Article

IBM's global CEO report 2006: Business model innovation matters

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Abstract

Purpose To ascertain whether the choices CEOs were making about particular types of innovation and key enablers had any correlation with financial performance, IBM looked at a subset of our sample where publicly reported financial information was available. Design/methodology/approach The findings in this report are based on in‐depth, consultative interviews on the topic of innovation with 765 CEOs, business executives and public sector leaders from around the world. Findings For a subset, the authors compared their financial performance to that of an industry‐accepted list of their nearest competitors (up to ten companies with similar revenue and publicly available information). Some of their competitors were CEO study participants, but most were not. By taking a five‐year view, the researchers were able to identify which companies outperformed and under‐performed the average revenue growth, operating margin growth and historical operating margins of their closest competitors. Research limitations/implications Throughout the analysis, IBM used these top‐half and bottom‐half groupings to look for notable financial correlations. In this report, the term outperformers refers to the study participants that are in the top 50 percent based on this competitive comparison, and under‐performers are those that fall in the bottom 50 percent. Practical implications The authors report on how business leaders are seeking and finding new ways to adapt their business models to remain competitive in their current industry – or to seek growth by entering new industries. Originality/value Companies focusing on business model innovation have enjoyed significant operating margin growth, while those using products/services/markets and operational innovation have sustained their margins over time.

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... Business models have gained prominence in academia and practice since the 1990s. Several studies have attempted to describe, theorize, validate, and link BMs to other disciplines [33,34,35]. Despite the increasing amount of research on business models, there is still insufficient attention in the literature to theorizing and borrowing ideas from neighboring disciplines to advance BM research [33]. ...
... Several studies have attempted to describe, theorize, validate, and link BMs to other disciplines [33,34,35]. Despite the increasing amount of research on business models, there is still insufficient attention in the literature to theorizing and borrowing ideas from neighboring disciplines to advance BM research [33]. However, converging descriptions have defined a BM as the design or architecture of a firm's observable constellation of activities that are dedicated explicitly to value creation, delivery, and capture mechanisms [7]. ...
... BMs reflect entrepreneurial decisions, strategic decisions, and operational implications [9,33,35] as entrepreneurs discover and implement new opportunities [37,38,3]. Hence, a firm's BM manifests an idea that conforms to an envisioned architecture and embodies how entrepreneurs create and deliver and capture value [7]. ...
... In fact, BMI often occurs as a consequence of external drivers, such as globalization (e.g., Lee et al., 2012), changes in the competitive environment (e.g., De Reuver et al., 2013), new technological opportunities, or new behavioral opportunities (e.g., Wirtz et al., 2010). BMI is vital for firms' success in today's fast-changing, turbulent and volatile environments (Giesen et al., 2010;Pohle and Chapman, 2006). In such environments, well-established and previously successful BMs may be no longer profitable (Chesbrough, 2007(Chesbrough, , 2010, and the "superior capacity for reinventing your BM before circumstances force you to" (Hamel and Valikangas, 2004, p. 53) becomes an essential source of competitive advantage. ...
... In such environments, well-established and previously successful BMs may be no longer profitable (Chesbrough, 2007(Chesbrough, , 2010, and the "superior capacity for reinventing your BM before circumstances force you to" (Hamel and Valikangas, 2004, p. 53) becomes an essential source of competitive advantage. In contexts characterized by high environmental volatility, BMI can provide opportunities (Giesen et al., 2010) in, for instance, reacting to altering sources of value creation and value capture (Pohle and Chapman, 2006) and developing new, innovative ways to create and capture value (Amit and Zott, 2010). ...
... Further observations indicate a positive link between BMI and performance . For instance, financial performance was positively linked to BMI in the IBM 2006 Global CEO Study (Pohle and Chapman, 2006) and BMI may positively influence firm performance in entrepreneurial (Zott and Amit, 2007), small (Aspara et al., 2010) as well as established firms (Cucculelli and Bettinelli, 2015). ...
Article
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The hospitality industry worldwide is among the hardest-hit industries from the COVID-19 lockdowns. Initial theoretical and practical observations in the hospitality industry indicate that business model innovation (BMI) might be a solution to recover from and successfully cope with the COVID-19 crisis. Interestingly, some firms in the hospitality industry already started tosuccessfully adapt their business models. This study exploresthe why and how of these successful recovery attempts through BMI byconducting a multiple case study of six hospitality firms in Austria.We rely on interview data from managers together with one of their main stammgastsfor each case, which we triangulate with secondary data for the analysis. Findings show that BMI is applied during and after the crisis to create new revenue streams and secure a higher level of liquidity, with an important role of stammgasts.
... The extensive academic research on BMs, and especially the introduction of innovation and technology in the development of such models, have brought forward significant improvements of BMs, resulting to what is widely referred in the literature as the "Business Model Innovation BMIs" (Bonakdar, 2015;Bucherer et al., 2012;Hartmann et al., 2013;Lindgardt et al., 2009;Pohle and Chapman;2006). The introduction of the concept of innovation in the construction of business models, relates to the development of either innovative products or services, or the implementation of pioneering and innovative processes in the operation of the company. ...
... Research over the last 15 years regarding BMIs, link directly innovations with the processes or the value proposition aspects of the models, and also revealed the effects of innovations on the resources. Business model innovation BMI is described as an activity or process in which core elements of a firm and its business logic are deliberately altered (Bonakdar, 2015;Bucherer et al., 2012;Hartmann et al., 2013;Lindgardt et al., 2009;Pohle and Chapman;2006). Numerous studies have shown that the basis of innovation is broad and can arise from many factors, such as trying to solve a problem, by the interactivity of relationships with the external environment, by systematically cultivating relationships that promote its process, by learning through the use, practice and exchange of knowledge and ideas (Georganta.Z 2003). In general, BMI is seen to be derived from the strategic activities of a company (Cortimiglia et al., 2016;, and managers are expected to maintain consistency between their strategic goals and the core components of the BMI (Demil and Lecocq, 2010). ...
... The emergence of innovative business models is currently the basis of research activity worldwide in both the development of business models and in the field of Business Strategy, and are considered among the most important issues in Management (Bonakdar, 2015;Bucherer et al., 2012;Hartmann et al., 2013;Lindgardt et al., 2009;Pohle and Chapman;2006). In spite of the importance of innovation and new technologies, business model innovation BMI evaluation as a topic has not received much attention in the literature. ...
