Explorative versus exploitative business model change: The cognitive antecedents of firm-level responses to disruptive innovation

Strategic Entrepreneurship Journal

Volumn 9, Issue 1, 2015, Pages 58-78

  Osiyevskyy, Oleksiy ^a   Dewald, Jim ^b  

^a NORTHEASTERN UNIVERSITY   (United States)

^b UNIVERSITY OF CALGARY   (Canada)

Author keywords

Business model; Decision making; Disruptive innovation; Exploitation; Exploration

Indexed keywords

EID: 84924115440     PISSN: 19324391     EISSN: 1932443X     Source Type: Journal    
DOI: 10.1002/sej.1192     Document Type: Article

References (88)

1. Ajzen I. 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes 50: 179-211.
2. Ajzen I, Fishbein M. 1980. Understanding Attitudes and Predicting Social Behavior. Prentice Hall: Englewood Cliffs, NJ.
3. Amit R, Zott C. 2001. Value creation in e-business. Strategic Management Journal 22(6/7): 493-520.
4. AREA. 2004. Industry Viability Study: Final Report. Alberta Real Estate Association and Overview Business Consulting Inc., Calgary, Alberta, Canada.
5. Barreto I. 2012. A behavioral theory of market expansion based on the opportunity prospects rule. Organization Science 23(4): 1008-1023.
6. Benner MJ, Tripsas M. 2012. The influence of prior industry affiliation on framing in nascent industries: the evolution of digital cameras. Strategic Management Journal 33(3): 277-302.
7. Bowman EH. 1982. Risk seeking by troubled firms. Sloan Management Review 23: 33-42.
8. Camerer CF, Lovallo D. 1999. Overconfidence and excess entry: an experimental approach. American Economic Review 89(1): 306-318.
9. Casadesus-Masanell R, Ricart JE. 2010. From strategy to business models and tactics. Long Range Planning 43: 195-215.
10. Casadesus-Masanell R, Ricart JE. 2011. How to design a winning business model. Harvard Business Review 89(1/2): 100-107.
11. Charitou CD, Markides CC. 2003. Responses to disruptive strategic innovation. MIT Sloan Management Review 44: 55-63.
12. Chesbrough H. 2007. Business model innovation: it's not just about technology any more. Strategy & Leadership 35(6): 12-17.
13. Chesbrough H. 2010. Business model innovation: opportunities and barriers. Long Range Planning 43: 354-363.
14. Christensen CM. 1997. The Innovator's Dilemma: When New Technologies Cause Great Firms To Fail. Harvard Business School Press: Boston, MA.
15. Christensen CM. 2001. The past and future of competitive advantage. MIT Sloan Management Review 42(2): 105-109.
16. Christensen CM. 2006. The ongoing process of building a theory of disruption. Journal of Product Innovation Management 23: 39-55.
17. Christensen CM, Bower J. 1996. Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal 17(3): 197-218.
18. Christensen CM, Horn MB, Johnson CW. 2008. Disrupting Class: How Disruptive Innovation will Change the Way the World Learns. McGraw-Hill: New York.
19. Christensen CM, Raynor ME. 2003. The Innovator's Solution: Creating and Sustaining Successful Growth. Harvard Business School Press: Boston, MA.
20. Christensen PS, Madsen OO, Peterson R. 1994. Opportunity identification: the contribution of entrepreneurship to strategic management. Working paper, Aarhus University Institute of Management, Aarhus, Denmark.
21. Curseu PL, Louwers D. 2008. Entrepreneurial experience and innovation: the mediating role of cognitive complexity. In Entrepreneurial Strategic Decision Making: A Cognitive Perspective, Vermeulen PAM, Curseu PL (eds). Edward Elgar Publishing: Northampton, MA; 146-160.
22. Cyert RM, March JG. 1992. A Behavioral Theory of the Firm (2nd edn). Blackwell: Oxford, U.K.
23. DaSilva CM, Trkman P. 2014. Business model: what it is and what it is not. Long Range Planning 47(6): 379-389.
24. DaSilva CM, Trkman P, Desouza K, Lindič J. 2013. Disruptive technologies: a business model perspective on cloud computing. Technology Analysis & Strategic Management 25(10): 1161-1173.
25. D'Aunno T, Sutton RI. 1992. The responses of drug abuse treatment organizations to financial adversity: a partial test of the threat-rigidity thesis. Journal of Management 18(1): 117-131.
26. Dewald J, Bowen F. 2010. Storm clouds and silver linings: responding to disruptive innovations through cognitive resilience. Entrepreneurship Theory and Practice 34(1): 197-218.
27. Dutton JE, Jackson SE. 1987. Categorizing strategic issues: links to organizational action. Academy of Management Review 12(1): 76-90.
28. Economist, The. 2013. Revenge of the nerds: an explosion of start-ups is changing finance for the better. 3 August: 59.
