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The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation's Technology Spin-Off Companies
Abstract
This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on-an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited.
... a. Wharton, St. Gallen, LBS) und andererseits mit über fünfzig möglichen theoretischen Anknüpfungspunkten des Geschäftsmodellkonzepts zur Agency-Theorie (agency theory), verhaltens-wissenschaftlichen Entscheidungstheorie (behavioural decision theory), Theorie der unternehmerischen Entscheidungsfindung (managerial cognition theory), aber auch des Konzepts der Geschäftsmodellinnovation unter anderem zur kognitiven Dissonanz, Prospect-Theorie (prospect theory) und zum Produktlebenszyklusmodell (product lifecycle model). Zusammenfassend gliedert er die Forschungsansätze in acht übergreifende Kategorien: (1) organisatorisch, (2) kognitiv (Baden-Fuller & Mangematin, 2013;Dewald & Bowen, 2010;Martins et al., 2015), (3) rationale/ strategische Wahl (Chesbrough, 2002;Osiyevskyy & Dewald, 2015), (4) ressourcenbasiert (Kellermanns et al., 2016), (5) wissens-/lernbasiert (Andries & Debackere, 2013;Sosna et al., 2010), (6) evolutionär, (7) verhaltensorientiert und (8) sozialkonstruktivistisch (Gassmann et al., 2016;Osiyevskyy & Dewald, 2018). ...
... Die Forschung zu Geschäftsmodellinnovation vollzieht sich -ähnlich dem Geschäftsmodell -in den Bereichen des strategischen Managements (Bigelow & Barney, 2021;Cortimiglia et al., 2016;DaSilva & Trkman, 2014;Hampel et al., 2020;Lanzolla & Markides, 2021Shakeel et al., 2020;Spieth et al., 2014;Zott & Amit, 2008) Unternehmertum (Bhatti et al., 2021;Clauss, 2017;Clauss, Breier, et al., 2021;Demil et al., 2015;Doganova & Eyquem-Renault, 2009;Guo, Tang, et al., 2017;Heikkilä et al., 2018;Laudien & Daxböck, 2017;Martins et al., 2015;Osiyevskyy & Dewald, 2015;Silva et al., 2020) sowie Innovations-und Technologiemanagement (Andries & Debackere, 2013;Bucherer et al., 2012;Chesbrough, 2002;Clauss et al., 2020;Desyllas & Sako, 2013;Franco et al., 2021;George & Bock, 2011;Heider et al., 2021;Hock-Doepgen et al., 2021;Kraus, Filser, et al., 2020;Latilla et al., 2020;Schneider & Spieth, 2013). Diese Bereiche stellen zugleich die drei zentralen Forschungsrichtungen dar (Schneckenberg et al., 2022, S. 7). ...
... Historisch gewann BMI in den 1990er Jahren während des Dotcom-Booms an Popularität(DaSilva & Trkman, 2014, S. 380). Eine rege und vielfältige Forschungstätigkeit wurde dabei in jüngerer Zeit entfaltet(Casadesus- Masanell & Tarzijan, 2012;Chesbrough, 2002;George & Bock, 2011;Johnson, 2018;Lanzolla & Markides, 2021;Morgan et al., 2020;Morris et al., 2005;Osterwalder & Pigneur, 2010;Ritter & Pedersen, 2020;Seetharaman, 2020;Zott et al., 2011) und wird in der Literatur schon seit mehr als zwei Jahrzehnten diskutiert(Sinkovics et al., 2021, S. 7266; Wirtz et al., 2016, S. 36), was bereits zu einer beträchtlichen Anzahl an Literaturübersichten geführt hat(Budler et al., 2021, S. 480-495; Ferasso et al., 2020, S. 3006-3024; George & Bock, 2011, S. 83-111; Goyal et al., 2017, S. 99-118; Lüdeke-Freund et al., 2018, S. 145-162; Massa et al., 2017, S. 73-104;Reinhold, Zach, et al., 2019, S. 1120-1134 Sahebalzamani & Bertella, 2018, S. 3226-3241; Wirtz et al., 2016, S. 36-54). Besonders gut ausgearbeitete Übersichten zu aktuellen Forschungsrichtungen und Entwicklungen finden sich u. a. beiGassmann, Wirtz, Andreini et. ...
... This process is called Business Model Innovation (BMI). Although both BM and BMI have been recognized as powerful tools for unlocking the value of technologies (Chesbrough, 2002), the existing innovation related literature in the domain of manufacturing overlooks the potential role of the BM in the process and focuses, instead, primarily on technology development (Ibarra et al., 2018;Weking et al., 2020). ...
... These questions address: the competitive strategy that delineates the competitive position of a firm in the market; the market factors that identify the customer target; the offerings created and delivered; the firm's internal capabilities; the economic factors that highlight the revenue mechanisms; and the investor factors defining time, scope, and size objectives. Chesbrough (2002) followed a similar comprehensive approach. They suggested a more operational definition of the components listing the functions of a BM: the formulation of a competitive strategy is paramount source of competitive advantage; identify the firm position within the value network; define the value proposition; select the market segment; structure the value chain defined; determine cost structure and profit potential. ...
... This is a static view of the BM (Casadesus-Masanell & Ricart, 2010;DaSilva & Trkman, 2014), which provides a clear snapshot of a specific moment. However, scholars have started to address the problem of how a BM evolves (Demil & Lecocq, 2010) and is reshaped (Chesbrough, 2002) to maintain a competitive advantage, i.e., a BM innovation (BMI). A dynamic perspective of the BM concept addressing the process of BM evolution is now introduced (Schaffer et al., 2019). ...
The fourth industrial revolution has resulted in technology advancements in the manufacturing industry. However, the innovation potential embedded in these technologies should be unlocked by a viable application, i.e., the business model (BM). The BM as a holistic concept featuring different interacting elements is thus emerging as a promising vehicle for innovation. Current BM research describes the entire domain but lacks depth in the characterization of its individual components. This paper investigates the available manufacturing literature through the lens of the BM concept performing a scientometric analysis. The results are presented in a relational framework that provides an in-depth characterization of the manufacturing element of the BM and highlights identified connections that link the BM components. This is the basis for tools that will support firms in developing manufacturing portfolios aligned with their strategic goals.
... Industries that are front-runners in creating value through technology have realised very early on that transformation occurs only when innovative technology is paired with a transformative business model [11]; technological innovations that have fundamentally changed their respective industries in the form of service aggregators such as Uber, AirBnB and Netflix, have all emerged as new and transformative business models [12,13]. Numerous efforts have been made to determine the essential characteristics of long-term change, and central to these features are business model innovations [14]. ...
... Mahadevan [33]'s definition introduced the term 'value' to the definition and articulated that a business model is a blend of three streams critical to a business: the value stream, revenue stream and logistical stream. As the era of technological innovation was ushered in, the definition of business model expanded and was conceived as a focusing device that mediates between technology development and economic value creation [11]. While the definitions so far looked at a business model in its entirety, Johnson, Christensen [34] made an attempt to interrogate the constituents elements of a business model and stated that it consists of four critical elements: customer value proposition, profit formula, key resources and key processes. ...
A business model represents an organisation’s value logic with a value proposition as the central dimension. The construction industry has been categorised as fragmented, slow to move and destructively competitive, idealising only cost-based perceptions of performance; however, recent trends indicate a paradigm shift in the sector emphasising value-based perspectives such as early engagement, design for manufacture and assembly, and a lifecycle approach by promoting a conscious discourse on business model innovation. This paper presents a systematic review and integration of research on business models in the construction industry. The findings illuminate the potential of business models as creative tools for strategy formulation, the importance of strategic partnerships in novel business models, and the bridging role that business models play between technology integration and strategy formulation. Based on the findings, the paper proposes future research directions, including understanding how managers can steer conflicts towards cooperative competition (coopetition), exploring various pathways (leaping and drifting) for business model innovation and project-based business model innovation. The paper establishes that using a business model approach to facilitate strategic transformation can help construction firms resolve some of the most pressing challenges, such as customer dissatisfaction, fragmentation, and slow technology uptake.
... This research is grounded on the value capture theory as it is helpful to access the potential profit in the delivery of a product and service offerings, evaluating price, offer characteristics, and ethical and sustainability profile by the customer [22][23][24]. Several areas of study present different definitions of capturing value, such as economics [25], marketing [26], design [27], and innovation [28]. ...
