The Process of Legitimizing Business Model Innovation - A multiple case study of Swedish and Chinese MNEs

Abstract

Studies have shown how companies that are constantly revising and implementing business model innovations are more likely to navigate through complex environments and thus succeed in the long run. Despite this fact, the process of developing new business model innovations is faced with a wide range of illegitimacy challenges. Gaining legitimacy in the process of business model innovation (BMI) therefore becomes of vital importance. The main purpose of this qualitative multiple case study is to get a deeper understanding of illegitimacy challenges in the process of business model innovation, as well as investigating ways of gaining and/or maintaining legitimacy throughout the process. Theories indicate several illegitimacy challenges and suggestions of strategies for gaining and maintaining legitimacy. The empirical findings of this thesis confirm what previous scholars have found within the focal field. Moreover, the novel findings of this thesis contributed to the development within the field. At an initial stage of the process, it is beneficial to “work under the radar”; which gives the project time to mature without having to meet strict deadlines and challenging opinions from established forces. Additionally, findings show how an authority figure within the organization often enhances the process of gaining legitimacy. Furthermore, the creator of the BMI project must be passionate and energetic about the innovation, as well as being prepared to invest the time needed to structure clear and realistic goals for the business model innovation project. Lastly, this thesis shows the importance of protecting recent accomplishment to strengthen legitimacy gained within the organization in the long run.