From Broker to Platform Business Models: A Case Study of Best Practices for Business Model Innovation in Hybrid Interorganizational Partnerships

Abstract

This study is concerned with how hybrid partnerships -i.e., multiparty cross-sector partnerships dealing with broad problems that go beyond the scope and scale of single partners - set up, implement, and then innovate business models. In particular, we draw on a hybrid partnership for open innovation where six public and private organizations came together with the intention to set up and implement joint innovation projects with large-scale impact at the regional level. Two business models of hybrid partnerships are discussed in this chapter, the brokering model and the platform model, as well as the mechanisms of transition from the first to the latter. Our findings suggest that while the platform model seems more appropriate for complex projects in which a wide number of heterogeneous interests coexist, both models present advantages and disadvantages. We suggest that advantages and disadvantages of hybrid partnership business models should be considered in a relational manner, by focusing on how the business model innovation will impact on each parameter of the current model and, at the same time, on how manageable the parameters of the new model are in terms of partnership strategy, structure, and mobilizable resources.