... The value capture theory [22,23,127] used in this study helped identify product and service attributes that embody value to farmers. It also promoted critical thinking about the scenarios presented to the farmers, contributing to understanding the aspects valued throughout the decision-making process [128]. ...
... Scholars have long investigated how the use of information technologies gives rise to value creation and appropriation (Kohli & Grover, 2008) in different countries (Deichmann et al., 2016), industries (Davidovski, 2018) and organisations (Tallon et al. 2000). One key message is that it is not the information technology (IT) per se that generates value but the specific uses of IT and the governance of such uses that unlock latent value (Chesbrough & Rosenbloom, 2002). Another key message is that value creation from IT use is a matter of IT complementarities, meaning that the use of IT must be aligned with other factors (e.g. ...
... Another key message is that value creation from IT use is a matter of IT complementarities, meaning that the use of IT must be aligned with other factors (e.g. operational, cognitive and HR) to generate value (Chesbrough & Rosenbloom, 2002). Throughout this theoretical field, IT is depicted as a homogeneous concept (Kohli & Grover, 2008;Bharadwaj, 2000;Pandey & Mishra, 2021). ...
La teoría recientemente propuesta de los efectos de la red de datos tiene como objetivo explicar cómo se crea el valor del usuario a partir del uso de la tecnología de aprendizaje automático. La teoría explica la capacidad de aprendizaje única del aprendizaje automático, que utiliza grandes conjuntos de datos para hacer predicciones y mejorar la toma de decisiones. Este artículo ofrece una evaluación de la teoría de los efectos de la red de datos, identificando algunas de sus fortalezas y limitaciones. En cuanto a las fortalezas, contribuye al éxito de las empresas, explica las características únicas de las tecnologías de ML y es un avance del cuerpo de la teoría de los efectos de red. Sus limitaciones luego se transforman en un conjunto de preguntas de investigación interrelacionadas que se centran en la relación del uso del aprendizaje automático y cuestiones tales como: captura de valor, una visión co-evolutiva, una perspectiva de múltiples actores y la dinámica de bases de datos. Este artículo describe un enfoque multiteórico para estudiar la creación de valor y la captura que permite el uso de tecnologías de aprendizaje automático.
... Therefore, it is easy to see that in the process of value co-creation, the knowledge payment platform, which breaks through the boundary of the enterprise itself, has taken on more roles and integrated more relevant interests (Chesbrough & Rosenbloom, 2002). Each of these actors plays their own dynamic role in the value co-creation process of knowledge payment platforms: platform providers maintain platform stability and platform rule enforcement, while knowledge producers and knowledge consumers never stop producing and consuming knowledge on various topics. ...
... Analysis of the three levels of cooperation network and partners, profitability and cost control: it should be said that the first four levels of problems led to the results of these three levels, that is, when the value positioning and value demands do not match, the core competence resources and key business activities can not accurately match the changing user needs, coupled with the failure to provide continuous comprehensive customer relationship maintenance services, can not continue to follow up on customer ideas, and ultimately caused Unsustainable profitability and fragile partnership networks (Chesbrough & Rosenbloom, 2002). In terms of value, the first four are value proposition, value co-creation and value maintenance, while the last three are value realisation. ...
The rapid development of the Internet has contributed to the continued advancement of the knowledge payment industry. Currently, knowledge payment platforms, as the core force of the knowledge payment market, guide the continuous changes in the direction of content production, enterprise operation and consumer demand in the knowledge payment industry. However, research on knowledge payment platforms in academia is still in its infancy, and in particular, there is a paucity of research that systematically examines the characteristics of successful knowledge payment platforms and strategies to address the problems of business models from the perspective of business models as a whole. Therefore, a systematic and thorough understanding of the essence and richness of the business models of knowledge payment platforms is crucial to an in-depth understanding and grasp of the development rules of the knowledge payment industry.This article focuses on the business models of Internet knowledge payment platforms and their optimisation strategies. Take Zhihu as an example using a case study approach and the perspective of value networks, this paper constructs a business model based on value networks and conducts specific research and analysis on the eight elements of the business model to explore the essence of the business model of knowledge payment platforms and its optimisation strategies under the collaborative competition model, which is equally important in the Internet era. Evidence from this case study finds that value network is the main form of operation of the business model of platform-based enterprises, and the platform achieves the business closure of value acquisition and value maintenance through the engine driven by value proposition and value co-creation.The study reveals that competition and cooperation are equally important business concepts and the whole process of cross-enterprise value co-creation in the Internet era, which complements the research perspective of business model optimization strategy research focusing on competition and provides certain reference significance for the business model optimization of platform-based enterprises.The contribution of this paper is to provide a new perspective for the study of business model optimization strategies. This article is sorting out business model optimization strategies. On the basis of relevant literature, the original theoretical research perspective of enterprise management focusing on competition rather than cooperation is supplemented，From the perspective of “value network”, combined with the theoretical basis of Yuanlei’s business model, a business model based on value network is proposed Model. On this basis, take the knowledge payment industry as the exploration field, and take the typical knowledge payment platform Zhihu platform. In order to study the case, by revealing the key factors for the success of the business model of Zhihu platform, verify the new business model theory Explanations of enterprise practice. Through research, it is found that the theoretical model of the new business model better explains the Internet knowledge. The essence of the business model of the payment platform is a complete value co-creation closed-loop structure, which also reveals the Internet knowledge.
... Most researchers agree that the definition of a BM is the way in which a business creates value [35][36][37], i.e., how the venture turns resources into products and services for its customers. Value creation is focused on the following question: how can a specific customer value proposition be developed? ...
... The scholarly literature examines how enterprises create and innovate their BMs [36,42,43]. Business model innovation refers to changes in a BM that can range from minor adjustments of some elements to the complete reformulation of the value proposition and the redesign of the business logic [44]. ...
Biomass and renewable resources are becoming substitutes for fossil-based resources, providing opportunities for more sustainable environmental management and reductions in environmental damage. This paper studies the prospects for wood pellet production in Kazakhstan through the lens of business model adjustment in a microenterprise in Kazakhstan. This study focuses on answering the following questions: (1) How do microenterprises propose, create, deliver and capture value through business models in the wood industry? (2) What are the opportunities and challenges relating to these business models in the context of wood pellet production in Kazakhstan? Kazakhstan has a high potential for biomass production, providing a particularly interesting case for analysing how microenterprises can tap into this potential to create value. This paper combines an analysis of bioenergy and forestry trends with a qualitative case study. The analysis of the business model is based on Osterwalder's business model canvas. The value proposition of the enterprise studied herein is to provide a local biomass-based alternative to fossil fuels. The overall growth of wood-based industries in Kazakhstan and the national movement towards renewable energy create favourable prospects for microenterprises engaged in the production of wood pellets; however, these industries are also characterised by high institutional and regulatory dependencies.
... Therefore, along with the above arguments, the authors write the following research questions: "What is the alternative conceptual-based PSS product service system business model adopted by the company, which translates into the company's capabilities and competencies in the future?" Field (2011) defines at least seven business model frameworks, namely, The Business Model Canvas (Osterwalder & Pigneur, 2010), the Four-Box Business Model (Johnson), the STOF model (Bouwman & Fielt, 2008) Business Model Schematics (Weill & Vitale, 2001) Technology/market mediation (Chesbrough & Rosenbloom, 2002) entrepreneur's business model (Morris, Schindehutte, & Allen, 2005) and e -value (Gordijn & Akkermans, 2001) Meanwhile, this study adopts the business model canvas. It uses nine blocks of Osterwalder and Pigneur because the business model canvas can analyze how energy service companies can create new value propositions for their customers. ...
Changing the product sales-based business model to be service-based with user-oriented services (UOS) and Result-oriented services (ROS) or a combination is the best way to create a customer value proposition to stand out from competitive price competition. This study explores different business models for energy service companies (ESCOs). This research is based on a case study conducted between September 2021 to January 2023. This study uses action research based on the Soft System Methodology and uses an analogy through morphological analysis to explore alternative service-based business models (service domain). The question component of this study uses a business model canvas (BMC) framework. The in-depth interview determines what top management, customers, experts, and suppliers of energy-efficient products think about the service-based business model. This study found that companies can build alternative business models that represent how organizations create, deliver, and add value to products through service systems through analogous business models. This change in the business model benefits the company due to the increasing awareness of energy services companies for energy conservation and the limited number of energy service companies in Indonesia. The study suggests that ESCOs should consider a service-based business model and invest in resources and commitment. It can create a distinctive value proposition and differentiate itself from competitors. However, combining product, service, and sales system components (Product Service System (PSS) offered simultaneously to customers requires company resources and commitment.
