Business Model Innovation: Toward a Process Perspective

Business model innovation matters to managers, entrepreneurs, and academic researchers because it represents an often underutilized source of value and, as such, could translate into sustainable performance advantage. Yet, despite the importance of the topic and the increasing attention it has received from researchers, relatively little is known about the process of business model innovation. To address this gap, this chapter draws on the design literature to derive a generalizable and normative model of the business model innovation process. This contribution links creativity at the individual and firm levels with innovation at the business model level of analysis and thus acknowledges explicitlt the multilevel nature of innovation.