Article

The Concept of Business Model Scalability

Authors:
  • Aalborg University Business School
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Abstract

The power of business models lies in their ability to visualize and clarify how firms' may configure their value creation processes. Among the key aspects of business model thinking are a focus on what the customer values, how this value is best delivered to the customer and how strategic partners are leveraged in this value creation, delivery and realization exercise. Central to the mainstream understanding of business models is the value proposition towards the customer and the hypothesis generated is that if the firm delivers to the customer what he/she requires, then there is a good foundation for a long-term profitable business. However, the message conveyed in this article is that while providing a good value proposition may help the firm 'get by', the really successful businesses of today are those able to reach the sweet-spot of business model scalability. This article introduces and discusses the term scalability from a company-level perspective. It illustrates how managers should be using this term for the benefit of their business by focusing on business models capable of achieving exponentially increasing returns to scale.

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... As Yrjölä et al. (2019) described, the analysis leads to this finding that in platform business models factors such as opportunities, value, and advantages influence sustainability, scalability, and replicability. According to Nielsen and Lund (2015), one of the characteristics of platform business models can be their scalability. The platform business model's scalability refers to the firm's ability to work and handle in a workload, deals perfectly with the growth and changes related to it within the firm, and when more resources are added increase the total output. ...
... The platform business model's scalability refers to the firm's ability to work and handle in a workload, deals perfectly with the growth and changes related to it within the firm, and when more resources are added increase the total output. Given that scalability has a direct and close relationship with the growth potential of the firm (Nielsen & Lund, 2015). It can be stated that platform business models with their characteristics help firms to have sustainable growth because they accelerate the growth of ecosystems which are limitless and attract more customers around themselves (Korhonen et al., 2017). ...
... Platform business model's scalability happens through making positive networks with creating an ecosystem of users ( Figure 5). This big network of players in the exact point which help firm to scale through the platform business model (Nielsen & Lund, 2015). ...
Thesis
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Digitalization and its relevant disruptive technologies have changed people’s daily life. Business models which are the backbone of organizations are no exception. Along with the emergence of digitalization, the concept of business models has changed and evolved into new forms. Digitalization has changed the structure and components of the traditional business models, the relation between suppliers and customers, and the way of value creation and capture. Thus, it is necessary to investigate new alternative business models for organizations to secure and sustain them in their businesses. This study aims at exploring and studying the platform business models from the owner’s perspective in the context of the port of Oulu to improve the understanding of the platform ecosystem, stakeholder's roles and needs. Also, scalability, replicability, and sustainability of the port business model were studied. This thesis applied the qualitative research method and inductive research approach. The collection of data was done through an interview, two workshops, a literature review, and a single case study in the port of Oulu. The qualitative research method provided the opportunity of a broader understanding of previous research, the case study, its limitations, and opportunities regarding alternative platform business models. In the port ecosystem, the main goal is to provide a trustworthy, high capacity, and low latency connections for services utilized within the port. Also, optimizing the utilization of all network capabilities and opportunities locally inside the port area. The structure in the port includes physical and digital infrastructures such as 4G/5G wireless connections, fixed optical fiber connection, sensor networks, and data analytics solutions. The processes in the port address activities and services related to the port structure. The contingencies are regulations, standards, and local policies that influence port activities. A shift in port goals is expected to happen as modern communication networks and computing technologies offer further opportunities for trustworthy mobile connectivity, data storage, transfer and analytics, and external service. Real-time data processing, open data will be possible through low latency wireless technologies on the edge. The information service platforms could be used to optimize daily operations and enable new businesses. Global communication standards and data regulations will assure stakeholders about the conformity of business transactions. The business model scalability in the port can happen through innovative algorithms for analyzing, managing, and increasing the port data. The replicability improves by new material tracking and workflows using the port data and new subscription algorithms. Sustainability requires optimizing the cost of the digital services, developing digitalized algorithms instead of manual processes, improving the performance of services, and the whole port digital ecosystem, monitoring the environmental performance and creating a system that can monitor all the traffic in the port area.
