Seminar by Jonatan Pinkse

SALA SEMINARI - 1° PIANO, PALAZZO LEVI CASES VIA DEL SANTO 33 - ORE 13.00

08.10.2019

Seminar by Jonatan Pinkse, University of Manchester

Title: "The role of firm-level business model innovation in inducing a change in a dominant industry logic".

Abstract: 

The dominant logic of an industry refers to highly stable cognitive templates defining how value is being created, delivered and captured in this industry. This paper investigates how the dominant logic of an industry may change despite pressures towards maintenance. In particular, we investigate the performative mechanisms whereby business model innovation at the firm level may induce a permanent change in the dominant logic of an industry. Our paper is a qualitative case study of the change in the dominant logic of the electricity industry in the Netherlands from 2000 to 2016. We find that the ability of business models to induce a change in the dominant industry logic pertains to three mechanisms: creating a novel logic, undermining the dominant logic, complementing business models that form the foundation of a novel logic. We integrate these three mechanisms into a dynamic model of how business models induce a change in the dominant logic of an industry. Our results contribute to the business model literature in highlighting how firm-level business models relate to industry-level cognitive structures.

KEYWORDS: Business Model Innovation, Dominant Industry Logic, Change, Energy Industry