Managers' brokerage for business model innovation: A case study

Abstract

Business model innovation is recognized as a key process for strengthening firms' performance in situations of strong competitive pressure and environmental changes. This process is driven by intra-organizational advice networks between managers, which exchange different types of advice based on organizational learning mechanisms such as cognitive search (how to conceptualize and create a novel business model) and experiential learning (how to adapt and experiment a novel business model. Investigating what are the key figures emerging from such network is essential for an in-depth understanding of the business model innovation process. By focusing on a multi-unit firm operating in the personal care service industry, we use Social Network Analysis (SNA) to examine the brokerage role of managers when sharing different types of advice towards a novel business model. Our results show that middle-level managers connect different managerial groups in different networks; however, differences exist between groups of middle managers, confirming their peculiar nature within organizations.