29. Fiegenbaum A, Thomas H. 1988. Attitudes toward risk and the risk-return paradox: prospect theory explanations. Academy of Management Journal 31: 85-106.
30. Fini R, Grimaldi R, Marzocchi GL, Sobrero M. 2012. The determinants of corporate entrepreneurial intention within small and newly established firms. Entrepreneurship Theory and Practice 36(2): 387-414.
31. Finkelstein S, Hambrick DC. 1996. Strategic Leadership: Top Executives and their Effects on Organizations. West Publishing: St. Paul, MN.
32. Furr NR, Cavarretta F, Garg S. 2012. Who changes course? The role of domain knowledge and novel framing in making technology changes. Strategic Entrepreneurship Journal 6(3): 236-256.
33. Gavetti G. 2012. Toward a behavioral theory of strategy. Organization Science 23(1): 267-285.
34. George G, Bock AJ. 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice 35(1): 83-111.
35. Gilbert C. 2005. Unbundling the structure of inertia: resource versus routine rigidity. Strategic Management Journal 48(5): 741-763.
36. Hair JF, Black WC, Babin BJ, Anderson RE. 2010. Multivariate Data Analysis (7th edn). Prentice Hall: Upper Saddle River, NJ.
37. Harris D, Helfat C. 1997. Specificity of CEO human capital and compensation. Strategic Management Journal 18(11): 895-920.
38. Holmes RM, Bromiley P, Devers CE, Holcomb TR, McGuire JB. 2011. Management theory applications of prospect theory: accomplishments, challenges, and opportunities. Journal of Management 37(4): 1069-1107.
39. Iacobucci D, Saldanha N, Deng X. 2007. A meditation on mediation: evidence that structural equations models perform better than regressions. Journal of Consumer Psychology 17(2): 140-154.
40. Iyer DN, Miller KD. 2008. Performance feedback, slack, and the timing of acquisitions. Academy of Management Journal 51(4): 808-822.
41. Joreskog KG, Sorbom D, Wallentin FY. 2006. Latent variable scores and observational residuals. Working paper, Uppsala University, Uppsala, Sweden.
42. Kahneman D, Lovallo D. 1993. Timid choices and bold forecasts: a cognitive perspective on risk taking. Management Science 39(1): 17-31.
43. Kahneman D, Tversky A. 1979. Prospect theory: an analysis of decision under risk. Econometrica 47(2): 263-291.
44. Krueger NF, Reilly MD, Carsrud AL. 2000. Competing models of entrepreneurial intentions. Journal of Business Venturing 15(5/6): 411-432.
45. Ladurantaye S. 2011a. A storybook ad campaign for realtors. The Globe and Mail, 22 March: B7.
46. Ladurantaye S. 2011b. Real estate industry, Competition Bureau lock horns again. The Globe and Mail, 28 May: B5.
47. Latham SF, Braun M. 2009. Managerial risk, innovation, and organizational decline. Journal of Management 35(2): 258-281.
48. Laughhunn DJ, Payne JW, Crum R. 1980. Managerial risk preferences for below-target returns. Management Science 26(12): 1238-1249.
49. Lehner JM. 2000. Shifts of reference points for framing of strategic decisions and changing risk-return associations. Management Science 46: 63-76.
50. Leonard-Barton D. 1992. Core capabilities and core rigidities: a paradox in managing new product development. Strategic Management Journal, Summer Special Issue 13: 111-125.
51. March JG. 1991. Exploration and exploitation in organizational learning. Organization Science 2(1): 71-87.
52. March JG, Shapira Z. 1982. Behavioral decision theory and organizational decision theory. In Decision Making: An Interdisciplinary Inquiry, Ungson G, Braunstein D (eds). Kent Publishing: Boston, MA: 92-115.
53. March JG, Shapira Z. 1987. Managerial perspectives on risk and risk taking. Management Science 33(11): 1404-1418.
54. March JG, Shapira Z. 1992. Variable risk preferences and the focus of attention. Psychological Review 99(1): 172-183.
55. Markides C. 1997. Strategic innovation. Sloan Management Review 38(3): 9-23.
56. Markides C. 1998. Strategic innovation in established companies. Sloan Management Review 39(3): 31-42.
57. Markides C. 2006. Disruptive innovation: in need of better theory. Journal of Product Innovation Management 23: 19-25.
58. Markides C, Charitou C. 2004. Competing with dual business models: a contingency approach. Academy of Management Executive 18(3): 22-36.
59. Markides C, Oyon D. 2010. What to do against disruptive business models (when and how to play two games at once). MIT Sloan Management Review 51(4): 24-32.
60. Miles RE, Snow CC. 1978. Organizational Strategy, Structure, and Process. McGraw-Hill: New York.
