Responsive to Proactive Market Orientations: Unleashing the Potential of Effectuation-Causation Blending for Business Model Innovation
In this article, we investigate how two types of market orientation, proactive and responsive, affect the ability of technology-based companies to innovate their business models in a rapidly evolving technological landscape. It also examines how two different approaches to decision making, effectuat...
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| Published in | IEEE transactions on engineering management Vol. 71; pp. 14307 - 14325 |
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| Main Authors | , , , |
| Format | Journal Article |
| Language | English |
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IEEE
2024
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| Subjects | |
| Online Access | Get full text |
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| Abstract | In this article, we investigate how two types of market orientation, proactive and responsive, affect the ability of technology-based companies to innovate their business models in a rapidly evolving technological landscape. It also examines how two different approaches to decision making, effectuation and causation, influence these effects. We relied on the 333 valid responses collected from Chinese technology-based enterprises to analyze proactive market orientation (PMO) and responsive market orientation (RMO) for business model innovation (BMI) in configuration with effectuation and causation as moderators, using a configurational comparison method, "fuzzy-set qualitative comparative analysis" and a necessary condition analysis. The study reveals that market orientations and effectuation causation positively contribute to BMI. However, the study also found that effectuation weakens the positive relation between RMO and BMI, while causation enhances the positive influence of RMO on BMI. On the other hand, in the case of PMO, effectuation strengthens the relationship between PMO and BMI, while causation weakens the relationship between PMO and BMI. This study also explains that effectuation and causation enhance firms' external capabilities in making or reconfiguring alliances. |
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| AbstractList | In this article, we investigate how two types of market orientation, proactive and responsive, affect the ability of technology-based companies to innovate their business models in a rapidly evolving technological landscape. It also examines how two different approaches to decision making, effectuation and causation, influence these effects. We relied on the 333 valid responses collected from Chinese technology-based enterprises to analyze proactive market orientation (PMO) and responsive market orientation (RMO) for business model innovation (BMI) in configuration with effectuation and causation as moderators, using a configurational comparison method, "fuzzy-set qualitative comparative analysis" and a necessary condition analysis. The study reveals that market orientations and effectuation causation positively contribute to BMI. However, the study also found that effectuation weakens the positive relation between RMO and BMI, while causation enhances the positive influence of RMO on BMI. On the other hand, in the case of PMO, effectuation strengthens the relationship between PMO and BMI, while causation weakens the relationship between PMO and BMI. This study also explains that effectuation and causation enhance firms' external capabilities in making or reconfiguring alliances. |
| Author | Khan, Tariq Habib Zhiying, Liu Ali, Sumran Xiaobao, Peng |
| Author_xml | – sequence: 1 givenname: Tariq Habib orcidid: 0000-0003-4339-0099 surname: Khan fullname: Khan, Tariq Habib email: thkhan@mail.ustc.edu.cn organization: School of Management, University of Science and Technology of China, Hefei, China – sequence: 2 givenname: Sumran orcidid: 0000-0003-3957-6114 surname: Ali fullname: Ali, Sumran email: sumranali@mail.ustc.edu.cn organization: School of Management, University of Science and Technology of China, Hefei, China – sequence: 3 givenname: Peng orcidid: 0000-0003-2399-192X surname: Xiaobao fullname: Xiaobao, Peng email: pxb1982@ustc.edu.cn organization: School of Public Affairs, University of Science and Technology of China, Hefei, China – sequence: 4 givenname: Liu orcidid: 0000-0001-7224-7131 surname: Zhiying fullname: Zhiying, Liu email: liuzhiy@ustc.edu.cn organization: School of Management, University of Science and Technology of China, Hefei, China |
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| Snippet | In this article, we investigate how two types of market orientation, proactive and responsive, affect the ability of technology-based companies to innovate... |
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| StartPage | 14307 |
| SubjectTerms | Business Business model innovation (BMI) causation Cause effect analysis Companies Decision making Dynamic scheduling effectuation Entrepreneurship Knowledge management proactive market orientation (PMO) responsive market orientation (RMO) |
| Title | Responsive to Proactive Market Orientations: Unleashing the Potential of Effectuation-Causation Blending for Business Model Innovation |
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