Based on a longitudinal IoT case study about the collaboration of an incumbent retailer and an incumbent electronic supplier, their study shows how the electronics supplier and the retailer jointly co-innovate the supplier's business model. The paper introduces the new theoretical perspective of business model co-innovation (BMCI).
Their study documents a dynamic non-linear BMCI process model revealing the retailer and the supplier's direct and indirect business model changes. Furthermore, the paper highlights the importance of organizational design related to the role of business development, and point on the crucial influence of critical capabilities to manage evolutionary requirement cycles as enablers of BMCI.
From the practical perspective, the findings reveal how companies can successfully integrate all components of a new business model and how BMCI can support, foster, and build an emerging BM. The findings further highlight business formation practices to overcome internal resistance and justify high investments before implementing a new business model. Overall, the case study indicates how electronics suppliers can transform and potentially benefit from the IoT-based digitalization trend.
You can open-access the paper via Springer: https://link.springer.com/article/10.1007/s12525-023-00645-4