Summary 

Our article, published in the Journal of Management Studies, explores the cognitive mechanisms that drive creative business model design. By analysing real-time thought processes of experienced designers, the study reveals effective strategies for fostering creativity and avoiding common pitfalls. Our key findings are that using analogies in the early stages of business model development has a positive effect on creativity, whereas strictly following predefined frameworks leads to less creative designs. This research provides actionable insights for entrepreneurs, managers, educators, and researchers to enhance their approach to business model design and achieve competitive advantage in dynamic environments. 

Importance of Creative Business Models 

Creative business models are crucial for gaining and sustaining competitive advantage in dynamic environments. Current disruptions, such as the shift to a circular economy or the rise of digital technologies like artificial intelligence, robotics, and blockchain, present significant threats but also great opportunities. Research suggests that designing creative business models can help capture these opportunities. 

Focus of the Study 

The study focused on understanding the cognitive mechanisms that lead to creative business models. It examined how different problem-solving strategies influence the early stages of business model design. Using think-aloud protocols, the research captured real-time cognitive processes of experienced designers as they developed new business models based on a standardized scenario. The study aimed to provide insights into the interaction between cognitive mechanisms and the resulting creative outcomes. 

Methods 

The study used think-aloud protocols, capturing the verbalized thoughts of 101 experienced business model designers in real time. In particular, we captured the problem-solving strategies used to design an initial business model for the 3D printing of jewellery. Participants were provided with details about the manufacturing technology, process, capacity, cost, and properties of ceramics to ensure a comparable starting point. We coded the transcripts of these sessions, focusing on problem-solving strategies such as decomposing problems, postponing difficult subproblems, transferring to testing activities, raising and lowering levels of abstraction, planning activities, transferring by association, analogical reasoning, and conceptual recombination. We captured business model creativity by assessing the sub-dimensions of novelty and quality. The data were analysed using fuzzy-set qualitative comparative analysis (fsQCA) to identify configurations of problem-solving strategies that led to creative versus non-creative business models. 

Key Findings 

The study found that there is no single optimal method for designing creative business models; various approaches can be equally effective. Specifically, we identified four functional configurations that lead to creative business models and five dysfunctional configurations that lead to non-creative business models. 

Particularly, analogies play a crucial role in cognitive flexibility, which is essential for developing creative business models. Analogical reasoning involves using knowledge from one domain to solve problems in another, fostering innovative thinking and creativity. Analogies can be employed in various ways to enhance business model design: 

• “Waltzing with analogies”: Shifting between related subproblems to stay engaged and identify connections. 

• “Leaping by analogies”: Making mental leaps to explore novel ideas and promote unconventional approaches. 

• “Anatomizing analogies”: Conducting in-depth analysis of analogies to apply proven strategies to new challenges. 

Avoiding complexity and excessive pre-structuring of ideas can hinder creativity. For instance, using tools like the business model canvas in a rigid, limiting way (“canvasing”) can suppress creative thinking. Similarly, following predefined frameworks too strictly (“painting by numbers”) results in a lack of creativity. 

Actionable Takeaways 

The study provides five actionable takeaways for business model design: (1) embrace analogical reasoning to foster cognitive flexibility (or alternatively utilize cognitive persistence), (2) encourage a broad repertoire of problem-solving strategies, (3) balance divergent and convergent thinking, (4) promote iterative testing and adjustment, and (5) avoid over-reliance on rigid frameworks. 

By implementing these strategies, entrepreneurs, managers, and business model designers can enhance their creativity in developing innovative business models, leading to greater competitive advantage and success in dynamic environments. Educators can also use these insights to inform the development of curricula and training programs that emphasize the importance of cognitive skills in business model design.