Business Model Innovation between the embryonic and growth stages of industry lifecycle

We explore the concept of Business Model Innovation (BMI) in the transition from the embryonic to the growth phase of industry lifecycle. Grounded in the extensive data obtained from qualitative case studies of three New Space Economy firms (Nanoracks, D-Orbit, AIKO), we suggest that the changing structural characteristics in the organization's operational environment underlie the need for specific and recurring BMI mechanisms. Our results mainly contribute to the identification of a consistent relationship between BMI and time, with the latter interpreted as the progression in industry lifecycle. Specifically, we find that embryonic industries call for a focus on exploratory activities to understand market needs, implying frequent adaptations to the BM strategy. Growing industries are instead correlated with organizational ambidexterity, as environmental conflicts underlie strategic trade-offs between exploration and exploitation. This work also adds to the very limited managerial studies of the fast-growing and increasingly relevant New Space Economy.