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A typology of business model reconfiguration in incumbent firms

Author: Kenlind, Sarah,Havemo, Emelie
Publisher: Aalborg: Aalborg University Open Publishing
Year: 2024
DOI: 10.54337/jbm.v12i1.8404
Source: https://www.econstor.eu/bitstream/10419/319023/1/1891410628.pdf
Kenlind, Sa ah; Ha emo, Emelie
A icle
A ypology o business model econ igu a ion in
incumben i ms
Jou nal o Business Models (JOBM)
P o ided in Coope a ion wi h:
Aalbo g Uni e si y, Aalbo g
Sugges ed Ci a ion: Kenlind, Sa ah; Ha emo, Emelie (2024) : A ypology o business model
econ igu a ion in incumben i ms, Jou nal o Business Models (JOBM), ISSN 2246-2465, Aalbo g
Uni e si y Open Publishing, Aalbo g, Vol. 12, Iss. 1, pp. 43-59,
h ps://doi.o g/10.54337/jbm. 12i1.8404
This Ve sion is a ailable a :
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43
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
A Typology o Business Model Recon igu a ion in Incumben
Fi ms
Sa ah S. Kenlind1,* and Emelie Ha emo2
Abs ac
The pu pose o his s udy is o shed ligh on pa e ns o change in incumben i ms and, in doing so,
iden i y di e en ypes o app oaches o business model econ igu a ion (BMR). D awing on da a
spanning a 10-yea pe iod in he empi ical con ex o ma u e, low- ech i ms in he Swedish wood
manu ac u ing indus y, his pape de elops a ypology o BMR app oaches, namely Inc emen al,
Modula , In eg a ed and T ans o ma ional BMR. The pape illus a es he na u e o hese ypes and
o e s se e al insigh s in o he meaning and signi icance o each o ou unde s anding o BMR and
he design o business models in gene al.
Keywo ds: Business Model Recon igu a ion, Ma u e Low- ech Indus y, Typology
Acknowledgemen s: We a e hank ul o he inpu s om S a an B ege and Tomas No d, he edi o and e iewe s, and he in e iew-
ees who pa icipa ed in he s udy. The esea ch ecei ed inancial assis ance om Vinno a.
Please ci e his pape as: Kenlind, S. S., and Ha emo, E. (2024), A Typology o Business Model Recon igu a ion in Incumben Fi ms,
Jou nal o Business Models, Vol. 12, No. 1, pp. 43-59
1-2 CBMI – Cen e o Business Model Inno a ion, Depa men o Managemen and Enginee ing, Linköping Uni e si y, 581 83 Linköping,
Sweden.
* sa ah.a.kenlind@e icsson.com
In oduc ion
As compe i i e landscapes change, business model
inno a ion becomes an impo an , bu challenging,
ac i i y o manage s o incumben i ms. Typical-
ly, incumben i ms’ inno a ion ocuses on econ-
igu a ion o he exis ing business model (BMR), as
opposed o designing a new business model (BMD)
om sc a ch, which is common in new en u es
(Massa and Tucci, 2014). Recon igu ing a business
model p esen s a pa icula challenge, as i equi es
i ms o manage he ension be ween he old and he
econ igu ed business model (Massa and Hacklin,
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
44
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2021) by op ing o a le el o econ igu a ion in line
wi h he business model’s capaci y o change while
main aining i be ween he business model and i s
su ounding en i onmen (Mo is e al., 2005; De-
syllas e al., 2022). Na iga ing he ensions o BMR
can be di icul and equi es a sound unde s anding
o he ypes o change equi ed, bo h heo e ically
and p ac ically. A p esen , howe e , he business
model inno a ion li e a u e has sho comings in sys-
ema ically cha ac e izing di e en ypes o change
(Foss and Saebi, 2017), and in empi ically concep u-
alizing di e en app oaches o BMR (Desyllas e al.,
2022). As a esul , he e is an oppo uni y o ex end
he business model li e a u e h ough a sys ema ic
classi ica ion o BMR and o he eby con ibu e o
he knowledge gap wi h ega d o ypes o change
in ol ed in BMR.
