Business Model Innovation and Value Creation

Business model innovation (BMI) involves the reconfiguration of a firm’s architecture of value propositions, revenue models, cost structures and partner networks to generate and capture economic, social and environmental value. It extends beyond product and process improvements to reshape how organisations create value for stakeholders and capture a proportion of that value. Central to this is the interplay between novel revenue mechanisms, digital or technological enablers and evolving customer needs. Recent shifts towards data-driven strategies, sustainability imperatives and interconnected ecosystems have elevated the significance of dynamic capabilities in orchestrating new collaborations, platforms and value-sharing mechanisms. By aligning strategic orientation, organisational capabilities and external pressures, BMI enables firms to adapt to regulatory changes, anticipate market disruptions and deliver outcomes that benefit consumers, partners and society at large. As the pace of technological change accelerates, the capacity to innovate business models becomes a critical determinant of resilience, competitive advantage and long-term value creation.

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Business Model Innovation and Value Creation publication trend

The graph below shows the total number of articles in business model innovation and value creation across all publications each year (not limited to Nature Index journals).

Technical terms

Business model: A representation of how an organisation creates, delivers and captures value through its customer propositions, operations and revenue streams.

Business model innovation (BMI): The process of reconfiguring components and interdependencies of a business model to enable new forms of value creation and capture.

Value creation: The activities and processes by which firms generate benefits for customers, partners or society, often through novel offerings or enhanced experiences.

Value capture: The mechanisms by which firms secure a share of the value generated, typically via revenue models, pricing strategies or cost efficiencies.

Sustainable business model innovation: The adaptation of business models to integrate environmental, social and governance considerations into value creation and capture processes.

References

1. Using machine learning to create and capture value in the business models of small and medium-sized enterprises. International Journal of Information Management (2023).
2. Unraveling business model innovation in firm internationalization: A systematic literature review and future research agenda. Journal of Business Research (2023).
3. A call for action: The impact of business model innovation on business ecosystems, society and planet. Long Range Planning (2022).