Table 2 BMI performance drivers Source...

Table 2

BMI performance drivers

Source	Assumption	Used term	Business model innovation performance driver (BMIpd)	Description
Zott and Amit, (2010 and Zott and Amit, (2017)	Firm’s BM as a system of interdependent activities, integrated with the outside of the focal firm	Crucial design parameter	1. Novelty	Innovate the elements of the activity system
			2. Lock-in	Creation of lock-in effects. In essence, create switching costs or enhanced incentives for business model participants to stay and transact within the activity system
			3. Complementarities	Bundling of activities with value added, produce a higher value than the sum of single activities
			4. Efficiency	Reorganization of activities to reduce transaction costs
Casadesus-Masanell and Ricart, (2011)	New BM has to be strategically consistent	Criteria/ Characteristics	1. Alignment	The innovation of the BM has to align to company’s goals, and not to the technological exploitation itself
			2. Self-reinforcement	The choices subtended by, and operated in, BMI should complement one another. There must be internal consistency of the innovations
			3. Robustness	Robustness is the driver that guarantee longevity. A good new BM should preserve its effectiveness over time, by fending off four threats: imitation, holdup, slack, substitution
Casadesus-Masanell and Ricart, (2011)	Success of the new BM depends on how it interacts with market competitors’ BMs	Drivers	1. Creation of virtuous cycles in the market	Successful business models generate virtuous cycles, or feedback loops, that are self-reinforcing
			2. Reinforcement of virtuous cycles in the market	Companies modifies their business models to generate new virtuous cycles and reinforce the existing BM
			3. Undermine rivals’ BMs	New BM success depends on how it weakens new entrants’ BM virtuous cycles. Whether a new technology disrupts an industry or not depends not only on the intrinsic benefits of that technology but also on interactions with other players
			4. Turn competitors’ strengths into weaknesses	Turn competitors into complements. Rivals with different business models can also become partners in value creation
Latifi and Bouwman, (2018)	4 moderators regulate the impact of BMI performance on firm’s performance	Moderators	1. BMI implementation	Implementation, rather than design, is the major activity of BMI that impact on firm’s performance
			2. BMI-practices	The adoption of some key-practices is crucial to support a performing BMI, such as experimentation, learning through trial-and error, etc.
			3. Firm-characteristics	Some specific characteristics of organizations can increase the impact of BMI on performance (e.g. firm size, firm experience, firm age, advertising intensity, expenditures on RandD, the intensity of change and scope of change in BM)
			4. Industry-characteristics	Industry sector, industry life cycle, industry competition, environmental conditions (dynamism, complexity, and turbulence), high-technology versus low-technology industries as relevant industry-characteristics factors, affect the impact of BMI on firm’s performance
Haggège et al., (2017)	BM configuration choices	Performance drivers	1. Rethinking customer engagement	Customer engagement should comply with: Shifting cost to customers, Increasing customer loyalty and attachment, Developing user-driven innovation
			2. Reconfiguring external linkages	Focusing on core competencies and strategic partnerships, Creating lock-in effects, Developing network-based innovation and knowledge links
			3. Optimizing internal processes	Increasing time and cost-efficiency, Reducing time to market