To add ess he gap ega ding BMR ypes, we ollow
Lambe (2015), who desc ibes classi ica ion as a
way o o de eali y in o classes and g oups o make
sense o business models. Thus, he pu pose o his
s udy is o desc ibe pa e ns o change in incumben
i ms in o de o de elop a classi ica ion o BMR ap-
p oaches. The empi ical con ex o he Swedish
wood manu ac u ing indus y se es as an exam-
ple o a se ing wi h many ma u e incumben s. This
se ing is used o map BMR app oaches in i e case
companies o e a en-yea pe iod (di ided in o wo
i e-yea change cycles) o suppo he de elopmen
o a ypology. The longi udinal case s udy design ol-
lows he wo k o Foss and Saebi (2017), who a gue
ha longe - e m pe spec i es on business model
change suppo heo iza ion o he complexi ies o
BMR.
The es o he pape is o ganized as ollows. Fi s ,
he heo e ical unde pinnings o he s udy, includ-
ing an analy ical amewo k o measu e BMR, a e
ou lined. We hen desc ibe he me hodology and
he empi ical da a. Nex , he key insigh s sec ion
discusses he ypology o business model econ-
igu a ion, ocusing in pa icula on ad an ages and
disad an ages o he BMR ypes based on ou analy-
sis o he empi ical cases. Finally, we conclude he
pape wi h a discussion o he con ibu ions, limi a-
ions, and a enues o u u e esea ch.
Analy ical F amewo k
This pape iews business models as eal en i ies
a he le el o i ms. Howe e , one way o cap u e
eal business model is o use isual ep esen a ions
o he cons uc (Massa e al., 2017). Building on he
ecei ed li e a u e, and ancho ing in pe spec i es
ha seeks o isually ep esen he business model
a he le el o he main componen s (Mo is e al.,
2005; Hacklin and Wallnö e , 2012) and he alue
c ea ion (Teece, 2018), we dis inguished nine com-
ponen s ac oss h ee main dimensions (Os e walde
and Pigneu , 2010; B ege e al., 2014):
• he ope a ional pla o m (key esou ces, key ac-
i i ies, and cos s uc u e)
• he o e ing (p oduc s and se ices, alue p op-
osi ion, and e enue model)
•ma ke aspec s (cus ome segmen s, key ac-
o s and ela ionships, and channels)
D awing on his concep ualiza ion, BMR is de ined
as an e en o change o one o se e al business
model dimensions and sub-componen s du ing a
ce ain pe iod. I ollows ha he i s s ep o iden-
i ying BMR pa e ns is o de elop a way o measu e
change e en s a he le el o business model sub-
componen s. Howe e , despi e he as knowledge
abou business model inno a ion amassed o e he
las wo decades, he e a e ew s udies discussing
how o measu e business model inno a ion. E en in
s udies ha do de elop heo e ical indica o s o in-
no a i eness, o example “p oduc o a ge ma ke
changes” (Spie h and Schneide , 2016) o “employee
aining o new skills” (Clauss, 2017), p e ious wo ks
a ely apply hese measu es empi ically.
To add ess he lack o ope a ionalizable measu e-
men scales in he business model li e a u e, we
u ned o s udies on o ganiza ional change, om
which wo heo e ical cons uc s we e selec ed o
ope a ionalize business model change: deg ee o
change and scope o change. By desc ibing busi-
ness model change acco ding o hese cons uc s,
i is possible o cap u e bo h he dep h and b ead h
o business model change and o desc ibe he ela-
ionship be ween he cons uc s. This o e s a mo e
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
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nuanced way o classi y business model change
ha is in line wi h Maes and Van Hoo egem’s (2011)
iew ha change is a mul idimensional concep ha
canno be educed o simple dicho omies (e.g., in-
c emen al s. adical, con inuous s. episodic, o
e olu iona y s. e olu iona y). The wo cons uc s
a e discussed in mo e de ail below, including he in-
dica o s used o assess he empi ical ma e ial. An
example o how he indica o s we e applied o he
empi ical da a is included in he Appendix.
Deg ee o change
Deg ee o change e e s o how much he business
model’s dimensions and sub-componen s change:
speci ically, whe he change is based on e ine-
men s (less change) o enewals (mo e change). The
indica o s used o deg ee o change a e ou lined in
Table 1.
