Abstract
It is important for companies to be able to make their business models dynamic. This enables them to adapt to changing circumstances and remain viable. The aim of this paper is to combine insights from the literature on business models and business model dynamics into a comprehensive dynamic business model framework. The framework that is developed in this paper takes into account various origins of changes in business models (internal or external to the company) and various types of changes in business models (primary or secondary changes and forced changes or strategic choices) and also includes the issue of business model consistency. In order to combine different origins and different types of business model change into one dynamic business model framework, some simplifications of reality were needed. The framework is described in text and shown in a comprehensive picture. The application of the framework to two cases of renewable energy companies in Indonesia shows that the framework is able to capture business model dynamics in a simplified and comprehensive way and that it allows for case study comparison. In a thorough discussion, it is shown how the framework can be adapted to make it better able to represent more complex dynamics.
Highlights
The dynamic capabilities of companies to adapt their business models over time are vital to ensuring profits for business in the long term [1,2]
Important questions related to business model dynamics, both for companies and for scientists, are, for example, ‘how can companies react to changes in their environment?’
By combining insights from the literature, this paper presents a comprehensive framework that conceptualizes business model dynamics and proposes a picture to illustrate this
Summary
The dynamic capabilities of companies to adapt their business models over time are vital to ensuring profits for business in the long term [1,2]. ‘what is the degree of freedom that companies have?’ For analyzing and evaluating these dynamics one has to look at different aspects of business models, all of which are important to business model theory as a whole These different aspects are completeness, interrelationships, and changes over time [9]. Having looked into the levels that subsequently have to be taken into account when analyzing or evaluating business model dynamics, the step is to combine them into one conceptual framework that can be used to analyze or evaluate the business model dynamics of a certain company over time. Being able to perform such an analysis with a conceptual framework provides both companies and scientists with a better understanding of which aspects to take into account when trying to better understand business model dynamics and how these aspects influence each other. Discussion and conclusions can be found in the fifth and final section
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