A4 Conference proceedings

Business model experimentation in incumbent and startup companies


Publication Details
Authors: Rissanen Tommi, Sainio Liisa-Maija
Publication year: 2016
Language: English
Related Journal or Series Information: International Society for Professional Innovation Management's Innovation Conference
Title of parent publication: The XXVII ISPIM Innovation Conference – Blending Tomorrow’s Innovation Vintage
Start page: 1
End page: 12
ISBN: 978-952-265-929-3
JUFO-Level of this publication: 0
Open Access: Not an Open Access publication

Abstract
All companies are facing toughening global competition in rapidly digitalizing business environment. In order to stay competitive they must be ready to challenge, adjust and even change their business models constantly. This applies to both incumbent and startup companies. Traditionally incumbent companies have been perceived as unable to stay innovative, but now they do not have a choice. This paper presents research on the differences between incumbent and startup companies on how they change their business model through a process of experimentation. Incumbent companies have imitated the startup business model experimentation methods but they still lack the agility and courage of startup companies in business model change. However, the incumbents excel in business model validation processes. This study confirms previous research on the importance of managerial skills and managerial choices.

Last updated on 2018-19-10 at 08:49