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Changing Business Models: Surveying the Landscape
... Companies invest in research directly by creating knowledge and by adapting existing innovations to their industry (Cohen & Levinthal, 1990;Mikusz, 2017;Raymond, Bergeron, Croteau & St-Pierre, 2016). The impact of dynamic technological progress requires regular enhancement of the company's BM to sustain positive financial outcomes (Linder & Cantrell 2001 Remane, Hanelt, Nickerson, & Kolbe, 2017), thus, creating a unique product (Paulus-Rohmer, Schatton, & Bauernhansl, 2016). Thanks to digital platforms, the customers and partners of companies have the opportunity to establish mutual cooperation, which contributes to the creation of the uniqueness of products and boosts the quality of existing products (Linder & Cantrell 2001). ...
... The impact of dynamic technological progress requires regular enhancement of the company's BM to sustain positive financial outcomes (Linder & Cantrell 2001 Remane, Hanelt, Nickerson, & Kolbe, 2017), thus, creating a unique product (Paulus-Rohmer, Schatton, & Bauernhansl, 2016). Thanks to digital platforms, the customers and partners of companies have the opportunity to establish mutual cooperation, which contributes to the creation of the uniqueness of products and boosts the quality of existing products (Linder & Cantrell 2001). The product uniqueness and quality are supported by customer feedback. ...
... Disruptive innovation offers an alternative to existing products that are much cheaper and simpler to use, and partially or fully replace existing products. Disruptive innovations do not try to create better products; they introduce new products that are not currently available on the market (Christensen & Raynor, 2003;Linder & Cantrell 2001). At the same time, while for one business, it can be a disruptive innovation, for another one it can be productive as it can promote sustainable development (Joseph, 2018). ...
... This article introduces a knowledge-based view (KBV) to explore the nature and strategic value of a BM. Drawing on this view, we see the BM as a structured knowledge cluster which contains not only explicit parts such as organizational activity patterns (Brousseau & Penard, 2007), customer value propositions (Afuah & Tucci, 2001;Weill & Vitale, 2001;Chesbrough & Rosenbloom, 2002), a revenue model (Linder & Cantrell, 2000;Petrovic et al., 2001), and key resources and processes (Johnson et al., 2008), but also implicit parts such as practical skills (Hau & Evangelista, 2007), mental maps and schemas (Leonard & Sensiper, 1998), emerging meanings (Strombach, 1986), and sense-making processes (Malhotra, 2000). Within this framework, imitation of BMs is regarded as a process of knowledge diffusion across firm boundaries, and its imitability is proposed to be related to the erosion of its adopter's competitive advantages. ...
... "…for the firm's management, business models also function as a subjective representation of these mechanisms." For one perspective of interpretation, a BM is usually viewed as an "activity system" for the entire focal firm (Linder & Cantrell, 2000;Hedman & Kalling, 2003;Wirtz et al., 2010;Zott & Amit, 2010;Martins et al., 2015;Wirtz et al., 2016). This perspective holds the view that since a firm's value creating transaction process connects activities (Seddon et al., 2004), the object of a BM can be understood as a system of firm activities (Zott & Amit, 2010). ...
... Hau and Evangelista (2007) argue that it is this feature that allows explicit knowledge to easily be clarified (Spender, 1994), stored (Connell et al., 2003) and transferred, and thus tends to be more easily and widely disseminated. Some typical explicit components of a BM include product technologies (Morris et al., 2005), organizational activity patterns (Brousseau & Penard, 2007), customer value propositions (Afuah & Tucci, 2001;Weill & Vitale, 2001;Chesbrough & Rosenbloom, 2002), the revenue model (Linder & Cantrell, 2000;Petrovic et al., 2001), and key resources and processes (Johnson et al., 2008). ...
Purpose
The purpose of this paper is to conceptualize the business model (BM) from a knowledge-based view (KBV), to interpret its nature and knowledge structure and to investigate the relationship between its imitability and the erosion of firm’s competitive advantage.
Design/methodology/approach
Based on a systematic literature review, this study builds an integrated framework to explicate the nature and structure of the BM from a KBV. Moreover, on the analysis of two contrasting cases, the argument concerning the relationship between BM imitability and its strategic value is proposed, analyzed and supported.
Findings
The main finding of this study is that a BM can be viewed as a structured knowledge cluster that contains explicit and implicit parts. Its imitation is a dynamic process of knowledge diffusion across firm boundaries. Ceteris paribus, with a lower proportion of implicit knowledge, a BM is more likely to be imitated and the adopter’s competitive advantage is more likely to be eroded, and vice versa.
Practical implications
The proposed framework could provide managers with a deeper understanding of the nature and structure of the BM and help potential adopters develop a successful entry strategy by avoiding BMs that seem profitable but are incapable of maintaining competitive advantage.
Originality/value
As a complement to previous studies, the research conceptualizes the BM as a “structured knowledge cluster” to explicate its nature and knowledge structure from a KBV. The implicit part of the BM is explored, and its importance for the adopter’s competitive advantage is discussed and verified.
... The model of the change itself is the core logic of how a company will change over time in order to sustain competitive advantage. This core logic of change can be described using four basic types of change model (Linder 2000): realization (maximize returns from existing operating logic), renewal (revitalize product and service platforms), extension (new markets, value chains and product lines) and journey (new business). The design of organization is a direct effect of the new activity system and business model (Linder 2000) and it is crucial that the design is a fit to the model and the new environment of the organization (Siggelkow 2005). ...
... This core logic of change can be described using four basic types of change model (Linder 2000): realization (maximize returns from existing operating logic), renewal (revitalize product and service platforms), extension (new markets, value chains and product lines) and journey (new business). The design of organization is a direct effect of the new activity system and business model (Linder 2000) and it is crucial that the design is a fit to the model and the new environment of the organization (Siggelkow 2005). From an SME perspective, the business model is the organizational configuration (George 2011). ...
