BUSINESS MODEL RECONFIGURATION AND INNOVATION IN SMEs: A MIXED-METHOD ANALYSIS FROM THE ELECTRONICS INDUSTRY

Abstract

Previous studies often assume that business model innovation (BMI) is reflected in an entrepreneurial business model design. We assume that business model reconfiguration (BMR) takes place in more nuanced types and does not always lead to (radical) BMI. By undertaking a mixed methods study with 213 respectively 16 SMEs from the electronic industry, we uncover six basically different types of BMRs and discuss their performance implications. By this, we shape the current understanding of BMR and shed light on variety and implications of different types of BMRs. Our configuration study indicates that firms achieve superior performance when implementing a radically new business model reflected in a new configuration of all three components of the business model: value creation, value proposition, and value capture. Second, BMR can take place in types where only some parts of the business model are extensively changed, while others are only slightly adapted.