... A concurrent expansion of academic research into entrepreneurship and inno vation also enhanced the evolution of the business model concept within the lit erature. This focused on the application of innovation and customer engagement to create and capture value, albeit primarily from the perspective of new product development (Chesbrough & Rosenbloom, 2002;Davis, 2002). Nevertheless, the concept still lacked a rigorous theoretical founda tion and clear definition Amit & Zott, 2001). ...
... Since its introduction in the 1990s, when it was mainly used by internet entrepreneurs presenting innovative business plans to investors, the term 'business model' has evolved significantly [13,14]. Evolving into a more conceptual tool, BMs such as Nespresso, Xerox, or Airbnb have attracted interest from researchers and practitioners [15,16]. A business model explains how an enterprise operates [17]. ...
The world is changing. The coffee industry is facing major challenges, largely shaped by climate change, changing consumer habits, sustainability and digitalisation. Scientists and experts from all over the world and all fields will present the latest findings on climate change, sustainable cultivation, consumption and digitalisation and show solutions and applicable concepts. The International Coffee Convention is aimed at all decision-makers in the coffee industry, farmers, roasters and the trade. Together with experts and colleagues, we want to highlight challenges and offer solutions. It is time for real, science-based solutions that answer the challenges of the coffee industry.
... (Bocken et al., 2014;Holzmann et al., 2020). Capture is mainly signified through profit generation, that is, the financial value "extracted" from technology (Chesbrough & Rosenbloom, 2002). Yet, value capture should also include accounting for non-economic gains (Schaltegger et al., 2016). ...
This article investigates how sustainable entrepreneurship on digital platforms enacts digital connectivity to capture and create value. By complementing the business model lens with sociomateriality, we theorize digital technologies as key actors that participate in the enactment of business models. We analyze visual and textual data from 19 entrepreneurial initiatives for sustainability established on the social media platform YouTube. Our findings demonstrate novel business model configurations enacted by a web of human and nonhuman (digital) actors: connecting for sustainability as part of the value proposition, forming connective spaces for socioenvironmental value creation, and leveraging connectivity for multidimensional value capture. These findings have two major contributions. First, we offer novel insights on the practices that configure business model elements of sustainable entrepreneurship on platforms. We especially draw attention to how digital connectivity of platforms is achieved and made durable by human and digital actors. Second, we elaborate on how digital agencies intervene in entrepreneurial efforts to make sustainability visible and how this affects the business models. Thus, the study contributes to and further develops the intersection of digital technologies, sustainable entrepreneurship, and business models.
... Die Geschäftsmodellanalyse hat sich als strategisches Managementinstrument etabliert und wird zur Unterstützung von Start-ups sowie etablierten Unternehmen bei der Bewertung ihrer Geschäftslogik und ihres Innovationsmanagements eingesetzt [6,7]. Ein Geschäftsmodell kann als die grundlegende Geschäftslogik definiert werden, mit der ein Unternehmen in der Lage ist, sich selbst zu erhalten und in der Wertschöpfungskette zu positionieren [8,9], indem es sich mit der Frage auseinandersetzt, wie ein Wert für die Kunden geschaffen, erzielt und gleichzeitig Einnahmen generiert werden können [10,11,12]. Trotz der zahlreichen wissenschaftlichen Veröffentlichungen zu diesem Thema gibt es jedoch keinen einheitlichen Ansatz, der definiert, was ein Geschäftsmodell ist [13,14,15]. ...
In diesem Insights-Beitrag wird ein Leitfaden zur Entwicklung Blockchain-basierter Geschäftsmodelle vorgestellt. Der Geschäftsmodellleitfaden setzt sich aus verschiedenen, im Rahmen vom Blockchain Europe Projekt entwickelten, Methoden
zusammen, die ebenfalls beschrieben werden. Ziel des Leitfadens ist es, Praktikern entlang der individuellen Phasen der BLockchain-Geschäftsmodellentwicklung Unterstützung zu bieten. Darüber hinaus enthält der Beitrag Grundlagen zu Blockchain-basierten Geschäftsmodellen und zeigt die methodischen Vorgehensweisen auf, die zur Entwicklung des Geschäftsmodellleitfadens
genutzt wurden.
... The tool developed in this study identified customers' want, dynamic capabilities, and resources that the social enterprise had to meet and their revenue generation mechanism, which eventually aligned with the notion of the BMT presented by Teece [12]. In addition to that, according to Chesbrough and Rosenbloom [13], this study also found all the major components that need to be analyzed from business model theoretical perspectives, such as value proposition (and associated problem-solution space), appropriate technology for value retention for circular design and features of circular products, range of customer segments, ecosystem-level coordination for circular supply chain and value capture components (cost and revenue streams of the business). Likewise, by developing an innovative business model canvas in this study, this study contributed to the circular economy business model canvas theory and practice, as mentioned by Pollard, Osmani, Grubnic, Díaz, Grobe, Kaba, Ünlüer, and Panchal [21]. ...
Circular business models (CBMs) are integral to the concept of the circular economy (CE). The aims of the study are to (1) redesign a canvas for CBM and (2) validate it through a single case study. The developed canvas is called the “Circular Business Model Value Dimension Canvas”. For the validation, a semi-structured interview with a social enterprise (SE) operating in hybrid CBM (i.e., resource recovery, sharing platform, and product use extension) in Australia has been performed. Results showed that a successful hybrid CBM for a SE necessitates the integration of forward and reverse supply chains through partnerships with new product retailers and resource recovery companies. Other important factors include the presence of physical stores, an effective product return strategy, initial funding support from the government, the employment of young individuals with special needs, and the promotion of behavioral change among low-income customer segments. Although the canvas was applied to the enterprise, it can also be applied to other organizations as the canvas integrates all essential components for business modeling. The proposed canvas serves as a supportive tool for CBM innovation (CBMI) and provides a framework for researchers to investigate the CBMI process in organizations transitioning from linear to circular.
... For example, industrial manufacturers delivering advanced solutions, such as autonomous vehicles, need to establish agreed levels of solution performance with their customers, despite having limited to no prior experience of how the solution will perform (Thomson et al., 2021). Moreover, uncertainty is present when industrial firms succeed in leveraging the value from digital technologies, potentially making numerous products, services, and entire BMs obsolete (Chesbrough and Rosenbloom, 2002). Consequently, BMI is increasingly being mentioned as a key strategic concern for industrial firms (Björkdahl, 2020;Hsuan et al., 2021;Sjödin et al., 2020aSjödin et al., , 2022. ...
Business model innovation supports manufacturers in the pursuit of new opportunities. However, successfully innovating a new business model presents a significant learning challenge, especially for highly advanced offerings , such as autonomous solutions. Experiential learning approaches, such as business model piloting, are crucial for fine tuning and scaling new business models, yet the current literature fails to adequately examine business model innovation in the context of advanced industrial offerings. In endeavoring to advance current research, we apply a business model piloting lens to advance understanding of how manufacturers engage in business model piloting for autonomous solutions. Our research builds on a multiple case study of piloting initiatives at two manufacturers, involving 32 interviews with senior managers responsible for autonomous-solution business model pilots. This study proposes a business model piloting framework to support manufacturers in overcoming business model innovation challenges. The framework consists of three phases: business model design, business model validation, and business model institutionalization. Each phase includes key business model piloting activities. We also identify three principles that support experiential learning in business model piloting. We contribute to the business model innovation literature by highlighting the strategic and multi-dimensional nature of business model piloting. This process requires simultaneous configuration of novel technologies for value creation and the design of suitable value delivery and capture mechanisms.
... Abordar o modelo de negócio é evidenciar como as organizações "criam, entregam e capturam valor" (Osterwalder & Pigneur, 2010, p. 14), a partir da compilação de vários componentes organizacionais destinados a construir uma proposição de valor (Chesbrough & Rosenbloom, 2002;Teece, 2010;Osterwalder & Pigneur, 2010). ...
