The Role of stakeholders in business model innovation in construction organisations in Sri Lanka

Abstract

The Business Model (BM) has become a distinctive feature that guides enterprises in fighting against challenges and navigating toward success. Construction organisations also face challenges due to expanding project scopes, increasing project participants, external factors and tight budgets. Hence, innovating BMs to keep up with the changing market and retain the competitive edge is essential. In this context, the stakeholders play a vital role in Business Model Innovation (BMI). There is therefore a need to investigate the role of stakeholder in BMI. Hence, this paper investigates the role of stakeholders in BMI in Sri Lankan construction organisations. This research gap was addressed using a literature review followed by in-depth semi-structured interviews with 20 experts using the qualitative research approach. Collected data were analysed through content analysis. Findings revealed that stakeholder engagement in BMI is led by the mutual benefits gained by all parties while creating a win-win situation. Semi-structured interview findings revealed that government, shareholders, clients, Board of Directors (BoDs) and management significantly influence BMI, while stakeholders such as employees, sub-contractors, competitors, financial providers and material suppliers possess a moderate influence. As per the interview findings, shareholders provide capital and foster innovation, BoDs/top management make final decisions after evaluating all suggestions, middle and low-level managers execute BMIs and guide subordinates, clients shape BMs to fit project needs, and the government influences BMIs through regulations. In conclusion, the stakeholders in construction industry can use the research findings in developing BMIs and implementing them successfully.