Managerial Opportunity Recognition in Business Model Innovation

Table of Contents

1 Introduction

1.1 Problem position

1.2 Objective and course of the work

2 Literature Review

2.1 Goals, structure and rationale for structure

2.2 Methodology of the literature review

2.3 Identification and selection of relevant journals and articles

2.4 Reviewing the current state of research

2.4.1 Business Model literature

2.4.1.1 Understanding & Rise of Business Model

2.4.1.2 Definition of the term Business Model

2.4.1.3 Business models as role models, scale models and recipes

2.4.2 Innovation and Innovation Management

2.4.3 Business Model Innovation

2.4.3.1 Understanding of Business Model Innovation

2.4.3.2 Degree and competitive advantage of BMI

2.4.4 Opportunity recognition

2.4.4.1 Opportunity recognition: Basics and definition

2.4.4.2 Managerial Opportunity recognition & BMI

2.5 Literature findings and uncovering research gaps

3 Methodology of the expert interviews

3.1 Research Design

3.2 Data collection

3.3 Data analysis

4 Results

4.1 Background and conceptual understanding of the interview partners

4.2 Results: Managerial OR in Business Model Innovation

4.2.1 Main Drivers of managerial OR in BMI

4.2.2 Sources of Information of managerial OR in BMI

4.2.3 Deliberate vs. systematic processes of managerial OR in BMI

4.2.4 External help of managerial OR in BMI

4.2.5 Problems and hurdles of managerial OR in BMI

5 Discussion

5.1 Lessons Learned

5.1.1 Understanding of the interviewees regarding BM, BMI & OR

5.1.2 Main sources for information and data

5.1.3 Managerial OR as a process

5.1.4 The concept of dominant logic and its influence in practise

5.1.5 Key factors influencing managerial OR in BMI

5.2 Implementation/transfer of ‘lessons learned’ in practice

6 Conclusion

6.1 Summary & outlook

6.2 Limitations & uncovering research gaps

Objective and Thematic Focus

The primary objective of this master's thesis is to investigate the relationship between managerial opportunity recognition (OR) and business model innovation (BMI) within established organizations, specifically focusing on the factors that hinder or facilitate managers in identifying new business opportunities.

• The theoretical interplay between managerial opportunity recognition and the components of a business model (value proposition, value creation, and value capture).
• Identification of key drivers, both proactive and reactive, that influence how managers recognize opportunities for business model innovation.
• Examination of internal and external hurdles to innovation, including the concept of "dominant logic" as a barrier to recognizing change.
• Exploration of practical processes, tools, and sources of information used by executives in incumbent firms to systematically identify and realize innovative opportunities.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides an overview of the research topic, defines the problem of missed opportunities in incumbent firms, and outlines the objectives of the master's thesis.

2 Literature Review: Synthesizes scientific literature on business models, innovation management, and opportunity recognition to build a theoretical framework for the study.

3 Methodology of the expert interviews: Describes the research design, data collection, and analysis methods used, including the execution of 10 expert interviews with decision-makers.

4 Results: Details the empirical findings from the interviews, structured around key drivers, information sources, processes, external support, and hurdles regarding opportunity recognition.

5 Discussion: Interprets the empirical findings in relation to existing theory, focusing on lessons learned regarding managerial opportunity recognition and dominant logic.

6 Conclusion: Summarizes the study’s main contributions, highlights practical implications for managers, and addresses study limitations and future research needs.

Keywords

Business Model Innovation, BMI, Opportunity Recognition, OR, Managerial Opportunity Recognition, Strategic Management, Incumbent Firms, Value Proposition, Value Creation, Value Capture, Dominant Logic, Expert Interviews, Corporate Innovation, Innovation Management.

Frequently Asked Questions

What is the central focus of this master's thesis?

The thesis focuses on the role of managers in recognizing business opportunities within established companies, specifically examining how this activity relates to business model innovation.

What are the primary themes discussed in this work?

The work covers business model definitions, the distinction between product innovation and business model innovation, the underlying processes of opportunity recognition, and organizational barriers like "dominant logic."

What is the primary objective of this research?

The main goal is to identify the factors—both internal and external—that either hinder or help managers in identifying business opportunities that can lead to successful business model innovation.

Which research methodology does the author use?

The author employs a qualitative research design, specifically conducting 10 semi-structured expert interviews with CEOs, managing directors, and founders from various German and Austrian industries.

What does the main part of the analysis cover?

The analysis treats the business model as a system composed of three elements: value proposition, value creation, and value capture, and examines how opportunity recognition interacts with these elements.

How is the thesis characterized by its keywords?

The thesis is best described by terms such as Business Model Innovation, Opportunity Recognition, Managerial Decision-Making, Incumbent Firms, and Dominant Logic.

How does the author explain the "dominant logic" concept?

The concept is described as the totality of thought patterns anchored in managers' minds that guide decision-making, which can act as a cognitive filter that inadvertently leads to organizational blindness regarding new opportunities.

What conclusion does the author draw regarding customer integration?

The study concludes that the customer is the central "nodal point" in the opportunity recognition process; companies that integrate customer needs systematically in a "people-focused" fashion have a significantly higher success rate in developing innovative business models.