Dynamic capabilities triggered by cloud sourcing: a stage-based model of business model innovation
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Dynamic capabilities triggered by cloud sourcing: a stage‑based model of business model innovation Mirella Muhic1 · Lars Bengtsson1 Received: 1 February 2019 / Accepted: 13 November 2019 © The Author(s) 2019
Abstract Current research offers very limited insights on the process of how the adoption and continued use of cloud sourcing might trigger and push the development of business model innovation and affect the competitive advantage of a firm. Applying an abductive approach, with two longitudinal case studies of cloud sourcing firms, and a theoretical framework based on stage-based models of business model innovation and the dynamic capability view of the firm, we develop a model of stage-based business model innovation related to the adoption and continued use of cloud sourcing. The model identifies three business model innovation stages characterized by specific types of capabilities. In between the three stages, we identify three dynamic junctures that the firm and its managers have to overcome to progress from one stage to another. In the dynamic junctures three types of dynamic capabilities were key; sensing, seizing and transformation capabilities, to pass to the next stage. The model contributes to a better understanding of the evolution of dynamic capabilities as well as the evolution of the cloud sourcing firm and cloud-based business model innovation. Keywords Cloud sourcing · Stage based model · Dynamic capabilities · Business model innovation JEL Classification M15 · O32
1 Introduction The introduction of cloud computing (Schneider and Sunyaev 2016) and cloud sourcing (Muhic and Johansson 2014; Willcocks et al. 2013a, b) represent a potentially important option to not only simplify the outsourcing of IT elements but more * Lars Bengtsson [email protected] 1
Division of Innovation Engineering, Department of Design Sciences, Faculty of Engineering LTH, Lund University, PO Box 118, 221 00 Lund, Sweden
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importantly to develop strategic innovation capabilities in order to strengthen the firm’s competitive advantage (Legner et al. 2017; Willcocks et al. 2013b). However, given the historic technology focus of the IT-function, the traditional role as an internal service provider and the separation between the IT-department and business departments (Legner et al. 2017; Vithayathil 2018) the potential of cloud sourcing to become a driver of strategic innovation remains problematic and challenging (Vithayathil 2018). Cloud computing provides on-demand access to a pool of scalable and manageable IT-resources on a pay-per-use basis (Mell and Grance 2011). IT-resources here refer to infrastructure and hardware (Infrastructure as a Service, IaaS), platforms for development (Platforms as a Service, PaaS), and application software (Software as a Service, SaaS) (Mell and Grance 2011). Examples of IaaS are Amazon EC2 who offers virtualized computing services (servers, network, data storage) where customers can deploy, control and run any software, o
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