Short answer
When innovating business models, prioritize frameworks with clear definitions and strong theoretical foundations to ensure a more predictable and measurable outcome.
- Field
- Innovation & Design
- Source
- Journal of Management (2016)
- Method
- Systematic Literature Review
- Evidence
- Strong effect
A systematic review of 15 years of Business Model Innovation (BMI) research reveals a need for greater theoretical underpinning and empirical rigor to provide clearer guidance for designers. This innovation & design research insight is drawn from a 2016 study published in Journal of Management. Using Systematic literature review, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When innovating business models, prioritize frameworks with clear definitions and strong theoretical foundations to ensure a more predictable and measurable outcome.
Structured business model innovation research increases clarity and actionable insights for designers
A systematic review of 15 years of Business Model Innovation (BMI) research reveals a need for greater theoretical underpinning and empirical rigor to provide clearer guidance for designers.
Journal of Management · 2016
Key Findings
- 01The existing BMI literature lacks strong theoretical underpinning.
- 02Empirical inquiry in BMI is not cumulative, making it difficult to build on previous findings.
- 03There are problems with construct clarity within the BMI literature.
- 04Gaps exist in identifying antecedent conditions, contingencies, and outcomes of BMI.
Application
Design takeaway
When innovating business models, prioritize frameworks with clear definitions and strong theoretical foundations to ensure a more predictable and measurable outcome.
How to apply
When designing a new product or service, don't just focus on the product itself, but also critically design the business model around it. Use tools like the Business Model Canvas, but ensure each block is clearly defined and its theoretical basis understood.
Project actions
- 01When proposing a new business model for your design project, clearly define each part of it (e.g., value proposition, customer segments, revenue streams).
- 02Research existing business model frameworks (like the Business Model Canvas) and understand their underlying logic.
- 03Consider how your proposed business model addresses specific market needs and how its success could be measured.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Comprehensive review of a large body of literature (150 articles).
- +Identifies critical gaps and areas for future research.
- +Provides a foundational understanding of the BMI research landscape.
Limitations
The paper is a review of existing research, not new primary data. Its findings are about the state of academic literature, not direct practical application in all contexts.
Reliability & validity
As a systematic review, its reliability depends on the rigor of the search and selection criteria for articles. Its validity rests on the accuracy of the critical assessment of the identified literature and the logical derivation of its conclusions regarding gaps and future research directions.
Think critically
How might the lack of theoretical underpinning in BMI research lead to 'fads' in business strategies that ultimately fail? What are the implications for designers who rely on these trends?
Design Principles
"Clarity and theoretical grounding in business model design lead to more effective and replicable innovation strategies."
Understanding how business models are innovated is crucial for designers to create products and services that are not only desirable and feasible but also viable. This review highlights the importance of a structured approach to BMI research, which directly impacts a designer's ability to develop commercially successful innovations.
What This Means for Your Design
This paper looked at a lot of research about how companies create new ways of making money (Business Model Innovation). It found that while many people are interested in it, the research isn't always clear or well-supported by strong theories, making it hard to learn from past efforts.
How to use in your project
- 1.In Criterion C: Developing a solution, when discussing the commercial viability or market potential of your design, you can reference the importance of a well-defined business model, citing this research's call for clarity and theoretical underpinning in BMI.
- 2.When explaining your chosen business model, explicitly state the 'constructs' (e.g., 'our revenue stream construct is based on a subscription model') and justify their theoretical basis or empirical support.
Add to My Project
Quick Cite
Paragraph starter
Foss and Saebi (2016), in their systematic review of Business Model Innovation (BMI) research, highlight a significant lack of theoretical underpinning and construct clarity within the field. This suggests that for designers, developing commercially viable solutions requires not just innovative ideas, but also a rigorously defined and theoretically sound business model. Without clear definitions of components and their interrelationships, the success of a new business model can be difficult to predict or replicate, underscoring the importance of structured thinking in the 'Innovation & Design' process.
Source
Journal of Management
Fifteen Years of Research on Business Model Innovation
journal · 2016
View sourceQuestions About This Research
- What does the research say about structured business model innovation research increases clarity and actionable insights for designers?
- When innovating business models, prioritize frameworks with clear definitions and strong theoretical foundations to ensure a more predictable and measurable outcome. Evidence: Journal of Management (2016).
- Why does "Structured business model innovation research increases clarity and actionable insights for designers" matter for design?
- Understanding how business models are innovated is crucial for designers to create products and services that are not only desirable and feasible but also viable. This review highlights the importance of a structured approach to BMI research, which directly impacts a designer's ability to develop commercially successful innovations.
- How can designers apply this research?
- When innovating business models, prioritize frameworks with clear definitions and strong theoretical foundations to ensure a more predictable and measurable outcome.
- What were the main findings?
- The existing BMI literature lacks strong theoretical underpinning.. Empirical inquiry in BMI is not cumulative, making it difficult to build on previous findings.. There are problems with construct clarity within the BMI literature.. Gaps exist in identifying antecedent conditions, contingencies, and outcomes of BMI.
- What research method was used?
- Systematic Literature Review.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2016 journal from Journal of Management.
- What should I do differently in my next project?
- When designing a new product or service, don't just focus on the product itself, but also critically design the business model around it. Use tools like the Business Model Canvas, but ensure each block is clearly defined and its theoretical basis understood.
- What are the limitations?
- The review is limited to articles published between 2000 and 2015, potentially missing more recent advancements. It focuses on academic literature, which may not fully capture practitioner insights.