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Publication in the "European Business Review"

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The paper titled "Business model innovation from the  strategic posture perspective: an exploration in manufacturing SMEs" by Philippe Chéreau and Oussama Ammar has been published in the "European Business Review"

​Abstract:

Business models refer to how firms effectively implement strategy by operating and by creating and capturing value in competitive marketplaces. A firm’s business model is therefore a reflection of its realised strategy. Business model innovation occurs when the firm’s strategy requires modifications in the business model due to specific contingencies. Consequently, business model innovation has been the key driver of success for many companies and a vital capability for every firm seeking a differentiable competitive advantage in changing environments. However, the established literature lacks theoretical grounding and managerial insights to understand firms’ behaviours in terms of business model innovation, in relation to their intended strategic posture and in order to achieve their strategic objectives. This study addresses this gap by exploring the differentiated propensity to innovate in a business model and the innovation interactions between business model components among strategic postures. We investigate the differentiated dynamics of business model innovation in manufacturing SMEs – a population seldom studied by scholars of strategy and business model – and provide guidance to SMEs managers regarding business model innovation, depending on the firm’s strategic posture. To this end, we designed a composite model borrowing from Miles and Snow’s typology and Demil and Lecocq’s RCOV framework. Results highlight differentiated business model innovation behaviours among strategic postures and suggest that firms tend to evolve in a path-dependent, posture-specific dynamic consistency in which business model components interact towards a limited set of alternatives, thus anchoring the new business model into strategic choices. Finally, by providing a business model innovation perspective of Miles and Snow’s adaptive cycle, we contribute to unravelling the dynamic determinants of their framework, which extends the understanding of this cycling process.

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