61. Morris MH, Shirokova G, Shatalov A. 2013. The business model and firm performance: the case of Russian food service ventures. Journal of Small Business Management 51(1): 46-65.
62. Osiyevskyy O. 2014. Established firms' strategic decision making when faced with low-end disruptive innovation. Doctoral dissertation, University of Calgary, Calgary, Alberta, Canada. Available at: http://hdl.handle.net/11023/1412 (accessed 13 July 2014).
63. Osiyevskyy O, Dewald J. Inducements, impediments, and immediacy: exploring the cognitive drivers of small business manager's intentions to adopt business model change. Journal of Small Business Management. Forthcoming.
64. Osiyevskyy O, Hayes L, Krueger N, Madill CM. 2013. Planning to grow? Exploring the effect of business planning on the growth of small and medium enterprises (SMEs). Entrepreneurial Practice Review 2(4): 36-56.
65. Osiyevskyy O, Zargarzadeh MA. Business model design and innovation in the process of expansion and growth of global enterprises. In Global Enterprise Management: A New Perspective on Challenges and Future Development, Camillo AA (ed). Palgrave McMillan: New York. Forthcoming.
66. Pablo AL. 1997. Reconciling predictions of decision making under risk: insights from a reconceptualized model of risk behavior. Journal of Managerial Psychology 12(1): 4-20.
67. Penrose ET. 1959. The Theory of the Growth of the Firm. Oxford University Press: New York.
68. Porter ME. 1980. Competitive Strategy. Free Press: New York.
69. Prahalad CK, Bettis R. 1995. The dominant logic: retrospective and extension. Strategic Management Journal 16(1): 5-14.
70. Roberts G. 2011. Lessons in low-cost real estate brokerage. Inman News, 24 June. Available at: http://www.inman.com/2011/06/24/lessons-in-low-cost-real-estate-brokerage/ (accessed 19 January 2015).
71. Rosenkopf L, Nerkar A. 2001. Beyond local search: boundary-spanning, exploration, and impact in the optical disc industry. Strategic Management Journal 22(4): 287-306.
72. Saber JL, Messinger PR. 2010. The impact of e-information on residential real estate services: transaction costs, social embeddedness, and market conditions. Canadian Journal of Administrative Sciences 27(1): 53-67.
73. Schendel DE, Patton GR, Riggs J. 1976. Corporate turnaround strategies: a study of profit decline and recovery. Journal of General Management 3: 3-11.
74. Shane S, Venkataraman S. 2000. The promise of entrepreneurship as a field of research, Academy of Management Review 25(1): 217-226.
75. Shimizu K. 2007. Prospect theory, behavioral theory, and the threat-rigidity thesis: combinative effects on organizational decisions to divest formerly acquired units. Academy of Management Journal 50(6): 1495-1514.
76. Simon HA. 1959. Theories of decision making in economics and behavioral science. American Economic Review 49(3): 253-283.
77. Staw BM, Sandelands LE, Dutton JE. 1981. Threat-rigidity effects in organizational behavior:a multilevel analysis. Administrative Science Quarterly 26: 501-524.
78. Stuart TE, Podolny JM. 1996. Local search and the evolution of technological capabilities. Strategic Management Journal, Summer Special Issue 17: 21-38.
79. Sutton S. 1998. Predicting and explaining intentions and behavior: how well are we doing? Journal of Applied Social Psychology 28(15): 1317-1338.
80. Teece D. 2010. Business models, business strategy and innovation. Long Range Planning 43: 172-194.
81. Tripsas M. 1997. Unraveling the process of creative destruction: complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal 18(1): 119-142.
82. Tripsas M, Gavetti G. 2000. Capabilities, cognition, and inertia: evidence from digital imaging. Strategic Management Journal 21(10/11): 1147-1161.
83. Tubbs ME, Ekeberg SE. 1991. The role of intentions in work motivation: implications for goal-setting theory and research. Academy of Management Review 16: 180-199.
84. Wiersema MF, Bantel KA. 1992. Top management team demography and corporate strategic change. Academy of Management Journal 35(1): 91-121.
85. Wiseman RM, Bromiley P. 1996. Toward a model of risk in declining organizations: an empirical examination of risk, performance, and decline. Organization Science 7(5): 524-543.
86. Zott C, Amit R. 2007. Business model design and the performance of entrepreneurial firms. Organization Science 18: 181-199.
87. Zott C, Amit R. 2008. The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal 29(1): 1-26.
88. Zott C, Amit R, Massa L. 2011. The business model: recent developments and future research. Journal of Management 37(4): 1019-1042.