Conference Paper
Business Models (BM) and their recent evolution have shaped the way in Business Strategy. It is widely accepted that the formulation and implementation of business strategies, and the need for the development of competitive advantages, is directly related to BM. Within this context, a variety of theories, approaches, and tools has emerged with significant impact on both academia and the business world. Despite the plethora of important theories and approaches, the important questions that have arisen after many years of research and business activity have not yet been answered. The main issue has proven to be the dispute on the general view of what success means and how can be measured. The profit models/formulas that are incorporated in every Business model and have been used extensively to measure BM success, as well as the overall business success, raise ambiguity over the results of such measurements. Moreover the profits, and profit based valuations, are criticized, on the basis that they fail to capture the long term dynamics, and the long-run success perspectives of every Business model, and thus incite the overall success of the Business Strategy employed. New approaches are more concentrated on the mechanics and the dynamics of the processes utilized to create and capture value and not in the ways that this value is turned to profits. The need for a new approach, based on the processes of creating and capturing value, is more evident for Greek Companies. The special characteristics of the Greek economy, and its developments in the last 12 years, along with the inherited inability of Greek companies, to create and implement appropriate BM, and overall Business Strategies, constitutes the perfect environment for research in an effort to address the issue of processes based vs. profit based, BM. In this economic and business environment, that had a significant impact on the characteristics of Greek companies, the mechanics and dynamics of creating and capturing value can be seen as key-features in the construction and implementation of BM. In such a case, processes can be defined as a key measurement of business success, while the profits pursue turns to be misleading and biased, constituting a totally wrong approach in formulating and implementing an overall business strategy. The analysis is based on an extensive literature review putting into perspective the concept of BM and its evolution, as well as an extensive overview of the models used by Greek companies, resulting on conclusions about whether they need to construct and implement processes-based BM, highlighting the process of creating and capturing value, instead of concentrating on the fallacy of profit-based BM. Finally, the study suggests directions of further research.
... IBM's Global CEO Studies for 2006 and 2008 show that top management in a broad range of industries is actively seeking guidance on how to innovate their business models to improve their ability to both create and capture value (Pohle & Chapman, 2006;Casadesus-Masanell & Ricart, 2010). Moreover, in some enterprises, the CEO is the initial source of business model innovation concepts to test (Mitchell & Coles, 2004). ...
... Useful tools include the various types of market research that lead to a deep understanding of the user, along with elements of the profiting from innovation framework (Teece, 2010). Pohle & Chapman (2006) argue that four out of every ten business model innovators thought it very likely that a competitor with a radically different business model would upset the competitive dynamics of the entire industry. During their research, one interviewed CEO described his predicament in this way: 'Since 70 percent of our business is based on a service that will no longer exist as we know it, we need to adapt our enterprise to survive'. ...
... Kodak has focused on a business model turnaround. According to the company, 2005 marked the halfway point of its transformation, and it was also the first year in Kodak's history when digital sales (at 54 percent of total revenue) surpassed traditional revenue (Pohle & Chapman, 2006). ...
Thesis
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Disruptive technologies and business models are fundamentally changing the established ‘rules of the game’ in many industries. Thus, finding an adequate response becomes a matter of survival to companies touched by disruptive innovation. The current research is attempting to reveal the factors determining the response strategy of local incumbent TV broadcasters to global disruptive innovation. In order to do so, these research objectives are pursued in order to answer the research question: to conceptualize the diversity of response strategies of incumbent firms to disruptive innovation; to conceptualize the key factors; to design research methodology for the analysis of these factors; and to reveal what factors determine the choice of response strategy by local incumbent TV broadcasters to global disruptive innovations. The research consists of the following parts: firstly, the concept of disruptive innovation is presented, the role of disruptive innovation in the generic strategy discourse is highlighted, and the diversity of response strategies and factors of incumbent firms to disruptive innovation is analysed. The latter concepts are integrated in the second part, in the theoretical conceptual framework. Thirdly, the qualitative research methodology is designed. Fourthly, based on the global pilot research and local multiple cases, the factors determining the choice of response strategies by local incumbent TV broadcasters to global disruptive innovations are revealed, and the conceptual framework is adjusted. Finally, conclusions and recommendations are provided.
... Unlike technological innovation or product innovation, business model innovation is essentially the uninterrupted discovery and development of opportunities (Grewal and Tansuhaj, 2001), which influence business growth in many ways. Pohle and Chapman (2006) study IBM and discover that business model innovation can bring many benefits to the business including reducing the cost of the enterprise and rationalizing the cost structure of the enterprise. At the same time, this kind of innovative activity reduces the risk of investment and brings new market opportunities to companies. ...
... Therefore, business model innovation can maintain the sustainable growth of enterprises through multiple paths. Paths include seizing opportunities in volatile environments, reducing costs, and increasing flexibility (Pohle and Chapman, 2006;Bock et al., 2012), and leveraging existing systems of resources and capabilities (Schneider and Spieth, 2013). Based on this, this study proposes the hypothesis: H2: Business model innovation is positively impacting business growth. ...
Article
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Given the existing studies on the role of different founders’ personalities in the growth of new ventures, we take the digital technology start-ups as the research object and focus on the role of founders’ creativity. In this study, we assess the relationship between founders’ creativity and business growth. According to the framework of upper echelons theory, we propose several hypotheses. Based on the investigation of 153 new ventures in China’s transition economy, we find that: (1) founders’ creativity has a positive impact on the growth of enterprises; (2) business model innovation positively mediates the relationship between founders’ creativity and enterprise growth; (3) work experience is found to be a moderator of the relationship between founders’ creativity and business model innovation. The conclusion of our analysis not only helps to further deepen the research on the growth process of start-ups but also helps to further expand the important role of business model innovation and founders’ work experience in the growth of new firms.
... Business models have become a widely studied concept in different areas of management discipline and practice (e.g., Coombes and Nicholson, 2013;Forkmann et al., 2016;Pohle and Chapman, 2006;Torkkeli et al., 2015b;Zott et al., 2011). The concept emerged in the business research literature in the late 1990s owing to the advent of technology, strategy innovation systems, and the e-commerce era (Müller and Vorbach, 2016). ...
... Thus, business models may function as a set of closely related decisions that are linked to a company's market strategy, transaction approach, organisational structure, and other internal and external activities, which are closely related to its business networks and network transitions (Balboni and Bortoluzzi, 2016). As a result, a manager's understanding of business models is valuable because it provides forehand knowledge on the avenues in which the resources embedded in the network enter a firm and how the firm can organise its activities, resources, and processes internally to create and capture value (Lubik and Garnsey, 2016;Pohle and Chapman, 2006). ...
... Business model innovation can create new business models and lead to more effectively finding customer needs, improvement of the quality of products and their properties, and decreasing the costs of production. Pohle and Chapman (2006) believed that by business model innovation, companies could achieve the optimal advantages of cost reduction and strategic flexibility (Pohle & Chapman, 2006). The research performed by Pohle and Chapman showed that business model innovation has a positive effect on the company's performance (Huang et al., 2013). ...
... Business model innovation can create new business models and lead to more effectively finding customer needs, improvement of the quality of products and their properties, and decreasing the costs of production. Pohle and Chapman (2006) believed that by business model innovation, companies could achieve the optimal advantages of cost reduction and strategic flexibility (Pohle & Chapman, 2006). The research performed by Pohle and Chapman showed that business model innovation has a positive effect on the company's performance (Huang et al., 2013). ...
Article
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Business model design becomes an essential source of firm innovation in the current competitive world. Business model innovation refers to the creation or reinvention of existing business models by designing novel value-creation systems, proposing new value propositions, and building original value-capturing mechanisms. However, to adopt the innovative business model in any organization, the inertia to change is a substantial barrier, and its role has not been examined completely. The purpose of this study is to examine the impact of organizational inertia on open innovation, business model innovation, and corporate performance. Using the survey as the research model, data were collected from 160 companies operating in the information technology industry in the city of Tehran. These firms were selected via judgment sampling method. The hypotheses were tested using structural equation modeling technique via SmartPLS2 software. Based on the findings, organizational inertia has a negative relationship with business model innovation and open innovation; though, business model innovation and open innovation have a positive effect on the performance.
