Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review

Mark Loon; Lilian Otaye-Ebede; Jim Stewart

doi:10.1111/joms.12564

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Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review

Journal article

Peer reviewed

Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review

Mark Loon, Lilian Otaye-Ebede and Jim Stewart

Journal of Management Studies, Vol.57(3), pp.698-726

2020

DOI: https://doi.org/10.1111/joms.12564

Abstract

business model innovation

capabilities

human resources

microfoundations

new normal

new ventures

Firms need to respond to the increasing competition and change of the current New Normal environment by being more innovative, and especially in developing new business models. This paper seeks to explore how microfoundations, particularly with respect to human resource management, play a key role in facilitating innovation in business models through the development of key needed capabilities. Four themes are identified with respect to business model innovation (BMI) in the New Normal: BMI as an enabler to create and operate across industries and product-markets; BMI as a mechanism for firms to better navigate changing institutional landscapes; BMI as giving rise to business model portfolios; and concurrent and cumulative innovations that can lead to BMI. This paper also develops a conceptual framework that presents a synoptic view of the five essential capabilities for BMI, which include analogical reasoning, sensemaking, dynamic capabilities, organisational ambidexterity, and organisational learning. Finally, it is shown how the microfoundations of a bespoke, development-oriented BMI HR architecture can support the advancement of these capabilities and thus contribute to the strategic HR literature.

Details

Title: Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review
Authors: Mark Loon (Corresponding Author) - Bath Spa University
Lilian Otaye-Ebede - University of Liverpool
Jim Stewart - Liverpool John Moores University
Publication details: Journal of Management Studies, Vol.57(3), pp.698-726
Publisher: Wiley-Blackwell Publishing Ltd.
Date published: 2020
DOI: 10.1111/joms.12564
ISSN: 1467-6486
Organisation Unit: School of Business and Creative Industries
Language: English
Record Identifier: 991066183302621
Output Type: Journal article