Managing business model innovation uncertainties in <scp>5G</scp> technology: a future‐oriented sensemaking perspective

Abstract

It is well‐established that technology – and particularly the uncertainties caused by emerging disruptive technologies – has an impact on industrial dynamics, forcing organizations to reimagine their business models. The in‐depth qualitative case study of a Nordic telecom organization shows that the uncertainties created by disruptive technologies initiate a process of sensemaking and business model innovation, while the new business model becomes manifested at the final phase of the process (i.e., enactment). The newly developed business model has three dimensions reflecting value‐centric activities, internal changes, and attempts to capitalize on external opportunities. Investigating the way in which managers handle uncertainties related to 5G, this research argues that business model innovation emerges from a future‐oriented sensemaking process. The process model developed in this study entails three distinct phases disaggregated into eight underlying dimensions. The present study contributes in two ways: first, it advances our understanding about managing future uncertainties regarding business model innovation by identifying future‐oriented sensemaking as a mechanism to manage these uncertainties. Second, it sheds light on the process model underpinning future‐oriented sensemaking for business model innovation.