Integrating business models and knowledge management

Aalto University, P.O. Box 11000, FI-00076 Aalto www.aalto.fi Author Otto Mäkelä Name of the doctoral dissertation Integrating business models and knowledge management Publisher School of Science Unit Department of Industrial Engineering and Management Series Aalto University publication series DOCTORAL DISSERTATIONS 166/2015 Field of research Knowledge management Manuscript submitted 15 June 2015 Date of the defence 4 December 2015 Permission to publish granted (date) 29 September 2015 Language English Monograph Article dissertation (summary + original articles) Abstract Knowledge and how it is shared is one of the most important sources of competitive advantage for a growing number of firms. Hence, there is an increasing need to develop tools which assist in sharing knowledge of experts. However, it is not feasible to share large amounts of knowledge if it does not relate holistically to value creation. Value creation, in turn, relates to firm's business model which can be seen as a template that portrays the way a firm performs its business. In this study, the business model concept was used as a framework to study experts' views of the business logics of their companies, focusing especially on what kinds of knowledge sharing related challenges the business model analysis reveals. The business model concept was a boundary object between the researcher and various experts of different organizations. Thus, business model functioned as a methodological framework between the researcher and the interviewees in data generation. The empirical research consisted of four case studies where altogether 48 interviews were conducted. The research data was analyzed by content analysis. The studied cases represent different service contexts and industries. The firms in the studied cases attempted to develop their businesses from multiple starting points. Case company A was transforming its value proposition from production orientation to service orientation. Case company B attempted to develop its service business towards knowledge-intensive offering. In case C, companies representing a developing industry attempted to understand their evolving businesses better. Case company D aimed at establishing its complex business model to international target market. Discussion through interviews on business models revealed perspectives of the business logics of companies and related knowledge sharing developmental challenges. The study indicates that it is important to analyze how the business model is seen in different parts of the organization in order to develop knowledge management to overcome the challenges of value creation and capture. The study contributes to the business model concept by viewing it from an emerging point of view, namely the knowledge-based view, and focusing especially on knowledge sharing. Thus, the study adds theoretical depth to the distinct knowledge management related discussion on boundary objects by viewing them from a new unit of analysis, namely the business model concept.Knowledge and how it is shared is one of the most important sources of competitive advantage for a growing number of firms. Hence, there is an increasing need to develop tools which assist in sharing knowledge of experts. However, it is not feasible to share large amounts of knowledge if it does not relate holistically to value creation. Value creation, in turn, relates to firm's business model which can be seen as a template that portrays the way a firm performs its business. In this study, the business model concept was used as a framework to study experts' views of the business logics of their companies, focusing especially on what kinds of knowledge sharing related challenges the business model analysis reveals. The business model concept was a boundary object between the researcher and various experts of different organizations. Thus, business model functioned as a methodological framework between the researcher and the interviewees in data generation. The empirical research consisted of four case studies where altogether 48 interviews were conducted. The research data was analyzed by content analysis. The studied cases represent different service contexts and industries. The firms in the studied cases attempted to develop their businesses from multiple starting points. Case company A was transforming its value proposition from production orientation to service orientation. Case company B attempted to develop its service business towards knowledge-intensive offering. In case C, companies representing a developing industry attempted to understand their evolving businesses better. Case company D aimed at establishing its complex business model to international target market. Discussion through interviews on business models revealed perspectives of the business logics of companies and related knowledge sharing developmental challenges. The study indicates that it is important to analyze how the business model is seen in different parts of the organization in order to develop knowledge management to overcome the challenges of value creation and capture. The study contributes to the business model concept by viewing it from an emerging point of view, namely the knowledge-based view, and focusing especially on knowledge sharing. Thus, the study adds theoretical depth to the distinct knowledge management related discussion on boundary objects by viewing them from a new unit of analysis, namely the business model concept.