... It aims to accomplish sustainable development, which implies creating environmental quality, economic prosperity, and social equity for current and future generations. The Circular Economy system can improve the product cycle and changes the system and mentality for both production and the consumer [10,28]. ...
... The main research area in which the articles are framed is Environmental Science Ecology (41), followed by Engineering (39), Science Technology other topics (28), while Business Economics is ranked fourth (23). ...
Article
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Background The Circular Economy system can improve the product cycle and changes the system and mentality, both for production and the consumer and has become a significant alternative to the classic economic model. The retail sector has also started to advance along these lines. Following an analysis of the state of the art of the Circular Economy and retailing, using bibliometric techniques, our research focuses on understanding if the relationship between circularity and retailing can help us determine a business’ survivability and resilience. To this end, data pertaining to 658 commercial premises from four cities were studied over a period of 11 years. A Deep Learning technique is applied using Long Short-Term Memory to determine if there is a relationship between the resistance of the selected commercial premises, their status in previous periods of time, the type of business activity, and their classification in the Circular Economy plane. Results The system predicts, on the set of tests, with a 93.17% accuracy, the survival of a commercial premises based on the activity, and circularity information before 2012. The results of the training also show very significant precision values of the order of 94.15% with data from the post-depression period. Conclusions The results show that businesses with activities related to the Circular Economy are more likely to survive over extended periods of time.
... This is mainly due to absence of recommendations and methods in the academic literature, leaving the firms unaware of how to start the process of BMI (Venkatraman and Henderson, 2008). Moreover, the renewing of a business model in response to external changes or disruptions (Doz & Kosonen, 2010), and how business model transform over time and adapt to evolving ecosystems (Pohle & Chapman, 2006) remains still poorly understood, especially in the context of digitalization. Nowadays, digitalization is omnipresent, and basically the most promising theme for a business if it wants to innovate its business model. ...
Conference Paper
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Roadmapping is a structured approach to analyze an organization’s business environment for potentially disruptive changes. Traditionally termed Technology Roadmapping (TRM) the approach is used as a management tool for planning, forecasting and administration. More recently firms apply the technique with a more general mindset to formulate business strategies for innovation that can address such disruptive changes. As part of their business strategy and to survive the intense competitive market environment an organization also needs to have an appropriate business model in place. However, to incorporate constantly changing market dynamics an organization needs to evolve and thus change their business model. This paper introduces a structured approach to business model innovation roadmapping (BMI-R) that defines the transition path from a current to a desired business model in the context of digitalization. The purpose of the paper is to validate through the Delphi technique the BMI-R and to identify what structure (layers, components & time horizon) should be incorporated in the approach. The BMI-R approach is proposed to serve an organization as a forecasting and planning tool that can identify potential digital technologies and also to recognize and act on events that require a change of direction in the actual business model components.
... Business models and business model innovation experienced the biggest attention with the advent of the Internet and the burst of the dot-com bubble (Freiling, 2015). However, business models have evolved over time and the level of complexity increased primarily through the existence of new digital technologies (Osterwalder & Pigneur, 2010 In practice, business model innovations have been acknowledged as a potential activity for value creation in times of high environmental dynamism (Pohle & Chapman, 2006). However, innovating the inherent business model is not trivial and comes with a high degree of complexity (Tripsas & Gavetti, 2000;Chesbrough, 2010;Mezger, 2014). ...
Article
Full-text available
The current economic situation is in constant flux. Progress in technology and especially the advancement of digital transformation have influenced business endeavors. In this realm, digitalization is closely linked to a high degree of digital disruption and the development of new products, services, and business models. In this paper, we aim to investigate how enterprises simultaneously handle digitalization and business model innovation. We employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution. Thus, a theoretical framing that includes the relationship between business model innovation and digitalization and propositions congruent with our general gestalt of the inquiry will be developed. The results indicate, despite some structural and processual commonalities that digitalization and business model innovation share, the mission to manage both phenomena remains challenging. In particular, some peculiarities inherent in the ambidexterity perspective need to be taken into account. Particularly under the constraints of a high degree of resource scarcity, it is important to strive for sustainable actions that lead to increased value creation and competitive advantage. Thus, this study implements an ambidexterity perspective on the two distinct areas of technology and innovation and provide groundings for further research avenues on ambidexterity and firm performance.
... Using empirical data from the publishing industry, they demonstrated that corporate entrepreneurship activities often lie at the core of the response to disruptive innovations. According to the research findings of Pohle and Chapman (2006), companies that put more emphasis on the creation of new business models have increased their operating margin faster than their competition. Based on prior research, business model innovation can occur in many ways (Amit and Zott 2012): ...
Article
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Corporate accelerators are a rapidly growing entrepreneurial phenomenon occurring in different business contexts and business models within corporate entrepreneurship. Corporate accelerators are considered as an innovation fostering approach within new ventures provided by start-ups. The aim of the paper is twofold: firstly, to explore the motives behind corporations’ engagement with start-ups in launching corporate accelerators, and secondly, to identify the corporate benefits and challenges of this business model innovation. The research design is based on a qualitative interpretative approach exploiting a triangulation of methods by using in-depth interviews (IDI) with corporate managers involved in development of corporate accelerators as well as a focus group interview (FGI) with industry experts. In addition, secondary data were applied to strengthen the exploratory research. The study demonstrates that a wide range of benefits stem from the accelerator activities which can ultimately can initiate changes in large companies. Our research expands on prior findings and suggests that corporate accelerators are driven by internal and external push and pull motives. The study contributes to expanding the scope of corporate entrepreneurship research in regard to the challenges and benefits of corporate accelerators. It provides evidence that corporate accelerators are a source of innovation that can be used to foster entrepreneurial-market logic and entrepreneurial learning.
... Over the past decade, business model innovation has been acknowledged as an emerging subject and a new approach for innovation management in particular (Chesbrough, 2007;Baden-Fuller et al., 2010;Schneider & Spieth, 2013) and more broadly for management of organisations as a whole (Pohle & Chapman, 2006;Chesbrough, 2007;Amit & Zott, 2010;Teece, 2010). The connection with disruptive innovation with business model innovation is widely acknowledged (e.g., Markides, 2006;Chesbrough, 2010;Koen, 2015) Part of the reason why the interest in business model innovation is growing is that the domain of innovation studies itself has extended from a subject focusing on technology policy to an interdisciplinary subject. ...
Article
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This research proposes a prototyping perspective in design for business model innovation to facilitate disruption. The value of design-led approach for managing innovation has been recognised under the concept of ‘design thinking’. In the research on innovation, the concept of business model innovation has been discussed as business models started to be acknowledged as a key aspect of managing innovation. Although experimentation for business model innovation is argued to be of importance, how to apply prototyping of design thinking to business model innovation has been limitedly theorised. This research is based on a literature review to articulate theoretically the concept of prototyping in business model innovation. Through the literature review, this research identifies four key dimensions of prototyping in business model innovation: purpose, process, context and engagement. This paper focuses on the Process dimension to interrogate the existing argument.
