Do All Roads Lead to Rome? The Effect of the Decision-Making Logic on Business Model Change

Lasse Torkkeli, Post-doctoral researcher, Ph.D., Lappeenranta University of Technology, School of Business and Management, P.O.Box 20, 53851, Lappeenranta, Finland, tel.: +358 40 359 1740, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..
Hanna Salojärvi, Associate Professor, Ph.D., Lappeenranta University of Technology, School of Business and Management, P.O.Box 20, 53851, Lappeenranta, Finland, tel.:+358 40 136 7966, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..
Liisa-Maija Sainio, Professor, Ph.D., Lappeenranta University of Technology, School of Business and Management, P.O.Box 20, 53851, Lappeenranta, Finland, tel.:+358 40 515 4944, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..
Sami Saarenketo, Professor, Ph.D., Lappeenranta University of Technology, School of Business and Management, P.O.Box 20, 53851, Lappeenranta, Finland, tel.:+358 50 308 6181, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..

Abstract

Business models and business model change have drawn increasing attention from both researchers and practitioners across various disciplines, including the domain of entrepreneurship. However, even though the importance of business model innovation as a driver of firm performance has been widely acknowledged, empirical studies explaining the business model change remain limited. This study contributes to prior research by examining the effects of effectual and causation-based decision-making logics on the degree of business model change in the context of small and medium-sized enterprises in Finland. The findings of hierarchical regression analysis show that both causation and effectuation-based logics have positive effects on business model change, thereby highlighting the need for both strategizing and seizing of opportunities in business model development.

Keywords: business model, decision-making, effectuation, causation, small and medium enterprises.