How and why companies select and innovate their business models is an important theme in the emerging literature on business model innovation. While the role of technological advancements and changing industry standards have been highlighted as important drivers of business model change, the exact processes of experimentation, selection and innovation have received relatively less attention. To explore what factors determine business model selection and innovation, we study the recent changes in the newspaper industry. Through a qualitative study of two media groups, we explore the drivers behind business model design and innovation in the Norwegian newspaper industry. Key findings of this study point towards the important roles and interrelatedness of external factors (technological innovation, new competition and changing customer behavior) and internal organizational factors (group affiliation and willingness to experiment) in determining the selection of innovative business models in the newspaper industry. Hereby, we contribute to the emerging literature on the drivers and determinants of business model selection and innovation.

Keywords: business model innovation, newspaper industry, experimentation, business models, business model selection, group affiliation