Effects of Business Model Development Projects on Organizational Culture: A Multiple Case Study of SMEs

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Ulla Santti ; Tuomo Eskelinen ; Mervi Rajahonka ; Kaija Villman ; Ari Happonen (2017)
  • Publisher: Carleton University
  • Journal: Technology Innovation Management Review (issn: 1927-0321)
  • Subject: business model | business model canvas | competing values framework | development project | organizational culture | service design | SME | Technology (General) | T1-995 | Management. Industrial management | HD28-70

Previous research has shown that links between organizational culture and innovativeness/performance may act as a “social glue” that helps a company develop organizational culture as a competitive advantage. In this study of three case companies, the organizational culture change due business model development projects is studied using the Competing Values Framework (CVF) tool and interviews with respondents about discovered changes. To reveal intervention and implied effects between business model development project and organizational culture changes, we used CIMO logic (context, intervention, mechanism, and outcome) to bridge practice and theory by explanatory, backward-looking research. Our case studies of companies in relatively short-duration business model development projects indicate that organizational culture may have some dynamic characteristics, for example, an increase of the adhocracy organizational type in all case companies or an increase in the hierarchical leadership type in one case company. Thus, the development of an organizational culture type can be partly controlled. Our results also indicated business model development projects do have a minor effect on organizational culture, even when development activities have not been put fully into practice. However, the more comprehensively business model development project activities have been put into practice, the larger the effect on organizational culture.
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