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Article

Tracey Bretag

Academic integrity is an interdisciplinary concept that provides the foundation for every aspect and all levels of education. The term evokes strong emotions in teachers, researchers, and students—not least because it is usually associated with negative behaviors. When considering academic integrity, the discussion tends to revolve around cheating, plagiarism, dishonesty, fraud, and other academic malpractice and how best to prevent these behaviors. A more productive approach entails a focus on promoting the positive values of honesty, trust, fairness, respect, responsibility, and courage (International Center for Academic Integrity, 2013) as the intrinsically motivated drivers for ethical academic practice. Academic integrity is much more than “a student issue” and requires commitment from all stakeholders in the academic community, including undergraduate and postgraduate students, teachers, established researchers, senior managers, policymakers, support staff, and administrators.

Article

Torben Juul Andersen and Carina Antonia Hallin

Contemporary organizations operate under turbulent business conditions and must adapt their strategies to ongoing changes. Sustainable performance can be achieved when the organization engages in interactive processes that link emerging opportunities to forward-looking analytics. But few organizations are able to practice this consistently. Fast processes performed by managers at the frontline respond to ongoing environmental stimuli and slow processes initiated by managers at the center interpret events and reasons about updated strategic actions. Current experiential insights from the fast processes can be aggregated systematically to inform the slow processes of reasoning. When the fast and slow processes interact they can form a dynamic system that adapts organizational activities to changing conditions.

Article

Andy El-Zayaty and Russell Coff

Many discussions of the creation and appropriation of value stop at the firm level. Imperfections in the market allow for a firm to gain competitive advantage, thereby appropriating rents from the market. What has often been overlooked is the continued process of appropriation within firms by parties ranging from shareholders to managers to employees. Porter’s “five forces” model and the resource-based view of the firm laid out the determinants of value creation at the firm level, but it was left to others to explore the onward distribution of that value. Many strategic management and strategic human capital scholars have explored the manner in which employees and managers use their bargaining power vis-à-vis the firm to appropriate value—sometimes in a manner that may not align with the interests of shareholders. In addition, cooperative game theorists provided unique insights into the way in which parties divide firm surplus among each other. Ultimately, the creation of value is merely the beginning of a complex, multiparty process of bargaining and competition for the rights to claim rents.

Article

Steven A. Stewart and Allen C. Amason

Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?

Article

Organizations (whether they are permanent or temporary) have stakeholders, that is, individuals and groups that can affect or be affected by the organization’s activities and achievements. Assuming that the fundamental driver of value creation is stakeholder relationships, managing those relationships well is a prerequisite for obtaining and sustaining success in all businesses, regardless of the success measures applied. Therefore, applying a stakeholder perspective is of significant importance for any manager or entrepreneur. However, the essentials as well as the implications of applying such a perspective are not clear. Researchers and practitioners have offered many contributions, however, the existing literature is inconclusive. To provide clarity, stakeholder concepts (e.g. stakeholder definition, systems perspective, separation thesis, stakeholder analysis, stakeholder engagement, perception of fairness, stakeholder utility function, stakeholder salience, stakeholder disaggregation, stakeholder multiplicity, managing for stakeholders, Value Creation Stakeholder Theory, value destruction, shadows of the context) are defined and 15 propositions for further inquiry are offered. The Scandinavian and American origins of stakeholder thinking are presented. The propositions are intended to invite discussion—and could form the basis for future research questions as well as provide guidance for managers. By drawing on (a) Professor Eric Rhenman, who in the 1960s first proposed an explicit theoretical framework on stakeholder thinking; (b) Professor R. Edward Freeman, who has been the most influential contributor to the field; and (c) additional, selected contributions, the aim is to providevalue for both new and seasoned researchers as well as for managers, consultants, and educators. In order to give the reader the opportunity to self-assess and interpret the “raw data,” the text is rich on citations.

