Recent developments in digital technologies have challenged the ways in which service firms create, deliver, and capture value. Although research and best practice suggest business model innovation as an effective response to digitalization, many firms are not willing to take radical change in the architecture of the firm's activities. In this study, we take an in-depth look at how existing organizational logics influence the firm's capability for technology-driven business model innovation. As our empirical context, we have chosen the legal industry, notorious for its risk aversion and practices that inhibit innovation, but where the focus on digitalization is increasing due to external pressures. We interviewed nine law firms in Norway, representing together the largest share of the country's legal services market, four of them being traditional law firms and the rest being newly established, born digital New Law organizations. We find that profitability acts both as a driver and an inhibitor of organizational changes. Furthermore, the relatively high job satisfaction of Norwegian lawyers in comparison to the US-based counterparts dampens the pull of technological opportunities on business model innovation. Barring an unexpected profitability crisis, digitalization of the Norwegian law sector will proceed on a complementary, rather than disruptive basis, in relation with traditional business models.
