Journal
STRATEGIC ORGANIZATION
Volume 14, Issue 3, Pages 181-219Publisher
SAGE PUBLICATIONS LTD
DOI: 10.1177/1476127016632758
Keywords
business model; cognitive search; experiential learning; innovation; organizational learning; process research
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Funding
- European Regional Development Fund as part of the EURIS/INTERREG IVC program
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This study addresses the question of how established organizations develop new business models over time, using a process research approach to trace how four business model innovation trajectories unfold. With organizational learning as analytical lens, we discern two process patterns: drifting starts with an emphasis on experiential learning and shifts later to cognitive search; leaping, in contrast, starts with an emphasis on cognitive search and shifts later to experiential learning. Both drifting and leaping can result in radical business model innovations, while their occurrence depends on whether a new business model takes off from an existing model and when it goes into operation. We discuss the implications of these findings for theory on business models and organizational learning.
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