The position taken in this thesis is that a small and medium sized supplier makes a strategic choice to integrate their supply chain with industrialized house-building companies in order to deliver customer value and sustain competitive advantage. Customer values for industrialized house-building means delivery reliability, product quality, supply chain and market flexibility. Supply chain integration is the means for understanding customer requirements and to use supply chain resources efficiently through collaboration. The purpose of this thesis is to explore a small sawmill transition from single-minded focus on raw material optimization and increased production efficiency towards supply chain integration and customer focus in the industrialized house-building context. The thesis basis is a systematic literature review and five appended papers, based on a longitudinal case study at a small Swedish sawmill. Data has been collected through interviews, participant observations, and archival data during the period of 2010-2012. The theoretical gap is formed by the lack of consensus on supply chain integration. Viewing the criticism it is not clear how the constructs that constitute supply chain integration affect the possibility of succeeding with integration, how the integration should be measured, or how it affects the performance. Hence this thesis makes a holistic approach and collect empirical data trough method development on a strategic (business models, supply chain management), tactical (supply chain planning, sales and operations planning) and operational (value stream mapping, lean value delivery, simulation) supply chain integration process within industrialized house-building context. However, the findings do not conclusively prove or disprove the position. Findings indicate that small sawmills with limited resources and capabilities can employ methods of sales and operations planning, business model decomposition and value stream mapping enhanced decision making. The main contribution is the empirical data on supply chain integration divided and analyzed from strategic, tactical and operational process levels synthesized that with understanding of the importance of integrating these three levels dual perspective. Thus contribute with theoretical enhancement and reduction of the still-identifiable fragmentation of supply chain integration theory.
... Out of the 59 authors, 10 met the criteria of being highly recognized in the literature reviews and containing formal MBMs. The final list of 10 authors are [23,24,27,38,[58][59][60][61][62][63]. Their publications date between 2000 and 2010 as shown in Figure 3. ...
... Like the business model, the concept of value has been subject to multiple definitions. Value has been understood as a product or service [23,24] as information [62] and even as experiences [59]. Moreover, value has also been associated to other enterprise domains aside from the business model. ...
The business is an abstraction of the way in which value is created and delivered. The concrete representation is the business model, expressed by a group of artifacts built with different languages. It serves to describe, explain, analyze, design, and evaluate the business. The set of concepts, construction rules, artifacts, and languages required to express it, are defined by a Meta-Business Model (MBM). Multiple authors have proposed different MBMs, each one with a specific motivation and objective. Some of these MBMs are widely recognized and have been applied in contexts like innovation and entrepreneurship. Due to new challenges, such as sustainability, being faced by businesses and given new ways of producing and delivering value, like the sharing economy, Novel Complex Businesses (NCBs) are emerging. NCBs are businesses characterized by circular structures made out of numerous inter-related components, and by creating value out of the product/service schema. While existing MBMs fulfill certain purposes, they do not have the expressiveness required to describe NCBs precisely enough to describe and analyze them. This paper introduces an MBM with the concepts, construction rules, and graphical notation needed to represent NCBs. We also illustrate an NCB and present the results of the validation for our MBM.
... (Horvath et al. 2018). The goal of these policies should be to encourage employment and investment Linder and Cantrell (2000) Weill and Vitale (2001) Stähler ( C9. Revenue Flows Revenue Flows act as cost-saving measures for the industries which heavily rely on the import of virgin materials. ...
... Revenue Flows Revenue Flows act as cost-saving measures for the industries which heavily rely on the import of virgin materials. with the utilization of recycled products and government support, there will be a reduction in costs related to the shipment, insurance, delivery delays, negotiation fees, and taxes Linder and Cantrell (2000) Weill and Vitale ( ...
The concept of the circular economy has acquired importance in the academic world. The corporate firms and governments believe that the pressure on the environment can be reduced by implementing the circular economic system. The switching of a linear economy to a circular economy requires to build new business models that overcome the limitations of the linear model of the economy.
This paper aims to rank the business models for the successful adoption of the circular economy through the criteria by employing an appropriate multi-criteria decision making (MCDM) method. Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (Fuzzy TOPSIS) has been used in this study. Eleven Business Models have been identified through literature review and analyzed based on nine criteria for the business model to be successful. The ranking of results indicates that the product and process design is the most important business models for the implementation of the circular economy. The findings of this research enhance the understanding about the relative importance of the several business models based on which the management can formulate an effective strategy to systematically adopt an appropriate business model for successful implementation of an economic system.
... It can be derived that the first critical function of the business model concept is that it refers to a (more or less specifically defined) approach or methodology to be employed by either the company or an observant: a business model may be understood as "a tool to position the value proposition in the value chain" (Sabatier et al. 2010, p.442), or as a strategic management tool to improve a company's value chain (Linder & Cantrell, 2000). By working towards a business model an organisation seeks its position in the market and finds out about barriers and opportunities. ...
Cite/Reference as:
Hoveskog, M., and Halila, F. (eds), (2021). Proceedings of the 6th International Conference on New Business Models: New Business Models in a Decade of Action: Sustainable, Evidence-based, Impactful. Halmstad: Halmstad University Press. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-44872
... Toutefois, ces définitions s'accordent toutes à mettre en évidence le concept clé de valeur (Lambert, Davidson, 2013). La littérature (Linder, Cantrell, 2000 ;Magretta, 2002 ;Rajala, Westerlund, 2007 ;Zott et al., 2011) définit le BM comme la façon dont l'organisation crée de la valeur, la distribue de façon à en tirer des revenus qui vont lui permettre d'être viable et pérenne. Fréquemment utilisé depuis l'arrivée des start-ups du numérique et de l'internet (Hedman, Kalling, 2003 ;Porter, 2001) pour expliciter leur création de valeur centrée sur des activités immatérielles difficiles à quantifier, le BM a depuis donné lieu à un nombre croissant d'articles scientifiques. ...
Business Models of Commercial and Productive
Organizations of Urban Agriculture
Urban agriculture is experiencing a real revival, especially in times of economic
and health crisis. This reterritorialization of food production in cities
is taking place with the emergence of new market and production organizations.
Our study consists in identifying, understanding and analyzing the
business models (BM) that ensure a certain viability to these market and
productive organizations of urban agriculture (MPOUA). The economic
dimension of the study angle is privileged, especially because it is regularly
questioned by all the actors that are the public and private funders. In order
to be sustainable and profitable, the MPOUA invent many innovative strategies
for agriculture, thus producing a multitude of business models. Our survey
of twenty-five MPOUA shows on the one hand their originality and
diversity in terms of activities. On the other hand, we show the existence of
keys to success such as partnerships with communities, funders or education,
the integration of appropriate technical skills, activities offering sustainability
values. Marketing is done in short circuits, preferably to a wide variety of
customers, consumers, companies or communities.
KEYWORDS: Urban Agriculture, Business Model, Food Production, Strategy, Short Circuit
JEL CODES: Q1, Q5, R1
... Surveying the previous literature on business model research, it is evident that academics are yet to decide on a uniform understanding of the concept (Alt & Zimmermann, 2001;Zott et al., 2011). Linder & Cantrell (2000) argue that there are many publications where the term is used with varied meanings. Zott et al. (2011) further state that researchers often adopt the concept as they see fit to their purpose. ...