			4. Cultivating firm-level strategic awareness	Developing opportunity sensing, Influencing uncertain environments
			5. Developing reconfiguration capacity	Facilitating organizational learning, Developing business model portfolios
Clauss, (2016)	Condition for BMI success is a measurement scale of BM innovation	Condition	1. Measurement scale for BMI	Ten constructs of BMI are suitable as formative measures of 3 BMI dimensions: value creation, value proposition, value capture. These three dimensions form the metaconstruct of BMI measurement
Lambert and Davidson, (2013)	Strategic conditions to comply with the development of BM innovation	Factor	1. Alignment	Alignment of the new BM both internally and externally (alignment)
			2. Analytics-based	BMs were based on, and were continually monitored by using, sophisticated analytics (analytics-based)
			3. Adaptability	Successful BM are designed to be adaptable (adaptability)
Kim and Min, (2015)	Suggestions to succeed with multi-BMI (for incumbent firms)	Suggestion	1. Customer value proposition	To start a new BM with definition of the customer value proposition
			2. Profit formula	Construct a profit formula that allows value delivery to company
			3. Compare with existing BMs	Compare new models to current ones to determine whether it can be impended in the organization
			4. Learning from experience	Learning from trial-and-error
			5. Intellectual property and complementary assets	Formal intellectual property rights are key driver in the initial stage of BMI introduction, as defensive strategy, while specialized complementary assets and reconfiguration of them are needed to gain long-term sustainability
Demil and Lecocq, (2010)	BMI is a continuous process that involves an initial experiment followed by continuous reassessment and modification to suit changing conditions	Driver	1. Continuous adjustment (i.e. Permanent Disequilibrium)	BMI success depends by the capacity of firms to adjust continuously BM’s components, connections and parameters; BM should be permanently in a state of disequilibrium. This imply that BM’s structure, and innovation process, should be suited to continuous modification
Pucihar et al., (2019)	BMI drivers in SMEs	Internal driver	1. Innovativeness	It is the ability or capacity to introduce new BMs. enterprise’s ability to leverage their internal capabilities and resources to innovate their BMI
Pucihar et al., (2019)	BMI drivers in SMEs	Internal driver	2. Level of innovativeness	level of novelty of BMI, which might be new to the enterprise or to the industry
Teece, (2010)	Strategic factors	Factor	1. Barriers to imitating BM	A new business model, being more general than a business method, is very unlikely to qualify for a patent. Implementing a business model requires systems, processes and assets that are hard to replicate
			2. Opacity	Keeping a level of opacity on BMI output and process (Rumelt has referred to this opacity as “uncertain imitability”) makes it difficult to understand how a business model is implemented, or which of its elements constitute the source of customer acceptability
			3. Reluctance of incumbents	Incumbents are reluctant to replicate pioneer’s business models, if it involves cannibalizing existing sales and profits or upsetting other important business relationships. When incumbents are constrained in this way, the pioneer of a new business model enjoy a considerable period of limited competitive response.BMI should be driven by Reluctance of incumbents
Summary
11 sources	Various perspectives and assumptions	Parameter/ Criteria/ Driver/ Factor/ Suggestion/ Condition	35 BMI performance drivers, in total	Rationale: various Market, Competition, Innovation motivations

