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The business model dilemma of technology shifts
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.ORCID iD: 0000-0002-7443-7761
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.ORCID iD: 0000-0001-9277-0288
2014 (English)In: Technovation, ISSN 0166-4972, E-ISSN 1879-2383, Vol. 34, no 9, 525-535 p.Article in journal (Refereed) Published
Abstract [en]

Technology shifts are lethal to many manufacturing companies. Previous research indicates that this is not purely a problem of technological innovation, but is also closely related to the inertia of business models and business model innovation. This paper inquires into the dynamics of this intersection between technology and business models. Anchored in a case study in the automotive industry, it reveals how a potential technology shift constitutes a business model dilemma for firms leading in the existing technology. The paper illustrates why technology shifts are so difficult to master and contributes to theory by suggesting that managing technology shifts does not require either technology or service innovation in order to create a viable business model, but instead a compound of both. Furthermore, the paper applies a business model perspective to illustrate the explanatory power of analyzing the challenges of technology shifts faced by incumbent firms.

Place, publisher, year, edition, pages
2014. Vol. 34, no 9, 525-535 p.
Keyword [en]
Business model dilemma, Business models, Electric road system (ERS), Servitization, Strategy, Technology shift, Truck manufacturers
National Category
Business Administration Other Engineering and Technologies not elsewhere specified
Identifiers
URN: urn:nbn:se:kth:diva-124551DOI: 10.1016/j.technovation.2014.02.006ISI: 000340310000004Scopus ID: 2-s2.0-84904794384OAI: oai:DiVA.org:kth-124551DiVA: diva2:636326
Conference
IAMOT 2012, Taiwan
Note

QC 20140916

Working paper number: TRITA IEO-R 2012:08.

Available from: 2013-07-09 Created: 2013-07-09 Last updated: 2017-12-06Bibliographically approved

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Tongur, StefanEngwall, Mats

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  • apa
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  • de-DE
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  • Other locale
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