Antecedents to open business model in the ICT-based sectors

Abstract

The traditional closed business models (BMs) are widespread and continue to dominate the current business world. Today, more and more companies are using outside technologies and innovations to develop new products and actively look at business opportunities created through sharing knowledge, competencies, and technological resources. The next phase is to open the business model to reap the full benefits of open innovation (OI). As the driver of effective knowledge and technology flows (inside-out and outside-in), open innovation cannot capture value of these flows unless it is leveraged by key internal resources. Based on the resource-based view (RBV), we claim that such technological investments cannot make organizations more effective unless they are accompanied by organizational complementary assets. Thus, the theoretical model exposes Open Business Model (OBM) antecedents based on a Business Model Innovation (BMI) perspective. Moreover, the literature of the BM innovation values the link between BM and OI and asserts that network, structures and technological knowledge management infrastructure are required to capture the value created by these flows and drive companies to open their BM and thrive.

The paper performs a structural model analysis with a sample of 134 respondents in the information and communication technologies (ICT) based sectors. The results show the positive impact of technological knowledge management infrastructure on inbound OI and the impact of relational capital on the two types of OI strategies and in leveraging open BM in ICT-based sectors. The paper provides insights to firms OI initiatives holders to establish effective networked BMs.