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The purpose of this paper is to investigate how focal firms in supply networks manage weak and strong ties for exploration and exploitation innovation in mature industries. In doing so, the paper extends the understanding of how focal firms manage open innovation (OI).

The empirical base is a multiple case study conducted on three companies operating in mature industries in Europe.

Findings of this study reveal, analyze and explain a diverse set of OI practices in the supply networks of mature industries in which the focal firms integrate strong and weak supply ties to enhance innovation outcomes. This study provides a fine-grained view of the benefits of the additive and interactive effects of strong and weak ties in OI. More specifically, the analysis reveals an enhancing role of strong supply ties in exploration, which previously was associated solely with weak ties. Moreover, this study sheds light on the dominant and orchestrating roles of focal firms.

The findings provide insights to enhance OI practices beyond the limited role of the weak ties of the supply network and highlight the essential role of the strong supply ties in mature industries.

While previous studies have associated exploration with weak ties, findings of this study reveal that exploration-oriented activities in mature industries also extend to strong ties. In the strong ties of mature industries, this study finds there is not only the exploitation of existing knowledge but also the reconfiguration and innovation of products.

This paper contains an exploratory analysis of the business model innovations (BMIs) that management consulting firms (MCFs) undertake to remain competitive during digital transformation.

This paper uses data from a longitudinal multiple case study of the European practices of major global MCFs to provide an overview of how they reconfigure their business model (BM) to gain competitive advantages. It maps BMIs in MCFs through value creation innovation, value proposition innovation and value capturing innovation.

There is a shift in value proposition from solely giving advice or supporting information technology (IT) implementation to providing end-to-end digital solutions. To materialize value propositions, MCFs acquire new knowledge and digital assets through talent scouting, and mergers and acquisitions (M&As). MCFs rely heavily on complementary knowledge and capabilities of actors within ecosystems; thus, they focus on expanding, creating their ecosystems and adopting platforms' configuration and characteristics.

Inductively, the authors reached an analytical generalization through six propositions and a theoretical frame that embeds propositions in the previous literature. Future research should test them across the overall management consulting industry.

MCFs are recognized as drivers of innovation and BMIs in most client firms. However, MCFs are rarely analyzed with respect to their BMIs. Understanding how MCFs innovate their business models (BMs) to provide digital transformation (DT) consulting services is relevant for delivering management innovation across industries.

This is the first exploratory study on BMI inside global MCFs during DT.