Development of an integrative business model innovation framework

A growing body of literature shows that business model innovations are an integral component of and important for the success of every business. Consequently, business model innovation has attracted multidisciplinary interest, including in the disciplines of entrepreneurship, innovations management, and strategic management among others. In fact, extant literature shows that innovations to improve processes and products are often costly and their returns are uncertain. As a result, several businesses are shifting their focus from process and product innovation to business model innovations. Yet, there is evidence of a lack of conceptual clarity and understanding in the literature on the notions of business model innovation. The challenge of conceptualizing business model innovation is exacerbated by the increasingly complex and volatile business environment brought by the evolving realities of the fourth industrial revolution. Thus, the lack of understanding of business models presents a challenge to the establishment and growth of the evolving business model innovation theory and practice. Using a thematic content analysis approach, we report on the recurrent as well as divergent themes based on twenty-five (25) selected articles on business model innovation conceptualizations and practice. We then propose and present an integrative framework that aims to explain conceptualization and practices on business model innovation. The integrative framework presented in this article combines the categories of business model dimensions namely value creation, value delivery, value capture; with the emergent business model innovation concepts on cognitive configuration, strategy, performative practice, technological and market innovation, value shaping and sustainability to provide a consolidated conceptualization of business model innovation. The value of this article lies in its exploratory utility in providing a concrete foundation for future research and practice on business model innovation, through an integrative framework that defines business model innovation.