Fostering the Implementation of Creative Ideas in Organizations
Edited by Miha Škerlavaj, Matej Černe, Anders Dysvik and Arne Carlsen
Chapter 17: Business model evolution and the growth of innovative new ventures: evidence from the Italian system*
It is well acknowledged that a non-negligible number of new business ventures, of any industry and country, are short-lived and do not generate satisfactory economic performances or significant growth (Walker, 2005; Brusoni et al., 2006). Such poor outcomes, which apply to both traditional and innovative start-ups, are caused by several intrinsic limitations and weaknesses, pertaining to the entrepreneurial, strategic, and organizational levels. While these factors have been amply discussed – even if mostly in isolation – in the managerial literature (Goffin and Mitchell, 2005; Dodgson et al., 2008; Von Stamm, 2008; Tidd and Bessant, 2013), our claim is that, by considering them in an integrated perspective, we can shed new light on the deep causes of the above-mentioned ‘innovation failures’. In particular, the central idea of this study is that the performance gap of innovative new ventures mostly refers to a lack of adaptation and evolution of their initial business models (Zott and Amit, 2007, 2008). To support our claim, we analyze the business model evolution of four innovative new ventures over their first years of life. Our analysis reveals that, for all of the cases, the initial business models have significantly changed to cope with unexpected issues and negative feedback from the market.
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