What Leads to Business Model Innovation in New Firms?

In this paper we develop theory about what leads to business model innovation (BMI). BMI is an innovation type distinct from product or process innovation. Comparing cases of high-BMI and low-BMI ventures, we examine the sources of these divergent outcomes. Our analysis suggests that teams have less impact on BMI than individuals. Our data reveal important cognitive differences between founders who design new business models and founders who do...