Objetivo: O objetivo desse estudo é investigar as características do modelo de negócio de quatro fintechs do Rio Grande do Sul. Metodologia: A partir do entendimento que esse negócio apresenta um modelo de negócio inovador, realizou-se uma pesquisa qualitativa por meio de entrevistas. O modelo de negócio das fintechs foi analisado utilizando a lente teórica do Business Model Canvas (BMC) (Osterwalder & Pigneur, 2010). Originalidade/relevância: Este estudo busca entender como o modelo de negócio das fintechs é utilizado para obter vantagem competitiva. Com o propósito de compreender as características das fintechs, a utilização do BMC, o que não é recorrente em trabalhos acadêmicos, se tornou ponto chave neste estudo. Resultados: Os resultados revelam as principais proposições de valor das fintechs: facilidade e a transparência. Também, como elementos essenciais do modelo de negócio foram identificados: a diversidade de fontes de receitas; o papel das pessoas como um dos recursos-chave; e as parcerias com outras startups e fintechs. Contribuições teóricas e metodológicas: O estudo contribui para o campo acadêmico, visto que pesquisas sobre o modelo de negócio de fintechs ainda é pouco explorado. O framework Business Model Canvas estabelece modelos atuais e futuros, ilustra como o negócio faz sentido financeiramente. Na prática, o modelo de negócio constituído serve como um guia/mapa para gerentes do setor financeiro, bem como para as novas startups de serviços financeiros repensar seu modelo e fazer as atualizações necessárias para dar continuidade ao negócio.
... Innovation paradigm Public sector innovation [80]. Open Innovation [81], Shared Value [82]. ...
Sustainability Transitions challenge current practices deeply entrenched through vested interests in dominant regimes. In this sense, actors are locked into paradigms that are systemic and resilient to change. In response, opportunities within designerly approaches encompassing systemic innovation’s dynamic, multi-stakeholder and interconnected nature are investigated. The adoption of such approaches is evident among progressive actors facilitating systemic collaborations. Consequently, this paper proposes Systemic Innovation Programmes as a concept to define such initiatives, particularly for addressing sustainability transitions. Two contemporary programmes in Norway are presented, and a comparative analysis is made by linking key frameworks from the systemic design and transition to the management literature to clarify their tangency to intentional, sustainable systems change. The study identifies a spectrum of programmatic and faciliatory considerations in practice that broadly aligns with important frameworks from the systems research; however, they are rarely formalised in the programmes’ methodology or framing conditions. Thus, the theoretical contribution aims to inform systemic practitioners and policymakers in further integrating sustainable transition perspectives into future systemic change initiatives.
... Although public intervention is in some cases considered a necessity for promoting broader systemic changes for sustainability (Gibbs & O'Neill 2016), sustainability innovation is also considered a necessary business capability (Adams et al. 2012). Altogether, in innovating for sustainability, changing the fundamentals of business models is necessary for sustainable value creation (Adams et al. 2012;Gibbs & O'Neill 2016;Mazzucato 2016;Chesbrough & Rosenbloom 2002). Kelly et al. (2002) have suggested that public value is based on three significant sources: services, outcomes and trust. ...
Smart specialisation is an instrument of the European Cohesion Policy and a key political principle to advance European competitiveness, innovation and welfare. Whereas smart specialisation is previously recognised for its focus on creating economic value through regional specialisation and new innovations, some recent arguments show that sustainable and social aspects are now defining the new smart specialisation strategy (McCann & Soete 2020; Pontikakis et al. 2022). In this paper, we examine the concept of public value to determine what a broader sustainable focus could mean for the next generation of smart specialisation strategies and how regions may use their entrepreneurial discovery processes (EDP) in a new way to combine vertical specialisation with more horizontal, sustainable and particularly social sustainability goals. Our inspection of public value via Moore’s strategic triangle and the smart specialisation literature indicate that the entrepreneurial discovery process can be viewed as a platform for conveying public value, which may also help in understanding how the entrepreneurial discovery process may become an open discovery process (ODP) in partnerships for regional innovation (PRI) implementation.
... Apart from the specific components, we suggest that certain taxonomy dimensions might also help enterprise software providers cope with the platformization trend (Schreieck et al., 2022). As for the use of the taxonomy in the IIoT context, the increasingly popular distributed architectures of DIPs (Arnold et al., 2021), or business model innovations (Chesbrough & Rosenbloom, 2002) could enable further pricing options not considered in the taxonomy. This is because any literature review takes a certain perspective on the object of interest, and our review predominantly relied on conceptualization of DIPs of the author team. ...
Pricing is a significant component in determining digital platforms’ strategic and financial position. Informed decisions concerning how to price digital industrial platforms require an integrated and holistic view that organizes heterogeneous pricing options. Given the complexity of pricing, we build a taxonomy based on a systematic literature review to advance our understanding of key pricing characteristics as well as help researchers and practitioners navigate the vast solution space of decision options.
... Traditionally, the value proposition is the creation of a product design that delivers value to the customer and may be the first step in developing or innovating a business model [98]. Value proposition deals with a variety of aspects, such as shared beliefs, customers, and geography (e.g., [99]). Value creation and delivery are directly linked to a company's ability to generate profit. ...
Over the last decade, various governments and supranational bodies have promoted the development of a circular bioeconomy (CBE) as a response to sustainability challenges. The transition towards a CBE requires the collaboration of different actors in the innovation (eco)system. With this conceptual paper, we apply a circular business model lens to address the research question: “What are the archetypical roles of consumers in business model innovations for a sustainable CBE?” We use a combination of complementary theories from the circular economy and bioeconomy literature, evolutionary innovation economics, sustainability transitions research, the business model literature, and the work on active consumers. Considering consumers’ agency as a continuum between the manufacturer-active paradigm and the consumer-active paradigm, we propose: (i) consumers in the manufacturer-active paradigm can actively influence circular business models with their purchase decision; (ii) consumers can act as lobbyists and influencers for circular business model innovation; (iii) in their different roles as customer, user, repairer, and reseller, consumers can incentivize organizations to adapt their business models to their needs; (iv) consumers can become key partners in the process of defining the normative orientation of the innovation paradigm for a CBE; (v) consumers can actively co-create value by means of co-ownership (e.g., through platform cooperatives).
Dans cet article introductif, nous discutons des apports du business model (BM). Nous traitons d’une part du statut et de la valeur scientifique du BM, d’autre part des bénéfices d’une lecture constructiviste de la stratégie des organisations, enfin de la possibilité de penser l’économie « autrement », qu’une telle approche favorise. Nous terminons en présentant les 7 contributions de ce cahier.
La proposition d’une innovation du modèle d’affaires applicable aux entreprises de service basées sur la technologie, cherche à prévaloir de manière durable avec succès en entreprise; Selon l’analyse de la littérature, l’innovation repose sur la valeur ajoutée, sur la vision stratégique qui génère un avantage concurrentiel et sur l’intégration d’innovations basées sur les capacités technologiques du capital humain. Les résultats contribuent à l’ensemble des modèles d’affaires qui collectent les actions clés définies pour choisir une stratégie. Nous concluons que les modèles d’affaires doivent être capables de convertir les connaissances en valeur économique.
Purpose
This paper aims to investigate how firms such as Xerox, which have transitioned to a digital servitization business model, bridge relational asymmetry. It continues the theme of sustainability from the traditional three pillars—environmental, economic and social sustainability—to relational in terms of the quality of the relationship between the service provider and the customers.
Design/methodology/approach
Using an exploratory method, qualitative data from the case of Xerox, a pioneering company that embraces servitization business models, has been gathered. The combination of exploratory archival and literature searches allows for a more in-depth understanding of servitization and how it bridges (or does not bridge) the relational asymmetry.
Findings
The results reveal that a relational dimension is inherent in the servitization business model, whereas in order to achieve sustainability, it must leverage transparency, which may be either an enabler or an impairing factor. A borderline for a transparent relationship that distinguishes these two parameters is established.
Research limitations/implications
The study's single-case firm was limited to Xerox as an industry forerunner and could only represent mature and multinational enterprises.
Practical implications
With the purpose of providing high-quality service, this exploratory paper gives managers rational insight into whether and when it is sustainable to fill the relational asymmetry between them as service providers and their customers.
Social implications
From the relational asymmetry perspective, the authors shed light on the aspect of transparency, which is a pivotal cause of any asymmetric relationship. Through the case of Xerox, the study further sheds light on the dual effect of transparency, which could either be an “enabling” or an “impairing” factor. Putting it together, the use of interaction as a basis for co-creation is at the crux of the emerging reality.
Originality/value
This paper examines servitization from a new perspective, proposing that the relational asymmetry bridged by servitization will determine the future of organizations that differentiate themselves through quality relationships.