... In the last one and half decade, scholars have shown growing interest in business models and their innovations (collectively, BMI) (e.g., Chesbrough, 2007Chesbrough, , 2010Teece, 2010;Zott & Amit, 2010). Apart from its mediating role between a firm's technical potential and its economic values (Chesbrough, 2007), business models also allow firms to create and maintain sustainable competitive advantages (Pohle & Chapman, 2006). Demonstrating examples from Xerox's spin-off businesses, Chesbrough & Rosenbloom (2002) state that "Business models are perhaps the most discussed and least understood aspect...." (p533). ...
Conference Paper
In this study, partner selection method is explored. The theoretical and empirical aspects of two-sided matching models are discussed and compared with one-sided discrete choice models. Its applicability in “who partners with whom” and “whom to partner with” is explored using the context of business models. The study asserts that two-sided matching model approach in a “market of partners” enables two-sided decision making, and thus, helps in achieving greater complementary resources between partners. The study also elaborates the limiting conditions of its applicability towards the end of the paper.
... Business models have become a widely studied concept in different areas of management discipline and practice (e.g., Pohle and Chapman 2006;Zott, Amit & Massa, 2011;Coombes and Nicholson, 2013;Forkmann et al., 2016). The concept emerged in business research literature in the late 1990s, owing to the advent of technology, strategy innovation systems, and the e-commerce era (Müller and Vorbach 2015). ...
... As it was cited in the preceding part of this chapter, one key finding of the IBM Global CEO Survey of around 750 corporate and public sector leaders from around the world in 2006, was that 'competitive pressures have pushed business model innovation much higher than expected' on CEOs' priority list (George & Marc, 2006). The survey, further, reveals that the companies who emphasized twice on business model innovation than product or process innovation, could increase their operating margins faster than their peers. ...
Chapter
Full-text available
Conventionally, businesses focus on their offerings for growth. But the increasingly unpredictable business environment is making them irrelevant in the market. So, businesses should resort to a system of dynamic management by innovating on the business models rather than a single aspect of the business. Business model innovation demands neither new technologies nor creation of new markets, but cares about delivering the existing products produced by existing technologies to the existing markets, through a unique model. Hence, defining, innovating, and evolving new business models have become the new basis of competition. A differentiated, hard-to-imitate, effective, and efficient business model is more likely to ensure higher profits and long-term survival. In this context, the present chapter attempts to furnish multiple global evidences and discuss the Indian perspective of business model innovation.
... Dynamic changes in the micro and macroeconomic environment of companies, in particular regarding technologies, management methods, resource availability or competition, can inspire and even impose changes in business models. It is no wonder then, that innovations introduced in business models are, next to product and process innovations, a direction of seeking competitive advantage (Amit and Zott, 2012), whose potential in the assessment of enterprises has been increasing significantly for years (Pohle and Chapman, 2006). What's more, innovations at the business model level are harder to copy than a new product or process, because implementing changes in this area covers the entire chain of activities and involves more stakeholders than other types of innovation (Snihur and Zott, 2013). ...
... would reach the global scale (Pohle & Chapman, 2006). This implied that Huawei's long-term vision has always been to expand beyond China, and to create a world of "connectivity in a fully connected, intelligent world." ...
Article
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Multinational enterprises (MNEs) are key drivers of globalization. The study investigated the performance of leading Chinese electronics MNEs, Huawei, Lenovo, and Haier, and made a comparison between Chinese electronics MNEs and American electronics MNEs along with their specifications in terms of globalization by using Asmussen’s model, Petersen’s model, Rugman’s firm-specific and country-specific advantage (FSA-CSA) matrix, and the Porter’s diamond model. Findings revealed that only Huawei is the truly global company at present; nevertheless, Lenovo and Haier are both on the right track, reaching the same status as Huawei. These firms can successfully utilize their country-specific advantages by capitalizing on China’s external partnerships and existing trade agreements. Chinese projects seem to be able to provide Chinese MNEs with the ability to maximize their opportunity to seek growth externally and enter the global market. An examination of MNE practices facilitated by American and Chinese firms imparts relevant commonalities but differences in operational practices. Small enterprises can follow the process and strategy, while policymakers will receive a suggestion to implicate an industrial-friendly policy.
... Whereas business continuity is generically aimed to preserve the value that an organization provides with current activities, with business model innovation the organization is deliberately altering the core elements of its model in an aim to develop a totally "new-to-business" model (Bucherer et al., 2012;Heikkilä et al., 2018;Pohle & Chapman, 2006). The integration between business continuity and business model was recently advanced by Niemimaa et al. (2019), who pointed out that, whereas business continuity focuses on preserving current operations, a crisis could also be a source of new value. ...
Article
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The COVID-19 emergency has urged companies to operate in new ways to face supply chain interruptions, shifts in customer demand, and risks to workforce health. The organizational ability to respond to critical contingencies is crucial for business leaders in the perspective of continuing business. In our research, we investigate the actions undertaken by 50 world-leading corporations to respond to the pandemic outbreak. Applying content analysis to web pages and social network posts, we extract 77 actions related to 13 sub-areas and integrate these into a five-level framework encompassing operations, customer, workforce, leadership, and community-related responses. We also describe six illustrative company examples of how the emergency can generate opportunities for creating new value. The study advances the scholarly discussion on the impact of emergencies on business continuity and provides managers with a comprehensive view and some insights to define response strategies and actions in the current challenging scenario.
... As it was cited in the preceding part of this chapter, one key finding of the IBM Global CEO Survey of around 750 corporate and public sector leaders from around the world in 2006, was that 'competitive pressures have pushed business model innovation much higher than expected' on CEOs' priority list (George & Marc, 2006). The survey, further, reveals that the companies who emphasized twice on business model innovation than product or process innovation, could increase their operating margins faster than their peers. ...
Chapter
Full-text available
Conventionally, businesses focus on their offerings for growth. But the increasingly unpredictable business environment is making them irrelevant in the market. So, businesses should resort to a system of dynamic management by innovating on the business models rather than a single aspect of the business. Business model innovation demands neither new technologies nor creation of new markets, but cares about delivering the existing products produced by existing technologies to the existing markets, through a unique model. Hence, defining, innovating, and evolving new business models have become the new basis of competition. A differentiated, hard-to-imitate, effective, and efficient business model is more likely to ensure higher profits and long-term survival. In this context, the present chapter attempts to furnish multiple global evidences and discuss the Indian perspective of business model innovation.
... The findings highlighted that executives do not prefer new products and services as a source of future competitive advantage but new business models. A similar type of study by Pohle and Chapman (2006) highlighted that due to intensive global pressures, the focus of top executives on business model innovations has increased and reached much higher than expected before. The study further highlighted that companies who outperformed their rivals and whose operating margins have grown at a much greater pace in the past five years were putting twice as much focus on the business model innovation as the underperforming companies (Bashir and Verma, 2017). ...
