Business Model Transformation in a Biotechnology Company

Sammanfattning: Business models (BMs) aim to create value for both customer and organizations (Johnson, et al., 2008). However, many organizations over focus on their existing business model(s) and they fail to transform their BM’s to exploit further opportunities and to adapt them to the changing dynamics of the market (Govindarajan & Trimble, 2011). Small medium enterprises (SMEs) seem to be neglected in the area of research and there is not much knowledge about how SMEs strategically use business models (Lindgren, 2012). By adopting the BM definition and BM change typology of Cavalcante, et al. (2011), this thesis addresses the key factors that cause business model transformation in a small biotech company and the outcomes of this transformation for the organization. An in-depth case study of a Swedish biotech company revealed that there are mainly three motives behind the business model transformation, which are higher control, power and growth for the organization. This transformation is successfully executed with the help of organizational learning, good leadership and financial resources sustained by the existing (licensing) business model of the company. As the result, the biotech company has a business model portfolio which consists of three different business models with different risk, control, power and growth levels. Thus, a more balanced approach between research & development and commercialization of the products is adopted for the company. Implications for research and practice are discussed.