In his s udy, he p e equisi e o any business model
change o be classi ied as ei he enewed o e ined
is i s e ec on “s anda d epea ed p ocesses” (Ca -
alcan e e al., 2011, p. 1329). Fo his eason, he e
we e ins ances whe e change did no quali y as BMR
(indica o D1 in Table 1). Fo ins ance, me ely com-
munica ing a new alue p oposi ion wi hou al e ing
s anda d epea ed p ocesses o deli e his alue,
did no quali y. Ano he case o no quali ying was i
change o he s anda d epea ed p ocesses did no
imp o e o c ea e unc ions, making i a mis i in
ha sub-componen (Mo is e al., 2005).
Fo changes ha did quali y as BMR acco ding o indi-
ca o D1, a dis inc ion was made be ween inc emen al
and ex ensi e change in line wi h he o ganiza ional
change li e a u e. Speci ically, Kindle ’s (1979) no ion
o inc emen al change in ol es changes ha enhance
Table 1
Label Indica o s Deg ee o change
D1 Change a ec ed he s anda d epea ed p o-
cesses in he o ganiza ion.
P e equisi e o labelling a change
as ei he e inemen o enewal
D2 Change in ol ed imp o ing exis ing unc ions
in he business model sub-componen s o
dimensions.
Re inemen
D3 Change in ol ed adding o emo ing unc ions
in he business model sub-componen s o
dimensions.
Renewal (i combined wi h D4 and/
o D5)
D4 A conside able amoun o esou ces ( inancial,
angible, human) was dedica ed o he change.
Renewal (i combined wi h D3)
D5 The change was communica ed o ex e nal
audiences.
Renewal (i combined wi h D3)
Table 1: Indica o s o he deg ee o change
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
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exis ing unc ionali y. Con e sely, a ho ough enewal
in ol es subs an ial es uc u ing and ans o ma i e
shi s (Maes and Van Hoo egem, 2011). When applied
o ou concep ualiza ion o BMR, a dis inc ion can
hus be made be ween inc emen al upda es o exis -
ing sub-componen s (indica o D2) and mo e ex en-
si e enewals based on ans o ma ional changes o
cen al elemen s o he sub-componen s (indica o
D3), such as shi ing he p ima y sales channel om
o line o online. This is in line wi h he unde s anding
ha business model inno a ion can be concep ualized
on a scale om smalle e inemen s o mo e ex en-
si e ans o ma ions, which is b oadly ecognized in
he business model li e a u e, o example in s udies
desc ibing adical business model ans o ma ions
o companies such as Amazon (Ri ala e al., 2014) and
Ube (Teece, 2018) a ec ing en i e indus ies.
Finally, empi ical obse a ions led us o conclude
ha he mo e ex ensi e enewals o he business
model we e hose ha consumed conside able com-
pany esou ces (indica o D4), including communi-
ca i e e o s o con ey he change o he gene al
public (indica o D5). This echoes he o ganiza ional
change li e a u e which a gues ha communica ing
a change can se e as an indica o o i s impo ance
(Romanelli and Tushman, 1994). The e o e, a change
was ca ego ized as enewal i indica o D3 as well as
ei he D4 o D5 was p esen ; howe e , i nei he D4
no D5 was p esen , he change was conside ed as
e inemen as his mean ha no conside able e-
sou ces had been dedica ed o see i h ough.
Scope o Change
Scope o change e e s o he numbe o dimensions
and sub-componen s o he business model ha
change as a esul o an ini ial change e en . Fo
example, ocused change o one dimension is less
complex han in eg a ed change o mul iple dimen-
sions a he same ime, especially i he change aims
o enew a he han e ine he business model. The
scope cons uc was used o cap u e he idea ha
he sub-componen s o a business model in e ac
and ha hey may change dynamically because o
his in e ac ion (Demil and Lecocq, 2010). Gi en his
in e dependence, signi ican change in one sub-
componen o en igge s changes in o he s. The
dis inc ion be ween ocused and in eg a ed change
is no as widely discussed as he inc emen al-
ans o ma ional dicho omy in he business model
li e a u e. Howe e , we a gue ha i cap u es he
po en ial o a change o dis up he in e nal con-
sis ency be ween he elemen s, which is e e ed o
as “ i ” in he li e a u e (Mo is e al., 2005).