Purpose
This paper aims to show the possibilities of implementing the idea of sustainability in the context of energy transformation using the concept of an industrial cluster. The implementation of the idea of sustainability is of particular importance from the perspective of the functioning of the meta-organisations involved in the implementation and promotion of decarbonisation processes. Industrial clusters, as collective actors initiating collective actions and providing complex governance structures, seem to have a great fit with regard to the needs of disseminating and implementing the idea of sustainable development, also in conjunction with energy development.
Design/methodology/approach
Empirical evidence is derived from a case study of Mazovia Clustes ICT (MC ICT). Based on the experience of this cluster, this study wants to show the evolution of the industrial cluster through the prism of its growing activity in supporting energy transition. The authors conducted the research in the period 2022–2023 using in-depth personal interviews and an analysis of the secondary data. The primary technique for data analysis and interpretation was conventional qualitative content analysis.
Findings
As a result of this study, the authors have distinguished three main areas of cluster activity covering the strategic, operational/project and institutional levels. Within the first area, the cluster’s efforts focused on the development of a strategy and involvement in lobbying and co-legislating. The second area refers to the cluster’s activity in the carrying out of national and transnational projects on the creation and implementation of various energy solutions. The activities undertaken in the third area include support for the development of start-ups in the field of energy and involvement in the launch of an energy cluster and the development of distributed energy in Poland. Although the strategic and operational/project levels are characterised by a commonality of activities and goals, there is additionally a commonality of interests at the institutional level.
Research limitations/implications
This paper has its limitations, which primarily relate to the small research sample (the choice of a case study as the main research strategy) and the methods used (qualitative research). Therefore, it is impossible to generalise the results to the entire population of clusters.
Practical implications
This paper has considerable practical value, as the results of this study may be relevant for public authorities interested in implementing energy transition through industrial clusters. The activities described can also be a source of inspiration for other clusters interested in shaping pro-environmental attitudes.
Social implications
The cluster’s activities are closely linked to the three pillars of sustainable development, including the social pillar. The solutions developed within the cluster in the context of energy development are aimed not only at increasing energy efficiency and protecting the environment but also at broader social welfare.
Originality/value
This paper makes an additional contribution to the state-of-the-art of the industrial cluster concept by linking it to the idea of sustainable development, in the context of energy transformation. In addition, it sheds new light on issues related to cluster co-operation, combining the case of the industrial cluster with the very fresh and as yet poorly described idea of the energy cluster.
Purpose
The purpose of this study is to examine whether service innovation capability can affect firm performance in the architecture, engineering and construction (AEC) context, and, if so, how.
Design/methodology/approach
This study developed a theoretical framework illustrating the performance impacts of service innovation capability through the business model in the AEC sector. An empirical study was conducted to test the hypotheses using 374 valid questionnaires using structure equation model (SEM).
Findings
The results verify that service innovation capability positively influences firm performance mediated by the business model. As to the direct effect, service innovation capability is positively associated with firm performance.
Originality/value
This study highlights how service innovation capability affects performance and reveals the underlying mechanism.
Traditionally, innovations have been in the focus of researchers since their introduction, as a concept by Schumpeter, to the present days. In the last decade, these trends have intensified, and more and more researchers are directing their research into the innovation field. The connections of innovations with the results of companies, the success of innovations, the environment for innovations, etc. are investigated. The main goal of the present study is to reveal the potential of the North-West Planning Region in Bulgaria to create an innovation-based incubator/s, that will be part of the innovation environment, support companies in their innovation activity and thus contribute for economic growth in the region. The main methods used are the office survey, statistical methods /collection of statistical information/, trend method, factor analysis and scenario method. Based on the collected statistical information and its secondary processing, certain regularities and trends have been deduced for the potential for creating innovation-based incubators. Through the method of scenarios, the potential usefulness of such structural elements of the innovation environment for increasing the innovativeness of the companies of the region has been determined.
This paper investigates the linkage between network characteristics of the innovation ecosystem, knowledge collaboration and enterprise innovation in the case of China. The results demonstrate that knowledge collaboration plays a part in the mediating role between network characteristics of the innovation ecosystem and enterprise innovation. The resource integration capability could regulate the mediating role of knowledge collaboration, which means the stronger the resource integration capability, the stronger the mediating effect.
Purpose
The objective of this study is to examine current business and management research on “Industry 4.0 base technologies” and “business models” to shed light on this vast literature and to point out future research agenda.
Design/methodology/approach
The authors conducted a bibliometric analysis of scientific publications based on 482 documents collected from the Scopus database and a co-citation analysis to provide an overview of business model studies related to Industry 4.0 base technologies. After that a qualitative analysis of the articles was also conducted to identify research trends and trajectories.
Findings
The results reveal the existence of five research themes: smart products (cluster 1); business model innovation (cluster 2); technological platforms (cluster 3); value creation and appropriation (cluster 4); and digital business models (cluster 5). A qualitative analysis of the articles was also conducted to identify research trends and trajectories.
Research limitations/implications
First, the dataset was collected through Scopus. The authors are aware that other databases, such as Web of Science, can be used to deepen the focus of quantitative bibliometric analysis. Second, the authors based this analysis on the Industry 4.0 base technologies identified by Frank et al. (2019). The authors recognize that Industry 4.0 comprises other technologies beyond IoT, cloud computing, big data and analytics.
Practical implications
Drawing on these analyses, the authors submit a useful baseline for developing Industry 4.0 base technologies and considering their implications for business models.
Originality/value
In this paper, the authors focus their attention on the relationship between technologies underlying the fourth industrial revolution, identified by Frank et al . (2019), and the business model, with a particular focus on the developments that have occurred over the last decade and the authors performed a bibliometric analysis to consider all the burgeoning literature on the topic.
This paper presents the results of a survey of small and medium-sized enterprises (SMEs) in Poland that have benefited from crowdfunding (CF). Based on these results, a new business model was developed. On this basis, the CF equity, reward and donation models were analyzed, and the impact of CF on the way of creating value in the company in the context of sustainable development was determined. The survey results show that the use of CF promotes the sustainable development of SMEs in Poland and significantly impacts their business model. In practical terms, this research has contributed to a better understanding of value creation by these companies. The results of our analysis are useful for consulting companies and CF platforms that help SMEs organize campaigns. In theoretical terms, the study conducted and the methodology used allow the presentation of a new definition of CF and a sustainable business model for a company using CF as well as contribute to the value management theory in SMEs.
Digital transformation has led to several improvements in performance and efficiency, but its impact on growth patterns needs to be clarified. Two schools of thought dominate the literature on digital growth strategies. One stream advocates that digital firms should focus only on scaling their core position, while the other contends that firms should envelop into multiple complimentary markets. This seeming “paradox” in the strategic management literature, between advocates of a focus and a diversification growth strategy, shows a need for critical review and clarification of this literature. This paper synthesizes both views and argues that the distinct growth strategies are contextual and that a new catalyst, the relative level of digital transformation of firms in each market, influences their optimal strategy. A new conceptual model illustrates how digital firms may move between different strategies depending on their perceived market opportunities, competitive advantages, and the relative level of digital transformation of their competitors. Hereby, this paper contributes to a better understanding of the growth strategies of digital businesses.
Despite existing evidence indicating that organizational learning positively influences dynamic capabilities, the complex and dynamic interplay of leadership in this process still remains incomplete. Organizational learning models note that leadership is embedded in the development of dynamic capabilities, and this research empirically investigates the interplay of organizational learning (exploitative and exploratory learning) and strategic leadership (transformational and transactional leadership) in developing dynamic capabilities (sensing, seizing, and reconfiguring). A survey questionnaire on a sample of 106 firms is carried out, and results of hierarchical linear regressions indeed reveal that organizational learning shows a direct or indirect influence on dynamic capabilities through transactional or transformational leadership, depending on the type of department. This study is an innovative attempt to distinguish different antecedents for each type of dynamic capability on the basis of the type of learning and strategic leadership involved.