... Since we lack a generally accepted definition of startup scalability in the business context, it is suggested that this concept is related to the growth potential of the company as well as the underlying functions of the business model of the startups [9]. Studies show that the growth potential directly influences the wealth and employment creation at community and society level [10]. The growth of a startup can be described as its ability to exploit economies of scale, where increase in the produced goods or services would result in the possible reduction in the cost per unit produces [11]. ...
... According to [13], startup scalability or business model scalability can be understood as, inter alia, the ability to retain at par excellence to achieve effectiveness. The scalability is not only about increasing the speed and size of business operations; rather it represents a critical aspect of startup's overall ability to achieve growth potential and generate revenue [10]. In the extant literature, the scalability has become an essential element in the strategic management field. ...
... It is equally important from the perspectives of investors, business angels and other stakeholders in the entrepreneurial ecosystem. In that sense, concepts like startup scalability and business potential are related to startup growth [10]. According to [14], there is an increase in empirical research in the United States, Australia, Germany and Scotland to determine the significance of variables such as company's age, the size of the startup, location, number of business activities, legal form and owner's independence. ...
... Ten respondents were identified through the network of Antwerp Management School and selected for an interview only if their profile matched with the research scope as described above. Overall, we classified respondents in a two by two matrix, categorized in terms of tenure and the scalability of the business model, the latter implying the probability to increase in business size (Lund and Nielsen, 2018;Stampfl et al., 2013). ...
... One engages in a partnership with product distributors, while others set up a platform for collaboration and membership. Also central distribution of product licensing results in scalability of the business, and leads to innovatively transforming competitors into partners or even clients (Lund and Nielsen, 2018 Within the matrix, we strived for diverging contextual conditions in that we interviewed women with and without children, single and married, with varying levels of entrepreneurial experience and operating different lines of business. Except for one respondent, all women entrepreneurs had been in employed jobs before and most decided themselves to opt out of their corporate careers and chose to become an entrepreneur. ...
... Allowing, and even valuing the fact that professional and personal activities intertwine, the 'work day' of the entrepreneur is no longer confined by business hours, yet technology and innovative business concepts allow to generate income in new ways (Mainiero and Sullivan, 2006). It will be interesting to observe whether and how these 'freedom minded' entrepreneurs increase in company size, or rather revenue (Lund and Nielsen, 2018). Online channels can indeed be leveraged to innovate the business models, and this can be done repeatedly at low cost, implying great potential for success, as long as criteria for scalability are safeguarded (Zott et al., 2011). ...
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Abstract The purpose of this study is to generate a deeper understanding of what drives entrepreneurs in the pursuit of their business. We claim that the research to date does not sufficiently represent the diversity that exists among entrepreneurs in general, and women in particular. More specifically, when it comes to ‘why’ individuals engage in entrepreneurship, the literature presents a fairly strong dichotomy between necessity entrepreneurs on the one hand, i.e. entrepreneurs who run a business due to lacking alternative employment options, versus opportunity driven, also called ‘ambitious’ entrepreneurs on the other (Allardyce, 2015; Orhan and Scott, 2001; Reynolds et al., 2005). Moreover, entrepreneurs who are not driven by opportunity and economic gains, are labelled ‘lifestyle’ entrepreneurs and these are assumed not to exhibit any growth aspiration, but merely the desire to maintain a satisfactory quality of life and ‘survive’ (Ateljevic and Doorne, 2000; Carlsen et al., 2008; Di Domenico and C, 2003; Morrison et al., 2001; Thomas and Komppula, 2004). It is our claim that the established divergence between ‘necessity’ and ‘opportunity’ entrepreneurs, nor the addition of the ‘lifestyle entrepreneur’ type sufficiently articulate the richness in entrepreneurial motivations, and that more research is warranted. This first out of three anticipated studies concentrates on women only, in order to avoid predispositions in terms of language or norms (Ahl, 2002; De Bruin et al., 2006) and to address the argued knowledge gap on diversity amongst women entrepreneurs (García and Welter, 2013). When zooming in on a female entrepreneurial population, several studies led to the finding that self-employed women pursue entrepreneurship for reasons other than or superseding the aspiration of economic growth and wealth creation. Per Carsrud and Brännback (2011, p. 20) there should be “sufficient rationale to rediscover the rich complexity of motivations” and we aim to do so by building on fresh theoretical perspectives. We argue that, in order to develop further insights as to ‘why’ individuals effectively engage in entrepreneurship, there is an opportunity to augment findings from the entrepreneurship literature with insights from both the Career Anchor theory (Schein, 1996, 1974) and Dries et al.’s (2008) framework on career success drivers.