To measu e he scope o business model change, he
concep o o de s o change by Kimbe ly and Nielsen
(1975) was adop ed o ou line he di e ence be ween
ocused and in eg a ed change. The indica o s o
he scope o change a e shown in Table 2.
Table 2.
Type Indica o s Scope o change
S1 Change did no a ec any o he sub-componen None (Focused)
S2 Change in one sub-componen led o, o was combined wi h,
change in o he sub-componen s in he same dimension
Fi s -o de (Focused)
S3 Change led o change in se e al sub-componen s in a leas
one o he business model dimension
Second-o de (In eg a ed)
S4 Change led o change o mos sub-componen s ac oss all
h ee dimensions
Thi d-o de (In eg a ed)
Table 2: Indica o s o he scope o change

Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
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Fi s , indica o S1 deno es a change ha is limi ed o
a single sub-componen , meaning i is highly ocused
and does no a ec he es o he business model.
Mo eo e , in Kimbe ly and Nielsen’s (1975) amewo k,
i s -o de change (indica o S2) e e s o change ha
is ocused and con ained wi hin an o ganiza ion’s sub-
sys em. T ansla ed o he business model con ex , o-
cused change e e s o a change e en whe e only one,
o e y ew sub-componen s in he same dimension,
a e a ec ed, i.e., when he e is li le o no chain e -
ec . Second-o de change (indica o S3), meanwhile,
ex ends o o he dimensions’ sub-componen s, mak-
ing i mo e in eg a ed, as i equi es modi ying mul i-
ple sub-componen s du ing he same change e en .
Thi d-o de change (indica o S4) impac s he en i e
sys em, o en in ol ing mul iple ac o s o a chain o
sequen ial change e en s (Kimbe ly and Nielsen, 1975).
Me hodological App oach
The empi ical se ing o he pape is Swedish inished
goods manu ac u e s in he ma u e, low- ech wood
indus y, which is o en cha ac e ized by mo e slow-
paced and inc emen al change (Lei and Slocum, 2005).
In his indus y, i ms c ea e alue by u ning ma e ials
in o wood-based p oduc s, such as windows, s ai cas-
es, loo ing, u ni u e, packaging, and imbe - amed
houses. Inno a ion ac i i ies ha e o en ocused on
imp o ing he ope a ional pla o m’s e iciency. How-
e e , se e al i ms, including he i e case i ms in his
s udy, we e emb acing digi aliza ion and b oadening
bo h he scope and deg ee o change o hei BMR by
inc easingly ocusing on ma ke aspec s and o e ing
dimensions o he business model as well. This led o a
depa u e om he dominan model o slow change in
he indus y and made i a sui able empi ical con ex
o s udying di e en app oaches o BMR.
To cap u e di e en BMR ypes o e ime, a longi-
udinal quali a i e case s udy (Eisenha d , 1989) ap-
p oach was adop ed (pe Foss and Saebi, 2017). Fi e
incumben i ms o simila ages (a ound 70 yea s)
and compe i i e ou looks we e pu pose ully se-
lec ed. The case i ms u ilized a ia ions o ma u e,
low- ech business models in he same indus y, bu
di e ed in e ms o size ( ou i ms had 100–200 em-
ployees and one had a ound 900 employees), ma ke
posi ion, and o e ing: see Table 3.
Table 3.
# Case Employees
(2018)
Founded
(decade)
Case summa y
1 S ai s 120 1920s La ges wooden s ai case manu ac u e in Sweden, i o e s
a wide ange om s anda dized o cus omized s ai cases
2Windows A 900 1920s Bigges window manu ac u e in Sweden, i o e s a wide
ange o windows, om s anda dized o cus omized designs
3Windows B 100 1910s Smalle window manu ac u e ocusing on p ojec -speci ic
designs o la ge cons uc ion cus ome s
4P e ab 190 1950s Manu ac u e o p e ab ica ed u nkey modula buildings,
ully s anda dized hu s, o en al modules
5 Housing 200 1940s Manu ac u e o a wide ange o houses om s anda dized
o cus omized designs, including u nkey solu ions
Table 3: Desc ip ion o he i e case companies
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
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Da a was ga he ed o co e he pe iod be ween 2007
and 2018 ia 26 in-dep h in e iews o 30–150 min-
u es each (60 mins on a e age) and company isi s
in 2018 and 2019. The in e iewees held manage ial
posi ions: a ound 40% had wo ked a he case com-
panies o o e 10 yea s and we e able o p o ide ex-
ensi e e ospec i e da a. Addi ionally, o a mo e
comp ehensi e unde s anding o business model
change, he da a included annual epo s om 2007
o 2018 o he case companies and hei holding and
sis e companies (>70 annual epo s in o al).
