Journal of Economic and Social Dynamics

Abstract

This study investigates how incumbent firms in the Sudanese service sector explore and exploit opportunities to innovate their business models. Despite the growing recognition of business model innovation (BMI) as a critical driver of value creation and competitive advantage, research on how established firms in developing economies execute BMI remains scarce. Adopting an interpretivist and qualitative research design, semi-structured interviews were conducted with top-level managers across eight incumbent firms in the Sudanese banking and consultancy industries. The findings reveal that while firms engage in BMI implicitly, they largely lack formal business model tools and systematic strategic frameworks. Key implementation hurdles include customer acquisition resistance, organizational alignment issues, and capability gaps. Grounded in strategic entrepreneurship theory, the 4I framework, and integrative BMI models, this paper proposes a normative framework to help organizations navigate successful business model transformations.