The World Health Organization recognized that the global population is rapidly ageing and
effecting the global demographics. Among other effects of a growing ageing population,
additional stress on healthcare services is a serious concern for policy makers. There is parallel positive relation observable between advancements in information and communication technologies (ICT) and advancements in healthcare services. To deal with the issues raised by growing ageing population, global healthcare sector has been using ICT advancements adeptly.
One such emerging healthcare model is known as “Connected Health”. Connected health is a multi-stakeholder context, where more private institutes are entering rapidly. This study attempts to explore Connected Health Business Ecosystems through Business Models.
While business model conceptualizations are evident in various ICT sectors, the healthcare domain seems to have underutilized the value of business model conceptualizations up until recently. In European context, one of the underlying reasons could be that the healthcare sector is widely perceived as public good. Through a structured literature review, this study offers a framework to look at ecosystemic contexts through the business model lens. The study highlights three key elements of business model relevant to ecosystemic contexts; namely: Opportunity, Value, and Advantage. Similarly, the study identifies three broad characteristics of business ecosystems; they are: Structure, Interaction, and Value re-configuration.
The study utilizes three qualitative case studies in the four original publications. The results of the study include: 1) business models relate to the business ecosystems through opportunity exploration and exploitation, value creation and capture, and advantage exploration and exploitation; 2) the process of exploring Business Ecosystems through business models can include Visioning, Mapping, Understanding causal interaction, and Understanding value reconfiguration; 3) In emerging business ecosystems, complementarity between stakeholders’ business models gives rise to the ecosystemic business model; 4) Interaction is about variation, selection, and retention of stakeholders’ business models in the business ecosystem’s evolution.
... There are different definitions of a business model. Linder and Cantrell (2000) defined a business model as the basic logic that a company uses to create value for its customers and its shareholders. Chesbrough and Rosenbloom (2002) defined a business model as a way to make profit and explained business model functions as shown below: ...
... BMCs may be analyzed by considering mutual interaction between business subjects, creating values and income sources [17]. e significance of the economic component in BM is emphasized in the conducted research [18], as well as firms' economic dimension with components that correspond to the determinants of firms' profitability [19]. Some scholars [6] look at BMs at a general level and provide the ontology of BM by emphasizing the significance of the component, differentiation, and strategic control, which represent the economic need to differentiate and protect revenue streams. ...
As the only constant in business is change, business transformation is essential for adopting new perspectives and business trends. One of the keys to performing successful business transformation is to be fully aware of the current components of the business model. This research aims to allocate the business model components (BMCs) to defined business model components groups (BMCGs) by developing a new approach that integrates fuzzy sets and heuristic algorithms. The allocation results enable a comprehensive analysis of business model frameworks and give a good connection to research in the domain of strategic management and business process modeling. For allocation, the decision-makers (DMs) are employing the linguistic terms modeled by the fuzzy sets theory. The considered problem is stated as an integer programming model where the optimal solution is given by a B&B algorithm. The model is tested on a sample of forty experts from four different economic sectors.
... "Incomparable offering" [26] : ...
... ). It describes an organization's logic to create and capture value for its stakeholders(H,Bouwman, E, Faber, T, Haaker, H 2008) (Chesbrough and Rosenbloom 2002),(Linder, J, Cantrell 2000),(Osterwalder, A, Pigneur 2010), (Lüdeke-Freund, Gold and Bocken 2019).Bouwman et al (2008) links this description to 'how an organization or network of organizations intends to create and capture value with its products and services'. Values in traditional business models are central to business model and derived in four widely accepted types(Gassman, O, Frankenberger, K, Csik 2014),(1) Value creation (how is the value created?);(2)Value proposition (what value is delivered to the customer?); ...
This report investigates the circularity of CDW leading to circular new business models, strategic decision making and operationalization of CDW handling and management.
... Changing components of BMs affects an organizations' knowledge base (Delft et al. 2019) and the integration of this knowledge is important within BM design and innovation (Corbo et al. 2020;Delft et al. 2019; DiBella 2020) as well as for evolutionary adjustments (McDonald and Eisenhardt 2019). BM change should be actively engaged by organizations (Chesbrough 2010;Linder and Cantrell 2000;Teece 2018). The process of changes in and between components of a BM is understood as BM evolution (Demil and Lecocq 2010). ...
Currently, platform-based business models are most successful regarding revenue growth and market shares. However, the stepwise evolution of organizations’ business models towards multi-sided platforms is not fully understood. Therefore, we conduct a longitudinal case study on the IT organization ServiceNow. Based on publicly available data, we build on research on business model evolution, platform emergence, and platform ecosystems to analyze the evolution of ServiceNow’s business model between 2004-2020. We derive four distinct mechanisms comprising continuous value proposition extension and enablement of value co-creation. These are enabled by opening towards partners and iteratively addressing new customer segments. We contribute to research on business model evolution with insights on the evolution towards platform business models. Besides, we complement the perspective of platform emergence by a nuanced business model view, bridging these two literature streams. Practitioners benefit from the mechanisms to guide their business model evolution towards a multi-sided platform business model.
... In the relevant literature, business model patterns are generally understood as design options for the configurations of a business model which has proven successful in practice, and represents solutions for recurring problems [44][45][46]. In addition to the term "business model pattern", different terminologies are used: business model analogies [47]; atomic business models [48]; operating business models [49]; profit models [50]; business models [51]; business model configurations [52]; and business model archetypes [53]. ...
The COVID-19 pandemic represents a massive, often unanticipated, external disruption for many companies. As a concept for responding to such disruption, organizational resilience has recently received great attention. In the organizational context, the overriding question is how companies can become more resilient. This study aims to contribute to answering this question by identifying, categorizing, and providing specific business model patterns for achieving resilience on the corporate level. For this purpose, a review of publications by major consulting firms was conducted. Patterns were extracted from publications until a convergence criterion indicated that no new pattern could be identified considering further publications. The 110 extracted unique patterns were clustered into 13 objectives, and additionally categorized according to resilience phases, as well as business model elements, to support the application in practice. The final catalog of patterns was validated through expert interviews and thus provides organizations, such as those in the electrical industry, with an overview and specific approaches on how to tackle industrial resilience through the adaption of their business model.
... Li nder & Cantrell (2000) focuses on value creation in the use of operating business models as a general term business model, the debate over the operation of a business model in creating a value. Linder & Cantrell (2000) are in line with the opinion of Dru cker (1994) that every organization has guidelines in organizing and business model components are part of the logic that is important in assessing a difference, so it can be seen that the operation of the model is completely different from the others. Thus the business model of the company on a different business then it will be able to create different concepts. ...
