Customer knowledge orientation as a key to business model innovation of free-to-fee switch

Abstract

Purpose: This study aims to explore the innovative strategies of business model of the free-to-fee switch, the relationship between the business model innovation and customer knowledge and further develop a conceptual model. Design/methodology/approach: This study adopts a multiple case study method with abductive research logic, following the replication logic to select samples. A total of eight outstanding companies with altogether 312 free-to-fee switch events were selected from 1998 to 2021. Findings: A strategic matrix with four innovative business models for the free-to-fee switch is generated. The parallelism between the models and customer knowledge orientations is also found. Further, the study develops the conceptual model regarding customer knowledge orientation as a key mediation. Research limitations/implications: The study highlights the conceptualization definition of customer knowledge orientation and its mediation effect to the business model innovation of free-to-fee switch, which is a new issue compared with previous research. Furthermore, it reveals that there exists organizational ambidexterity, which brings a new definition of customer knowledge orientation. Practical implications: This study suggests how to integrate customer knowledge orientations to support the marketing process of the business model of free-to-fee switch. It also proposes a specific mechanism to conduct the free-to-fee switch with the introduction of four innovative strategic models and eight evolutional paths. Originality/value: This study creatively proposes the strategic matrix and the conceptual model of business model innovation of free-to-fee switch. Moreover, a new conceptual definition of customer knowledge orientation is specified.