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The Role of Intellectual Capital in Business Model Innovation: An Empirical Study
Abstract
The Australian Manufacturing Environment has over a short time changed from being low or medium cost to becoming high cost. In the previous environment, success could be achieved through imitation and efficiency focus whereas in the new environment efficiency becomes a table stake where the basis for success becomes innovation. Innovation requires enablers, strategy, and management systems to deliver, and the innovative focus must be on both value creating innovations and value appropriating innovations. One of the key tools in appropriating value is business models. The effectiveness of business model innovations to manufacturing firms in this changed environment is investigated, and it is found that business model innovations are highly effective but that the dimensions expressed in the literature, which mainly focuses on ICT-based or dependent firms, are insufficient for manufacturing firms. Based on the literature and the empirical study, an improved business model framework is proposed.
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