A NETWORK PERSPECTIVE ON BUSINESS MODEL INNOVATION IN THE MUSIC INDUSTRY

• Main Author: Dellyana, Dina
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72582
• Institution: Institut Teknologi Bandung

This research aims to generate an in-depth understanding of business model innovation in network perspective by exploring the dimensions related to the BMI and describing the relationships among dimensions. This research is also aiming at finding factors that are resulting the outcome of business model innovation in network perspective. Deriving from a systematic literature review, this research addresses knowledge gaps including inadequacy of research in a business model that has a network focus, which includes actor’s network interaction, business model arrangement and business model innovation process and level to enhance value. This research is also conducted to cover the deficiency of research that measures the outcome of business model innovation in network perspective. This research applies retroduction to explain causal mechanisms by understanding events, objects/entities, necessary and contingent relations and causal powers. Following case study approach a multiple (three) case designs having three types of strategic networks, vertical value net of Music Factory Indonesia, horizontal value net of the Indonesia Netlabel Union and multidimensional value net of Guvera Indonesia has been chosen. The three strategic network in the music industry chosen since it is considered dynamic in terms of members’ activities and innovation in searching for new opportunities. A case study protocol has been applied to increase reliability along with a data collection, the use of qualitative study and a two-step analysis procedure. Research outcomes reveal that the relationship characteristics between the three dimensions are varies and unique in each network. The general findings in three networks are: first, the actor’s network coordinates towards the business model. Second, the business model provides the platform for actor’s network interaction. Third, actor’s network determines the business model innovation. Fourth, the business model innovation involves the required interaction between actors in the network. Fifth, the business model innovation facilitates the representation of the business model. Sixth, the current BM essentials for the business model innovation. The causal relationship found that in vertical value nets and multi dimensional value nets, the presence of mutual relationship based network governance, stable network structure, and active network behavior, in the actor’s network, enhance the likelihood of the high-value outcome. In the two networks also found that the presence of various value exchanges and direct value flow, enhance the likelihood of the high-value outcome. From the three case studies are found that high-value outcome not always resulted from the high involvement in BMI process, types of BMI and a certain level of BMI, applied in the actor’s network. The three networks apply the incremental business model innovation but can result in a high-value outcome. Finally, the research contribution, practical implication, and direction of future research are provided in the conclusion chapter.