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Does business model experimentation in dynamic contexts enhance value capture?

Herrero, Ferran Vendrell, Parry, Glenn, Basáez, Marco Opazo and Montesinos, Francisco J. Sanchez (2018) Does business model experimentation in dynamic contexts enhance value capture? International Journal of Business Environment, 10 (1). pp. 14-34.

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Established theory suggests that firms experiment with business models in dynamic contexts. However, the relationship between business model experimentation and organisational performance remains unclear. For this purpose, we propose an assessment of the economic value of business model experimentation in dynamic contexts by defining the unit of analysis at the industry level. Analysis draws upon a unique panel dataset from the recorded music industry composed of 414 observations from 32 countries for the period 1998-2010. The results show two optimal modes for maximising value capture in dynamic contexts. First, if a dominant format exists, a 'network' effect becomes prevalent which has a positive impact upon revenue. Second, when firms engage in experimentation leading to a highly diversified set of business models the industry sector becomes better able to capture value from diverse and changing consumer needs.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
Herrero, Ferran Vendrell
Basáez, Marco Opazo
Montesinos, Francisco J. Sanchez
Date : 1 January 2018
DOI : 10.1504/IJBE.2018.093301
Copyright Disclaimer : Copyright © 2018 Inderscience Enterprises Ltd.
Uncontrolled Keywords : Business model; Experimentation; Value capture; Music industry; Format density; FD
Depositing User : Diane Maxfield
Date Deposited : 29 Jan 2020 17:18
Last Modified : 29 Jan 2020 17:18

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