In the Flow of Resources: Becoming Hybrid Business Models in United Daily News Group
The current literature advocates various ways of substitution to innovate business model. The assumption is that firms could turnaround their declining situations, if they could find a best business model. But is there a “best” business model, waiting to be found? Even if we could find one, could the new business model really replace the existing one? Recent studies indicate that both the new and old business models could operate in tandem. But how the new could be blended into the old business model is an issue urging our exploration. This research examines how a newspaper group develops a variety of hybrid business models that combines newspaper (old business model) with three new business models, such as information services, art exhibition and electronic commerce. This paper analyzes the formation process of these business models, identifies three patterns of resources flow, and investigates how hybrid effects may be induced by resource rejuvenating, recycling and converging. Theoretically, this study interprets a new form of business model, by observing the becoming process of hybrid business models through resource flow. It extends the current literature on business model while deepens our understanding of resource-based theory. Our thesis on resource flow also points out the importance of building resource synergy in establishing hybrid business models. Practically, this article suggests an approach of resource integration to redesign business models. By reviewing a firm’s moving state of internal and external resources, executives could discover various possibilities of hybridization in order to alter a firm’s underlying business logic. When firms understand the complementary context of resource, they could navigate the flow of resource to create new value. As the new business model is hybridized with the old one, it builds a solid foundation for sustained businesses.