... For the last process stage, scaling, the findings show that its relevance is considered in the digital BMI processes of the B2C firms, but not substantially in the B2B Firms A and B. Expert 4 from Firm B did indeed mention aspects of scalability in the context of their last process phase 'implementation and scaling.' The expert explains that while scaling should be kept in mind with regard to BMI, currently 'the scaling of solutions is still a minor aim.' Consistent with Lund and Nielsen (2018), the firms focusing on the B2C market link digital scaling with the milestone of fast growth of the BMI. Expert 9, for instance, states that the implementation of a business model itself is not enough for a BMI to be considered successful, but that effectual scaling of the business model is decisive for success. ...
... Expert 1 states: 'One single customer is moving faster than a whole organization.' Thus, B2C firms need to react to the dynamic of the B2C market more quickly than B2B firms focusing on scalable business models such as platform services (Lund and Nielsen, 2018). ...
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The digital transformation is forcing manufacturing firms to innovate beyond new products and services and to develop their digital business model innovation (BMI) processes in order to stay competitive. This study explores how the innovation processes of manufacturing firms can be designed in order to develop novel business models to address the challenges of digitalization. The study uses a multiple-case study approach, where data on BMI processes was collected in six manufacturing firms. The results show that the design of BMI processes in the digital age differs conceptually between B2C and B2B manufacturing firms. While BMI processes in B2C firms follow a semi-structured approach that considers experimentation, process models in B2B firms show similarities with a new product development (NPD) hybrid model comprising stage-gate methods and agility. This new typology aims to structure the heterogeneity of BMI process models described in the literature. Finally, this study proposes two archetype process models for digital BMI for B2C and B2B firms with specific digital process characteristics that manufacturing firms could consider when designing a BMI process in the context of digital transformation without reinventing the wheel over and over again.
... According to Lund and Nielsen (2018), scalability is one of the distinctive features of PBMs, which means that a business is capable of handling the growing amount of work, accommodating the growth in size, and increasing the total output when more resources are added. Hence, scalability is tightly related to the concepts of growth and business potential. ...
... In a similar vein, Parente et al. (2018) posited that platform-based firms expand internationally at a greater speed because of their asset-light business model; hence, they often resemble born global firms due to their early internationalization. Poole (2011) gave the example of FreebirdConnect.com, a platform that helps managers tracking operational metrics relating to sales, speed-of-service, labor, and food utilization and thus gives them more time to focus on their key assignments; this platform business has inherent economies of scale and low operating costs and, therefore, was very rapidly able to reach customers globally. Because PBMs imply scalability (Lund & Nielsen, 2018), they make it easier to start a business that has decreased time to initial markets, further global reach, and rapid scaling (Poole, 2011;Fu et al., 2017;Ondrus et al., 2015). This discussion allows us to derive our next propositions: ...
... According to Bondi (2000), in the technology context, scalability is the capability of a system, process or network to deal with an increasing amount of load or being able to expand to have room for growth. Discussing the notion of scalability in conjunction with the business model leads to creating a framework for estimating business/growth potential (Nielsen & Lund 2015). ...
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... As pointed out by [22], the notion of value is commonly accepted among the scholars within the business model domains. According to [27], integrating the aspect of value has tremendously influenced the existing streams of business model studies. One of the latest business model conceptualizations is also wrapped around value proposition [22], suggested by Zott, Amit and Massa [28] as a construct that conceptualizes the value creation and value capturing of a company. ...
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... Scalability of a process refers to its capability to expand and accommodate with growing workload due to added resources [39]. Integration of contexts into processes makes them grow rapidly. ...
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... It must be scalable. Nielsen and Lund (2015) have proposed that scalable business models are characterised by exponentially increasing returns to scale (RTS); these business models are not constrained by capacity; partners add to the value proposition but not at the cost of profits; stakeholders have multiple roles and are mutually beneficial; and the business model acquires the form of a platform that attracts more partners, including competitors. ...
