Digitalization and its influence on business model innovation
By Michael Rachinger, Romana Rauter, Christiana Müller, Wolfgang Vorraber, Eva Schirgi. Journal of Manufacturing Technology Management, 2019
737 citations recorded by the source corpus.
Purpose Increased digitalization has influenced various business activities including companies’ business models (BMs) by enabling various new forms of cooperation between companies and leading to new product and service offerings as well as new forms of company relationships with customers and employees. At the same time, this digitalization has put pressure on companies to reflect on their current strategy and explore new business opportunities systematically and at early stages. While research on digitalization in the context of BMs is now gaining increased attention, a research gap still exists in this field since the number of empirical insights is limited. The paper aims to discuss these issues. Design/methodology/approach Qualitative empirical data collected from 12 key informants working in two distinctive industries, the media and automotive industries, were collected. An investigation was carried out to examine the differences and similarities among how digitalization influences a company’s value creation, proposition and capture, as well as how firms cope with challenges presented by increased digitalization. Findings The findings of the study show that, whilst digitalization is generally considered to be important, the value proposition itself as also the position in the value network determine the perceived available options for business model innovation (BMI) by digitalization. Moreover, the organizational capacities and employee competences were identified as future challenges that will be faced by both industries. Originality/value The findings of this study have revealed that representatives of the media and automotive industries perceive both the pressures and opportunities of digitalization regarding BMI; its application and exploitation, however, remain challenging. This study contributes to the existing body of knowledge by providing empirical insights in the context of digitalization and BMI.
Subfields: Industrial and Manufacturing Engineering, Marketing, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/ed6fbdf8a5f3f124931e96fe9b4c4359b73305f6
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Citations in the corpus
- The influence of a digital strategy on the digitalization of new ventures: The mediating effect of digital capabilities and a digital culture (2021, background): “…increasing the degree of digitalization in products/services as well as processes of new ventures with the help of a digital strategy might be a viable measure for new ventures to develop competitive advantages and thus be able to survive in the long run (Rachinger et al., 2018; Steininger, 2019).”
- Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation (2021, positive): “…firms to proactively take innovative and risky decisions (EO), which are facilitated by the development of proactive market information systems, external and internal knowledge sharing and collaboration processes, infrastructure elasticity and decision-making flexibility (Rachinger et al., 2019).”
- The Challenges and Opportunities in the Digitalization of Companies in a Post-COVID-19 World (2020, background): “They opened new markets for new types of products and have transformed entire industries, dematerializing the products that had been commercialized [17].”