Article
Purpose Emerging markets are witnessing rapid changes in their economy owing to the ongoing liberalization and globalization. India, as one of the emerging markets in south Asia, is also experiencing a dramatic change in its business ecosystem. This poses huge opportunities to the companies, both start-ups and established ones. In this direction, the business model innovation offers a strategic renewal mechanism. The study aims to explore the practices of an online transport network company (OLA) creating a distinctive place for itself in Indian taxi service sector. Design/methodology/approach Methodologically, an exploratory case study of an India-based online transport company (OLA) business model innovation is reported. Findings This paper reveals that OLA has been able to gain competitive advantage in the Indian emerging market by developing an innovative business model with its distinctive features of personalised customer service, asset sharing, usage-based pricing, collaborative ecosystem, agile and adaptive organising and successful expansion strategies. Research limitations/implications This study adds to current knowledge concerning the theoretical foundations and antecedents of business model innovation as a competitive advantage. The paper is explorative in nature because the analysis is mostly based on literature review. Furthermore, in consideration of the analysis of business model of a single company, further research is required to generalize the results. Practical implications The understanding of the intricacies of business model innovation can be of great concern to existing and prospective managers and entrepreneurs of emerging markets. Originality/value The paper discusses the features of innovative business models and how firms can make their business models more relevant to the competitive markets. As such, the study is hopeful to aid practitioners engaged in the pursuit of beating the competition with innovation driven business models.
... Recently, business model innovation (BMI) has received considerable attention from both practitioners (Giesen, Berman, Bell, & Blitz, 2007;Pohle & Chapman, 2006) and academics (Pedersen, Gwozdz, & Hvass, 2018;Schneider & Spieth, 2013;Spieth, Schneckenberg, & Ricart, 2014). Being instrumental in attaining a competitive advantage (Casadesus-Masanell & Zhu, 2013), business models (BMs) have been considered as a new phenomenon in studies spanning a wide range of areas, including strategic management (Zott & Amit, 2008), entrepreneurship and innovation (George & Bock, 2011;Wei, Yang, Sun, & Gu, 2014), and marketing (Storbacka, Frow, Nenonen, & Payne, 2012). ...
Article
Absorptive capacity Agility Top management mindfulness A B S T R A C T Business model innovation has gained increasing attention from scholars in the last few years. However, there is a lack of large-scale empirical research on business model innovation and fewer attempts have been made to study whether and how various factors can affect innovation in business models. As a consequence, this study aims to investigate the impact of knowledge absorptive capacity, organizational agility, and top management mindfulness on business model innovation as these factors contribute to organizational changes in business models. Data were collected from IT firms operating in Pakistan. The results indicate that business model innovation is significantly dependent on the knowledge absorptive capacity, agility, and mindfulness of the top management. Furthermore, business model innovation was established as a mediator in the relationship between these factors and business performance. From a managerial perspective, the findings are significant as organizations need to focus on the antecedents to make the necessary change to their business models to improve their competitive advantage and firm performance.
... Importantly, the model itself is a source of disruptive innovation (Baden Fuller and Morgan, 2010). As Pohle and Chapman (2006) note, businesses that place a greater emphasis on innovating their BMs tend to outperform their competition. Ultimately, BMI entails 'the search for new logics of the firm' (Casadesus-Masanell and Zhu, 2013, 464), which redefines how value is created, captured and delivered. ...
Article
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Recent technological developments in automation and Artificial Intelligence (AI) promise to disrupt the very foundations of how legal work is practised and delivered. Yet how they challenge current business models, where they encounter resistance, and how the benefits of AI can be realised remain unexplored. Drawing on interviews with professionals in the UK legal services sector, the paper highlights how technological and market pressures combine to challenge the business models of legal services firms. However, the findings reveal important cultural and structural challenges that hamper transformation. The paper extends the debate on technological disruption in legal services through a focus on business model innovation as a tool that can support firms in the sector to reimagine legal service provision.
... On the other hand, the terms "business model" and "business model innovation" (BMI) have often been used in managerial discourse to express the general perception that things are changing and that the known way of doing business will no longer be valid in some near future, in ways that are difficult, if not impossible, to predict. This is the general sentiment expressed by senior business leaders and CEOs when they comment that the innovation of their company's business model ranks at the top of their priorities (e.g., see Economist Intelligence Unit, 2005;IBM survey, 2006;Chesbrough, 2007;Pohle & Chapman, 2006). In this case, the terms business model and BMI are used by managers as metaphors to expresses the general idea that increasingly volatile, uncertain, complex, and ambiguous (VUCA) business environments, as well as the blurring of industry boundaries and the pace of technological development, challenge the long-term viability of known ways of conducting business. ...
Article
Starting from the mid-1990s, business models have received increased attention from both academics and practitioners. At a general level, a business model refers to the core logic that a firm or other type of organization employs to achieve its goals. Thus, in general terms, the business model construct attempts to capture the way organizations “do business” or operate to create, deliver, and capture value. Business model innovation (BMI) constitutes a unique dimension of innovation, different from and complementary to other dimensions of innovation, such as product/service, process, or organizational innovation. This distinction is important in that different dimensions of innovation have different antecedents, different processes, and, eventually, different outcomes. Business models have been the subject of extensive research, giving birth to several lines of inquiry. Among them, one line focuses on business models in relation to innovation. This is a vast, somewhat fragmented, and evolving line of inquiry. Despite this limitation, it is possible to recognize that, at the core, business models are relevant to innovation in at least two main ways. First, business models can act as vehicles for the diffusion of innovation by bridging inventions, innovative technologies, and ideas to (often distant) markets and application domains. Therefore, business models speak to the phenomenon of technology transfer from the point of view of academic entrepreneurship and of corporate innovation. Thus, an important role of the business model in relation to innovation is to support the diffusion and adoption of new technologies and scientific discoveries by bridging them with the realization of economic output in markets. This is a considerable endeavor that relies on a complex process entailing the search for, and recombination of, complementary knowledge and capabilities. Second, business models are a subject of innovation that can become a source of innovation in and of themselves. For example, offerings that reinvent value to the customer—as opposed to offerings that incrementally add value to existing offerings—often involve designing novel business models. Relatedly, BMI refers to both a process (i.e., the dynamics involved in innovating business models) as well as the output of that process. In relation to BMI as a process, the literature has suggested distinguishing between business model reconfiguration (BMR; i.e., the reconfiguration of an existing business model), and business model design (BMD; i.e., the design of a new business model from scratch). This distinction allows us to identify three possible instances, namely general BMR in incumbent firms, BMD in incumbent firms, and BMD in newly formed organizations and startups. These are arguably different phenomena involving different processes as well as different moderators. BMR could be understood as an evolutionary process occurring because of changes in activities and adjustments within an existing configuration. BMD involves facing considerable uncertainty, thus putting a premium on discovery-driven approaches that emphasize experimentation and learning and a considerable degree of knowledge search and recombination.
... The BM concept has received considerable theoretical (Massa et al., 2017) and practical (Pohle and Chapman, 2006) interest because it provides a useful perspective for understanding a firm's business and competitive logic. Scholars recently agreed that BMs are conceptualized as configurations of the three interrelated key elements of value proposition, value creation, and value capture (Clauss, 2017;Foss and Saebi, 2017). ...
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The Covid‐19 crisis has hit SMEs particularly hard. Numerous business models (BM) have been limited or rendered downright impossible due to decreased social contact. SMEs can respond to this exogenous crisis via temporary business model innovation (BMI). This empirical study investigates these temporary BMs using a multiple case study approach based on five SMEs in Austria, Germany, and Liechtenstein who within a short period of time applied their core competencies and networks to integrate new BMs, which were in some cases very different from existing ones. These had a positive effect on strategic flexibility, and if desired can also be incorporated into the firm long‐term. The paper contributes to SME crisis management during the Covid‐19 pandemic by pointing out and developing a successful management mechanism that allows to survive a crisis or even improve during this time. Moreover, we contribute to BMI literature by explaining temporary BMI as a new form of BMI. It also makes clear to managers that temporary BMs add value to firms and create new revenue streams.
