We develop a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (i) explorative adoption of a disruptive business model, (ii) exploitative strengthening of the existing business model. We derive and test hypotheses concerning the...

Building upon the theoretical insights of the literature on organizational routines and "activity system" perspectives on business models, we propose a multi-level theory of business model innovation that explains business model dynamics within established firms, integrating the processes...