Effectuation Logic in Digital Business Model Transformation : Insights from Japanese High-Tech Innovators
Baber, W., Ojala, A., & Martinez, R. (2019). Effectuation Logic in Digital Business Model Transformation : Insights from Japanese High-Tech Innovators. Journal of Small Business and Enterprise Development, 26(6/7), 811-830. https://doi.org/10.1108/JSBED-04-2019-0139
Published inJournal of Small Business and Enterprise Development
DisciplineTietojärjestelmätiedeBasic or discovery scholarshipInformation Systems ScienceBasic or discovery scholarship
© 2019 Emerald Publishing Limited
Purpose. The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach. This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted with the key decision-makers from the case firms. Findings. The findings show that through digital transformation, the case firms’ digital business models evolved by following effectuation logic as well as causal logic. All the firms employed causal logic when moving to new platforms, among other actions. The case firms used effectual logic with success for product development and adjustments to their network. Especially firms providing video games relied on effectuation for high impact products. Effectual logic did not play a role at all in changes to value delivery and had only little impact on revenue structures. Originality/value. This research helps understand how digitalization of platforms and subsequent moves to newer digital platforms improve a firm by changing the business model elements through effectuation and causation logics. This research extends the understanding of digital business model transformation to a more granular level, business model elements. ...
Publication in research information system
MetadataShow full item record
Showing items with similar title or keywords.
The Design Towards a Collaborative Subscription Service : The Case of The Finnish Newspaper Industry Kazan, Erol; Tuunanen, Tuure (Springer, 2020)The newspaper industry is challenged with its business models. To stabilize revenues, publishers opted for digital subscriptions for generating additional revenue streams. However, digital subscriptions showcase limited ...
Korneeva, Ekaterina; Hönigsberg, Sarah; Dinter, Barbara (Association for Information Systems, 2023)Digital transformation affects all industries and becomes crucial to firms' success. Yet, especially small and medium-sized enterprises (SMEs) lack the competency and capacity to digitalize their processes. Importantly, ...
Business model transformation : identifying the challenges of transitioning from pipes to platforms Ogbechie, Anthony (2018)Business models illustrate the narrative of how firms create, deliver and capture value. Consistent revision, and if required complete transformation of an organization’s business model is essential if such an organization ...
Ojala, Arto; Chetty, Sylvie; Kontinen, Tanja (ICSB, 2012)Current research emphasizes several factors impacting on SME internationalization. However, it remains unclear that how entrepreneurs in SMEs think and implement their internationalization and select target countries for ...
Rings, Iisakki (2014)Entrepreneurial effectuation, a concept presented by Saras Sarasvathy (2001), is currently among the hot topics of entrepreneurship research and discussion. Being a relatively new concept, the research approaches and ...