... W.Johnson & Christensen, 2010), environmental dynamics and changes are reasons why existing and even successful business models have to be enhanced and refined (S.Schneider & Spieth, 2013) to meet the new requirements(Chesbrough, 2007(Chesbrough, , 2010Lindgardt, Reeves, Stalk Jr., & Deimler, 2015). Scholars have largely confirmed that business model innovation (BMI) is one of the key sources of competitive advantage (Baden-Pohle and Chapman (2006), BMI is a promising reaction for firms about changes in sources of value creation in times of high environmental volatility. "Businessmodel innovation poses in addition questions about novelty in customer valueproposition and about respective logical reframing and structural reconfigurations of firm"(Spieth, Schneckenberg, & Ricart, 2014, p. 237).Markides (2006, p. 20) defines BMI as "the discovery of a fundamentally different business model in an existing business" and forCasadesus-Masanell & Zhu (2013, p. 464), BMI is: "… the search for new business logics of the firm and new ways to create and capture value for its stakeholders". ...
Thesis
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The desire of the population for environmentally friendly mobility without burdening social fairness and human rights is constantly increasing and the achievements and conveniences in mobility that have been reached so far are to be safeguarded. A solution for this can be electromobility along with new business models to support it. The question is: what kind of business model is able to fully develop the potential of electromobility?The aim of the thesis is to contribute to the literature on sustainable business models through the lens of the fast-growing market of electromobility. For this purpose, the concept of electromobility is analyzed and defined in a comprehensive manner. Also, the key elements of electromobility are revealed, underlining the basic principles of value proposition for customers.Electromobility is based on new technologies. However, it is shown that technology alone is not sufficient and the business model is an essential vector of innovation. Conventional and sustainable business models are discussed. The latter have a special significance for electromobility, as they already consider the environmental and social aspects of business alongside the economic one.A new framework in order to analyze and/or to design sustainable business models for electromobility is proposed. It allows to better support the specific key values of electromobility. The framework of sustainable business models for electromobility (SBMEM) has to be based on close cooperation between producers, suppliers, and providers. An ecosystem has to be formed in which the individual value chains of the involved companies in electromobility are interlinked; they contribute all together to the value proposition and the value creation and delivery. In the framework, the environmental, social and economic dimensions are transversal to the basic elements “value proposition”, “value creation and delivery” and “value capture”, considered on the basis of a comprehensive ecosystem.The framework of SBMEM is then used to analyze different existing business models of electromobility. It is shown that the latter are not sufficient for the success of electromobility because they take too little or no account of all of the environmental, social and economic aspects of the innovation.The theoretical framework developed in this study contributes to the architecture of electromobility business model and aims to broaden the understanding of the role and applicability of business models in sustainability-oriented innovations and services. This framework is intended to enable the design of new sustainable business models for electromobility or to review existing business models and draw conclusions on which measures will make them more sustainable.This new framework enables companies to find a compromise between the different dimensions of the approach. In doing so, they can satisfy the growing needs of the population regarding mobility, the preservation of environment and social fairness while achieving their business objectives.The proposed SBMEM framework was discussed based on five case studies. It reveals to be a valuable tool both to analyze existing business models and to structure business models for future businesses.
... The understanding of the need for a constantly changing BM has increased the scholars' focus on business model innovation (BMI) and has led to a burgeoning in the number of academic publications devoted to the subject (Foss and Saebi, 2017). Furthermore, some authors have referred to BMI as a viable way for organizations to adjust to changing sources of value generation in times of high environmental instability (Pohle and Chapman, 2006;Schneider and Spieth, 2013). ...
Article
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Purpose In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that appears poised to become the future center of gravity for online social interactions. At first glance, the communicated change signals a radically new business model (BM) based on an unprecedented configuration of the three following components: value creation, value proposition and value capture. The purpose of this paper is to analyze Facebook’s announced changes in its BM to clarify whether the change is as radical as communicated or rather represents an incremental transformation of the current BM. Design/methodology/approach This investigation adopted an in-depth case study research method. The process included using a structured approach to collect 153 data points, including academic studies and publicly available information, followed by qualitative content analysis. Findings The results of our analysis of Facebook’s entrepreneurial journey indicate that the communicated strategic refocusing does not correspond to a radical BM innovation pattern. Even though Facebook’s BM might evolve into the innovation phase, as the current changes appear very futuristic, the authors estimate that the core elements of the BM will change incrementally. The investigation indicates that the underlying logic of the straightforward communicative efforts primarily serves two purposes: to improve the external perception of the company and to disseminate an internal change signal within the organization. Originality/value This paper is the first study that takes an entrepreneurship and BM perspective in analyzing Facebook’s approach in rebranding to Meta and refocusing its strategy on building the metaverse. The academic and practical relevance, as well as the potential future impact on business and society, makes the investigation of this case an intriguing prospect. Additionally, the study illuminates the difference between the communicated vision and the real impact on the business, suggesting critical questions about future large-scale rebranding efforts and their effects.
... In addition, the digitalisation of companies helps to generate new business models (Bouwman et al., 2018) and, if these are aligned with innovation, they boost companies' economic and financial performance (Bouwman et al., 2018;Chesbrough, 2006;Giesen, Riddleberger, Christner & Bell, 2010Pohle & Chapman, 2006). ...
Article
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This paper analyses how innovation affects the relationship between the digitalisation of the company and its economic and financial performance, reviewing the cause-effect situation of this relationship. As some scientific literature suggests, the impact of ICT technologies on business performance is not homogenous amongst firms. The answer to this issue is probably to be found in innovation. In order to further develop this statement, this study examines the role of innovation in the relationship between business performance and business digitalisation. This research framework has been built based on the Innovation Theory of Rogers. Companies from all over Spain have been surveyed and the data has been contrasted with Partial Least Squares-Structural Equation modelling (PLS-SEM) and Moderation Analysis. The results show that in effect, innovation acts as a moderator variable in the relationship between business digitalisation and performance. These results allow us to conclude that it is not only important to digitalise the company to improve its performance, but that this digitalisation should also be aligned with a clear innovation strategy that allows for improving the company´s performance. The aim of this study is to contribute with greater knowledge to how the digitalisation of the company affects its economic/financial performance and manifest the role innovation plays in this relationship.
... Usually in critical environments, small and medium-sized business managers do not have the right attitude to create, acquire and provide value to customers and companies (Marolt et al., 2018). Therefore, innovation in the business model can be an opportunity to recreate these values (Pohle and Chapman, 2006). ...
Preprint
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We know that SMEs are among the businesses most affected by the COVID-19 shutdown. The first theoretical and practical observations in SMEs show that innovation in business models can be a solution to successfully improve and cope with the COVID-19 crisis. In a way that arouses curiosity, some SMEs have already begun to successfully change and reconciling their business models. This paper provides a qualitative analysis of six local SMEs in Iran to explore how SMEs adapt their business models to crisis. We collected interview data from managers with one of their middle managers for each case, which we triangle for analysis with secondary data. According to the results, BMI could be used during and after a crisis to generate new income, maintain and exit pre-crisis conditions, and develop.