Source	Assumption	Used term	Business model innovation performance driver (BMIpd)	Description
Zott and Amit, (2010 and Zott and Amit, (2017)	Firm’s BM as a system of interdependent activities, integrated with the outside of the focal firm	Crucial design parameter	1. Novelty	Innovate the elements of the activity system
			2. Lock-in	Creation of lock-in effects. In essence, create switching costs or enhanced incentives for business model participants to stay and transact within the activity system
			3. Complementarities	Bundling of activities with value added, produce a higher value than the sum of single activities
			4. Efficiency	Reorganization of activities to reduce transaction costs
Casadesus-Masanell and Ricart, (2011)	New BM has to be strategically consistent	Criteria/ Characteristics	1. Alignment	The innovation of the BM has to align to company’s goals, and not to the technological exploitation itself
			2. Self-reinforcement	The choices subtended by, and operated in, BMI should complement one another. There must be internal consistency of the innovations
			3. Robustness	Robustness is the driver that guarantee longevity. A good new BM should preserve its effectiveness over time, by fending off four threats: imitation, holdup, slack, substitution
Casadesus-Masanell and Ricart, (2011)	Success of the new BM depends on how it interacts with market competitors’ BMs	Drivers	1. Creation of virtuous cycles in the market	Successful business models generate virtuous cycles, or feedback loops, that are self-reinforcing
			2. Reinforcement of virtuous cycles in the market	Companies modifies their business models to generate new virtuous cycles and reinforce the existing BM
			3. Undermine rivals’ BMs	New BM success depends on how it weakens new entrants’ BM virtuous cycles. Whether a new technology disrupts an industry or not depends not only on the intrinsic benefits of that technology but also on interactions with other players
			4. Turn competitors’ strengths into weaknesses	Turn competitors into complements. Rivals with different business models can also become partners in value creation
Latifi and Bouwman, (2018)	4 moderators regulate the impact of BMI performance on firm’s performance	Moderators	1. BMI implementation	Implementation, rather than design, is the major activity of BMI that impact on firm’s performance
			2. BMI-practices	The adoption of some key-practices is crucial to support a performing BMI, such as experimentation, learning through trial-and error, etc.
			3. Firm-characteristics	Some specific characteristics of organizations can increase the impact of BMI on performance (e.g. firm size, firm experience, firm age, advertising intensity, expenditures on RandD, the intensity of change and scope of change in BM)
			4. Industry-characteristics	Industry sector, industry life cycle, industry competition,environmental conditions (dynamism, complexity, and turbulence), high-technology versus low-technology industries as relevant industry-characteristics factors, affect the impact of BMI on firm’s performance
Haggège et al., (2017)	BM configuration choices	Performance drivers	1. Rethinking customer engagement	Customer engagement should comply with: Shifting cost to customers, Increasing customer loyalty and attachment, Developing user-driven innovation
			2. Reconfiguring external linkages	Focusing on core competencies and strategic partnerships, Creating lock-in effects, Developing network-based innovation and knowledge links
			3. Optimizing internal processes	Increasing time and cost-efficiency, Reducing time to market
			4. Cultivating firm-level strategic awareness	Developing opportunity sensing, Influencing uncertain environments
			5. Developing reconfiguration capacity	Facilitating organizational learning, Developing business model portfolios
Clauss, (2016)	Condition for BMI success is a measurement scale of BM innovation	Condition	1. Measurement scale for BMI	Ten constructs of BMI are suitable as formative measures of 3 BMI dimensions: value creation, value proposition, value capture. These three dimensions form the metaconstruct of BMI measurement
Lambert and Davidson, (2013)	Strategic conditions to comply with the development of BM innovation	Factor	1. Alignment	Alignment of the new BM both internally and externally (alignment)
			2. Analytics-based	BMs were based on, and were continually monitored by using, sophisticated analytics (analytics-based)
			3. Adaptability	Successful BM are designed to be adaptable (adaptability)
Kim and Min, (2015)	Suggestions to succeed with multi-BMI (for incumbent firms)	Suggestion	1. Customer value proposition	To start a new BM with definition of the customer value proposition
			2. Profit formula	Construct a profit formula that allows value delivery to company
			3. Compare with existing BMs	Compare new models to current ones to determine whether it can be impended in the organization
			4. Learning from experience	Learning from trial-and-error
			5. Intellectual property and complementary assets	Formal intellectual property rights are key driver in the initial stage of BMI introduction, as defensive strategy, while specialized complementary assets and reconfiguration of them are needed to gain long-term sustainability
Demil and Lecocq, (2010)	BMI is a continuous process that involves an initial experiment followed by continuous reassessment and modification to suit changing conditions	Driver	1. Continuous adjustment (i.e. Permanent Disequilibrium)	BMI success depends by the capacity of firms to adjust continuously BM’s components, connections and parameters; BM should be permanently in a state of disequilibrium. This imply that BM’s structure, and innovation process, should be suited to continuous modification
Pucihar et al., (2019)	BMI drivers in SMEs	Internal driver	1. Innovativeness	It is the ability or capacity to introduce new BMs. enterprise’s ability to leverage their internal capabilities and resources to innovate their BMI
Pucihar et al., (2019)	BMI drivers in SMEs	Internal driver	2. Level of innovativeness	level of novelty of BMI, which might be new to theenterprise or to the industry
Teece, (2010)	Strategic factors	Factor	1. Barriers to imitating BM	A new business model, being more general than a business method, is very unlikely to qualify for a patent. Implementing a business model requires systems, processes and assets that are hard to replicate
			2. Opacity	Keeping a level of opacity on BMI output and process (Rumelt has referred to this opacity as “uncertain imitability”) makes it difficult to understand how a business model is implemented, or which of its elements constitute the source of customer acceptability
			3. Reluctance of incumbents	Incumbents are reluctant to replicate pioneer’s business models, if it involves cannibalizing existing sales and profits or upsetting other important business relationships. When incumbents are constrained in this way, the pioneer of a new business model enjoy a considerable period of limited competitive response.BMI should be driven by Reluctance of incumbents
Summary
11 sources	Various perspectives and assumptions	Parameter/ Criteria/ Driver/ Factor/ Suggestion/ Condition	35 BMI performance drivers, in total	Rationale: various Market, Competition, Innovation motivations

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