Pathways of Business Model Innovation: A Process Perspective on Theory, Industry Evolution, and Firm-level Transformation

This thesis explores business model innovation (BMI) from a process perspective, including its theory, industry evolution, and firm-level transformation. Initially framed as a linear process of reconfiguring Business model components in innovative ways to achieve a competitive advantage, BMI has subsequently been reconceptualized as a circular learning cycle. However, these views transcend the true complexity of BMI. Recently, scholars have adopted a novel perspective that considers BMI's relational, temporal, and spatial dimensions, emphasizing its interconnected and human-driven nature. This study identifies several gaps in the BMI literature: oversimplified frameworks that suggest universal applicability models; a dominant focus on financial results over social, cultural, and environmental impacts, and theoretical constraints related to neoclassical economic assumptions, which often ignore the broader social role of BMI. Addressing these gaps, this research explores BMI as a multidimensional and ever-evolving process. This dissertation consists of three studies: (1)theory paper that re-examines BMI through a spacetime metaphor that captures its dynamic and path-dependent nature, (2)critical historical analysis of BMI within luxury fashion, which highlights how growth-oriented models can contribute to unsustainable practices, and (3)a case study of an Italian denim manufacturer that implements culturally-oriented strategies to oppose industry norms. The main findings suggest that BMI processes are shaped by internal capabilities and external pressures, leading to a path-dependent trajectory influenced by industry leaders. This path dependency often results in a dark side of BMI, where the focus on economic growth inherently prompts social and ecological damage. In addition, the research conceptualizes sustainable innovation imprinting - the gradual embedding of sustainable practices - as an antecedent of BMI, which promotes outcomes beyond economic growth. Moreover, cultural capital is shown to be a driver of BMI, with the potential to positively influence customer value systems that align with sustainability. There are several contributions of this thesis: it integrates mainstream and critical perspectives to present BMI as a complex and path-dependent process; it introduces the imprinting of sustainable innovation as a precursor to sustainable BMI; it conceptualizes BMI as a spacetime trajectory, highlighting its continuous and layered nature; and it emphasizes the role of cultural strategies in transforming traditional growth-driven models.