... According to an estimate by the Boston consulting group, 1 the average business model lifespan has decreased from fifteen to five years in the past few decades. As a result, business model innovation (BMI) has become one of the essential capabilities of an organization to ensure a higher than normal growth trajectory (Love et al., 2011;Pohle and Chapman 2006). Further, BMI helps organizations to defend against possible industry disruptions due to the emergence of new players or technologies. ...
Article
The current research explores the contingencies behind the acceptance or rejection of digitized business model innovation at the Bottom of the Pyramid (BoP). Building on the existing literature on business model innovation and using the lens of stakeholder theory, we explore the contingencies that decide the success or failure of digitized business models at the BoP. We conducted an inductive case study of eKutir, an Indian social enterprise that uses a digital platform to deliver value for farmers in Orissa. Our analysis reveals that stakeholder's stability and stakeholder's incentives are the critical contingencies deciding the conditional acceptance of the digitized business model innovation. Our results also confirm that accessibility, availability, affordability, awareness and acceptability are the most important factors contributing to the stakeholder's adoption of digitized business model innovation. Further, we infer that age, respect, power and authority are key differentiating factors contributing to stakeholder's stability which can significantly influence the acceptance of digitized business model innovation. We conclude with a framework that can guide the successful implementation of digitized business model innovation at the BoP.
... Malhotra (2000) During the 2006 and 2010, the study found 97 publication on business model innovation. As innovation of business models became more relevant to business leaders (Pohle & Chapman, 2006) and scholars, more publications addressed challenges, process, and outcomes of business model innovation. Few frameworks towards innovation of business models we also found. ...
Conference Paper
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Fast changing and highly uncertain business environment requires firms to constantly be alerted to change. Being able to change and respond to such a business environment requires organizational capabilities such as strategic flexibility and the ability to innovate business models. Over the past decades, considerable research has been done on both strategic flexibility and business model innovation. Often, they have been used studied together. Some studies address their joint impact on firm’s competitiveness, while others address the relationship between them. However, there is still no well-defined view on this relationship between business model innovation and strategic flexibility. This paper provides a review of the studies on strategic flexibility and business model innovation relationship and categorize impact of strategic flexibility on business model innovation. This research is based on a systematic scoping review. This research concludes that strategic flexibility can be categorized as a pre-requisite, moderator, and as outcome of business model innovation.
... Nevertheless, 'innovation must include BMs' (Chesbrough, 2007), and with its radical character (Johnson, Christensen & Kagermann, 2008), BM innovation in successful firms is aimed at finding ways to re-design value creation and re-define value propositions for various stakeholders (Ramdani, Binsaif & Boukrami, 2019). External forces, especially in the presence of ambiguity in business ecosystems (Pohle & Chapman, 2006), affect the extent to which a BM is adapted (Saebi, Lien & Foss, 2017). The Domain-based cluster reveals that publications began moving into the study of BM innovation capabilities, suggesting the need to address the link between BM innovation and firm performance more thoroughly (Futterer, Schmidt & Heidenreich, 2018;Guo et al., 2017;Pati et al., 2018;Velu, 2016). ...
Article
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Recent reviews demonstrate the usefulness of the business model concept as a level of analysis in management, whereas less attention has been devoted to the analysis of the paths of past research to guide its future development. We used bibliometric methods, specifically bibliographic coupling and algorithmic historigraphy, to trace the development of the business model literature from its origins in e-business to its current state. In addition to reviewing the literature as a whole, our study investigated the time-dependent co-evolution of research sub-streams. We examined the relative influence of publications and canonical papers (algorithmic historiography) within and between three separate time spans (bibliographic coupling). We found that business model foundations draw from three major business sub-disciplines—strategy, entrepreneurship, and innovation—whilst new frontiers (e.g., Industry 4.0, sustainability, and networks) offer an opportunity to increase the inter-connectedness of business model research. Finally, we discuss contemporary topics and future avenues for business model research.
... In 2006, Pohle explains that within corporate practice, business model innovation has been identified as a promising approach for firms to respond to changing sources of value creation in times of high environmental volatility [21]. This underlines the necessity to derive a better understanding of the phenomenon as well as it drives and legitimates the rising academic interest in the topic. ...
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يهدف البحث إلى قياس أثر الريادي على إدارة الأزمات في مؤسسة سونلغاز لولاية غليزان، ومن أجل برقيق ىدف البحث، واختبار صحة فرضياتو فقد تم إعداد استبانة لجمع البيانات من الددير ورؤساء الأقسام ا ولدصالح، حيث تمّ ت وزيع 44 نسخة على عينة البحث، استرجع منها 34 نسخة أي ما نسبتو 75 % من الاستبانات الدوزعة . توصلنا إلى عدّة استنتاجات ألعها أن ىناك أثر ذو دلالة إحصائية لبعض خصائص الريادي في إدارة الأزمة، وأن القدرة على التحكم بالذات كانت من أىم الخصائص الريادية في إدارة الأزمات وفقا لوجهات نظر الدستجوبنٌ. Aggregates of knowledge magazine
Article
Purpose This study aims to empirically examine the relationship between Six Sigma and organisational performance of the Dubai Police Force (DPF). Moreover, this study further explores the role of innovation culture as a mediating variable between this relationship. Design/methodology/approach A questionnaire survey was conducted to collect research data. The population of the study was composed of head section officers of the DPF. A total of 388 questionnaires were distributed amongst respondents in which 252 of them were returned. Structural equation modelling was performed to test the hypothesised model. Findings Central findings confirmed the effect of Six Sigma and innovation culture on organisational performance. Additionally, innovation culture was found to partially mediate the effects of Six Sigma on organisational performance. Practical implications Findings from this study may enlighten managers, practitioners and academicians on the importance of using Six Sigma in the policing field. This study advocates taking into account preparing appropriate culture when implementing Six Sigma projects given its role in facilitating the implementation of these projects and achieving success. Six Sigma with innovation culture provides a key opportunity for the creation of uniqueness and has the potential to significantly influence organisational performance. Originality/value This study adds to the current knowledge on the role of Six Sigma on organisational performance of police agencies. This study is the first to provide empirical evidence on the mediating role of innovation culture on the relationship between Six Sigma and organisational performance in policing context.
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Future climate simulations have been produced for three 5-year periods until the end of twenty-first century using the WRF-ARW numerical weather prediction model for the greater area of Thessaloniki in the framework of the forecasting System for urban heaT Island effect (LIFE-ASTI) programme. In the present study, we analyse the characteristics of heat wave days in present and future at a central urban region of Thessaloniki and a rural region around the city in order to investigate the urban heat island effect under extreme heat. The number of heat wave days until 2100 is expected to increase by >12 times more than in the present. It is notable that more than 60% of the heat wave days within the urban area will be characterized by minimum temperatures ≥30 °C, while this percentage will be ~12% for the rural area. Finally, while in the present the urban heat island intensity during heat wave days presents mostly values 1–3 °C, in the future the intensity will be larger, in a few cases exceeding even 6 °C.
