Abstract

     In times of unprecedented change related to the ongoing digital transformation of business and society at large, a pressing contemporary management challenge is recognizing and translating these changes into digital business model innovation (DBMI). Academia potentially has much to offer in aiding this managerial challenge, yet research in the field remains vague with regard to what DBMI is. We detect conceptual ambiguity among scholars as a bottleneck that prevents advancements in the field of DBMI research. In this article, we aim to trace the foundation of key attributes of the DBMI concept and propose a novel definition. Our insights are based on a targeted, state-of-the-art literature review of 57 publications. We conclude with an exploration of avenues for future research, which we closely link to the broader fields of strategic management, information systems, and organization studies, thereby exposing the issue of DBMI to a wider audience. Overall, we aim to make a significant step toward construct clarity in DBMI research.

Introduction

     Digitalization is affecting almost all industries by creating opportunities and challenges for established firms, large born digitals, and smaller start-ups (Rachinger et al. 2018; Volberda et al. 2021). Industry players as well as consumers are becoming increasingly smart through the proliferation of digital technologies, such as those related to the Internet of Things, and the acceptance and use of affordable mobile devices and personal computers (Fichman et al. 2014; Parida et al. 2019; Venkatesh et al. 2019). Competition is intensifying, and the pace of change is accelerating as more agile start-ups make use of the low entry barriers in digital markets and enter industries that were dominated by incumbents (Loebbecke and Picot 2015; Ehret and Wirtz 2017; Teece and Linden 2017). The emergence and diffusion of digital technologies have further led to an explosion of available data, making data analytics and machine learning capabilities important competitive advantages for companies (Hanelt et al. 2020). These examples of the impact of digitalization show that information technology can no longer be viewed as a subordinate support function, but rather that digital needs to be perceived as an integral part of the business and organization (Yoo et al. 2010; El Sawy and Pereira 2013; Matt et al. 2015).

Conclusion

     Digital and digitalization shape a fundamental transformation of business, which is calling for novel theorizing (Yoo et al. 2012; El Sawy and Pereira 2013; Nambisan 2017; Lanzolla et al. 2020a) and new conceptual contributions to the literature (Breslin et al. 2020). In this paper, we conducted a targeted, state-of-the-art literature review of 57 significant publications dealing with the concept of DBMI. We developed an understanding of the importance of construct clarity and applied it when critically reviewing the extant definitions in this field. Building on our observations and reflections, we proposed a novel definition for the concept, in which purposeful, non-triviality, dynamic change, and digitalization are the key attributes. With this definition, we are able to propose a set of research avenues that deserve future attention and may push the boundary at the intersection of DBMI, digital transformation, and strategic management.