Linking effectuation logic with business model innovation. An investigation in the context of Swiss startups
Loading...
Author (Corporation)
Publication date
2023
Typ of student thesis
Course of study
Collections
Type
04B - Conference paper
Editors
Editor (Corporation)
Supervisor
Parent work
Proceedings of the 18th European Conference on Innovation and Entrepreneurship
Special issue
DOI of the original publication
Link
Series
Series number
18
Volume
1
Issue / Number
Pages / Duration
435-443
Patent number
Publisher / Publishing institution
Place of publication / Event location
Porto
Edition
Version
Programming language
Assignee
Practice partner / Client
Abstract
Over the last decades, business model innovation and effectuation have been widely discussed in the literature. While effectuation represents a behavioural approach for entrepreneurs using available means for founding a start-up, business model innovation represents an approach to creating a business model with long-term competitive advantages. Designing a business model requires to focus on four dimensions: customer, value proposition, value chain and revenue mechanism. A business model innovation is referred to when an innovative characteristic can be attributed to two of the four dimensions. Both effectuation and business model innovation are valuable for entrepreneurs who are pursuing growth in dynamic and uncertain business environments. This paper elaborates on effectuation and its potential effects on business model innovation. The addressed research questions are: Is the effectuation logic a facilitating aspect of business model innovation? And to what extent do entrepreneurs apply effectuation logic and design innovative business models? The underlying data consists of business plans of 25 finalists of a Swiss innovation competition with more than 100 startups from different business sectors every year. First, the chosen sample is reviewed on the extent of the application of effectuation based on selected behavioural criteria. Second, the sample is analysed for evidence of business model innovation based on the above-mentioned business model dimensions and their innovative potential. Third, the link between the two approaches is highlighted to gain insights into the potential influence of the applied decision logic to develop innovative business models, thus providing an understanding of how entrepreneurs could leverage the advantages of effectuation in the context of innovating the business model. Further research will focus on examining critical success factors of entrepreneurial behaviour in the applied business model types and their correlations with business performance.
Keywords
Subject (DDC)
330 - Wirtschaft
Event
18th European Conference on Innovation and Entrepreneurship
Exhibition start date
Exhibition end date
Conference start date
21.09.2023
Conference end date
22.09.2023
Date of the last check
ISBN
978-1-914587-83-2
978-1-914587-82-5
978-1-914587-82-5
ISSN
Language
English
Created during FHNW affiliation
Yes
Strategic action fields FHNW
Publication status
Published
Review
Peer review of the complete publication
Open access category
Diamond
License
Citation
KABOUS, Laila, Andreas HINZ und Stefan PHILIPPI, 2023. Linking effectuation logic with business model innovation. An investigation in the context of Swiss startups. In: Fernando MOREIRA und Shital JAYANTILAL (Hrsg.), Proceedings of the 18th European Conference on Innovation and Entrepreneurship. Porto. 2023. S. 435–443. 18. ISBN 978-1-914587-83-2. Verfügbar unter: https://doi.org/10.26041/fhnw-7435