Title: The role of entrepreneurial orientation and modularity for business model innovation in service companies

Authors: Ricarda B. Bouncken; Christian Lehmann; Katharina Fellnhofer

Addresses: Chair of Strategic Management and Organisation, University of Bayreuth, Prieserstrasse 2, 95440 Bayreuth, Germany ' Chair of Strategic Management and Organisation, University of Bayreuth, Prieserstrasse 2, 95440 Bayreuth, Germany ' Department of Entrepreneurship and Innovation, New Design University, Privatuniversität St. Pölten, Mariazeller Straße 97a, 3100 Sankt Pölten, Austria

Abstract: The phenomenon of business model innovation (BMI) is taking up speed in researchers' attention. Specifically service firms find it difficult to protect their intellectual property and need dynamic capabilities to invent and launch their new business models. This study on service firms' BMI applies the dynamic capability view (DCV) to understand how two capabilities, entrepreneurial orientation (EO) and modularity produce BMI. These two capabilities consider two sides of BMI. BMI relates to opportunity-seeking behaviour, creating new values and opportunity exploitation that then allows monetising and capturing value. In this respect, BMI takes advantage of the two dynamic capabilities: EO and modularity. The results of our study of 299 international service firms show that EO and modularity trigger BMI, and that EO is especially favourable for BMI in the context of high environmental uncertainty.

Keywords: business model innovation; BMI; dynamic capabilities; entrepreneurial orientation; modularity; entrepreneurship; business models; service industry; services; uncertainty; opportunity-seeking behaviour; new value creation; opportunity exploitation.

DOI: 10.1504/IJEV.2016.078973

International Journal of Entrepreneurial Venturing, 2016 Vol.8 No.3, pp.237 - 260

Available online: 05 Sep 2016 *

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