Learning and unlearning in firms commercialising product innovations: the short-term performance implications of business model changes

Abstract

In this paper, we analyse changes in the business model components of firms commercialising product innovations. We distinguish between three different types of business model changes based on their learning vs. unlearning content. Drawing on a study of 61 product innovation commercialisation projects, we suggest that business model expansion has positive short-term performance implications, while business model substitution is likely to hurt short-term performance. No statistically significant relationship between business model contraction and short-term performance was found.