Article

The board of directors serves multiple corporate governance functions, including monitoring management, providing oversight on strategic issues, and linking the organization to the broader external environment. Researchers have become increasingly interested in board interlocks and how content transmitted via these linkages shapes firm outcomes, such as corporate structure and strategies. As influential mechanisms to manage environmental uncertainty and facilitate information exchange, Board interlocks are created by directors who are affiliated with more than one firm via employment or board service and allow the board to capture a diversity of strategic experiences. One critical corporate decision that may be influenced by interlocks and strategic diffusion is diversification (i.e., in which products and markets to compete). Directors draw on their own experiences with diversification strategies at other firms to help guide and manage ongoing strategic decision-making. There is broad scholarship on interlocks and the individuals who create them, with extant research reporting that some firms are more likely to imitate or learn from their interlock partners than others. Prior findings suggest that the conditions under which information is transmitted via interlock, such as an individual director’s experience with diversification strategies at other firms, may make that information more influential to the focal firm’s own strategic decision-making related to diversification. A more holistic framework captures factors related to the individual interlocking director, the board and firm overall and the context surrounding these linkages and relationships, helping to promote future research. Understanding the social context surrounding board interlocks offers opportunities to more deeply examine how these interconnections serve in pursuit of the board’s fundamental purpose of protecting shareholder investment from managerial self-interest. Overall, integrating multi-level factors will offer new insights into the influence of board interlocks on firm strategies on both sides of the partnership. Expanding knowledge of how inter-firm linkages transmit knowledge influential to board decision-making can also improve our understanding of board effectiveness and corporate governance.

Article

Asli M. Colpan and Alvaro Cuervo-Cazurra

Business groups are an organizational model in which collections of legally independent firms bounded together with formal and informal ties use collaborative arrangements to enhance their collective welfare. Among the different varieties of business groups, diversified business groups that exhibit unrelated product diversification under central control, and often containing chains of publicly listed firms, are the most-studied type in the management literature. The reason is that they challenge two traditionally held assumptions. First, broad and especially unrelated diversification have a negative impact on performance, and thus business groups should focus on a narrow scope of related businesses. Second, such diversification is only sustainable in emerging economies in which market and institutional underdevelopment are more common and where business groups can provide a solution to such imperfections. However, a historical perspective indicates that diversified business groups are a long-lived organizational model and are present in emerging and advanced economies, illustrating how business groups adapt to different market and institutional settings. This evolutionary approach also highlights the importance of going beyond diversification when studying business groups and redirecting studies toward the evolution of the group structure, their internal administrative mechanisms, and other strategic actions beyond diversification such as internationalization.

Article

Claudio Giachetti and Giovanni Battista Dagnino

Competitive dynamics inquiry originates from a sequence of attacks and counterattacks among firms in an industry. Firms attack and respond to attacks of rivals in order to strengthen or defend their competitive position within their competitive space. Competitive dynamics research is thus centered on the analysis of how the firm’s actions affect rivals’ reactions and performance. Actually, the nature of competitive dynamics research is the open recognition that firm strategies are “dynamic”: Strategic actions initiated by one firm may trigger a series of actions among rival firms. The new competitive environment in many industries has generated the inception of furious competition, emphasizing flexibility, speed, and innovation in response to fast-changing technological and institutional conditions and temporary competitive advantages. The key constructs and the intellectual roots of competitive dynamics (i.e., Schumpeter’s theory of creative destruction and industrial organization economics and related oligopoly theories) offer some practical examples of industry and firm cases where competitive dynamics have found their main applications. The relevant underpinnings of the awareness–motivation–capability (AMC) framework provide an integrative model of the key behavioral drivers that shape a competitive actions and responses framework (i.e., the factors influencing the firm’s awareness of the context; the factors inducing or impeding the motivation of firms to respond to competitors’ action; and the capability-based factors affecting the firm’s ability to undertake actions), the three key attributes (i.e., the specific actions of firms in the industry, the firm’s competitive interdependence, and the antecedents and performance implications of firms’ competitive actions and reactions), and the three main levels of analysis used in competitive dynamics literature (i.e., action-level studies, business-level studies, and corporate-level studies). Some insights regarding the relationship between dynamic competition and the sources of temporary competitive advantage, coopetition dynamics, as well as the kind of accelerated competition epitomizing early 21st-century digital dynamics settings update the traditional competitive dynamics flavor, as they are connected with firms’ strategic interaction and the pursuit of temporary advantages.

Article

James Mattingly and Nicholas Bailey

Stakeholder strategies, or firms’ approaches to stakeholder management, may have a significant impact on firms’ long-term prosperity and, thereby, on their life chances, as established in the stakeholder view of the firm. A systematic literature review surveyed the contemporary body of quantitative empirical research that has examined firm-level activities relevant to stakeholder management, corporate social responsibility, and corporate social performance, because these three constructs are often conflated in literature. A search uncovered 99 articles published in 22 journals during the 10-year period from 2010 to 2019. Most studies employed databases reporting environmental, social, and governance (ESG) ratings, originally created for use in socially responsible investing and corporate risk assessment, but others employed content analysis of texts and primary surveys. Examination revealed a key difference in the scoring of data, in that some studies aggregated numerous indicators into a single composite index to indicate levels of stakeholder management, and other studies scored more articulated constructs. Articulated constructs provided richer observations, including governance and structural arrangements most likely to provide both stakeholder benefits and protections. Also observed were constraining influences of managerial and market myopia, sustaining influences from resilience and complexity frameworks, and recognition that contextual variables are contingencies having impact in recognizing the efficacy of stakeholder management strategies.

