Dynamics of Constraints and Organizing Practices for Business Model Innovation

Abstract

This research examines how organizational ingenuity enables organizational actors to turn constraints into new organizing practices for business model innovation. Adopting the case study method utilizing observations, interviews and internal meetings with key stakeholders of the popular ‘Lady First’ TV program in Taiwan, we analyze how, in the face of constraints, organizational actors ingenuously develop new organizing practices that enable the program to transform its business model in terms of value creation, value communication, and value capture. These organizing practices involve leveraging the knowledge of organizational actors to create value, incubating potential lead users to communicate value, and converting social capital into economic capital to capture value. Our paper contributes to the business model innovation literature by linking organizational ingenuity, constraints, and practices for business model innovation in the context of a creative services firm. The theoretical and practical implications of the study are also discussed.