Thesis
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... Custom solutions are usually built on a "one-on-one" basis, which basically mean, that every new project is started more or less from scratch. Therefore, if no code or module reuse is happening, it makes it difficult to achieve an increasing Return to Scale (RtS), that Lund and Nielsen (2018) claim to be a key to sustainable business growth. Service provision, unless it is being significantly upgraded qualitatively, at best can return linear returns, as multiplying projects do not necessarily set a higher multiplier to profits. ...
Thesis
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This research examines the current position and development of Lithuanian software industry. It includes both software product developers and service providers, with digital user-facing media falling under this category. The project takes a point of departure in an emergent concern of a potential middle income trap, that Lithuanian software development companies could fall into. Even though it is hardly evident, such concerns give further route for analysis of industry competitiveness, based on innovation maturity and scalability considerations. This project is carried out as a case study, with qualitative interviews as a data collection method used to collect rich data about the current state of development and potential development directions. Project has been conducted in a partnership with INFOBALT association, therefore the selected interviewees are the members of it. This project is based on two emergent frameworks of Innovation Capability Maturity Model and Scaling Management Framework, which are used to measure innovation maturity and ignite transformations. Transformative activities are explained by innovation theories, such as open innovation, ambidexterity, as well as theories of reverse knowledge spillovers, productization and LEAN Startup, as a tool to operate it. Obtained results and a mix of theories and frameworks allowed to identify that the majority of interviewed companies reside in the second innovation maturity level. Also, a set of specific drivers for industry upgrading have been visualized, as well as current weak points of an industry have been listed. Six primary drivers have been identified, which are then explained with five transitional actions. Focal findings of this project circulate around the transitions, which emphasize the need to adopt ambidextrous thinking and expand geographically in order to tap into currently unavailable knowledge and networks. Also, it has been found that product orientation, either it would be building an entirely new product venture or productizing existing service offering, could potentially open new markets and enable increasing return to scale.
... Extending from value-based strategy literature, value creation and capture are inherent elements of business model. According to Nielsen and Lund (2015), integrating the aspect of value has tremendously influenced the existing streams of business model studies. Zott et al. (2010) suggest business model as a construct that conceptualizes the value creation and value capturing of a firm. ...
... The business model becomes a platform that attracts new partners, including competitors [133] (pp. [16][17]. ...
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... Platforms have high scaling potential if they can continuously gain users on both sides at a marginal cost for additional transaction close to zero (Täuscher & Kietzmann, 2017). This can be achieved by delivering higher value propositions relative to existing alternatives (Lund & Nielsen, 2018) while reducing transaction costs and/or enhancing the efficiency of matching (Brousseau & Penard, 2007). ...
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Cite/Reference as: Hoveskog, M., and Halila, F. (eds), (2021). Proceedings of the 6th International Conference on New Business Models: New Business Models in a Decade of Action: Sustainable, Evidence-based, Impactful. Halmstad: Halmstad University Press. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-44872
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Purpose: To identify entrepreneurial strategies, actions, and innovative measures to create resourcefulness for addressing constraints in the development of eldercare services. The study also analyzes and suggests potential antecedents and outcomes. Method: A grounded theory approach was used to identify central aspects and conditions for entrepreneurial resourcefulness in the development of eldercare services in India and Sweden. Interviews with senior managers were analyzed and four successful organizations were selected for deeper contextual analyses. Findings: Three major themes of entrepreneurial capacity to create resourcefulness were identified: (1) to overcome financial constraints and cost diseconomies, (2) to overcome human resource constraints, and (3) to bring about service innovation in existing market/industry constraints. These were creatively met by measures taken to overcome these constraints. The analysis also found limits of entrepreneurial resourcefulness. For instance, despite resourcefulness there are still challenges related to attracting and retaining care workers, value conflicts, and person-centered care. Originality/value: Many studies confirm the importance of resource but few have unpacked the phenomenon and its implications. Based on senior managers and successful organizations in both emerging and mature context of eldercare, and a conceptual model, this study contributes to better understanding of resourcefulness in such contexts.
