Abstract
Business model design becomes an essential source of firm innovation in the current competitive world. Business model innovation refers to the creation or reinvention of existing business models by designing novel value-creation systems, proposing new value propositions, and building original value-capturing mechanisms. However, to adopt the innovative business model in any organization, the inertia to change is a substantial barrier, and its role has not been examined completely. The purpose of this study is to examine the impact of organizational inertia on open innovation, business model innovation, and corporate performance. Using the survey as the research model, data were collected from 160 companies operating in the information technology industry in the city of Tehran. These firms were selected via judgment sampling method. The hypotheses were tested using structural equation modeling technique via SmartPLS2 software. Based on the findings, organizational inertia has a negative relationship with business model innovation and open innovation; though, business model innovation and open innovation have a positive effect on the performance.
1. Introduction
Nowadays, not only innovation is not a process in businesses, but also it is a set of new components containing the permanent setting requirements, production process requirements, industrial and market changes, and a combination of the cognitive population (Tootifar Tehranpour & Zia, 2014). Recent surveys demonstrate that the importance of business model innovation is undergoing an increasing trend, and the chief managers of the global corporations predict that its necessity will even surpass the importance of innovation in products and services. Business model innovation is a new criterion based on which the pioneer companies try to create and deliver more value for their customers. In this way, they tend to increase their takeover value.
4.1. Practical suggestions
Regarding the obtained results, the following suggestions are proposed:
Creating a system for getting the customers’ opinions and suggestions for providing services with a higher quality proportional to their needs.
Encouraging group problem solving for stimulating individuals’ innovation.
Applying the employees’ appropriate ideas, which encourage other employees for participation in innovation
Creating ICT infrastructures for getting and using updated knowledge of organizational processes reengineering
