Business model innovation: Iraqi financial firms as a case study

Abstract

This thesis investigates the business model innovation (BMI) phenomenon for the financial sector in Iraq, a sector where there is very good potential, but which is still criticized for being in a pre-emerging stage and requiring a lot of development. BMI is a new way for financial firms in Iraq to increase the value offering and obtain a sustainable competitive advantage. BMI has great benefits, but it is also hard to implement: it needs many financial and non-financial resources and often the organizational culture need to be changed to adopt the new business model. Another obstacle is the human resources and the systems, which require alignment to support the new innovation. The research also investigates the starting point of BMI and what triggers the process. This thesis explores the concept of BMI and how it has been applied in the Iraqi financial sector, proposing alternative approaches. Implementation barriers that the firm needs to consider when implementing BMI are also discussed. The main contribution of this thesis is to understand and explain why many companies fail in the BMI implementation process by studying Iraqi financial firms' experiences of BMI and the challenges they faced. The study used a qualitative research approach, employing semi-structured interviews with seven managers in seven financial firms in Iraq.