Paper Number
ECIS2026-2396
Paper Type
SP
Abstract
Business model innovation has emerged as a significant strategy for incumbent firms to transform and remain competitive. While there is abundant literature on business model innovation, there is limited research on the mechanisms underpinning the “process” of business model innovation. Departing from existing research on business model innovation, which primarily focuses on identifying the phases of business model innovation, we conceptualize “collective transformation” as a new lens to unpack the mechanisms of business model innovation. Drawing on 30 qualitative interviews with incumbent banks in Ghana, we outline three mechanisms, collective aggregation, collective reformation, and collective consolidation, as mediums through which incumbent firms undertake business model innovation. Based on the findings and the mechanisms, we develop a model of collective transformation that explains how the mechanisms interact during the process of business model innovation.
Recommended Citation
Agyei-Ababio, Nora; Senyo, PK; Mues, Christophe; and Baba, Melissa S A, "Collective Transformation: Mechanisms For Business Model Innovation In Incumbent Firms" (2026). ECIS 2026 Proceedings. 8.
https://aisel.aisnet.org/ecis2026/digitrans/digitrans/8
Collective Transformation: Mechanisms For Business Model Innovation In Incumbent Firms
Business model innovation has emerged as a significant strategy for incumbent firms to transform and remain competitive. While there is abundant literature on business model innovation, there is limited research on the mechanisms underpinning the “process” of business model innovation. Departing from existing research on business model innovation, which primarily focuses on identifying the phases of business model innovation, we conceptualize “collective transformation” as a new lens to unpack the mechanisms of business model innovation. Drawing on 30 qualitative interviews with incumbent banks in Ghana, we outline three mechanisms, collective aggregation, collective reformation, and collective consolidation, as mediums through which incumbent firms undertake business model innovation. Based on the findings and the mechanisms, we develop a model of collective transformation that explains how the mechanisms interact during the process of business model innovation.