Despite the growing interest in business model innovation (BMI), there is a lack of solid empirical evidence of its long-term effects. This gap is now closed by the research work of the authors Prof Dr Lutz Göcke (HS Nordhausen), Matthias Menter (FSU), Dr Christopher Zeeb (FSU) and Thomas Clauss (Witten University). Methodologically, the effects and distinctions of three dimensions are analysed: That of value creation, that of the value proposition and that of value capture. Specifically: How is value created? What is promised? How is this value captured?

But what exactly does the term business model innovation (BMI) mean? It refers to the adaptation or redesign of business models that can influence a company's success. Such changes can give companies important competitive advantages. For start-ups in particular, it is clearly recognisable that a change in the business model is positively linked to the success of the company. For established companies, however, the consequences of business model innovations are more complex and less obvious. These changes can have far-reaching effects: Company processes may need to be fundamentally reorganised, positioning in the market may change or even existing business areas may be affected or replaced. This results in the need to reassess the allocation of resources.

The study was based on a comprehensive data collection in which more than 35,000 press releases were analysed. Over 2,300 BMI events from 60 German listed companies were recorded and compared with fixed performance indicators. The results of the study show a positive effect of business model innovation on company performance, even if this effect occurs with a time lag.

The authors found that different parts of a business model can have positive and negative effects. It is particularly important that the company can develop better if it concentrates its efforts on certain dimensions instead of spreading them equally across many.

The results of this study have far-reaching implications for the strategic management of business model innovations. Managers should be encouraged to plan a careful allocation of resources in order to maximise the benefits of BMI activities. The study shows how important it is to think about the allocation of resources and strategic direction in the context of business model innovation.

provide a deeper analysis of the impact of business model innovation on organisational performance. In particular, the study emphasises the positive delayed effects of the various dimensions of business model innovation on performance.

The authors point out that their study paves the way for future research. In the coming period, the main aim is to investigate how the various dimensions of business model innovation fit together or can be replaced if necessary. The allocation of resources and the underlying mindset will be taken into account. This could help to better utilise resources and make smarter strategic decisions for business model innovation.

The publication of this ground-breaking study helps to deepen the understanding of business model innovation and its impact on organisations. The findings provide valuable insights for managers and researchers alike and open up new avenues for future research in this field.
You can find the full article from the Journal of Business Research here Page.