Research on management strategies has been done before for a decade ago. The study of this business model has its own consensus for the emerging management concept. The relevance of value creation in the organization will form the basis of existing business model literature. The business model in the private sector are very limited, in this model will identify innovation on business model design and effectively to implement the organization's strategy and empirical research in the perspective of the business model as well as the latest alternative that reveals the relationship management strat Egis in the creation of value efekt if good in general as well as the organization sector. But in the academic literature has not been explored the application of the framework of traditional business models in the public sector, or empirical research that connects the concept of business models with management in the public sector. There is a lot of construction of new buildings, substitution services and the sluggishness of the economy caused rental business offices in Makassar decreased. This research is done by using qualitative method by using case study method through interview to internal company and external party. Sampling technique is purposive sampling. The method of analysis used is triangulation of source aspects that become the attention of the nine elements business model then analyzed on the element and discuss the management strategy at company X. The result of this research is the composition of new business model that can be developed by the company.
... Zdaniem N. Vankatramana, J.C. Henderson model biznesu to skoordynowany plan do zaprojektowania strategii wzdłuż trzech wektorów: wspóldzaiłania klientem, konfiguracji aktywów, ponoszenia wiedzy 41 . Według J. Linder, S. Cantrell model biznesu jest rdzenną logiką organizacji o tworzeniu wartości 42 . G. Hamel twierdzi, że model biznesu to powiązania z klientami; kompozycja kluczowej strategii, strategicznych zasobów oraz sieci wartości 43 . ...
Zarządzanie przedsiębiorstwem postrzegane jest jako wieloetapowy proces organizujący i realizujący funkcje zarządzania. Zarządzanie w ujęciu funkcjonalnym oznacza zestaw działań, postępowań normujących i dyspozycyjnych kadry zarządczej, ukierunkowanych na zasoby organizacji i uzyskowanie „wartości”. Realizacja funkcji zarządzania: planowania, organizowania, motywowania i kontrolowania (również przewodzenia) stanowi dynamiczną całość i jest stabilną płaszczyzną, na której odbywa się kierowanie zasobami (ludzkimi, rzeczowymi, finansowymi, informacyjnymi, wiedzy). Dlatego też w tej części niniejszego opracowania zarządzanie organizacją będzie postrzegane funkcjonalnie i proceduralnie oraz będzie stanowiło przegląd koncepcji wielu autorów dotyczącej podejmowanej problematyki, tak w ujęciu klasycznym, jak i nowoczesnych podejść. Przybliżenie podstawowych funkcji zarządzania jest asumptem do przypomnienia, iż wielu autorów traktuje proces kierowania przedsiębiorstwem w sposób holistyczny, kompleksowo i w praktyce poszczególnych funkcji nie sposób jest oddzielić od siebie. Wydawać by się mogło, że zgodnie z ujęciem klasycznym, przyszłość firm i sukces kadry zarządczej XXI wieku zależeć będzie od planowania scentralizowanego i zapewnienia spójności funkcjonowania systemu, jakim jest przedsiębiorstwo. Jednak należy zauważyć, że coraz częściej w przedsiębiorstwach niezbędne jest nie tylko jego intelektualizacja, czy troska o sieć relacji: pracownik-pracodawca-interesariusz, ale także elastyczność struktury, zdecentralizowane zarządzanie i dojrzałość realizowanych projektów. Gwarantem jego sukcesu będzie nie kompensacja i zapewnienie spójności działania całego przedsiębiorstwa jedynie przez naczelne kierownictwo, ale większa aktywność średniego szczebla i jednostek biznesowych. Planowanie i podejmowanie decyzji zdecentralizowane jest ukierunkowane na szybkość decyzji planistycznych oraz zwiększenie elastyczności w działaniu dywizji lub regionów i podejmowania debaty, dialogu, czy wzajemnych uzgodnień dostosowanych do potrzeb interesariuszy.
... Model Canvas, which serves as a strategic management tool for creating new business models or developing existing ones (Strategyzer.com). For the purposes of this study, these nine building blocks are considered as the components of business models, despite differing works by other researchers (Afuah & Tucci, 2003;Linder & Cantrell, 2000;Alt and Zimmermann, 2001). ...
The Green Circular Economy (GCE) has been identified as a catalyst in sustainable
development and economic growth that has the potential to move society from the
traditional linear model of resource consumption in the form of take-make-waste to an
innovative circular model in the form of reduce-reuse-recycle. Transitioning from the linear
economy to the GCE requires changes in four areas: material and product design, business
models, global reverse networks and enabling business environments. This book considers
the financing needs of GCE companies as a result of business model changes. Green
operations relate to all aspects related to product manufacturing, usage, handling, logistics
and waste management. Environmental protection and economic burden on industry is
leading organizations toward re-evaluation of their corporate strategies including
operations and business performance. Environmental operations management is the
integration of environmental management principles with the decision making process for
converting resources into usable products. The implementation of this management
programmes has an impact on the environmental financial and operational performance of
the firm. The adoption of green operations practices and their influence on the financial
performance of commercial banks in Kenya; extent to which commercial banks in Kenya
have adopted green operations practices, to determine the influence of green operations
practices on financial performance of commercial banks in Kenya and to find out challenges
commercial banks in Kenya face in adopting green operations practices. The study will adopt
a case studies of Ragn-Sellsföretagen AB and Inrego AB correlational descriptive design. It
ELIAS ODULA BARASA ● GREEN &CIRCULAR ECONOMY –DYNAMICS OF CORPORATIONS GOVERNANCE
xii
GCE-DYNAMICS OF CORPORATIONS GOVERNANCE
targeted some commercial firms Kenya. The analyzed with secondary data from commercial
Banks and primary data collected through semi-structured interviews with the case
companies, this research sheds more light on the financing needs of circular economy
corporations and how they are financed. Findings from this research will be expected to
suggest that the financing needs of circular economy companies depend on the value
proposition of the company. In accordance with the pecking order of capital structure, all
financing needs of the corporations studied are financed from internal sources, particularly
retained earnings before external debt financing is accessed. Findings expected to indicate
the willingness of firms to finance circular economy companies. The results of this research
expected to suggest that the circular economy companies studied do not need financial
support from the government or its agencies to succeed even though favourable laws are
welcomed. The book findings that their long-term success depends on their ability to remain
innovative in their business models, aligning with Schumpeter’s creative destruction model.
