The Paradoxes of Business Model Innovation: A study of competing concerns in e-commerce

Abstract

We have all read about digitalization and the rapid pace of technological progress that is changing the business landscape. Companies are forced to adapt as customers’ expectations become higher as well as find new ways to create value in order to stay competitive. In order to benefit from the business opportunities that arise from digitalization, companies need to adjust their traditional ways of doing business. According to existing literature, organizations need to include business models in their innovation processes, but there are few companies that fully understand the process of business model innovation and the value that it generates. Companies face a challenge when it comes to maintaining the traditional way of conducting business and at the same time adapting to new innovation practices. This is something that can be recognized in the manufacturing industry. This study in turn investigates the contradictions that manufacturing companies face when exploring new business models and we have with the help of a qualitative study looked into how these companies manage establishing an ecommerce. This is of importance as it has become more difficult for companies to retain traditional business models whilst adjusting to digitalization without destroying existing fundamental business development practices.