Cognition and Business Model Innovation

The use of cognition theories in the study of business model innovation has gained in popularity in the last decade, and especially in the last five years or so. This is not least the case because earlier studies of both business model innovation, and strategic change more broadly, identified that dominant logic, culture, identity, and other cognition-related phenomena can constitute both enablers and barriers to such innovation. In this chapter I reflect on just some of the literature that has emerged that connects theories of cognition to the context of business model innovation, focusing mainly on incumbent firms, but touching also on the start-up. I propose a framework for thinking about how to link cognition and innovation in general terms, emphasize the promise of a processprocess view of business model innovation and cognition, and point to both some of the weaknesses in the existing literature, and some of the opportunities that exist for future research.