... While in earlier stages business models were used to discuss revenue streams of a single firm, the domain of business model analysis has expanded to cover other aspects of the business, and the unit of analysis has extended towards business ecosystems [36,45,46]. Expectations from business modelling have increased to provide ecosystem level (or at least network level) insights rather than being used as a strategic tool for marketing purposes of a single firm [47]. The two core questions which business modelling pursues answers for in an ecosystem level are "who controls what?" and "where is the value being generated?". ...
This article introduces new roles in future peer-to-peer electricity trading markets. Following a qualitative approach, firstly, the value network of the current electricity market is presented. To do so, service streams, critical roles, activities, and their setting in the electricity market are identified. Secondly, in order to identify the main sources of uncertainty, the business model matrix framework is utilized to analyze peer-to-peer electricity trading. Thirdly, four future scenarios are built based on user involvement and customer ownership. The outcome of the scenario building is the emergence of new roles, brokers, and representatives in the future peer-to-peer electricity markets. Fourth, based on the four future scenarios, changes in the value network, new roles, and emerging/evolving activities are identified. Finally, the two new roles are discussed from grid structure, security and privacy, legal, and data protection perspectives. The data is gathered by conducting semi-structured interviews with stakeholders in the current electricity market as well as potential disruptors. This article elaborates on the configuration of the value network in the electricity market and highlights the changes that peer-to-peer trading imposes to the status quo. Through the outcomes of the value network analysis, it assists policy makers to consider the requirements and current market players to reconsider their business models.
... we propose an abstract definition of the banking business model, like what Magretta (2002) and Timmers (1998) discussed at the concept level for the business model. In the business model literature, back into the initial attempts to define the business model concept, this approach has been used by many, such as Chesbrough and Rosenbloom (2000), Hamel (2000), Linder and Cantrell (2000), and , to describe what a business model is. We used the same method to discuss the banking business model by proposing a generic meta-model and its microfoundations. ...
The value creation mechanism in a business model is based on a thoughtful configuration of mostly intangible microfoundations. The business model concept is rooted in business logic and strategic management literature. Banking literature lacks the business model concept, which is described based on subjective ideas and qualitative approaches. This article aims to explain the business model concept in banking with a cognitive view. For this purpose, we have qualitatively studied 50 cases of business models of innovative and leading banks and their value proposition structure. Through content analysis, four types of banking business models emerged. The findings proposed a banking business model presented at three levels, i) generic banking business model, ii) types of banking business models, and iii) instances of implementations at the realization level. The constructing microfoundations of each type and their composition are discussed in detail. Actual cases (instances) implemented in the industry are also presented and discussed as evidence of the realization of type models.
... Two notable papers are the one by Demil and Lecocq (2010) on the success of the Arsenal soccer club during the financial crisis, and the paper by Raff (2000) describing the changes in the American book sector. BMs are not static; they evolve over time as they are under constant pressure to change because of pressures from the firm's environment (Linder and Cantrell, 2001). While the description of the BM is like a snapshot in time, or a picture in time in Linter and Cantrell's words, the model is also used to address change and innovation in an organization over time (Demil and Lecocq, 2010). ...
The current industry system must deal with its sustainability challenges. It is acknowledged that fundamental changes in the way business is done are necessary for an effective progress towards a sustainable production and consumption systems. Sustainability needs to be brought at the core of the firms for effective progress. Scholars have suggested that business models are a valuable concept to understand how that could be done. Only few publications study business models in relation to sustainability. The link between business models and sustainability is not yet clearly established.
This research aims at studying how the link between business models and sustainability can be explored in order to understand how firms create value and who could influence firms to make value creation sustainable. For this purpose, firms are conceptualized as agents of a complex system. Business models reveal how firms create value for its customers and what activities and resources are needed for this endeavor. The concept highlights how the firm connects to other agents of the system. Advances in the field of Complexity Science brought scholars to redefine sustainability as an emergent property of a system. Conceptualizing the firm as an agent of a wider system clarifies the ways in which a firm contributes to the overall, emergent impact of the industry. Furthermore, the business model concept makes it easier to articulate the links between the actors e.g. which actors influenced the business model and the emergent environmental impact.
Based on the literature, two possible links were found. First, the business model enables calculation of the footprint of an agent by cumulating the impacts of all activities required to produce the value proposition. More interestingly, the second link is the emergence of the business model. It is the consequence of an agent “running” a particular business model on the sustainability of the complex system.
A methodology consisting of five steps has been designed to empirically explore these links. The exploration adopts an actor perspective on the system. First, the key actors are identified by progressively contextualizing the relationship between the firm and the natural environment. Next, the environmental issues are identified. Then the firm’s value proposition and the activities and resources required to produce it are identified. Finally, the agents of the wider system that influence the focal firm’s business model are investigated.
The methodology is applied on the case “Westland greenhouse sector”. The Westland greenhouse sector is an exemplary case where many efforts were done to reduce the negative impacts. Despite these efforts, greenhouse gas emissions are still very high. This case is interesting because it presents a high degree of complexity and illustrates a situation of very efficient competitive capitalism; small and medium size enterprises fully rely on the creation of competitive advantage for prosperity. The conditions of this sector make it particularly challenging for firms to develop any kind of innovation that is not aimed at fostering competitive advantage.
Evidence shows that two different tomato growers’ business models co-exist in the sector and that their environmental impact differs significantly. This correlation is exemplified in the way growers produce tomatoes during the winter months: the first model relies on intensive heating and lighting to produce tomatoes during the winter months whereas the second outsources production to a Mediterranean country during the winter months. The CO2 emissions of the latter model are tremendously lower. Further, the growers’ business model does also influence the environmental impact observed at the industry level; there is a correlation between the growers’ business model and the environmental impact observed at the industry level. The latter correlation is exemplified by the synergy between a growers-cooperative and a specialty tomato grower. This synergy favors product and market innovation that are likely to diffuse within the industry and thus bringing other growers to innovate their own business model. The consequence of this diffusion might be that the negative impact observed at the industry level decreases.
Most interestingly, the methodology revealed that the growers’ BM is decided on primarily at a meso-level organization composed of growers’ cooperatives, sales organizations, traders and retailers. This group of actors decides on the contours of the growers’ BM and largely influences the environmental impact induced by the growers’ activity. To achieve a fundamental change in Westland horticulture industry, sustainability needs to be brought into the core of the BM of the firms that compose this meso-level. Because the alignment between those actors is strong, concerted effort is needed to bring about this fundamental change.
By establishing a clear connection between business models and sustainability, the methodology contributes to gaining understanding in the way sustainability can be brought at the core of the firm to effectively reduce the negative impacts of the industry. The methodology should be used as a part of a longer research aimed at discovering what incentives would be effective to bring firms to innovate their BM for sustainability. Ultimately, the longer research would end in the design of policies to reduce the negative impacts of industries. Applied to the Westland case, the methodology contributes to create comprehension for the remarkably complex industry and revealed how the environmental impact occurs and who might be able to influence these negative impacts.
