Business Model Dynamics in Business-to-Business Environment

Abstract

Purpose of the article: The purpose of this article is to contribute towards a clarification of the emerging term of the dynamic business model, with focus on the business-to-business environment. The business model dynamics are confronted both with the static view, and with business model innovation. Methodology/methods: Secondary research has been conducted. Scientific aim: The article aims to help filling the gap in ambiguous understanding and interpretation of the term “Business model dynamics”. Findings and conclusions: A dynamic business model is an abstract construct formed by components and their synapses that change over time due to both external and internal forces, thus creating new synapses and synergies supporting adaptation to the changing ecosystem. The business model dynamics in the business-to-business environment are frequently of rather an incremental and slower nature. The phenomenon is caused particularly by the role a focal firm plays in the supply chain, by the resistance of its down-stream customers and by the customer of customers, to change. Research limitations: Due to the ambiguity of the term business model, increasing popularity of the subject and an enormous number of published scholarly articles dealing with the topic of business models, a risk exists that not every relevant source has been included in the review. Practical Implications: The firm’s capability to adapt its existing business model can be impacted by organisational rigidity. However, in reaction to a changing business environment, customer preferences and pressure from multiple stakeholders, firms need to adapt their value proposition, search for new, original ways of value creation, thus satisfying explicit or latent customer needs. Originality/Value: The article draws widely from the recently published scholarly literature on the business model subject. The main contribution of the article is a systemisation of fragmented views on the dynamic aspects of the business model, precision of the term itself and its distinction from the static view