We used a i e-yea cycle as he de aul cycle ime
o g oup business model change e en s and used
he ad en o digi aliza ion ini ia i es as a key e en
delinea ing he wo cycles. The ac ha he i ms,
which s a ed ou wi h simila app oaches o BMR,
inc easingly adop ed mo e di e se BMR app oaches,
makes his empi ical con ex conduci e o de elop
and popula e a ypology o BMR app oaches, pa -
icula ly in ma u e i ms. Due o he ma u e indus-
y con ex , whe e change is slow-paced, choosing
a i e-yea cycle as he de aul cycle ime was con-
side ed app op ia e. The ad an age o using a se
cycle leng h was ha i allowed us o s udy change
e en s a an empi ically ele an pace o change in
he chosen indus y, bu i is impo an o ecognize
ha cycle leng hs may di e be ween indus ies.
An example o a change e en is when he housing
company (Case 5) changed i s o e ing om selling
only u nkey p ope ies o also o e ing plo s o land
o cons uc ion. This shi equi ed in e dependen
change ac oss all dimensions o he business model,
speci ically he p oduc , ac i i ies, alue p oposi-
ion, ac o s, and channels sub-componen s.
To de elop a classi ica ion based on his empi i-
cal da a in e ms o BMR app oaches, we adop ed
an abduc i e app oach (Dubois and Gadde, 2002)
which in ol ed con inuously i e a ing be ween he
heo e ical cons uc s and empi ical insigh s. This
ensu ed ha con ex -speci ic empi ical da a was
engaged wi h in he analysis, which is key o unde -
s anding business models in speci ic con ex s (Ka-
imi and Wal e , 2016; Desyllas e al., 2022). A no el
insigh gained om his analy ical s a egy was ha
se e al BMR app oaches we e simila o inno a ion
ypes desc ibed by Hende son and Cla k (1990), who
ou line ou classes (inc emen al, modula , a chi ec-
u al, and adical) o inno a ion depending on he de-
g ee o change in he co e concep s and he amoun
o change in he linkages be ween concep s. This
and o he connec ions we e used o heo ize he
ypes o BMR in e ms o inno a ion and change in
he empi ical da a.
The c i e ia ou lined in Table 1 and Table 2 we e ap-
plied o he empi ical da a in o de o ca ego ize he
case i ms’ BMR app oaches (see he Appendix o
an example o how he indica o s we e applied). The
indica o s o he scope and deg ee o change we e
applied o all he cases du ing bo h change cycles
and esul ed in a inal classi ica ion o hei BMR
app oaches. A isual illus a ion o he analy ical
esul s is p esen ed in Figu e 1, which shows whe e
he cases we e posi ioned along he scales o wo
analy ical cons uc s.
Key Insigh s
The analysis e ealed se e al di e en BMR ap-
p oaches in he s udied i ms (see Figu e 1). Figu e
1 also illus a es ha he case i ms adop ed mo e
simila app oaches du ing cycle 1 (ei he Inc emen-
al o In eg a ed BMR), which sugges s ela i ely ho-
mogenous beha iou by he indus y’s incumben s.
No ably, howe e , mos i ms changed hei BMR
app oach be ween cycle 1 and cycle 2, esul ing in
a wide ange o BMR app oaches du ing cycle 2.
S a ing in 2012, digi aliza ion o he economy, new
s a egic di ec ions se by he i ms’ owne s, and
highe compe i i e p essu es in he cons uc ion
indus y we e key ac o s con ibu ing o he i ms
changing he scope and deg ee o BMR. D awing on
he empi ical cases, a ypology o BMR was de el-
oped (see Table 4). Table 4 summa izes each BMR
ype, as well as he ad an ages and disad an ages
o he ypes based on ou analysis o he cases. The
emainde o his chap e discusses he BMR ypes
and hei ole in business model change.
