Business Model Innovation in a KIBS firm : Case study from a dynamic capability perspective

Abstract

Aim – The dynamic nature of today’s business environment presents challenges for knowledge intensive business services (KIBS) as they operate in markets where shifts in technology, market demands, and regulatory requirements are constant. These firms must continuously develop and adapt their business and resource base to remain competitive to address evolving customer needs. This study seeks to understand which factors drive the process of business model innovation in a KIBS firm, focusing on the role of dynamic capabili-ties in this process.

Framework – This study is based on three theoretical concepts. First the business model and business model innovation literature are explored to create a firm basis for the theoretical background of the thesis. Following this, is the presentation of KIBS including the different elements constructing the concept of a KIBS firm. Finally, the dynamic capability literature is presented including the application of the microfoundations framework. All three research concepts are combined in a theoretical framework to be applied in the empirical section.

Methodology – The empirical study is conducted as a single case study examining a KIBS firm promoting the digitalisation of the built-up environment, operating in the Finnish IT-sector. The study is conducted through 11 semi-structured interviews with key persons closely par-ticipating in the formulation and implementation of the company’s business strategy. The interview data is analysed using the Gioia method, where the analysis first starts by formulat-ing the first-order concepts and combining the second-order themes based on these. Finally, the aggregate dimensions are formulated.

Findings – The findings of the study exposed that KIBS firms face unique opportunities and challenges when utilizing dynamic capabilities for business model innovation. Furthermore, the four different aggregate dynamic capability practices summarizing the drivers of business model innovation in a KIBS firm based on the research are: Market-Driven Strategic Respon-siveness, Customer-Centric Innovation, Organisational Agility and Resource Allocation and Learning and Knowledge Integration.

Conclusion – This thesis concludes with the theoretical and managerial implications and sug-gestions for future research. The managerial implications emphasize the importance of col-laborative organisational culture and open innovation in managerial actions and further re-search is proposed to the examination of multiple KIBS companies across various knowledge-intensive industries. Finally, the thesis concludes with presenting the limitations of the study.