Insight on Business Model Innovation in Norway
Business models and business model innovation have become increasingly influential in management research, as well as in managerial practice.
Business model innovation is often advocated as the new the new source of competitive advantage for companies, as they are more complex and difficult to imitate.
However, it is not clear how prevalent business model innovation is amongst Norwegian companies. In fall 2014, the research group in Theme 1 at CSI collected data from 284 CEOs of Norwegian companies across all industries. This report (download below) presents the State of Business Model Innovation in Norway, carried out on behalf of CSI. This is the first, large scale study to probe the adoption of business model innovation in Norway.
Essentially, business models specify the 1) the firm’s value proposition, (2) the market segments it addresses, (3) the structure of the value chain, which is required for realizing the value proposition, and (4) the mechanisms of value capture that the firm deploys (Foss and Saebi, 2015).
Managers can innovate an existing business model by changing one or more dimensions of the business model. To be exact, we can differentiate the extent to which firms truly innovate the business model or simply adapt it to industry standards. That is, we asked whether changes to the business model where new to the firm but known to the industry (“business model adaptation”) or new to the firm and new to the industry (“business model innovation”) (see Saebi, 2015).
The results show that not many companies had innovated their business model over the past years. Innovation is most present in the value proposition component of the business model, with 24.6% of firms innovating their offering. In contrast, value capture is the least common component to be innovated, as 84.5% of respondent indicated no change to their value capture mechanisms over the past three years.
For more insight on business model innovation in Norway, please download Our free CSI report.
Foss, N.J., & Saebi, T., 2015. Business models and business model innovation: Bringing organization into the field, in: N.J. Foss & T. Saebi (Eds.), Business model innovation: The organizational dimension. Oxford: Oxford University Press.
Saebi, T., 2015. Evolution, adaption or innovation? A contingency framework on business model dynamics, in: Foss, N.J., & Saebi, T. (Eds.), Business model innovation: The organizational dimension. Oxford: Oxford University Press.