Lean Startup Approaches (LSAs) as Means for Business Model Innovation (BMI): Insights from Swedish AI Startups

Abstract

Business Model Innovation (BMI) has gained momentum in relation to AI startups that attempt to navigate exceptionally volatile environments steered by swift trends and consistent progress. To manage successful BMI in this context, Lean Startup Approaches (LSAs) have become increasingly topical, mainly due to their emphasis on continuous improvements and adaptations. The literary contributions on this relationship, including AI startups, BMI, and LSAs are however scarce, and consequently there is currently a gap in practical perspectives on this matter. This master thesis therefore delves deeper into real-world experiences beyond solely theory in an attempt to discover how LSAs can enhance BMI in Swedish AI startups. The qualitative research approach conducted through a multiple-case study and semi-structured interviews with five Swedish AI startups shows that LSAs in practice can enhance BMI, which is demonstrated in six distinctive themes. Hence, the case evidence shows that there is a clear connection between theory and reality with regards to how LSAs can be used to promote BMI in AI startups.