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Smart Connected Products play a central role in the transformation environment of Industry 4.0. The innovative use of Smart Connected Products (SCPs) and the associated “smart” services can disruptively change the competitive conditions, the business model and the strategy of companies. Therefore, their development and use have a significant impact on the business environment of manufacturers, service providers, and users of SCPs. From the manufacturer's perspective, the successful development and positioning of an SCP in the market is essential. However, the success of these devices in the market depends on numerous factors. This master thesis aims to develop recommendations for action and guidelines for the manufacturers of SCPs. Since consultants and technology suppliers are often involved in the product development, recommendations are also made that are relevant for these companies.
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The ectoparasite Varroa destructor is the greatest threat to managed honey bee (Apis mellifera) colonies globally. Despite significant efforts, novel treatments to control the mite and its vectored pathogens have shown limited efficacy, as the host remains naïve. A prospective solution lies in the development of Varroa-resistant honey bee stocks, but a paucity of rigorous selection data restricts widespread adoption. Here, we characterise the parasite and viral dynamics of a Varroa-resistant honey bee stock, designated ‘Pol-line’, using a large-scale longitudinal study. Results demonstrate markedly reduced Varroa levels in this stock, diminished titres of three major viruses (DWV-A, DWV-B, and CBPV), and a two-fold increase in survival. Levels of a fourth virus that is not associated with Varroa—BQCV—do not differ between stocks, supporting a disruption of the transmission pathway. Further, we show that when decoupled from the influence of Varroa levels, viral titres do not constitute strong independent predictors of colony mortality risk. These findings highlight the need for a reassessment of Varroa etiology, and suggest that derived stocks represent a tractable solution to the Varroa pandemic.
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Purpose: To bring to the fore the scientific significance of classification and its role in business model theory building. To propose a method by which existing classifications of business models can be analyzed and new ones developed. Design/Methodology/Approach: A review of the scholarly literature relevant to classifications of business models is presented along with a brief overview of classification theory applicable to business model research. Existing business model classifications are evaluated in terms of their propensity to contribute to theory building and a method for designing classifications schemes is proposed. Findings: Little attention has been paid to the rationale underlying the design of business model classifications and often there is no explicit consideration of the suitability of the classification for its intended purpose. Each classification contributes to the understanding of business models in practice but there is a dearth of taxonomical research that can facilitate progression of business model research towards theorizing. Originality/Value: This paper addresses the research element of classification that is largely overlooked yet is crucial for business model theory building. The nature of business model classifications is examined in the light of classification philosophies and a structured method of classification design is proposed. A case is made for the development of a general classification of business models that can facilitate the progression of business model research towards theory building.
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Business model innovation is becoming a central research topic in management. However, a lack of a common understanding of the nature of the business model leads to disregarding its multifaceted structure when analyzing the business model innovation process. This article proposes a more detailed understanding of the business model innovation process by drawing on existing knowledge from new product development literature and examining the front-end and the back-end of business model innovation of three leading Danish newspapers. We studied how changes introduced during the development of digital news production and delivery have affected key components of these business models, namely value creation, proposition, delivery and capture in the period 2002-2011. Our findings suggest the need to distinguish between front-end and back-end business model innovation processes, and to recognize the importance of organizational learning when incumbents are faced with disruptive technologies.
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Purpose – The purpose of this paper is to illustrate how the emergent properties perspective from the field of biology can be applied to the field of intellectual capital. Much attention has in recent years been directed towards problems of accounting for intellectual capital and how the value of intellectual capital at one level of an organization influences the value of intellectual capital at higher or lower levels of the organization. Design/methodology/approach – Through a literature review an emergent properties framework was developed. This framework was applied to an intellectual capital perspective with empirical illustrations. Findings – In this paper, it is argued that the inherent difficulties of understanding the interdependencies of intellectual capital across different levels of an organization can be traced to a lack of understanding of the differences between synergetic effects, causal relationships and emergent properties. The paper illustrates through examples how an emergent properties perspective can be mobilized in relation to the field of intellectual capital. Research limitations/implications – The paper is conceptual in nature and reports the theoretical propositions from an ongoing empirical project. The lack of empirical content limits the strength of the conclusions. Originality/value – The paper is a step in the direction of enhancing the understanding of the different levels of intellectual capital by applying the biological perspective of emergent properties. Although this perspective in itself may not constitute a general testable theory of intellectual capital, it is the hope, at least, that it may provoke thought, development and further research in this field.
