Transforming between open and closed business strategies : implications on value propositions

Abstract

Open and closed business strategies is a topic connected with business model innovation and value proposition concepts. The topic of open strategies and closed to open strategy transformation has been studied thoroughly, however, open to closed business strategy transformation topic has a limited literature coverage. Consequently, there is a research gap in the intersection of these concerning topics. Therefore, this study provides insights on the relationships between business strategy changes and focuses on the implications on value propositions. In addition, the study elaborates further on the implications on value constellations and value capture mechanisms and investigates how such strategy changes resonate with stakeholders.

This research employs netnographic multiple case study method, investigating two case companies in automotive and social media sector by adopting longitudinal approach. Data used in this study consists of vast variety of secondary archival data. Additionally, NVivo tool is used for the sentiment analysis. The results reveal that business strategy changes, majorly have positive impacts on value propositions, however, there are instances. Similarly, reactions towards value propositions after strategy change can be either positive of overwhelmingly negative. Observations show that credible customer relationships have significant role in determining reactions. Moreover, strategy changes can introduce innovations and adaptations in value constellations and potentially improve value capture mechanisms as well.