... Businesses are therefore trying to determine and navigate their own direction through experimentation, R&D, and exploration of new technologies and market opportunities, sometimes even pursuing more than one business model at once [18,19]. However, for existing businesses already operating on the market, this transitioning to new business models can happen in different modes [20,21]. Business model extension can either be in a form of evolutionary business model innovation or an adaptive business model innovation, both identified as relevant by Foss and Saebi [22]. ...
The purpose of this paper is to examine the impact that various types of business model extensions (hospitality and tourism, online sales platforms, and sustainability) have on the winery business. The research is based on company data and online observations of N = 886 German wineries and deploys a content analysis, netnography, and structural equation modeling (SEM) in order to test the hypothesis on business model extensions of wineries, which have been set forth in the previ-ous literature. The findings indicate that business model extensions related to online sales plat-forms have a positive impact on winery business size. These results mean that developing online sales platforms enlarges the winery BM (business model) size and types (manager-run, state-owned, or cooperatives). The paper presents in detail the impact of winery BM extensions on winery BM model type and size, thereby contributing to the literature on business model innova-tion.
The term business model has been used in various disciplines whereby, over the course of time, different basic explanatory approaches to the concept have been developed. This thematic heterogeneity is particularly reflected in existing definitions, which in most cases merely cover subareas, such as business model components, or are very context-specific (Eriksson and Penker 2000).
The technological advance has been revolutionizing the way companies do business. The Internet as a source of these advances has become a powerful tool for business. The use of the Internet by enterprises encouraged the emergence of e-businesses that are business activities through the integration of communication technologies, business processes and management practices. The research about e-business is new and is under development. Thus, we sought to contribute in this field based on the following question: What is the impact of the Strategic Antecedents and Business Model in the Performance of Brazil’s companies e-business? In order to answer this question it was adopted as a general objective identifies the impact of the Strategic Antecedents and activities of the Business Model in the Performance of Brazilian’s companies in e-business. The specific objectives are: (i) identify and validate the measurement scale of the Strategic Antecedents, (iv) construct and validate a scale of the Business Model and (iii) construct a model to analyze the relationship between the constructs (Strategic Antecedents, Business Model and Performance). It was adopted as the theoretical support the TOE (Technological, Organizational and Environmental framework), arising from TDI (Theory of Diffusion of Innovations), to support the Strategic Antecedents (IFINEDO, 2011a), the Business Model (OSTERWALDER; PIGNEUR; TUCCI, 2005) and the literature about business Performance (RAMANUJAN; VENKATRAMAN, 1987). The Methodological procedures consist of validation of scales, descriptive statistics, multivariate analysis, this comprised of exploratory factor analysis, confirmatory factor analysis and structural equation modeling. The main results indicate partial influence of Strategic Antecedents on the Value Proposition that belongs to Business Model, through the constructs Positioning Management, Organizational Readiness, Relative Advantage and Pressure from Stakeholders. Concerning Business Model, the constructs Market Segmentation, Customer Relations, Capabilities, Partnerships and Revenue Model influence the Value Proposition and this has an impact on the performance of e-business companies. It is noteworthy validation and construction of the scale of the Strategic Antecedents and Business Models as a contribution to the field. It is suggested for future studies in suitable settings and scales created in this research, replicating this study in other states of Brazil, comparing samples from other states, comparisons at international levels, and the use of other statistical techniques such as MANOVA and logistic regression.
With the development of the Fourth Industrial Revolution and the formation of a new technological basis – “Industry 4.0” - a dynamic multi-vector transformation of the leading institutes of economy and society takes place, social and labor relations in general and employment in particular acquire new format and content. The quintessence of the article is a scientific-applied substantiation of the construct of nontypical employment economy, scientific argumentation and further development of previous researches of authors regarding determinants of gig-economy formation under the influence of economic and social development “digitalization” and emergence of new business models. that radically change all components of the world of work. New facets of the complex world of work and employment have been revealed and the increase of the newest knowledge in this field has been received under systematic research of a chain of changes: introduction of “Industry 4.0” breakthrough technologies → “digitalization” as a dominant vector of technological innovations → formation of new business models → changes in social division of labor and the content of labor processes → the emergence and intensive development of employment forms immanent to the new (digital) economy. It is substantiated that the main root cause, a kind of “trig- ger” for the emergence and reproduction of the chain of researched changes is digital transformation of the economy and society. The essence of today’s phenomena, which determine the development of the “gig economy”, is revealed. The argumentation of the spread of platform business models and their impact on the world of work and employment is given. A new theoretical construction of a chain of changes, the “output” of which is new forms and, a new platform for social and labor developmen t in general, has been suggested. The research focuses on finding answers to a number of questions posed to every conscious person. Among them are the following ones: Why can’t the modern economy “get along” with traditional (standard) forms of employment? Why does atypicality become not the exception but the norm? How do specific mechanisms and tools for transforming standard forms of employment into new ones, which are immanent to modern conditions of economic and social progress, behave in practice?
La start-up, définie comme un état transitoire durant lequel un individu ou un groupe d’individus en manque de ressources et en condition de forte incertitude est à la recherche d’un business model scalable doit faire face à de nombreux enjeux. Les collaborations avec des entreprises matures apparaissent comme un catalyseur pour le développement de ces jeunes entreprises innovantes. Accompagnée pour la majorité d’entre elles par des incubateurs, cette thèse propose de plonger dans les pratiques de ces structures en termes d’accompagnement des entrepreneurs sur le sujet de la collaboration. Ainsi à travers une méthodologie empirique basée sur une étude de cas nous montrons que les collaborations impactent la start-up suscitant des changements de Business Model importants tout au long de son développement. Notre seconde étude empirique sur une population d’incubateurs en France montre qu’il ne se dégage aucune tendance générale dans les pratiques d’accompagnement sur le sujet de la collaboration. En parallèle, il se dessine qu’au sein d’une même structure chaque pratique est dépendante de l’accompagnant. Nos résultats permettent dans un premier temps de mettre en avant les impacts que peuvent avoir les collaborations sur le développement de la start-up à travers les changements de Business Model qu’elles engendrent. Notre étude permet également de mieux appréhender les différentes pratiques d’accompagnement mises en place par les incubateurs et de proposer des recommandations à l’attention des dirigeants de structures d’accompagnement.