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The latter part of the twentieth century saw the lean production paradigm positively impact many market sectors ranging from automotive through to construction. In particular there is much evidence to suggest that level scheduling combined with the elimination of muda has successfully delivered a wide range of products to those markets where cost is the primary order winning criteria. However, there are many other markets where the order winner is availability. This has led to the emergence of the agile paradigm typified by “quick response” and similar initiatives. Nevertheless, “lean” and “agile” are not mutually exclusive paradigms and may be married to advantage in a number of different ways. This paper explores ways in which hybrid strategies can be developed to create cost-effective supply chains and proposes an integrated manufacture/logistics model for enabling the essential infrastructure.
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Scalability is a desirable attribute of a network, system, or process. Poor scalability can result in poor system performance, necessitating the reengineering or duplication of systems. While scalability is valued, its characteristics and the characteristics that undermine it are usually only apparent from the context. Here, we attempt to define different aspects of scalability, such as structural scalability and load scalability. Structural scalability is the ability of a system to expand in a chosen dimension without major modifications to its architecture. Load scalability is the ability of a system to perform gracefully as the offered traffic increases. It is argued that systems with poor load scalability may exhibit it because they repeatedly engage in wasteful activity, because they are encumbered with poor scheduling algorithms, because they cannot fully take advantage of parallelism, or because they are algorithmically inefficient. We qualitatively illustrate these concepts with classical examples from the literature of operating systems and local area networks, as well as an example of our own. Some of these are accompanied by rudimentary delay analysis.
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This paper aims to clarifyi the concept of business models, its usages, and its roles in the Information Systems domain. A review of the literature shows a broad diversity of understandings, usages, and places in the firm. The paper identifies the terminology or ontology used to describe a business model, and compares this terminology with previous work. Then the general usages, roles and potential of the concept are outlined. Finally, the connection between the business model concept and Information Systems is described in the form of eight propositions to be analyzed in future work.
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The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity. We summarize the principal results of these theories and indicate their usefulness by applying them to study the shift to ‘modern manufacturing’. We also use them to analyze the characteristic features of the Lincoln Electric Company's strategy and structure.
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Manufacturing is undergoing a revolution. The mass production model is being replaced by a vision of a flexible multiproduct firm that emphasizes quality and speedy response to market conditions while utilizing technologically advanced equipment and new forms of organization. The authors' optimizing model of the firm generates many of the observed patterns that mark modern manufacturing. Central to the authors' results is a method of handling optimization and comparative statics problems that requires neither differentiability nor convexity. Copyright 1990 by American Economic Association.
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Electronic commerce over the Internet may be either complementary to traditional business or represent a whole new line of the new features of the Internet, critical questions to be answered include: ♦ what are the emerging business models; and related to this ♦ which strategic marketing approaches are applied, or emerging. This article addresses the first question above by providing a framework for the classification of Internet electronic commerce business models. This framework has been developed on the basis of current commercial Internet business and experimental work in European R&D programmes.
Chapter
If output grows faster than inputs, holding technology constant, the production function exhibits increasing returns to scale. Increasing returns in the aggregate production function may be due to overhead (fixed) costs, diminishing marginal cost, positive spillovers from aggregate activity, the entry of new varieties of inputs or changes in the distribution of inputs across heterogeneous firms. Each channel has significant implications for models of growth, trade and business cycles. Returns to scale are hard to estimate and even difficult to define, since the definition may depend on the degree of aggregation and the time horizon under study.
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Though the methodological literature on case research in accounting (or business studies in general) is extensive, it is worth noticing that it is relatively fragmented and unsystematic. Case method encompasses actually a large variety of rather different ways of conducting research, and arguably none of the few attempts to classify them is entirely satisfactory (e.g. Scapens, 1990; Kaplan, 1993; Otley & Berry, 1994; Scapens, 2004; Berry & Otley, 2004). Though the various modes of case research indeed have several common denominators – so as to be called case research in the first place – those variations can still considerably differ, for instance, with regard to their philosophical anchoring, aim, research process, strengths, and weaknesses. It can be argued that if a researcher does not understand these differences, s/he probably cannot make a full use of the case method variation s/he is applying. The aim of this Chapter is to offer a new alternative way for mapping case research in management accounting, not least in order to enhance the self-consciousness of case researchers of their distinctive mode of conducting case research and thereby helping them to do even more credible and contributive case research. The proposed new approach for mapping case research in management accounting is based on two analytical dimensions: the nature of researcher’s empirical intervention and the theory linkage of the study. In this Chapter, a lot of attention will be paid to a certain type of case research, which has typically been routinely either overlooked or treated very superficially in prior examinations and classifications of case research: interventionist case research. As will be clarified below, interventionist research, in which the researcher is able to participate in the everyday flow of life of the target of research in an interactive mode, offers several advantages, which typically are not gained in non-interventionist case studies.
