Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10494421 | Long Range Planning | 2013 | 16 Pages |
Abstract
This paper examines how a firm can manage the decision-making and cannibalization processes when a new and an existing business model need to be run in parallel. We present an in-depth longitudinal case study of a major bank in the US corporate bond trading market that launched a disruptive business model and ran it alongside its existing well-established and successful business model. The study shows how the firm conducting a staged decision making process that balanced procedural rationality and political expediency facilitates and helped resolve the paradoxes involved in running conflicting business models. We contribute to the decision making literature by showing how the mechanisms for balancing procedural rationality and politics facilitated the management of the decision-making and cannibalization processes and so enable existing and disruptive business models to run in parallel.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Chander Velu, Philip Stiles,