Business Models : Assessment of the dynamic aspects and non-dynamic aspects

Abstract: Abstract Purpose: The purpose of this thesis was to identify and also compare dynamic issues in different business models. Findings: The thesis explored seven components of the business model including goals, scope, key activities, key resources, value proposition, customer relationship and channels. It thoroughly assessed how the sensing, seizing and transforming capabilities of the firm could be used to bring dynamism to each component and to the overall organisation’s business model. A review of the practical circumstances of three big corporations was conducted. The results included the discovery of interconnectivity and mutual dependence of the business model components, as well as some potentially linear and iterative relationships. Some components were found to foster dynamism, while some others were discovered to have the potential to impede dynamism. While the complexity and diversity of organisations’ business models was recognized, a simple framework for a dynamic business model was formulated. Research Implications: This research contributes to the understanding of dynamism of business models especially in regards to the dynamic and non-dynamic aspects of individual components. It also further highlights the need for further research on how organisations can practically make their business models dynamic through exploiting their dynamic capabilities. Practical Implications: These findings could be applied to multinationals in various industries. While companies of all sizes and in all industries could also find it useful, it should be noted that the empirical studies were conducted on multinationals. The findings could be useful in mapping out the business models through components that are easy to understand and assessing their related aspects of dynamism. Thus managers should be able to identify components of the business model that fosters dynamism, those that could hamper dynamism and how their dynamic capabilities could be exploited. Key Words: Business Model Innovation, Dynamic Capabilities, Strategy