CONTINUOUS BUSINESS MODEL INNOVATION AND DYNAMIC CAPABILITIES: THE CASE OF CEWE

Abstract

Continuously innovating business models is necessary to leverage technological progress but remains a complex challenge for firms. Dynamic capabilities explain how organisations ensure long-term success by continuously transforming. Still, how continuous business model innovation unfolds and how dynamic capabilities might support remains understudied. Therefore, we use a 27-year old longitudinal case study of CEWE. CEWE transformed from an analog B2B2C business to a digital B2C and B2B brand in the photo industry. We derive a process model on continuous business model innovation, which explains how modular business model innovation builds dynamic capabilities and how architectural business model innovation utilises them. We enrich business model innovation and dynamic capabilities research by demonstrating how both enable and build on each other. For practice, we show explicit dynamic capabilities and routines to manifest them that guide firms to successfully navigate their business model innovation journey.