The Business Model (BM) notion has become popular because of a business environment shaped by ICT and globalization and characterized by an increasing complexity and uncertainty. Innovative ICT industry coupled with ever-growing products, services, and applications have placed business models at the heart of the new digital revolution. In this chapter, the authors examine how the concept has been applied in the field of ICT and is used in contemporary debate. These new BMs are based on new forms of organization and/or on new products and services offerings. The BM concept has attracted attention both from practitioners and academics. The concept has received wide recognition; yet in practice, it is a new and evolving concept. It has inspired numerous researchers and academics and has given rise to different interpretations, one around which there is not always a perfect consensus. However, despite its wide use, the notion of the business model has become more complex.
A variety of business model concepts can be distinguished in the literature. In the following chapter, the three basic theoretical approaches of the business model concept are presented along with the different business model concepts associated with them. In addition, a chronological synopsis of the different developments is provided.
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.
According to classical organization and strategy theory, business modification is an essential part for long-term success. Since it is also important in the business model context, this chapter deals with business model change. In the following section, three superordinate drivers will be described that may initiate a change in the business model. Additionally, the question will be addressed of what specific processes need to be implemented by a business in order to guarantee the success of business model change.
The progress of technology and science goes along with the vast richness of the cultural and material existence of individuals, so that each person’s behavior at any moment generates large quantities of traceable information and data. Through the rise of the Internet, the quantity of data is geometrically increasing. It is then quite complex to manage it with traditional data systems. Today, Big Data touch every side of any economic activity, from public transportation, communications, bank securities, insurance, to government, health, education and other public utilities. Concomitantly with the rise of cloud computing, cloud applications, the multiplicity of mobile devices, and the maturity of e-commerce giants’ data marketing systems such as Amazon and Google, Big Data marketing is becoming increasingly focused and is being used by most companies. Following the development of digital growth, the aim of the marketing industry is to collect large amounts of assorted customer-related behavior sales data on which to develop their marketing strategies. Facing the era of Big Data, most firms have abandoned their traditional marketing strategies and have decided to opt for a powerful system of Big Data analysis so as better to identify their own customer target and consequently increase sales and profit. This chapter emphasizes the urge to observe the practical implications of an in-depth investigation on the strategic relationship between Big Data and marketing.
La incorporación de las Tecnologías de la Información y la Comunicación (TIC) en el sector hotelero ha producido cambios de carácter significativo en la gestión de las empresas, lo que ha generado que estas sean identificadas como uno de los principales motores de cambio del mismo. Sin embargo, se presentan carencias con respecto a las metodologías pertinentes para establecer modelos de negocios eficientes que incluyan y asimilen las TIC como determinantes claves en la gestión de las entidades de Turismo. Por ello el objetivo de esta investigación es proponer un procedimiento que permita la implementación de modelos de negocios basados en las TIC para una mejor gestión del producto turístico instalaciones en Cuba, aplicándose métodos teóricos combinados con los empíricos. Como resultados, se propone un procedimiento donde a partir de la triangulación de métodos tanto cualitativos como cuantitativos se realiza un diagnóstico de la gestión de las TIC y el modelo de negocio de la organización; su aplicación en los hoteles de la Cayería Norte de Villa Clara constituye el punto de partida de la metodología propuesta para el diseño de un modelo de negocio bajo una visión estratégica en el contexto de las TIC.
The term business model operation describes the operation of a business that is based on an integrated business model. It is the phase between the complete implementation of the business model and the beginning of the adaptation or modification of the underlying business model. The business model prototype emerged from implementation is backed up with core processes and transferred to the operational business.
The term “business model” has a long tradition in management theory, although the modern business model concept took a long time to develop. Hence, before analyzing business models as a management concept, we need to investigate the origin of the term business model because in early academic publications a wide variety of interpretations can be found.
.Scientific problems are solved in the dissertation associated with the business models of complementarity and its determining factors. Objective is formulated in the thesis - to establish complementarity of business models and its determinants in incoming tourism. In order to achieve the objective, four research problems were analysed and aimed at: defining the construct of the business models complementarity; theoretically substantiate traits and characteristics of the business model complementarity and the factors that determine it in the incoming tourism, by preparing the conceptual model; substantiate methodology for the research of the business model complementarity and the factors that determine it in the incoming tourism; empirically identify and evaluate traits and characteristics of the business model complementarity and the factors that determine it in the Klaipeda city incoming tourism. The dissertation is comprised of three sections. The first section of the dissertation is devoted to reveal the concept of the business model and complementarity of the business models, providing a theoretical concept, structure and typology of justification, which helps to develop a conceptual model. The second section of the dissertation is devoted to prepare the research methodology of the complementarity of business models and its determining factors in the incoming tourism. The third section is devoted to present results of the research. Based on the findings, conclusions and recommendations are provided. The results of the research were obtained by using qualitative research methodological approach where complementarity of business models is regarded as an intrinsic Interpretative phenomenological single case study with multiple units of analysis in the same context. Tour operator and its partners are considered as case study units of analysis: a hotel, a restaurant, a carrier, a guide.
This study develops a Commonage Cooperative Model (CCM) to enhance consistency in performance and sustainability of small-scale pig farming SMMEs. It expounds on the economics of scale derived through resourcing among the alliances of wider stakeholders. Hence, it advances existing models in agribusiness-related strategic management that supports Local Economic Development (LED). Being driven by the government policies on cooperative development, the model encompasses a value chain of small-scale pig farming SMMEs that can cooperate to improve competition.
The purpose of this paper is to create a value-based business ecosystem model for fifth generation (5G) mobile communications networks. To achieve this goal, we first identified the value potential antecedents and opportunities for the actors in the 5G ecosystem. To do this, we conducted a workshop in which we selected nine experts from different parts of the 5G ecosystem and addressed business/services, technology and regulation viewpoints. We practiced action research as a foresight method and used visioning for creating entrepreneurial business opportunities. Applying the opportunities, we then created a framework composed of the 4C model (connection, content, context and commerce) and a technological-functional model that could illustrate the position of the actors and their specific value-based strategic activities (i.e. cooperation, competition and coopetition) in relation to each other. The created framework can be used by telecom companies to understand and analyze the overall image of the 5G ecosystem. So far, this kind of molding has not been exploited yet in the 5G context and can be developed into more complex and full details of actors and their coopetition strategies for further application.