Article

Rhonda K. Reger and Paula A. Kincaid

Content analysis is to words (and other unstructured data) as statistics is to numbers (also called structured data)—an umbrella term encompassing a range of analytic techniques. Content analyses range from purely qualitative analyses, often used in grounded theorizing and case-based research to reduce interview data into theoretically meaningful categories, to highly quantitative analyses that use concept dictionaries to convert words and phrases into numerical tables for further quantitative analysis. Common specialized types of qualitative content analysis include methods associated with grounded theorizing, narrative analysis, discourse analysis, rhetorical analysis, semiotic analysis, interpretative phenomenological analysis, and conversation analysis. Major quantitative content analyses include dictionary-based approaches, topic modeling, and natural language processing. Though specific steps for specific types of content analysis vary, a prototypical content analysis requires eight steps beginning with defining coding units and ending with assessing the trustworthiness, reliability, and validity of the overall coding. Furthermore, while most content analysis evaluates textual data, some studies also analyze visual data such as gestures, videos and pictures, and verbal data such as tone. Content analysis has several advantages over other data collection and analysis methods. Content analysis provides a flexible set of tools that are suitable for many research questions where quantitative data are unavailable. Many forms of content analysis provide a replicable methodology to access individual and collective structures and processes. Moreover, content analysis of documents and videos that organizational actors produce in the normal course of their work provides unobtrusive ways to study sociocognitive concepts and processes in context, and thus avoids some of the most serious concerns associated with other commonly used methods. Content analysis requires significant researcher judgment such that inadvertent biasing of results is a common concern. On balance, content analysis is a promising activity for the rigorous exploration of many important but difficult-to-study issues that are not easily studied via other methods. For these reasons, content analysis is burgeoning in business and management research as researchers seek to study complex and subtle phenomena.

Article

Michael Dowling

Ray Noorda, the former CEO of Novell Inc., first coined the term “coopetition” in 1992 to describe a common phenomenon in the computer industry: cooperation between competitors. This phenomenon is inconsistent with classical economic and business theory going as far back as Adam Smith, who viewed the production system as based on a separation between suppliers and buyers. Micro-economists have traditionally viewed the firm as buying raw materials and components from suppliers, producing finished goods, and selling those goods in competition with other firms to a different set of firms or consumers. However, starting in the 1990s, research on forms of cooperative relationships between competitors became very common. The most common types are (a) competing firms engaging in horizontal alliances along the same level of the value chain and (b) vertical cooperation along different levels of the value chain between suppliers and firms in the focal industry or between customers and firms. In the last 25 years, there has been a great increase in research on coopetition. In a systematic literature review conducted in 2014, one researcher found over 130 academic articles in more than 80 academic publications published since 1996. The majority of the research to date has been qualitative, with many cases studied conducted. A number of special issues in academic journals have been devoted to the topic in general or to special topics concerning coopetition. The Strategic Management Journal organized a special issue in 2018 on the interplay of competition and cooperation, and a number of workshops have been held on coopetition strategy and innovation.

Article

Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. It is concerned with how organizations in general, and corporations in particular, produce value and how that value is distributed among the members of the corporation, its stakeholders. The interrelation of value production and value distribution links the ubiquitous technological aspect (the production of value) with the moral and ethical dimension (the distribution of value). Corporate governance is concerned with this link in general, but more specifically with the moral and ethical dimensions of distributing the generated value among the stakeholders. Value in firms is created by firm-specific investments, and the motivation and coordination of value-enhancing activities and investment is protected by the power concentrated at the pyramidal top of the organization. In modern companies, it is the CEO and the top management who decide how to create value and how to distribute it among the relevant stakeholders. Due to asymmetric information and the imperfect nature of markets and contracts, adverse selection and moral hazard problems occur, where delegated (selected) managers could act in their own interest at the costs of other relevant stakeholders. Corporate governance can be understood as a two-tailed concept. The first aspect is about identifying the (most) relevant stakeholder(s), separating theory and practice into two different and conflicting streams: the stakeholder value approach and the shareholder value approach. The second aspect of the concept is about providing and analyzing different mechanisms, reducing the costs induced by moral hazard and adverse selection effects, and balancing out the motivation and coordination problems of the relevant stakeholders. Corporate governance is an interdisciplinary concept encompassing academic fields such as finance, economics, accounting, law, taxation, and psychology, among others. As countries differ according to their institutions (i.e., legal and political systems, norms, and rules), firms differ according to their size, age, dominant shareholders, or industries. Thus, concepts in corporate governance differ along these dimensions as well. And while the underlying characteristics vary in time, continuously or as a result of an exogenous shock, concepts in corporate governance are dynamic and static, offering a challenging field of interest for academics, policymakers, and firm managers.

