second, I supplement this implicit definition with an examination of the characteristics of the profile by relying of the neoinstitutional theory. My findings suggest that there is a shared lexicon of the franchisee profiles to explain the desirable franchisee characteristics. This lexicon differentiates between local and international franchisee, and varied according to the industry type and the investment level.

Title: Leadership Effects on the Quality of Competitive Response


  • David Major, Indiana University

Abstract: This work links competitive dynamics to leadership theory. Exhaustive studies in competitive dynamics have decomposed the competitive process into discrete, heterogeneous actions and responses among rival firms. This paper posits the behavioral characteristics of a firm’s leadership as an important determinant of a firm’s response quality – particularly the speed and creativity of that response. The leadership literature provides theoretical foundation to argue for the moderating effect of leadership types on firm response. Here I focus on two distinct leadership types – directive and empowering – and propose stark differences in the qualities of response to rival actions. Ultimately, this framework should contribute to the expansion of leadership theory beyond intra-organizational outcomes and begin to explain the effect of leadership characteristics on inter-firm rivalry.

Title: The Academic Business Model: An Analysis of Adding Value through Theory in Our Network


  • Richard Arend, University of Missouri

Abstract: We apply data from an on-going survey to an exploratory study centred on the value that academic theory creates for its network of stakeholders. We begin to address questions of whether and how and to whom we, as strategy researchers, add new value through our published propositions. Our preliminary results reveal that the majority of our top-tier theoretical published causal relationships are obvious to business school students. That said, we provide several paths for increasing our added (and appropriable) value, including an identification of the audiences that need it most.

Title: Veni, Vendidi, Vici! An Exploration of Business Models and Technological Innovation within the Formula One Ecosystem


  • Paolo Aversa, City, University London
  • Stefan Haefliger, City University London

Abstract: Technology is intertwined with the business model (BM) in multiple ways that are not well understood nor empirically explored. To study a hypercompetitive environment, yet observable in its entire population, we chose the Formula One ecosystem, whose firms’ scope and organization may look very similar—i.e. winning car races. Yet our multiple case study reveals that the F1 teams compete through different BMs, which provide them with different sources of value generation. We show how technology enables business models and enhances their value capture, and that technological transfer and BMs influence each other in a circular feedback loop. Also, we show that BMs represent a viable tool to identify different competitive groups. Finally, firm performance appears as a function of the firms’ ability to execute their BMs rather than their BM portfolio. Theoretical implications are complemented with a discussion of how BMs in motorsport impact the automotive and other ecosystems.

All Sessions in Track A...

Sun: 15:45 – 17:00
Session 444: Business Model innovations
Mon: 08:00 – 09:15
Session 442: Performance Implications of Business models
Mon: 11:00 – 12:15
Session 305: Business Model Design and Innovation in Different Institutional Environments
Mon: 14:45 – 16:00
Session 443: Business Model Theory Development
Mon: 16:30 – 17:45
Session 455: Selected topics on Business models
Tue: 08:00 – 09:15
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 11:00 – 12:15
Session 447: Business Model Design
Tue: 15:30 – 16:45
Session 449: Busienss Model Eco-systems

Strategic Management Society