Tweaks and pivots:

The impact of customer ties on young firms' business model adaptation in an emerging industry

Lien Denoo, Helena Yli-Renko, Bart Clarysse

Research output: Contribution to conferenceAbstractOther research output

Abstract

We shed light on the question of why some firms in emerging industries experiment with their business models while others do not, and why some firms make small incremental changes while others make radical pivots. Contrary to popular wisdom, business model changes are not primarily undertaken by unsuccessful firms trying to pivot to a more viable business model. Instead, using a longitudinal sample of 187 young firms in the mobile health industry, we find that customer portfolio breadth (a novel construct capturing both customer portfolio size and diversity) drives both the likelihood and degree of business model changes and that these effects are strongest in the earliest stages of industry emergence. Our findings contribute to the literatures on business models, organizational learning, and entrepreneurship.
Original languageEnglish
DOIs
Publication statusE-pub ahead of print - 25 Jan 2019
EventAcademy of Management Specialized Conference Tel Aviv - Tel Aviv, Tel Aviv, Israel
Duration: 17 Dec 201819 Dec 2018
http://aom.org/telaviv/

Conference

ConferenceAcademy of Management Specialized Conference Tel Aviv
CountryIsrael
CityTel Aviv
Period17/12/1819/12/18
Internet address

Fingerprint

Industry
Business model
Experiment
Health
Entrepreneurship
Organizational learning
Incremental
Wisdom

Cite this

Denoo, L., Yli-Renko, H., & Clarysse, B. (2019). Tweaks and pivots: The impact of customer ties on young firms' business model adaptation in an emerging industry. Abstract from Academy of Management Specialized Conference Tel Aviv, Tel Aviv, Israel. https://doi.org/10.5465/amgblproc.telaviv.2018.0030.abs
Denoo, Lien ; Yli-Renko, Helena ; Clarysse, Bart. / Tweaks and pivots: The impact of customer ties on young firms' business model adaptation in an emerging industry. Abstract from Academy of Management Specialized Conference Tel Aviv, Tel Aviv, Israel.
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Denoo, L, Yli-Renko, H & Clarysse, B 2019, 'Tweaks and pivots: The impact of customer ties on young firms' business model adaptation in an emerging industry' Academy of Management Specialized Conference Tel Aviv, Tel Aviv, Israel, 17/12/18 - 19/12/18, . https://doi.org/10.5465/amgblproc.telaviv.2018.0030.abs

Tweaks and pivots: The impact of customer ties on young firms' business model adaptation in an emerging industry. / Denoo, Lien; Yli-Renko, Helena; Clarysse, Bart.

2019. Abstract from Academy of Management Specialized Conference Tel Aviv, Tel Aviv, Israel.

Research output: Contribution to conferenceAbstractOther research output

TY - CONF

T1 - Tweaks and pivots:

T2 - The impact of customer ties on young firms' business model adaptation in an emerging industry

AU - Denoo, Lien

AU - Yli-Renko, Helena

AU - Clarysse, Bart

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AB - We shed light on the question of why some firms in emerging industries experiment with their business models while others do not, and why some firms make small incremental changes while others make radical pivots. Contrary to popular wisdom, business model changes are not primarily undertaken by unsuccessful firms trying to pivot to a more viable business model. Instead, using a longitudinal sample of 187 young firms in the mobile health industry, we find that customer portfolio breadth (a novel construct capturing both customer portfolio size and diversity) drives both the likelihood and degree of business model changes and that these effects are strongest in the earliest stages of industry emergence. Our findings contribute to the literatures on business models, organizational learning, and entrepreneurship.

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DO - 10.5465/amgblproc.telaviv.2018.0030.abs

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Denoo L, Yli-Renko H, Clarysse B. Tweaks and pivots: The impact of customer ties on young firms' business model adaptation in an emerging industry. 2019. Abstract from Academy of Management Specialized Conference Tel Aviv, Tel Aviv, Israel. https://doi.org/10.5465/amgblproc.telaviv.2018.0030.abs