Inc emen al BMR
Inc emen al BMR is de ined as la gely independen
e inemen s o ew sub-componen s. Fo example,
he majo i y o he changes o Windows B’s BMR
du ing cycle 2 in ol ed changes o he esou ces
Jou nal o Business Models (2024), Vol. 12, No. 1, pp. 43-59
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Focused In eg a ed
Scope o Change Ac oss BM
Re inedRenewed
Deg ee o Change in
BM Sub-componen s
BMR du ing cycle 1
(2007-2012)
BMR du ing cycle 2
(2013-2018)
4
2
4
3
5
1
T ans o ma ional BMR
Inc emen al BMR
Modula BMR
In eg a ed BMR
2
5
1
3
Figu e 1: Business model econ igu a ion (BMR) in he i e manu ac u ing companies: S ai s [1],
Windows A [2], Windows B [3], P e ab [4], Housing [5]
o ac i i ies (o bo h) in he ope a ional pla o m
dimension. This allowed he company o inc ease
i s esou ce e iciency and educe cos s, which is
impo an in ma u e i ms in compe i i e se ings;
howe e , as he changes we e mainly limi ed o one
dimension’s sub-componen s, he Inc emen al BMR
add essed only one aspec o alue c ea ion. Hence,
he key ole o Inc emen al BMR can be o ine- une
sub-componen s o imp o e speci ic pa ame e s o
he business model, o example esou ce e iciency.
Inc emen al BMR could be in e p e ed as making
he “sa e” choice, since limi ing he change o one
o wo sub-componen s is less esou ce in ensi e
as well as less isky. Howe e , he empi ical case
o he windows manu ac u e B (Case 3) sugges s
ha he company did no expe ience as signi ican
a inancial pe o mance inc ease as i ms wi h o he
BMR app oaches du ing cycle 2, which could im-
ply ha Inc emen al BMR su e s when i comes o
long- e m iabili y in cases whe e a highe deg ee
o in e connec ed BMR is needed. Based on hese
obse a ions, we posi ha Inc emen al BMR can be
used o ine- uning sub-componen s o he busi-
ness model, especially i he business model and
indus y a e bo h ma u e and he ex e nal en i on-
men is s able.
Modula BMR
Modula BMR in ol es he enewal o mos , o all, o
he sub-componen s wi hin one dimension o he
business model, such as he ope a ional pla o m. I
can be applied when one BM dimension is no pe -
o ming as in ended, as i allows ha speci ic di-
mension o be upda ed independen ly o he o he
dimensions. Howe e , he empi ical da a sugges s
ha changing one dimension in his manne may be
challenging, as i could esul in educed in e nal and
ex e nal business model consis ency. Fo example,
he P e ab’s (Case 4) enewal o he ope a ional pla -
o m du ing cycle 2 ocused on e iciency gains om
au oma ion h ough new machines and ou ines. The
changes we e no linked o he o he dimensions o
sub-componen s, such as he alue p oposi ion o
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channels. As a esul , he company s uggled o capi-
alize on i s Modula BMR because he au oma ion-
o ien ed changes o he ope a ional pla o m did no
conside he impac on he ma ke (i.e., cus ome
ela ionships), which in P e ab’s case was go e ned
by powe ul buye s demanding cus omized p oduc s
a he han ope a ional e iciency. F om his exam-
ple, we in e ha Modula BMR could suppo a ge ed
changes o e i alize a single dimension o he busi-
ness model. Howe e , i may no be as e ec i e when
ex ensi e changes o he business model a e needed,
as Modula BMR can lead o lowe consis ency (i.e.,
“ i ”) be ween he dimensions in he econ igu ed
business model, o be ween he econ igu ed busi-
ness model and he ma ke .
In eg a ed BMR
In eg a ed BMR in ol es in e dependen e ine-
men s o se e al sub-componen s ac oss mul iple
dimensions. Thus, he econ igu ed business model
Table 4: Typology o business model econ igu a ions
Table 4.
BMR ype De ini ion Bene i s Challenges Examples
Inc emen al Independen e-
inemen s o ew
sub-componen s
Can be used o
ine- une speci ic
sub-componen s,
e.g., esou ces o
ac i i ies
Less isky bu may
lead o less no ice-
able ou comes han
o he BMR ypes.