In a quest for sources of competitive advantage, an insightful tracking and tracing of the changes that take place in their micro and macro environment is a core competence for enterprises to catch up with market trends. Social and economic changes as well as the growing awareness of the negative anthropogenic impact on the climate and the environment increasingly make today's business models evolve towards sustainability. The aim of this chapter is to analyze the concept of a sustainable business model based on the literature review and then to distinguish the driving and limiting factors behind its implementation in enterprises. Based on an empirical study carried out, a diagnosis will be put forward for the awareness of enterprises as regards the business model pursued and the willingness to integrate social, environmental, and governance aspects. The research methods used in this study relied on critical literature review; descriptive, analytic, and synthetic methods; along with in-depth interviews.
In dem Leitfaden zur Entwicklung digitaler Geschäftsmodelle zeigen Karlheinz Bozem, Anna Nagl, Peter Hoch und Max-Robert Salzer, wie Unternehmen den durch disruptive Technologien ausgelösten Wandel und die dadurch hervorgerufenen Veränderungen der Marktbedingungen gestalten können. Geschäftsmodelle müssen im besten Fall nur justiert und im herausforderndsten Fall neu entwickelt werden. Damit innovative Ansätze digitaler Geschäftsmodelle die höchst mögliche Kundenakzeptanz erreichen, sind alle Interessengruppen, also die Stakeholder – d. h. Kunden, Mitarbeiter und Geschäftspartner, usw. – in den Entwicklungs- und Realisierungsprozess miteinzubeziehen. Der Aufbau eines optimalen Ökosystems und einer nachhaltigen Kreislaufwirtschaft gelingt insbesondere über Design Thinking, Open Innovation, empirische Forschung und Customer Experience Maps. Die Fallstudien und Praxisbeispiele in diesem Buch zeigen anschaulich die Realisierung der so entwickelten digitalen Geschäftsmodelle.
Das Ziel der Masterthesis bestand darin, einen methodischen Ansatz zur strukturierten Entwicklung und Analyse von Geschäftsmodellen in Kontext digitaler Ökosysteme zu erarbeiten. Die in der Masterthesis entwickelte Methode wird als Geschäftsmodellmatrix bezeichnet und wurde als prototypische Anwendung im Tabellenkalkulationsprogramm von Microsoft Excel erarbeitet. Des Weiteren sollte überprüft werden, ob sich Ökosystem-Plattformen durch branchenübergreifende Merkmale kennzeichnen lassen. In den untersuchten Plattformmodellen konnten allgemeine Merkmalsübereinstimmungen in den Geschäftsmodelldimensionen des Nutzenversprechens, dem Produktentwurf und der internen Wertschöpfung festgestellt werden.
The struggle to find resilient journalism revenue models is nowhere starker than for exiled or politically pressured news media operating in fragile markets. One route forward is to explore inter-firm collaborations as a modus operandi to achieve more financial resilience through a collaborative approach amongst themselves. This article presents findings from a multi-stakeholder atelier that assessed operational revenue conditions for such media. It presents a co-created definition of collaborative revenue capture, then addresses the conditions and forms for collaborative structures. It conceptualises opportunities in four areas: technology, revenue-based systems, coordinating actions and journalism production. The article adds new knowledge by assessing collaborations as a revenue strategy within the under-researched media development area through a participatory mode of inquiry.
Digital platforms force established companies to align their existing, traditional business models with the new digital business environments resulting in business model transformations and digital innovation. We explore the dynamics of business model transformations in established companies by studying a real-life business case at a global-tech company that transforms a traditional business model to a cloud-based digital IoT platform as a multi-sided, industry-wide platform business. We develop a theoretical framework with two compartments; one for observing the changes in core business model components and the other one for identifying the resisting, enabling, and driving factors affecting the transformation process. The interviews with the key informants in the business unit of the company revealed several changes that have occurred in the core business model components. The new subscription-based pricing and sales models significantly changed the way the company creates and captures value. The development and operations of the platform required new know-how and new skills, implying the importance of running the new one as a separate business model. Among other implications, our findings also highlight transformational leadership as a significant driver of business model transformation, which can be supported by establishing a business level market intelligence body undertaking the strategic management up to date in established companies.
Theoretical background: The concept of the business model was introduced in the late 1950s, but did not gain any special scientific popularity in the first period. Only the appearance of the Internet and e-business at the turn of the century contributed to the renaissance of this concept. Currently, the concept of the business model is popular among scientists and business practitioners. A great deal of interest is accompanied by an equally large variety of definitions of the concept, but there is no commonly accepted consent as to its components. There is even talk of carelessness in using this concept. Business models need to be constantly developed not only when they become outdated, but also when they appear to be well developed. The proposition of the unique value for the customer, creating, delivering and taking over the value for the stakeholders is associated with innovations that do not have objective economic value in themselves, only their commercialization based on a business model gives such value. Therefore, companies should reorganize their business models to be more open to innovation, in other words, to make them open business models.
Purpose of the article: To make a synthetic review of the definitions of a business model available in the economic literature, the role of innovation in this model and to indicate new trends in the interpretation of these concepts.
Research methods: The publication is the result of a research procedure based on a review of the literature on the subject. The evolution of the understanding of the concept of a business model and its components as well as the role of innovation in the model were studied on the basis of an analysis of 69 definitions or conceptualization of the concept.
Main findings: In the second decade of 20th century, new elements appear more and more in the definitions of business models supplemented by innovation processes. Unfortunately, the terminology has not kept pace with the development of the ways of doing business: 1) the concept of the value chain is already too narrow for the complex network structures of various organizations. Value is created and delivered more and more often in complex structures, called partnerships, networks or ecosystems; 2) the current definitions of a business model refer to the phenomenon of value creation both on the supply and demand side, where value is also generated on the part of customers and other stakeholders within, for example, business ecosystems; 3) the business model is becoming an increasingly important concept in the field of innovation management, strategy implementation, sustainable development taking into account social and environmental values, and social entrepreneurship; 4) it is believed that the model should be open to open innovation and should favor their commercialization; 5) inviting undefined user/customer communities to cooperate is becoming more and more important. This kind of cooperation requires building open platforms on the Internet (crowdsourcing, co-production or coopetition, open sourcing); 6) it is now believed that the ability to define and redefine an organization’s business model is one of the key competences for building the value of an organization.
This chapter highlights the results of a transversal study on the influences of managers' decisions on sustainable business models. The objectives of this chapter are presentation of business models and sustainable business models and a study on the influences of managers' decisions on the use of sustainable business models. Based on the internal and international literature, the authors present the concepts of business models and sustainable business models as well as their typology. The types of sustainable business models are presented. The case study is focused on presenting the influences of managerial decisions on the sustainable business models of SMEs. Thus, through the authors' contribution, a new theoretical and empirical framework is created, which facilitates the identification of new ideas, themes, and debates of other aspects encountered in business and sustainable business models.
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