Article
Purpose The ecological footprint of the food industry and the requirements of the bio-based economy result in the need for deepening the concept of corporate sustainability. CSR provokes the implementation of eco-innovation with high value added. A main source of value added and sustainability is the integrated implementation of ecodesign practices . The purpose of this paper is to systemize an integrated model for the product ecodesign implementation, which combines not only the industrial and process ecodesign but also the overall organizational and socio-economic context of SMEs in food industry, reflected in CSR and value added for stakeholders. Design/methodology/approach The methodology for implementation of business model for sustainability of the SMEs in the food industry through ecodesign is based on vertical and horizontal integration of well-known self-relevant environmental, social and economic tools such as corporate social responsibility, life-cycle assessment, MET matrix, ecolabelling and stakeholder approach for production and marketing of high-value-added eco-products. Findings This study proposes an algorithm for implementation of an integrated business model for SMEs sustainability in the food industry, focusing on high-value-added delivery for stakeholders, based on corporate social responsibility, functional innovation and eco-efficiency. The ecodesign based on CSR business practice in food industry allows simultaneous optimization of environmental aspects and cost structure of products in conditions of improved quality and functionality. Thus, ecodesign contributes to the diversification not only of the company’s product portfolio, but also to opening of new marketplaces and the implementation of new market strategies by increasing the value added. Practical implications The research identifies actions, which SMEs in food industry can follow to achieve ecological redesign of their business and production processes that simultaneously enhance product functionality and resource efficiency. Originality/value The academic and the social value of the research is the focus on ecodesign and its implementation in SMEs in the food industry as a tool for creation of multidimensional high value added for stakeholders in bio-based economy.
Chapter
In this paper we propose a model for implementation of value eco-innovations of clean production through ecodesign in the SMEs of the food industry in Bulgaria. The clean production is a preventative approach to managing environmental aspects. The paper presents the essence of clean production through ecodesign, the methods for its achievement and outlining the possible options and barriers for SMEs from the food industry in Bulgaria to implement the relevant value eco-innovations. The ecological footprint of the food industry makes the need for an integrated implementation of clean production practices from raw material extraction to packaging and waste disposal of final consumer.
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Chapter
Business model innovation has received more attention in recent years than nearly all of the other subareas of business model management. In this respect, there is a great interest in literature and practice regarding the conditions, structure and implementation of innovations on the business model level. Since business model innovation is rather abstract compared to product or process innovation, knowledge of the business model concept as well as classic innovation management is necessary in order to better understand it.
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It is well known that 90 percent of all new ventures fail partly because they often lack vital resources, must compete against established companies but have little or no business acumen with which to compete and drive spectacular growth and profitability. Thus, just one-out-of-ten start-ups grow into successful, sustained enterprises. Although the academic literature attributes such sustained growth to innovative approaches for inducing transformative change, very few studies have attempted to address the five main components of strategic innovation management (strategic planning, business model innovation, marketing management, product innovation, and financial planning) within a single research framework. Building on insights from a systematic review of strategy and innovation management literature, this paper seeks to fill this important gap in the literature by introducing a decision-analytic framework for road mapping a go-to-market innovation strategy, comprising of well tightly integrated elements of strategy, business model innovation, marketing management, product innovation, and financial planning that mutually support each other as a system. The framework and its corresponding road mapping process create powerful alignment mechanisms to systematically map and analyse the underlying processes driving business performance and develop game-changing business plans to reshape industries, transform value chains, and drive spectacular growth and profitability.
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Business model innovation (BMI) is a subject that has been much investigated in recent decades. Despite this growing interest, and the general assumption that BMI contributes to business performance (BP), an absence of scale remains as a limitation, and more research is required regarding this correlation. We analysed the correlation of BMI, in terms of value creation, proposition and capture, and BP regarding consumer satisfaction, market effectiveness and current profitability. Our samples consist of 51 companies located in technological parks in Brazil and we used self-reported data to conduct the study. As a result, it was identified that there is a positive correlation regarding BMI and BP as main concepts. Value creation and proposition are also positively correlated, with BP as an aggregated variable and with customer satisfaction. Value capture, market effectiveness and current profitability do not present a positive correlation with the other variables.
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Business model innovation at the Bottom of the Pyramid (BoP) is typically understood from the “poor as buyers' lens.” Through the lens of stakeholder theory and sharing economy principle, our study documents, with the help of a participative observation approach, how business model innovation (BMI) is successfully implemented at the BoP with “poor as suppliers.” We show how design of incentives to stakeholders becomes a crucial factor toward successful implementation of BMI in subsistence markets. Further, we show how sharing economy principles are applied in agriculture, leading to economic and social sustainability to stakeholders. Our findings support the emerging literature on how such innovation can contribute to poverty alleviation in an emerging market context.
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Business model innovation (BMI) describes the efforts made by the business in finding new business logic or new ways of value creation. Technological change is deemed to be the main driver of BMI. This study focused on the emergence of the internet of things (IoT) as a technological driver of BMI in internet service providers’ (ISPs) business context, in the scope of wired access (WA) and fixed wireless access (FWA) providers, and addressed new ways of value creation for ISPs driven by IoT. To this end, a four-stage BMI process, including; initiation, ideation, integration, and evaluation, was used. In the implementation of the BMI process, we used the data extracted from the literature of IoT, BMI, and ISP business, as well as those obtained through interviews with experts. As a result of the process implementation, we identified possible ideas for the value creation of ISPs in the IoT domain, based on connectivity service providing, cloud service providing, technical solution providing, and business solution providing. Then, we proposed ISPs’ business models in the IoT domain, in accordance with the identified ideas, based on Hedman and Kalling’s ontology. To boost the validity of the proposed business models, the stress testing approach was recruited at the final stage of the BMI process. Implementing BMI, driven by IoT, in the ISPs’ context, reduces constraints imposed by the paucity of knowledge in both BMI and IoT, helps ISPs’ managers to anticipate and identify the IoT-based opportunities, and provides a starting point for further studies on new ways of value creation in other businesses in the telecom industry.
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Research on business model innovation (BMI) processes is blossoming and expanding in many directions. Hence, the time is ripe to summarize and systematize this body of knowledge for the benefit of current and future BMI scholars. In this article, we take stock of the current literature to clarify the concept of a BMI process, develop a categorization scheme (a “BMI process framework”), and discuss future research possibilities. Building on a systematic literature review of 114 papers, our categorization delineates different types of BMI processes and corresponding sub-processes. Moreover, we develop a framework that illustrates how BMI processes are interrelated and interconnected. Finally, we identify the main process-related research gaps in BMI research and provide directions for future research that emerge from our categorization and discussion.
Conference Paper
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Dynamic capabilities embody various capabilities that drive the organization’s adaptiveness and are studied from management and information systems perspectives. However, the impact of specific dynamic and organizational capabilities, i.e., management system adaptability and improvisational capabilities, on business model innovation under tumultuous times still has to be unfolded. Therefore, this study investigates the role of these capabilities during the COVID-19 crisis. This study presents the results of analyses on obtained survey data (N=105) from Ghana and shows that these two strategic capabilities significantly influence business model innovation. Also, this study shows that business model innovation positively influences organizational performance under COVID-19. These results extend the current knowledge base of dynamic and organizational capabilities while offering implications for practice. We also offer various practical recommendations that help overcome business model innovation challenges during tumultuous times.
GE sees the light by learning to manage innovation: Jeffrey Immelt is remaking America's flagship industrial corporation into a technology and marketing powerhouse
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