Innovation of business models: strategies for organizational renewal in the era of the fourth industrial revolution

The research project carried out in 2020–2025 addressed one of the most pressing challenges currently faced by Polish firms: how to renew their strategy and business model under conditions of increasing geopolitical, technological, and regulatory uncertainty. Volatility in the environment (trade wars, political tensions, regulatory turbulence, the fourth industrial revolution, new environmental regulations) means that established ways of doing business are increasingly inadequate, and firms must search for new solutions to remain competitive both domestically and internationally.

The research focused on three core issues: What drives firms to change their business model? How does strategic renewal unfold in practice: who initiates change, what forms do innovations take, and how does the business model evolve structurally? What are the performance implications of these changes for firms? The project involved a comprehensive research programme on strategic renewal and business model innovation in internationalised Polish firms. A mixed-methods approach was adopted: a systematic review of 40 years of academic literature, multiple case studies of twelve Polish companies, and two waves of quantitative surveys (in 2022 on a sample of 400 firms and in 2024 on a sample of 200 firms). The respondents were members of top management responsible for key strategic decisions, business development, and innovation, which made it possible to capture the perspective of strategic decision-makers.​

The findings confirm that business model innovation (BMI) is one of the key mechanisms of strategic renewal. Changes in the business model are initiated both by top managers and by middle managers and specialists. Technological turbulence, market dynamism, and institutional change – such as new environmental regulations or support programmes – strongly stimulate firms to redesign the way they create and deliver value, rather than merely introducing isolated product innovations. In firms that are open to external knowledge and collaborate with partners in an open innovation logic, we observe a greater propensity to redesign the business model, which is reflected in significantly better financial and market performance. When altering their business models, firms most often follow a pivot-first rule: they first reconfigure the existing model and only then add further layers (layering) or develop separate units with distinct models (structural ambidexterity). In sum, firms that actively modify how they create and deliver value achieve better financial results and higher profitability, are more likely to record double-digit sales growth, and generate a higher share of revenues from new offerings.

The study also identified a group of so-called “bipolar enterprises”, which combine a strong capacity to explore new solutions with the ability to effectively exploit the existing model. These organisations simultaneously develop new revenue streams and improve their current business, which translates into faster sales growth and better profitability than in firms with a less coherent logic of change. In the research sample, it was precisely high BMI intensity and the skilful combination of exploration and exploitation that emerged as some of the strongest predictors of above-average market performance.

The project further demonstrated that proactive environmental and social strategies generate lasting benefits when they are embedded in the business model rather than functioning merely as image-building initiatives. The analyses showed that managerial engagement with CSR and environmental issues – reflected in business model decisions (e.g. new value propositions, changes in the supply chain, modifications to the revenue logic) - is associated with higher economic performance. The research also established that business model innovation mediates the relationship between a proactive environmental strategy and firm performance, while competitive intensity further strengthens the impact of this strategy on BMI.

From a managerial practice perspective, the project yields several implications:

• Strategic renewal as a process, not a one-off project: instead of viewing business model change as a one-time “big bang”, it is more productive to see it as a continuous learning and iteration process in which tensions between different logics of action are deliberately managed, maintaining a creative balance between continuity and experimentation.
• Building a bipolar enterprise: one of the key leadership capabilities is the ability to sustain the “old” model while simultaneously developing the “new” one, reflected in the design of structures, systems, and practices that allow firms to keep the existing business “under control” while testing new models. This may involve, for example, dedicated pilot budgets, separate teams for new models, or dual sets of KPIs – for the “old” and the “new” business.
• Translating values and beliefs of the top management team (including a focus on sustainable development and engagement with environmental and social issues) into concrete decisions regarding the offering, markets, partnerships, and revenue structure starts to yield tangible benefits only when these beliefs are embedded in the construction of the business model (offer architecture, value chain, revenue logic), and not merely in stakeholder communication.
• Deliberate use of “institutional windows of opportunity” created by public policies and regulatory change.

For public policymakers, the project provides arguments in favour of support instruments that go beyond funding technological innovation and also encourage experimentation with new business models, especially in traditional sectors and among SMEs. In the longer term, strategic renewal driven by business model innovation can become an important channel for enhancing the innovativeness and competitiveness of the Polish economy in international markets