Does business model experimentation in dynamic contexts enhance value capture?
|Starts:||13:00 4 Nov 2014|
|Ends:||14:00 4 Nov 2014|
|What is it:||Seminar|
|Organiser:||Manchester Institute of Innovation Research|
|Venue opening hours:||1pm (coffee from 12.30pm)|
|Who is it for:||University staff, Adults, Alumni, Current University students, General public|
Established theory suggests that firms experiment with business models in dynamic contexts. However, the relationship between business model experimentation and organizational performance remains undefined. Barriers to empirical analysis exist as the unit of analysis to test a business model extends beyond traditional firm boundaries and experimental business models are normally utilised by new market entrants. To overcome these limitations we propose an assessment of the economic value of business model experimentation by defining the unit of analysis at industry level. Analysis draws upon a unique balanced panel dataset from the recorded music industry composed of 352 observations from 32 countries for the period 1998–2008. Evidence is provided of the relationship between sales format diversity, taken as a proxy measure of business model experimentation, and industry revenues as the measure of value captured. The results show that while a low diversity of sales format offered in a market has a negative impact upon revenue, a highly diversified sales format is significantly linked to increases in value capture. The analysis suggests that industries with firms offering a highly diversified set of business models are best able to capture value from changing and heterogeneous consumers.
Role: Lecturer in Management Economics
Organisation: University of Birmingham
Travel and Contact Information
Harold Hankins building