The Drivers of Success in Business Model Transformation

Abstract

ABSTR ACT: Existing empirical literature on business models is still inconclusive about the key drivers of successful business model transformation. The paper explores this issue by using a single longitudinal case study design in combination with grounded theory approach on a medium-sized, high-tech and globally oriented company. Based on on-site visits, interviews and secondary documentation data analysis, the study identifies six generic drivers of successful business model transformation: transformational leadership, discovery driven decision-making, industry improvement-customer specific orientation, content-oriented communication, self-initiative collaborators, and phased separation strategy. The new drivers supplement our existing knowledge on how successful transformation takes place and add to existing drivers, while extensive discussion of their implications may help the managers to execute business transformations more effectively.