Article

Rodrigo B. DeMello

Firms deploy value-based strategies to achieve competitive advantage in the marketplace. However, processes of value creation and appropriation do not happen in a vacuum but are structured by a set of formal market institutions that define, among other things, policies and regulations on standards, privacy, safety, trade, and access to resources. Corporate political strategies are the ways firms use to shape these policies and regulations in favorable ways that help them achieve competitive advantage. The political activities include lobbying, participation in hearings, campaign contributions, the use of revolving-door personnel, advocacy, grass-roots mobilization, and nurturing and exploiting political ties. Firms interact with government officeholders in different government arenas, such as national and local legislatures, government agencies, and the judiciary branch. For most corporations, being able to deploy effective political strategies is, therefore, necessary for achieving sustainable competitive advantage. The research into corporate political strategies has tried to explain why firms engage in political strategy, when, and which political activity would yield the best results. The usual theoretical framings draw from Resource Dependence Theory, Institutional Theory, Resource-Based View, Agency Theory, and Stakeholder Theory. While the strategic logic underlying each theoretical approach varies, they are better seen as complementary to each other. The fact that the phenomenon of political strategies is complex, dynamic, and an important part of daily business of several corporations favors the integration of different theoretical approaches. Although the literature on corporate political strategies has considerably advanced, there are still areas that could benefit from future research: the integration of market and political strategies, especially the use of market actions as political influence; the integration of social and political strategies; the role that individual and managerial aspects play in choice of political strategies; and multicountry comparative studies, especially focusing on ideological turnarounds and state capitalism.

Article

Abagail McWilliams

Corporate social responsibility (CSR) is a legitimate responsibility to society, based on the principle that corporations should share some of the benefit that accrues from the control of vast resources. CSR goes beyond the legal, ethical, and financial obligations that create profits. In the research literature, corporate social responsibility is defined in a variety of ways, depending on the aspect of CSR being examined. An inclusive definition is that social responsibility requires the firm to take into account the interests of all stakeholders, where stakeholders are defined as everyone who affects or is affected by the firm’s decisions and actions. A firm-focused definition holds that social responsibility includes actions that further a social goal, beyond what is required by ethics, law, and profitability. A political economy–oriented definition posits that firms have a responsibility to correct market failures such as negative externalities and government failures such as limits to jurisdiction that result in worker rights violations. When implemented, altruistic CSR implies that firms provide a social good unrelated to the firms’ business that does not benefit the bottom line. Strategic CSR implies that firms are simultaneously profitable and socially responsible. To achieve this, CSR must be a core value of the firm and must be integrated into processes and products. When employed strategically, CSR can be an element of a differentiation strategy, leading to premium prices, enhanced brand and firm reputation, and supportive community relations. Corporate environmental responsibility often takes the form of overcompliance with regulation, improving the environment more than is required. A primary benefit of this is to stave off further regulation. To capture the benefits of being socially responsible, the firm must make stakeholders aware of its record. This has led to triple bottom line reporting—that is, reporting about firm performance in terms of profits, people, and the planet. Social enterprises go a step further and make social responsibility the primary goal of the organization.

