Knowledge Creation at Incubation for Business Model Innovation: The Conceptual Understanding

Business model innovation allows firms to address various potential activities to exploit the opportunities outside its core business that requires different business model. In implementing of business model innovation; Incubation is a stage at which a firm verifies the viability of new initiatives...

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Bibliographic Details
Published in:Journal of commerce and management thought 2017-10, Vol.8 (4), p.673
Main Authors: Waghmare, Rahul B., Golhar, Devidas
Format: Article
Language:English
Subjects:
Business models
Corporate profits
Customers
Innovations
Knowledge
Profitability
Strategic management
Success
Sustainability
Value creation
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Summary:Business model innovation allows firms to address various potential activities to exploit the opportunities outside its core business that requires different business model. In implementing of business model innovation; Incubation is a stage at which a firm verifies the viability of new initiatives for identified assumptions after testing them in orderly manner for success of business proposition. Hence at this stage focus should be on gathering the knowledge rather than to reap the revenues, using this gathered knowledge firms can realize sustainable profits at acceleration stage. In incubation process the business model framework helps to identify new value propositions that have the greatest chance of success and weed out those that contain flows or inconsistencies. Investing a little to learn a lot helps overcome the uncertainty of new business development by enabling managers to modify plans in response to new knowledge. Thus it is necessary for firms to understand the knowledge creation at incubation to implement the theoretical business model to the successful working. Through this conceptual paper, researcher elucidates how knowledge is constructed at incubation stage which helps firms at acceleration and transition stage for better proceeds in implementing business model innovation.
ISSN:0975-623X
0976-478X
DOI:10.5958/0976-478X.2017.00040.4