JEL classification: M12
Objetivo do estudo: o objetivo do estudo foi identificar os principais domínios estratégicos e suas características que possibilitem a proposição de um modelo teórico-analítico para implementação e análise da Transformação Digital (TD) em organizações.Relevância/originalidade: proposição de um modelo teórico-analítico para implementação e análise da Transformação Digital (TD) em organizações, com base no 'estado da arte' do tema (literatura nacional e internacional de 2017 a 2021), composto por oito domínios (ou dimensões) de estratégia.Metodologia/abordagem: revisão Sistemática de Literatura, tendo como fonte de consulta e coleta de dados as bases Scopus e Web of Science, entre 2017 e 2021, cuja seleção se deu a partir da leitura dos títulos e resumos de 296 artigos, tendo sido selecionados 26 para este trabalho.Principais resultados: identificação dos principais domínios de estratégia inerentes à TD e suas características - clientes, dados, competição, inovação, geração de valor, competências, cultura e agilidade, que possibilitaram a estruturação e a proposição de um modelo teórico-analítico para implementação e análise da (TD) em organizações.Contribuições teóricas/metodológicas: do ponto de vista teórico-acadêmico, ao ampliar as pesquisas investigativas e analíticas sobre o tema da Transformação Digital para o campo interdisciplinar e multidisciplinar da Ciência da Informação, Administração e Computação, e consequente geração de novos conhecimentos para tais campos.Contribuições sociais/para a gestão: do ponto de vista organizacional, ao propor uma estrutura não só teórica, mas aplicada, permitindo a implementação e análise da TD, e sua consequente geração de valor para os diversos tipos e níveis de usuários, além do próprio negócio.
The Industrial Digital Twin (IDT) will shape future business models of manufacturing companies. It offers new solutions for connecting manufacturing assets with different Information Technology (IT)-service layers. Hence, new opportunities for facilitating sustainability, the uptake of Artificial Intelligence, new forms of cross-company collaboration, as well as for the exchange of digital services between assets and stakeholders will arise. Consequently, a state-of-the-art for the IDT and business model innovations for manufacturing systems is laid out. Opportunities for business model innovations based on IDT-technologies are explored, and eventually a case study for the manufacturing industry is presented.
Purpose
This study identifies and characterizes configurations of generic business models for logistics service providers (LSPs) in the context of industrial additive manufacturing (AM). A literature-based framework of the AM service supply chain (SC) is developed to embed the generic configurations in their SC context.
Design/methodology/approach
Following an exploratory research design, 17 interviews were conducted with LSPs, LSPs' potential partners and customers for industrial AM services.
Findings
Six generic configurations are identified, the LSP as a Manufacturer, Landlord, Logistician, Connector, Agent and Consultant. The authors outline how these configurations differ in the required locations, partners and targeted customer segments.
Practical implications
The current discussion of reshoring and shorter, decentralized AM SCs confronts LSPs with novel challenges. This study offers guidance for managers of LSPs for designing business models for industrial AM and raises awareness for LSPs' resource and SC implications.
Originality/value
This study contributes to the scarce literature on AM business models for LSPs with in-depth empirical insights. Based on the six identified configurations, this study sets the ground for theorizing about the business models, in particular, the value creation, value proposition and mechanisms for value capture of the business models. In addition, this study suggests how the generic configurations fit the features of specific types of LSPs.
The growth of environmental problems and the intensification of consumption foreground the search for ways to modernize the industry aimed at the transition to sustainable development. The answer to emerging challenges can be a transition to circular business models in industry. This paper continues our study of the business models transformation in industry and contributes to the study of the transition to circular business models. The object of our study is the circular business models in industry. The objective of this study is the systematization of the notions and approaches to circular business models in industry. The methodology of the authors is based on the subject-activity approach. Research works of scientists-economists, data of our own research reports were used to write this article. General scientific methods, system approach, institutional approach were applied during the research. We developed a classification criterion for circular business models and identified four types of circular business models focused on the production of goods with a long life cycle, on extending the life cycle of manufactured goods, on creating a circular life cycle of goods, on eco-neutral completion of the product life cycle. This allows advancing in the field of the research of the circular economy and the place of industrial enterprises in it. We also showed the significance and limitations of the conclusions as well as the prospects for further research.KeywordsBusiness modelsCircular economyRecyclingCircular business modelsSustainable developmentIndustry modernization
Using a meta-analysis
based on 147 primary studies from 27 countries, we synthesize
extant knowledge on the relationship between business model innovation (BMI) and firm
performance. Our results show that the positive BMI-firm
performance relationship is robust
across various conceptualizations of and measures for BMI. Building on prior research suggesting
that not all companies benefit equally from engaging in BMI, we set out to study important
institutional-level
contingencies for the BMI-performance
relationship. We build on the
institution-based
view as theoretical perspective and combine it with insights from the innovation
literature to theorize that the magnitude of the positive effect of BMI on firm performance
depends on institutional contingencies, specifically national culture and pro-market
institutions,
because these national institutions affect BMI-driven
organizational learning processes.
Specifically, we argue and show that the positive relationship between BMI and performance is
weaker in countries characterized by high levels of masculinity and individualism, and stronger
in countries characterized by high levels of customer orientation, economic freedom, and education.
Besides the country-level
contingencies, the inclusion of various control variables in our
meta-analysis
also reveals that, even if located in the same institutional environment, start-up
firms benefit more from BMI than mature firms and that there are no observable differences
regarding BMI benefits among different industries. Moreover, a nuanced analysis shows that
the positive effect on performance is stronger when BMI rely on changes in cognitive schemas
compared to BMI that are of more technical nature.
Business model innovation (BMI) is an emerging field that has attracted much attention from scholars and practitioners. However, the literature on BMI is fragmented and inconsistent, lacking a comprehensive and systematic framework. This study aims to fill this gap by conducting a literature review of 272 peer-reviewed articles on BMI published between 2010 and 2022. We analyze the articles based on six dimensions: antecedents, processes, types, barriers, outcomes, and moderators/mediators of BMI. We synthesize the findings and propose an integrated theoretical model that captures the complex relationships among these dimensions. We also identify several research gaps and directions for future studies. This study contributes to the BMI literature by providing a clearer understanding of this phenomenon and offering practical guidance for various types of businesses.
Business model simulation is a computer-based model for understanding business processes and firm dynamics. Simulating a business model in a laboratory helps one to understand the operational and strategic aspects of firms quickly, reliably and cost-effectively, enabling them to develop new financial and operational strategies. Not many studies have focused on antecedents of the business model simulation and their consequences. Therefore, the aim of this study is to determine the antecedents and consequences of business model simulation and to further analyse the moderating effects of leadership support. A theoretical model is proposed that takes inputs from the literature and resource-based view and dynamic capability theories. The partial least squares–structural equation modelling technique tested the model by analysing the quantified responses of 327 respondents. This study finds that business model simulation is significantly impacted by firms’ competitive intensity, innovative activities and technology strategy. The study also demonstrates that leadership support moderates the relationship between business model simulation and actual business practices. The study contributes that business model simulation, which is affected by salient predictors, can impact firm performance when mediated through actual business process and practices and with the moderating effects of leadership support.
Over the recent years, responsiveness has gained importance as it is a critical element of public governance processes and acts as a driving factor for supporting the achievement of governance objectives, especially in the implementation phases. In this study, we identify the knowledge gaps in the realm of responsive governance based on a systematic literature review. Based on our analysis, we propose a conceptual framework of major building blocks (input, process and outcomes) for the development and implementation of responsive governance at the local, regional and national levels of administrative hierarchy.
This chapter looks at the underlying basics. There are different forms to address societal challenges but social entrepreneurship is the most promising form as it combines social and entrepreneurial thinking. This chapter defines social entrepreneurship and discusses the available definitions. It also differentiates social entrepreneurship from other forms of providing social services and also analyzes different scaling strategies. Those social enterprises can use different social business model innovations and six different strategies are discussed to provide some insights.
A central and underexamined phenomenon in the growing literature on business models is: how firms pursuing platformization transform their open business models to create an ecosystem-based business model and ecosystem business model. While an open business model focuses mainly on searching and integrating external knowledge to address key aspects of a firm's value proposition and offerings, an ecosystem-based business model refers to how a firm adjusts the critical components of its business model according to its position, role, and links in the ecosystem. However, an ecosystem business model involves activities and offerings from ecosystem actors that should be aligned to materialize a general value proposition. This platformization requires a profound yet little understood view on how firms transform business models through cognitive and managerial processes. To address this research gap, we employ a multiple-case study approach in four large firms. This study identifies a new business model transformation process consisting of three phases: 1) broadening view, 2) integrating, and 3) orchestrating. Our findings contribute to the literature by demonstrating the unique cognitive and managerial processes related to shaping the emergence of the ecosystem business model while simultaneously transforming the firm's business model to operate in ecosystems.
