Exploring the Role of Popular Management Theories for BMI Research
A theory is nothing more than a new tool to provide explanation of an empirical phenomenon or conceptional statement. Many grand theories could contribute to business model research, and they can spice up business model research by helping to look at the
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Exploring the Role of Popular Management Theories for BMI Research
Abstract A theory is nothing more than a new tool to provide explanation of an empirical phenomenon or conceptional statement. Many grand theories could contribute to business model research, and they can spice up business model research by helping to look at the phenomenon from new angles. Twenty renowned theories in management science with potential for future research in exploring the field of business models are presented in this chapter. It introduces each of the theories separately in a compact format. In addition, an analysis of the business model literature that has explicitly drawn on the respective theory is presented. Ultimately, avenues for future research are proposed. In doing so, this study is amongst the first analyses that reviews the literature on business models from a theoretical perspective and, as a result, derives principal gaps in the field. Keywords Business models • Business model innovation • New theoretical views • Review of 20 management theories • Avenues for future research • Future research directions
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ABSORPTIVE CAPACITY THEORY
According to Cohen and Levinthal (2015), absorptive capacity is ‘the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends’ (p. 128). Absorptive capacity is critical to firms’ innovative capabilities, as it defines the limit of a firm’s rate or © The Editor(s) (if applicable) and the Author(s) 2016 O. Gassmann et al., Exploring the Field of Business Model Innovation, DOI 10.1007/978-3-319-41144-6_3
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quantity of absorption of technological and scientific information. The theory suggests that the absorption of external and new knowledge ‘is largely a function of the firm’s level of prior related knowledge’ (p. 128). Put differently, the more a firm holds or creates internal knowledge (e.g. in R&D), the higher is the probability of innovative performance, as more external knowledge may be absorbed. However, this occurs alongside history- and path dependency. Zahra and George (2002) propose a conceptualization of absorptive capacities, consisting of the four dimensions of identification, assimilation, transformation, and exploitation of external knowledge. According to Enkel and Mezger (2013), absorptive capacity is in turn operationalized through different learning processes. Exploratory learning enables the acquisition of external knowledge, exploitative learning enables a company to apply the acquired knowledge in a new setting, for example, through combining technological and market knowledge (Lenox & King, 2004; Rothaermel & Deeds, 2004), whereas transformative learning links these two learning processes by maintaining and reactivating acquired knowledge (Lane, Koka, & Pathak, 2006). Absorptive capacity is crucial as business models are viewed as results of sophisticated strategic decisions whose quality is highly dependent on a broad knowledge base. A well-developed absorptive capacity could,
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