Strategic management of business model transformation: lessons from Nokia

Jaakko Aspara; Juha-Antti Lamberg; Arjo Laukia; Henrikki Tikkanen

doi:10.1108/00251741111126521

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Management Decision

ISSN: 0025-1747
Incorporates: Journal of Management History (Archive)

Online from: 1967

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Strategic management of business model transformation: lessons from Nokia

Document Information:
Title:	Strategic management of business model transformation: lessons from Nokia
Author(s):	Jaakko Aspara, (Department of Marketing and Management, School of Economics, Aalto University, Helsinki, Finland), Juha-Antti Lamberg, (Department of Industrial Management, University of Technology, Aalto University, Helsinki, Finland), Arjo Laukia, (Department of Industrial Management, University of Technology, Aalto University, Helsinki, Finland), Henrikki Tikkanen, (School of Economics, Aalto University, Helsinki, Finland)
Citation:	Jaakko Aspara, Juha-Antti Lamberg, Arjo Laukia, Henrikki Tikkanen, (2011) "Strategic management of business model transformation: lessons from Nokia", Management Decision, Vol. 49 Iss: 4, pp.622 - 647
Keywords:	Business history, Business planning, Corporate strategy, Organizational change, Telecommunications
Article type:	Research paper
DOI:	10.1108/00251741111126521 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Acknowledgements:	Authors' names are in alphabetical order. All authors contributed equally.
Abstract:	Purpose – This paper aims to offer a conceptualization of how and why corporate level strategic change may build on historical differentiation at business unit level. Design/methodology/approach – Methodologically, an historical case study of Nokia Corporation's drastic business model transformation between the years 1987 and 1995 is reported. Findings – The conceptual and historical work results in a process model of business model change, demonstrating how central business units feed strategic alternatives and capabilities to the corporate-level transformation process. Practical implications – The results highlight the importance of corporate level “market mechanisms' that allow promising strategic alternatives to emerge and select out inferior options. In this process, a key mechanism is the exchange of executives and cognitive mindsets between business units and corporate headquarters (CHQ). Originality/value – The reported research offers an original contribution by showing the dynamic interplay of cognitive and organizational change processes, and highlighting the importance of building on existing capabilities and competencies despite the pressure to demonstrate strong turnaround activities.