Business model innovation in the public sector: an integrative framework

ABSTRACT

Business model innovation (BMI) is a well-established approach to adapt structures, activities, and services to dynamic environments. Increasing digitization and changing stakeholder demands put pressure on public organizations to adjust their business models (BMs). However, public BMI research is fragmented and lacks conceptual sophistication. Drawing on an analysis of BMI studies and supplementary public management literature, our study develops an integrative framework representing the underlying public value-oriented BM structure that can be innovated through democratically driven BMI processes. Our framework specifies public BMI and serves as a guide for research and practice by providing implications for improving public value.

KEYWORDS:

• Public business model innovation
• public value management
• innovation
• framework

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Bernd W. Wirtz

Professor Bernd W. Wirtz holds the Chair for Information and Communication Management at the German University of Administrative Sciences Speyer. He has published widely on issues pertaining to e-business, strategic management, public management, business model management and e-government. Email: [email protected]

Pascal R. M. Kubin

Pascal R. M. Kubin is aresearch associate and PhD candidate at the German University of Administrative Sciences Speyer. His research focuses on hybrid organizations, digital management, as well as decentralized and distributed information systems. He is particularly interested in distributed ledger technologies (e.g., blockchain, directed acyclic graph) and their effects on business models, organizations, and societies. Email: [email protected]

Jan C. Weyerer

Jan C. Weyerer is a research associate and PhD candidate at the Chair for Information and Communication Management at the German University of Administrative Sciences Speyer, Germany. He is currently a visiting researcher at the Institute for Business Innovation at Haas School of Business, University of California, Berkeley. His main research interests are information systems management, digital business, artificial intelligence, big data and digital government. Email: [email protected]