Article

Steven G. Koven and Abby Perez

Corruption remains a way of life for many cultures and subcultures, an ethos that is often consistent with the goal of corporate profit maximization. Corruption may yield benefits at the personal or individual firm level, but at the societal level corruption is detrimental to aggregate growth, individual effort, and faith in institutions. Corruption, as defined by the Oxford English Dictionary, is dishonest or fraudulent conduct by those in power, typically involving bribery. Corruption exists on a continuum that can range from rampant to minimal. Rampant corruption exists when entire organizations willingly and knowingly promote actions that are injurious to workers, consumers, or society as a whole. Egregious examples include knowingly producing and selling harmful products or ignoring conditions that impair the health and safety of workers. At the other extreme, minimal corruption can include petty violations such as stealing a small amount of office supplies for personal use. Moral, ethical, and legal guides have evolved over time in efforts to ameliorate the most obvious and egregious forms of corruption. These guides are supported by perspectives of philosophy such as utilitarianism, deontology, virtue ethics, intuition, and ethical relativism. Each of these perspectives represent an important and qualitatively different lens in which to assess ethical behavior. While some philosophical viewpoints emphasize the categorical nature of right or wrong action, others emphasize context, net benefits of actions, or individual virtue reflected in individual actions, and perspectives that are systematically reviewed. Philosophical influences are viewed as highly relevant to an understanding of modern-day corruption. Business ethics is also influenced by various competitive and complementary models that compete for influence. While the market model of business ethics has long endured, alternative perspectives of business ethics such as the stakeholder model of corporate social responsibility and the sustainability model have recently arisen in popular discourse and are explored. These alternative models seek to replace or supplement the market model and advocate for a greater recognition of environmental responsibilities as well as responsibilities to a broad array of stakeholders in society such as workers and consumers. Alternative models move beyond the narrow perspective of profit maximization and consider ethical implications of business decisions in terms of their effects on others in society as well as future generations. Various philosophical perspectives of ethics are examined, as well as how these perspectives can be applied to attain a more complete understanding of the concept of corruption.

Article

Véronique Ambrosini and Gulsun Altintas

Dynamic managerial capabilities are a form of dynamic capabilities. They are concerned with the role of managers in refreshing and transforming the resource base of the firm so that it maintains and develops its competitive advantage and performance. To do so, managers must develop entrepreneurial activities. These activities consist of sensing and seizing opportunities and transforming the resource base. While most studies focus on the role of top managers and CEOs, entrepreneurial activities can occur throughout the organization. Mid- and lower-level managers can also sense opportunities emanating from the market. Managerial human capital, managerial social capital, and managerial cognition are the three main antecedents to dynamic managerial capabilities.

Article

Though concern for environmental issues dates back to the 1960s, research and practice in the field of sustainability innovation gained significant attention from academia, practitioners, and NGOs in the early 1990s, and has evolved rapidly to become mainstream. Organizations are changing their business practices so as to become more sustainable, in response to pressure from internal and external stakeholders. Sustainability innovation broadly relates to the creation of products, processes, technologies, capabilities, or even whole business models that require fewer resources to produce and consume, and also support the environment and communities, while simultaneously providing value to consumers and being financially rewarding for businesses. Sustainability innovation is a way of thinking about how to sustain a firm’s growth while sustainably managing depleting natural resources like raw materials, water, and energy, as well as preventing pollution and unethical business practices wherever the firm operates. Sustainability innovation represents a very diverse and dynamic area of scholarship contributing to a wide range of disciplines, including but not limited to general management, strategy, marketing, supply chain and operations management, accounting, and financial disciplines. As addressing sustainability is a complex undertaking, sustainability innovation strategies can be varied in nature and scope depending upon the firm’s capabilities. They may range from incremental green product introductions to radical innovations leading to changes in the way business is conducted while balancing all three pillars of sustainability—economic, environmental, and social outcomes. Sustainability innovation strategies often require deep structural transformations in organizations, supply chains, industry networks, and communities. Such transformations can be hard to implement and are sometimes resisted by those affected. Importantly, as sustainability concerns continue to increase globally, innovation provides a significant approach to managing the human, social, and economic dimensions of this profound society-wide transformation. Therefore, a thorough assessment of the current state of thinking in sustainability innovation research is a necessary starting point from which to improve society’s ability to achieve triple bottom line for current and future generations.

Article

Felice B. Klein, Kevin McSweeney, Cynthia E. Devers, Gerry McNamara, and Spenser Blosser