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Anchored in our research on business models, we delineate in this article a future research agenda. We establish that the theoretical and empirical advancements in business model research provide solid conceptual and empirical foundations on which scholars can build in order to explore a range of important, yet unanswered research questions. We draw inspiration on the direction of the business model research agenda by briefly reviewing several distinct bodies of literature adjacent to the business model literature including new organizational forms, ecosystems, activity systems, and value chain. In doing so, we also distinguish the business model concept from seemingly similar concepts that have been proposed by researchers.
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Despite discussions about the relationship between returns to scale and economies of scale under assumptions of constant and nonconstant input prices, mistakes continue to be made in textbooks on these issues. This article demonstrates the pointwise relation between returns to scale and economies of scale, with an adaption to a calculus-based intermediate microeconomics class.
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Information technology (IT) spending remains depressed as organisations look to exploit their existing systems, squeezing out the last drops of benefit to bolster their financial cases. However, at some point the law of diminishing returns will cut in as infrastructure gets older and the needs of business agility stretch the bounds of existing systems. As a result, companies will start to look for the next wave of technology that will help them both upgrade their capacity and improve their agility. Many analysts have identified grid computing and Web Services as the core technologies to support this wave, variously describing it as ‘organic IT’ and the ‘real-time enterprise’. However, there is a broader convergence of both these two technologies with the techniques of business process management that appears to offer even greater benefit. This paper examines the drivers of organisational agility and the corresponding demands on a Web Services-based infrastructure. It identifies the shortfall in current Web Services solutions and highlights how a service-oriented architecture can overcome them. It extends this architecture to incorporate both business process management and grid computing and concludes by deriving a future form for the truly agile enterprise.
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The paper provides a broad and multifaceted review of the received literature on business models in which we examine the business model concept through multiple subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found emerging common themes among scholars of business models. Specifically, 1) the business model is emerging as a new unit of analysis; 2) business models emphasize a system-level, holistic approach towards explaining how firms “do business”; 3) firm activities play an important role in the various conceptualizations of business models that have been proposed; and 4) business models seek to explain how value is created, not just how it is captured. These emerging themes could serve as catalysts towards a more unified study of business models.
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The influence of history on an organization is a powerful but often overlooked force. Managers, in their haste to build companies, frequently fail to ask such critical developmental questions as, Where has our organization been? Where is it newt and What do the answers to these questions mean for where it is going? Instead, when confronted with problems, managers fix their gaze outward on the environment and toward the future, as if more precise market projections will provide the organization with a new identity. In this HER Classic, Larry Greiner identifies a series of developmental phases that companies tend to pass through as they grow. He distinguishes the phases by their dominant themes: creativity, direction, delegation, coordination, and collaboration. Each phase begins with a period of evolution, steady growth, and stability, and ends with a revolutionary period of organizational turmoil and change. The critical task for management in each revolutionary period is to find a new set of organizational practices that will become the basis for managing the next period of evolutionary growth. Those new practices eventually outlast their usefulness and lead to another period of revolution. Managers therefore experience the irony of seeing a major solution in one period become a major problem in a later period. Originally published in 1972, the article's argument and insights remain relevant to managers today. Accompanying the original article is a commentary by the author updating his earlier observations.
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Réimpr. de l'éd. de 1983. Incl. bibl., index.
Proceedings of the second international workshop on Software and performance -WOSP '00
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Business Model taxonomies – A discussion of a future Business Model research design
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Capturing the business model narrative: Designing business models with narratives
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Rich Versus King: The Entrepreneur's Dilemma
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