Understanding Managerial Action in Business Model Transformation of Small and Medium-Sized Enterprises

Abstract

Small and Medium-Sized Enterprises (SMEs) typically adapt their business model opportunistically with new value propositions, adding partnerships or improving their cost structure. Business model transformation has been proven to drive SMEs innovation and success, however, the role of SME managers in facilitating such transformation remains unclear. While peer-to-peer sharing has received much attention in public debates and academic research, sharing among firms is largely neglected in both. Looking at current opportunities for SMEs in business-to-business (B2B) sharing, this research aims to identify recurring patterns of manager’s activities along a business model transformation for which a cross-case analysis with Swiss SMEs was used along several cycles of action research with semi-structured, deductively coded interviews. The research identified three phases of management action: managers focus on identifying the business opportunity, they adjust processes and technical infrastructure to enable their organization to seize the opportunity and involve the entire organization to ensure a lasting change in their business model. While the impact of B2B sharing on each SME may be considered limited, this research offers original insights how managers drive business model transformation in SMEs. It illustrates a novel process in three distinct phases while identifying dedicated managerial action for each phase.