Windows B’s [3]
ine- uning o e-
sou ce e iciency
du ing cycle 2
Modula Renewal o mos
sub-componen s
wi hin one dimen-
sion
Can be use ul when
one dimension is
no pe o ming as
well as he o he
wo
Requi es ca e ul
conside a ion o
in e nal and ex e nal
consis ency o he
new dimension.
P e ab’s [4] ocus
on au oma ion in
he ope a ional
pla o m du ing
cycle 2
In eg a ed In e dependen
e inemen s o
sub-componen s
in mul iple dimen-
sions
Can be used o co-
hesi e, con inuous
upda es o main-
ain consis ency
Can esul in pa h-
dependen BMR due
o changes ocusing
on e inemen a he
han enewal.
S ai s’ [1]
mul iple linked
e inemen s du ing
cycle 2
T ans o ma ional In e dependen
enewals in all
dimensions
High alue c ea ion
po en ial. Can be
use ul in esponse
o ex e nal change
p essu es
Can lead o o e ex-
ension o an exis ing
business model. May
need o couple wi h a
new pa allel business
model.
Windows A’s [2]
o e ex ension o
o e ing and Hous-
ing’s [5] dual busi-
ness model du ing
cycle 2
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Table A1
Change Cycle 1 (2007-2012): In eg a ed scope + Renewal deg ee (X shows indica o p esence)
Business model elemen s Scope o change Deg ee o change
Dimension Sub-componen E1 E2 D1 D2 D3 D4 D5 Decision (Deg ee)
Ope a ional
pla o m
Key esou ces XX X XXXRenew
Key ac i i ies X X X X X Renew
Cos s uc u e -
O e ing P oduc s and se -
ices X X X X X Renew
Value p oposi ion -
Re enue model -
Ma ke as-
pec s
Cus ome segmen s X -
Key ac o s and ela-
ionships
XX X X X X Renew
Channels XX X X X Re ine
Decision (Scope) S3 S3
Table A1: Example o an assessmen able in Case 3 (Windows manu ac u e B).

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Table A1
Change Cycle 2 (2013-2018): Focused scope + Re inemen deg ee (X shows indica o p esence)
Business model elemen s Scope o change Deg ee o change
Dimension Sub-componen E1 E2 E3 E4 E5 D1 D2 D3 D4 D5 Decision
(Deg ee)
Ope a ional
pla o m
Key esou ces X X X X X X X Re ine
Key ac i i ies X XX XXXXX Renew
Cos s uc u e -
O e ing P oduc s and se -
ices
XXXX XRenew
Value p oposi ion -
Re enue model -
Ma ke
aspec s
Cus ome segmen s -
Key ac o s and ela-
ionships X X X X Re ine
Channels -
Decision (Scope) S3 S2 S2 S1 S2
Table A1: Example o an assessmen able in Case 3 (Windows manu ac u e B). (Con inued)
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Table A1
Legend
Scope o change ( ocused o in eg a ed)
E1, E2, e c.: BM change e en s ha occu ed
du ing cycle
S1: Change did no a ec any o he sub-compo-
nen (Focused)
S2: Change in one sub-componen led o, o was
combined wi h, change in o he sub-compo-
nen s in he same dimension (Focused)
S3: Change led o change in se e al sub-com-
ponen s in a leas one o he business model
dimension (In eg a ed)
S4: Change led o change o mos sub-compo-
nen s ac oss all h ee business model dimen-
sions (In eg a ed)
Deg ee o change ( e inemen o enewal)
D1: Change a ec ed he s anda d epea ed p ocesses
in he o ganiza ion (p e equisi e o change o be
conside ed BMR)
D2: Change in ol ed imp o ing exis ing unc ions in
he business model sub-componen s o dimensions
(Re inemen )
D3: Change in ol ed adding o emo ing unc ions in
he business model sub-componen s o dimensions
(Renewal i combined wi h D4 and/o D5)
D4: A conside able amoun o esou ces ( inancial,
angible, human) was dedica ed o he change
(Renewal i combined wi h D3)
D5: The change was communica ed o ex e nal
audiences (Renewal i combined wi h D3)
Table A1: Example o an assessmen able in Case 3 (Windows manu ac u e B). (Con inued)