Impact of business model change on organizational success

Abstract

Purpose The purpose of this paper is to investigate the impact of organizational change, more specifically business model change, on corporate employees’ motivation and, consequently, performance. Design/methodology/approach The main approaches and managerial frameworks on organization change implementation, as well as the assessment methods on whether the company is ready to implement the change, were identified by reviewing the current literature on the subject between 1940 and 2016. Findings Reviewed individual behavioral reactions and provided steps to encourage favorable individual employee perceptions. Research limitations/implications Existing gaps in supporting empirical data on the subject and a limited number of direct case studies and real-life scenarios. The research was primarily focused on employee motivation during the initial planning phase of organizational change, with lesser focus on motivation throughout and especially after the change process. Practical implications To benefit from the change, organizations must avoid improvising and should follow specific and formal change management procedures which take employee motivation and individual response towards change under consideration. Social implications By providing real-life illustrations of successful business model change implementations, current and future companies facing this type of change in the future can learn from these specific scenarios. Originality/value The distinction of business model change as a sub-type of organizational change and the study of employee motivation under a business model change specifically is the novel contribution of the paper.