Business Model Innovation in Start-ups : A qualitative case study of Business Model Innovation in the context of Technology Start-ups in Sweden

Abstract: Background: In today's digitalized and globalized business environment, entrepreneurs are constantly challenged to carefully plan its start-ups products, services or business model. Any failure in one of those components may result in a less competitive company, which could lead to failure as consequence. Business model is often seen as a central and important part of a start-up. Over time, entrepreneurs look for new ways of improving its current business model or new ways doing business always aiming economic growth. Business Model Innovation is a technique that supports companies, business managers and entrepreneurs to look for business opportunities (or business models) that would somehow be related to the company. Purpose: The main purpose of this master thesis is to expose the challenges that start-ups face in terms of business model and then to understand how the companies studied overcame those challenges by making use of business model innovation (BMI). We also look to understand what kind of impact business model innovation generated in the start-up, in terms of economic growth. Method: Primary data and secondary data were collected through qualitative semi-structured interviews involving multiple case study of five technology start-ups in Sweden. Once all data were collected and stored, we made use of open and axial coding techniques in order to perform data analysis to possibly generate a theory and the answer to the research questions. Conclusion: All start-ups are aware about the importance and positive benefits that business model innovation could bring. When it comes to challenges, there are two main problems, where the first one is related about the difficulty to abstract different business model and then incorporate into the company’s context while the second one is once they manage to overcome the first challenge, they still needs to find a way to make sure it would be profitable. Another finding is that older start-ups tends to be more aware about the positive and negative impacts that business model innovation could bring, and each company has its own method to validate a business model innovation. We analyzed each case, identified some patterns and develop a model that helps start-ups to validate potential business models to be incorporated in the company.