Learning to Build a Supply Network: An Exploration of Dynamic Business Models

Abstract

abstract Firms are confronted with the challenge of learning how to develop and manage supply networks, which reduce their operating costs and maximize their effectiveness in the marketplace. In pursuit of such goals they are increasingly turning to the use of dynamic business models. Dynamic business models represent continuous change and therefore make firms learn constantly new and better ways of doing things. These changes are manifestations of inter‐firm knowledge transfer. The aim of this research is to explore dynamic business models as an example of inter‐firm knowledge transfer. Adopting a case study approach, we examine three components of dynamic business models – network structure, inter‐firm routines and knowledge forms – and describe their integration through a problem solving approach to building an offshore supply network. Our empirical findings suggest that dynamic business models help organizations identify and link key actors with each other (at the firm and individual level), and aid the identification and specification of appropriate knowledge types and knowledge transfer mechanisms for different actors, in different contexts.