THE OPEN BUSINESS MODEL IN A DYNAMIC BUSINESS ENVIRONMENT: A LITERATURE REVIEW

Musa Khumalo,Elma Van Der Lingen

doi:10.7166/28-3-1851

Abstract

The open business model is the integration of open innovation with a business model. It is an important bridging construct between innovation and organisational performance in public and private organisation environments. The open business model is characterised by consistent change in the pursuit of competitiveness. Organisations’ inability to navigate environmental changes and challenges successfully, or their complacency about doing so, are major issues that have proved costly or life-threatening for many firms. Organisations constantly face two issues: competitiveness, and changes in the business environment. The literature points to numerous contentions about the open business model construct, about which the professional and academic fraternities have not yet reached a conclusion. Interestingly, there is near-homogeneity in the findings that business models are naturally stable and that, therefore, the open business model requires conscious effort and ingenuity to adopt. The open business model is a rising construct of public and private organisation environments, arousing interest and raising a plethora of questions from multiple groups.

Highlights

South Africa considers innovation to be an important catalyst in the economy, and National Treasury has budgeted R13.6 billion over the medium term [1], with R1 billion set aside in 2018/19 for innovation-oriented activities [2]
We posit that the open business model still seeks to achieve the same objectives as the business model, external parties are explicitly involved
The systematic literature review gives a theoretical grounding for envisaged further exploration, and allows the development of a framework or model

Summary

Introduction

South Africa considers innovation to be an important catalyst in the economy, and National Treasury has budgeted R13.6 billion over the medium term [1], with R1 billion set aside in 2018/19 for innovation-oriented activities [2]. This is predominantly distributed through public sector-driven initiatives, some of which are partner-oriented. Research still struggles to provide a unified and generally accepted definition of the open business model concept [3]. These parties are collectively referred to as the business ecosystem

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