Scholars have devoted significant attention to understanding the determinants and consequences of executive compensation. Yet, one form of compensation, executive severance agreements, has flown under the radar. Severance agreements specify the expected payments and benefits promised executives, upon voluntary or involuntary termination. Although these agreements are popular among executives, critics continually question their worth. Yet severance agreements potentially offer three important (but less readily recognized) strategic benefits. First, severance agreements are viewed as a means of mitigating the potential risks associated with job changes; thus, they can serve as a recruitment tool to attract top executive talent. Second, because severance agreements guarantee executives previously specified compensation in the event of termination, they can help limit the downside risk naturally risk-averse executives face, facilitating executive-shareholder interest alignment. Third, severance agreements can aid in firm exit, as executives and directors are likely to be more open to termination, in the presence of adequate protection against the downside. Severance agreements can contain provisions for ten possible termination events. Three events refer to change in control (CIC), which occurs under a change in ownership. These are (1) CIC without termination, (2) CIC with termination without cause, and (3) CIC with termination for cause. Cause is generally defined by events such as felony, fraud, embezzlement, neglect of duties, or violation of noncompete provisions. Additional events include (4) voluntary retirement, (5) resignation without good reason, (6) voluntary termination for good reason, (7) involuntary termination without cause, (8) involuntary termination with cause, (9) death, and (10) disability. Voluntary retirement and resignation without good reason occurs when CEOs either retire or leave under their own volition, and voluntary termination with good reason occurs in response to changes in employment terms (e.g., relocation of headquarters). Involuntary termination refers to termination due to any reason not listed above and is often triggered by unsatisfactory performance. Although some prior work has addressed the antecedents, consequences, and moderators of severance, the findings from this literature remain unclear, as many of the results are mixed. Future severance scholars have the opportunity to further clarify these relationships by addressing how severance agreements can help firms attract, align the interests of, and facilitate the exit of executives.

Article

Instrumental stakeholder theory posits that managing for stakeholders using justice-based approaches produces competitive advantage for firms. However, achieving the ideals of stakeholder management may be challenging, and for some firms, unrewarding. Yet, when firms fail to manage for stakeholders, they contribute to stakeholder marginalization, a condition in which stakeholders feel unfairly treated and begin to scan for alternative arrangements with other firms. Stakeholder marginalization creates opportunities for competitors, but especially for new entrants, to pursue stakeholder innovation. Stakeholder innovation involves the creation of a business model that caters to marginalized stakeholder groups in a new way, by improving perceived conditions for those stakeholders (e.g., customers, employees, suppliers, or communities). Stakeholder innovations can threaten incumbencies as their ecosystems bloom and technologies improve, and they can start to draw a greater variety of resources away from incumbent networks. Because it can help to explain and predict both incumbent and new entrant behaviors, stakeholder capitalism is a useful frame for theorizing in the disciplines of management and entrepreneurship.

Article

Lorenzo Massa and Christopher L. Tucci

Starting from the mid-1990s, business models have received increased attention from both academics and practitioners. At a general level, a business model refers to the core logic that a firm or other type of organization employs to achieve its goals. Thus, in general terms, the business model construct attempts to capture the way organizations “do business” or operate to create, deliver, and capture value. Business model innovation (BMI) constitutes a unique dimension of innovation, different from and complementary to other dimensions of innovation, such as product/service, process, or organizational innovation. This distinction is important in that different dimensions of innovation have different antecedents, different processes, and, eventually, different outcomes. Business models have been the subject of extensive research, giving birth to several lines of inquiry. Among them, one line focuses on business models in relation to innovation. This is a vast, somewhat fragmented, and evolving line of inquiry. Despite this limitation, it is possible to recognize that, at the core, business models are relevant to innovation in at least two main ways. First, business models can act as vehicles for the diffusion of innovation by bridging inventions, innovative technologies, and ideas to (often distant) markets and application domains. Therefore, business models speak to the phenomenon of technology transfer from the point of view of academic entrepreneurship and of corporate innovation. Thus, an important role of the business model in relation to innovation is to support the diffusion and adoption of new technologies and scientific discoveries by bridging them with the realization of economic output in markets. This is a considerable endeavor that relies on a complex process entailing the search for, and recombination of, complementary knowledge and capabilities. Second, business models are a subject of innovation that can become a source of innovation in and of themselves. For example, offerings that reinvent value to the customer—as opposed to offerings that incrementally add value to existing offerings—often involve designing novel business models. Relatedly, BMI refers to both a process (i.e., the dynamics involved in innovating business models) as well as the output of that process. In relation to BMI as a process, the literature has suggested distinguishing between business model reconfiguration (BMR; i.e., the reconfiguration of an existing business model), and business model design (BMD; i.e., the design of a new business model from scratch). This distinction allows us to identify three possible instances, namely general BMR in incumbent firms, BMD in incumbent firms, and BMD in newly formed organizations and startups. These are arguably different phenomena involving different processes as well as different moderators. BMR could be understood as an evolutionary process occurring because of changes in activities and adjustments within an existing configuration. BMD involves facing considerable uncertainty, thus putting a premium on discovery-driven approaches that emphasize experimentation and learning and a considerable degree of knowledge search and recombination.