The article focuses on the need to create/implement investment and innovation models of business entities in the context of post-conflict transformations. The world and domestic experience of modelling the activities of business entities is analysed. The improved model of innovation and investment activity of enterprise is proposed, which, unlike the existing ones, consists of four consecutive blocks (prerequisites for intensification of innovation and investment activity; substantiation of expediency of intensification of innovation and investment activity; assessment of innovation and investment potential of enterprise; integration of organisational decisions into activity) and provides for implementation of new organisational structures of management, business processes, approaches to assessment of innovation and investment potential of enterprise. The expediency of applying the proposed model in the activities of domestic enterprises is substantiated. Implementation of this model in practice allows: to take into account all peculiarities of innovation and investment activity; to implement new organisational management structures in the practice of management; to introduce new business procedures, approaches, methods and mechanisms that meet the requirements of the post-conflict transformation period; to use all resources that the company can raise; to incorporate opportunities and risks that actually and potentially exist. The application of this model allows enterprises to implement systemic transformations in order to intensify innovation and investment activities and increase the level of competitiveness in various fields. Such a comprehensive implementation of structural changes ensures its economically secure comprehensive development due to the coherence of actions of all departments of the enterprise.
Although sharing has for a long time been a well-established principle to deal with resource shortages on a private level, the important impact of establishing sharing as business principle has only recently been highlighted by business practice as well as research. Sharing can be considered a relevant means to easily enhance resource endowment – nevertheless, making use of sharing in a business context calls for the employment of new, innovative business models. In this paper, we have a deeper look at the evolvement of carsharing business models as we present insights from a longitudinal qualitative-empirical study of six carsharing providers. We employ a process perspective to dig deeper into firm-level influence factors that are core elements of strategic renewal and drivers of subsequent business model innovation. Additionally, we show how strategic activities of the different market players are linked to each other and how this interplay affects our case firms. Our paper sheds light on the strategy renewal-business model innovation interface and contributes to strategy process literature and to business model innovation research.
Purpose
Customer value perception of Internet of Things (IoT)-based services has not been studied in the context of a company’s readiness to adopt IoT technology. The purpose of this paper is to address this gap by indicating a research framing that combines insights from the IoT business model literature and customer perception of the value of such models and their drivers.
Design/methodology/approach
The interplay between a company’s IoT readiness and its perception of the value of IoT services is tested using a sample of 90 Eastern European business customers in a competitive business field. The conceptual framework described also examines relationships among constructs that refer to relationship quality. This study evaluates its quantitative sample using partial least squares path modeling.
Findings
Customers’ perceived value of IoT business models strongly relates to their digitalization capabilities and their own company’s innovativeness. When referring to disruptive technical offerings, existing trustful and satisfactory relationships cannot enhance the customer’s value perception.
Research limitations/implications
The sample of Eastern European buyers is not representative of the majority of manufacturing companies. A randomized sample using other sources such as large industry databases could be useful. In addition, a replication of the study in other countries would allow for a cross-border validation of this study’s results.
Practical implications
This study suggests a detailed process that is based on a careful preselection of test customers working for innovative companies. A marketing communication approach must state clearly the benefits the buyers get in return for their sacrifice of sharing data.
Originality/value
Technology readiness refers to the user’s propensity to embrace and use new technologies. The results indicate that IoT readiness influences the successful launch of IoT-related business models. For managers, this study proposes a process to implement IoT-related business models.
This study considers how a firm's resource base affects the choice of industries into which the firm diversifies. It offers two main extensions of prior research. First, it operationalizes technological resources at a more detailed level than in prior studies, thereby enabling a more stringent analysis of the direction of diversification. This analysis shows that the predictive power of the "resource-based view of the firm" is greatly improved when resources are measured at a finer level. Second, the study integrates principles from transaction cost economics into resource-based predictions concerning diversification. In particular, it tests the common assumption that rent-generating resources are too asset specific to allow contracting. The findings point to circumstances where resources can be and are exploited through contracting rather than through diversification.
This study considers how a firm's resource base affects the choice of industries into which the firm diversifies. It offers two main extensions of prior research. First, it operationalizes technological resources at a more detailed level than in prior studies, thereby enabling a more stringent analysis of the direction of diversification. This analysis shows that the predictive power of the "resource-based view of the firm" is greatly improved when resources are measured at a finer level. Second, the study integrates principles from transaction cost economics into resource-based predictions concerning diversification. In particular, it tests the common assumption that rent-generating resources are too asset specific to allow contracting. The findings point to circumstances where resources can be and are exploited through contracting rather than through diversification.
This paper demonstrates that the traditional categorization of innovation as either incremental or radical is incomplete and potentially misleading and does not account for the sometimes disastrous effects on industry incumbents of seemingly minor improvements in technological products. We examine such innovations more closely and, distinguishing between the components of a product and the ways they are integrated into the system that is the product "architecture," define them as innovations that change the architecture of a product without changing its components. We show that architectural innovations destroy the usefulness of the architectural knowledge of established firms, and that since architectural knowledge tends to become embedded in the structure and information-processing procedures of established organizations, this destruction is difficult for firms to recognize and hard to correct. Architectural innovation therefore presents established organizations with subtle challenges that may have significant competitive implications. We illustrate the concept's explanatory force through an empirical study of the semiconductor photolithographic alignment equipment industry, which has experienced a number of architectural innovations.
The phrase “business model” has found its way into the vocabulary of just about everyone who must manage or work in businesses with an Internet content, from venture capitalists to CEOs. Despite the enormous importance of the Internet and business models to firms, and the explosive interest in both subjects, there are no business school texts that address the impact of the Internet on firm performance.
In Internet Business Models and Strategies: Text and Cases, we draw on research in strategic management and the management of technology to develop an integrative framework that allows readers to put their minds around what determines firm performance and the central role that business models play in the face of the Internet. We offer concepts and tools that students of management need to analyze and synthesize business models, especially Internet business models. The framework developed in the book allows its users to make more informed concept- and theory-grounded arguments about Internet start-ups, bricks-and-mortar firms that must face challengers, the relative merits of formulating and implementing Internet business models and strategies, and how much ventures might be worth.
In the first part of the book, we explore the concepts on which Internet business models rest and the tools that can be used to analyze and appraise them. In addition to building a conceptual framework, the chapters include discussion questions and key terms to engage readers further with the subject matter. The second part of the book offers cases of both pure-play Internet firms as well as bricks-and-mortar firms that must formulate and execute successful business models and strategies in order to gain, defend, or reinforce a competitive advantage in the face of the Internet.
To the best of our knowledge, no other book addresses the central issues of the impact of the Internet on business performance. This is not to say that there are no books on e-commerce or the impact of the Internet from a functional perspective, simply that they do not centrally address business issues, particularly the impact of the Internet on business models and firm performance.
Based on a review of previous landmark studies and in the light of findings of recent research on internal corporate venturing, a model of the strategic process in large, complex firms is presented under which the propositions "structure follows strategy" and "strategy follows structure" can both be subsumed. Current corporate strategy induces some strategic behavior but changes in corporate strategy follow other, autonomous, strategic behavior.
Private venture capital casts a long shadow over corporate ventures, in part because they compete for the same entrepreneurial talent. Corporate venturing may improve its performance by emulating certain practices of private venture capital but will never achieve the structures that private venture capital can create. Instead, the design principles for corporate ventures should embrace potential structural advantages of corporate venturing and leverage those advantages. These potential advantages include: an indefinite time horizon, the ability to commit very large sums of capital, the ability to coordinate complementarities with non-tradable corporate assets, and the ability to retain greater group and organizational learning from failed venture experiences. Lucent's New Ventures Group adopts many useful practices of private venture capital, but retains some of the potential structural advantages of venturing within an established firm.
This paper reviews 16 empirical studies of the impact of technological change upon incumbent firms. While all 16 studies have strong internal validity, their external validity is unclear. These studies employ different definitions, use different taxonomies, and rely on differing causal mechanisms. Their evidence, though extensive, draws largely upon U.S. contexts. This complicates an assessment of their cumulative external validity. An overall analysis concludes that there is a need to expand our research to other countries, because the impact of technical change may differ across countries. The paper integrates these phenomena into a new paradigm with three dimensions that condition the impact of technical change: the management of complexity, the external linkages of innovating firms, and the institutional environment.
Current research offers alternative explanations to the ‘linkage’ between the pattern of diversification and performance. At least four streams of research can be identified. None of these can be considered to be a reliable, predictive theory of successful diversification. They are, at best, partial explanations. The purpose of this paper is to propose an additional ‘linkage’, conceptual at this stage, that might help our understanding of the crucial connection between diversity and performance. The conceptual argument is intended as a ‘supplement’ to the current lines of research, rather than as an alternative explanation.
