Abstract Background The major mobile infrastructure incumbent vendors form an oligopoly of mobile technology leaders that have not changed their business models significantly as new mobile technology generations have been introduced since 1980. The introduction of 5G and research in 6G have created uncertainty calling for openness, disaggregation of software from hardware, and variety of industrial customers. The incumbent vendors need to innovate technology and business model (BM) to increase their chances of survival. Objectives This thesis aims to investigate how mobile network infrastructure incumbent vendors use business model innovation (BMI) in context of uncertainties related to 5G & 6G disruptive innovation. The purpose of the thesis is to refine the extant theory of BMI and to provide practitioners with recommendations on how to use BMI in the nascent phase of disruptive innovation. Methodology The grounded theory research process based on an exploratory qualitative single-case holistic study is used. The primary data is collected from thirteen semi-structured interviews while supportive secondary data is publicly available and collected via the Internet. Using inductive reasoning the study data analysis process produced first-order concepts, second-order themes and aggregate dimensions used to refine and extend the initial theoretical framework for BMI process usage. Findings When faced with uncertainty of disruptive innovation, the industry incumbents use the scenario-driven thinking to simultaneously develop a portfolio of BMs both by in-house diversification and by mergers and acquisitions. The management of BMI process leads to foreseeing and leveraging of both the internal resources and external resources. The internal resources are developed using BM ambidexterity, double ambidexterity, and intra-organizational learning, The external resources are developed via business ecosystems development and open BM innovation. Development of the resources creates unique managerial challenges related to ambidexterity, coopetition, and cultural transformation. Conclusions Our study provides the empirical grounds for a model of BMI usage by industry incumbents. Our model extends the scope of the extant theoretical discussions and provides details supported with rich empirical evidence from the nascent phase of technological disruption. The emphasis is on the firm’s dynamics that deal with multiple BMs and their innovation. We argue that while studying the process of single BMI is beneficial, the full understanding of BMI can be achieved only by covering the management of interactions and interdependencies among multiple simultaneous BMIs. Recommendations for future research Multiple-case studies to cover other industries would be beneficial to achieve generalization. Also, the longitudinal approach should be used in future studies to understand the impact of the BMI process management choices in the nascent phase on the survival and performance of the incumbents.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:bth-23176 |
| Date | January 2022 |
| Creators | Toncev, Mladen, Mruthyunjaya, Naga Thejus |
| Publisher | Blekinge Tekniska Högskola, Institutionen för industriell ekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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