Why business model innovations fail

Abstract

Purpose

This paper aims to discuss the barriers to successful business model innovation and derive implications for management on how to overcome each barrier, as many attempts to innovate a business model have failed.

Design/methodology/approach

The authors draw on their experience they gained in numerous business model innovation projects and identify barriers that occur along a cycle of business model innovation, the authors use case examples to describe the barriers and derive managerial implications.

Findings

Barriers to successful business model innovation are related to barriers of awareness, search, system, logic and culture. Very often, these barriers are not recognized as such. Overcoming those barriers has to do with openness, with opening, with networking, with affirmation (and mastering) of complexity and thinking and acting in a whole.

Originality/value

With this paper, the authors contribute to a better understanding of why many business model innovations fail, they identify and describe barriers to business model innovation and develop some recommendations for managers on how to overcome the barriers.

Citation

Friedrich von den Eichen, S., Freiling, J. and Matzler, K. (2015), "Why business model innovations fail", Journal of Business Strategy, Vol. 36 No. 6, pp. 29-38. https://doi.org/10.1108/JBS-09-2014-0107