Examines how major firms utilize R&D activities to create new businesses through internal corporate venturing (ICV). Using a qualitative method, this analysis was done for one large, U.S.-based high-technology firm. This firm has a new venture division, which was formed in the early 1970s. Data were obtained from the study of six major projects that were ongoing at the time of the research. This data collection included interviews with 61 firm employees involved in the projects. The key and peripheral managerial activities of the grounded process model of ICV and the flow of these activities through four venture stages are presented. The four major processes in the model are definition, impetus, strategic context determination, and structural context determination. Among the findings: It is usually the autonomous strategic initiatives of individuals at the operational level that provide the ideas for much of corporate entrepreneurship. As a result of the very autonomous nature of these initiatives, management has difficulty deciding how to deal with the new initiatives and often ignores administrative issues through the entrepreneurial process. Middle-level managers are found to play a key role in linking these autonomous initiatives to the corporate strategy of these diversified major firms. (SRD)
Synthesizes the empirical literature on organizationalstructuring to answer the question of how organizations structure themselves --how they resolve needed coordination and division of labor. Organizationalstructuring is defined as the sum total of the ways in which an organizationdivides and coordinates its labor into distinct tasks. Further analysis of theresearch literature is neededin order to builda conceptualframework that will fill in the significant gap left by not connecting adescription of structure to its context: how an organization actuallyfunctions. The results of the synthesis are five basic configurations (the SimpleStructure, the Machine Bureaucracy, the Professional Bureaucracy, theDivisionalized Form, and the Adhocracy) that serve as the fundamental elementsof structure in an organization. Five basic parts of the contemporaryorganization (the operating core, the strategic apex, the middle line, thetechnostructure, and the support staff), and five theories of how it functions(i.e., as a system characterized by formal authority, regulated flows, informalcommunication, work constellations, and ad hoc decision processes) aretheorized. Organizations function in complex and varying ways, due to differing flows -including flows of authority, work material, information, and decisionprocesses. These flows depend on the age, size, and environment of theorganization; additionally, technology plays a key role because of itsimportance in structuring the operating core. Finally, design parameters aredescribed - based on the above five basic parts and five theories - that areused as a means of coordination and division of labor in designingorganizational structures, in order to establish stable patterns of behavior.(CJC)
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must conceive of itself as a portfolios of competencies, instead of a portfolio of strategic business units (SBUs). The latter limit the ability of firms to exploit their technological capabilities; they are often dependent on external resources. The real source of advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies, which will allow individual businesses to adapt to emerging opportunities. Cultivating core competencies does not mean outspending rivals on RD (2) they significantly contribute to the customer benefits of the end-product; and (3) they should be difficult for competitors to imitate. Cultivating core competencies also means benefiting from alliances and establishing competencies that are evolving in existing businesses. The tangible links between core competencies and end products are core products, which embody one or more core competencies. Companies must maximize their world manufacturing share in core products. Global leadership is won by core competence, core products, and end products; global brands are built by proliferating products out of core competencies. Firms must avoid the tyranny of the SBU, the costs of which are (1) under investment in developing core competencies and core products, (2) imprisoned resources, and (3) bounded innovation. Top management must add value to a firm by developing strategic architecture, which will avoid fragmenting core competencies, establish objectives for competence building, make resource allocation priorities transparent and consistent, ensure competencies are corporate resources, reward competence carriers (personnel who embody core competencies), and focus strategy at the corporate level. A firm must be conceived of as a hierarchy of core competences, core products, and market-focused business units. Obsession with competence building will mark the global winners of the 1990s. (TNM)
Understanding when entrants might have an advantage over an industry's incumbent firms in developing and adopting new technologies is a question which several scholars have explained in terms of technological capabilities or organizational dynamics. This paper proposes that the value network—the context within which a firm competes and solves customers' problems—is an important factor affecting whether incumbent or entrant firms will most successfully innovate. In a study of technology development in the disk drive industry, the authors found that incumbents led the industry in developing and adopting new technologies of every sort identified by earlier scholars —at component and architectural levels; competency-enhancing and competency-destroying; incremental and radical—as long as the technology addressed customers' needs within the value network in which the incumbents competed. Entrants led in developing and adopting technologies which addressed user needs in different, emerging value networks. It is in these innovations, which disrupted established trajectories of technological progress in established markets, that attackers proved to have an advantage. The rate of improvement in product performance which technologists provide may exceed the rate of improvement demanded in established markets. This mismatch between trajectories enables firms entering emerging value networks subsequently to attack the industry's established markets as well.
This paper attempts to explain why innovating firms often fail to obtain significant economic returns from an innovation, while customers, imitators and other industry participants benefit Business strategy — particularly as it relates to the firm's decision to integrate and collaborate — is shown to be an important factor. The paper demonstrates that when imitation is easy, markets don't work well, and the profits from innovation may accrue to the owners of certain complementary assets, rather than to the developers of the intellectual property. This speaks to the need, in certain cases, for the innovating firm to establish a prior position in these complementary assets. The paper also indicates that innovators with new products and processes which provide value to consumers may sometimes be so ill positioned in the market that they necessarily will fail. The analysis provides a theoretical foundation for the proposition that manufacturing often matters, particularly to innovating nations. Innovating firms without the requisite manufacturing and related capacities may die, even though they are the best at innovation. Implications for trade policy and domestic economic policy are examined.
The death of 13 men in the Mann Gulch fire disaster, made famous in Norman Maclean's Young Men and Fire, is analyzed as the interactive disintegration of role structure and sensemaking in a minimal organization. Four potential sources of resilience that make groups less vulnerable to disruptions of sensemaking are proposed to forestall disintegration, including improvisation, virtual role systems, the attitude of wisdom, and norms of respectful interaction. The analysis is then embedded in the organizational literature to show that we need to reexamine our thinking about temporary systems, structuration, nondisclosive intimacy, intergroup dynamics, and team building.
Sumario: Historical setting -- Du Pont: creating the autonomous divisions -- General Motors: creating the general office -- Standard oil company (New Jersey): ad hoc reorganization -- Sears, Roebuck and company: decentralization, planned and unplanned -- Organizational innovation: a comparative analysis -- The spread of the multidivisional structure -- Conclusion: chapters in the history of the great industrial entreprise.
According to the advocates of a "Generalized Darwinism" (GD), the three core Darwinian principles of variation, selection and retention (or inheritance) can be used as a general framework for the development of theories explaining evolutionary processes in the socioeconomic domain. Even though these are originally biological terms, GD argues that they can be re-defined in such a way as to abstract from biological particulars. We argue that this approach does not only risk to misguide positive theory development, but that it may also impede the construction of a coherent evolutionary approach to "policy implications". This is shown with respect to the positive, instrumental and normative theories such an approach is supposed to be based upon.
We introduce a new hybrid approach to joint estimation of Value at Risk (VaR) and Expected Shortfall (ES) for high quantiles of return distributions. We investigate the relative performance of VaR and ES models using daily returns for sixteen stock market indices (eight from developed and eight from emerging markets) prior to and during the 2008 financial crisis. In addition to widely used VaR and ES models, we also study the behavior of conditional and unconditional extreme value (EV) models to generate 99 percent confidence level estimates as well as developing a new loss function that relates tail losses to ES forecasts. Backtesting results show that only our proposed new hybrid and Extreme Value (EV)-based VaR models provide adequate protection in both developed and emerging markets, but that the hybrid approach does this at a significantly lower cost in capital reserves. In ES estimation the hybrid model yields the smallest error statistics surpassing even the EV models, especially in the developed markets.
This paper outlines a theory of the multiproduct firm. Important building blocks include excess capacity and its creation, market imperfections, and the peculiarities of organizational knowledge, including its fungible and tacit character. A framework is adopted in which profit seeking firms are seen to diversify in order to avoid the high transactions costs associated with using various markets to trade the services of various specialized assets. Neoclassical explanations of the multiproduct firm are shown to be seriously deficient.
Multiproduct firms are perceived to be coherent in their scope, yet there is no strong theoretical foundations to explain coherence in modern industrial organization theory. This paper shows that as U.S. manufacturing firms grow more diverse, they maintain a constant level of coherence between neighboring activities. This finding runs counter to the idea that firms with many activities are generally more ‘incoherent’. A framework is then presented which appeals to the nature of enterprise learning, path dependencies, and the nature of the selection environment to explain the ubiquity of coherent diversifiers.
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