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Business Models: Origin, Development and Future Research Perspectives

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Abstract

The concept of business models has reached global impact, both for company's competitive success and in management science. Its application by authors from diverse areas has led to a previously very heterogeneous comprehension of the concept. Yet, by means of investigating its origin and theoretical development, we state a recently converging business model view. Further, based on analyzing business model definitions, perspectives and components in the literature, we newly define the concept and portray its essential components in an integrated framework. Finally, the compilation of the current state of business model research yields the article's main findings. In this regard, via database search we quantitatively identify 681 peer-reviewed articles. Further, we qualitatively analyze them according to individual research areas that we adopt from an appropriate heuristic frame of reference. In this way, we identify four essential research foci: innovation, change & evolution, performance & controlling and design. In triangulation with assessing future research perspectives through a survey of twenty-one international experts, they also consider the areas of innovation, change & evolution, and design to be significant for the future development of the business model research field.

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... For instance, the business model canvas helps understand the business logic that supports "the 'activity of buying and selling goods and services' and 'earning money' of a company (Osterwalder 2004, p. 14). This is accomplished by representing the business logic on a high level of abstraction (Osterwalder 2004;Wirtz et al. 2016). In fact, some researchers characterize the business model canvas more as a meta-model than a model, because of its high level of abstraction, which only enumerates and clarifies a critical set of concepts necessary to represent a business (Massa et al. 2017). ...
... For instance, the business model canvas defines principles for each canvas component, e.g., value propositions concern a bundle of products and services, represent value for customers, and are based on organizational capabilities (Osterwalder 2004). This kind of theorization around principles offers a frame of reference (architecture) for analyzing the selected behavior or structure (Wirtz et al. 2016). ...
... Several criteria have been identified to define canvas components and implicit relationships: classification of underlying literature; comprehension of relationships between concepts and action; purpose for using the canvas; representation and suggested points of view; and representation of constitutive components (Burkhart et al. 2011): The approach adopted by Osterwalder (2004) to define the business model canvas consists in reviewing the literature related to business models, and then defining an ontological view "aiming at improving understanding, communication and flexibility" (Osterwalder 2004, p. 41). This ontology-based approach has been adopted to build other canvases (Eisape 2019;Lauff et al. 2019;Ojasalo and Ojasalo 2018;Wirtz et al. 2016). ...
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The popularity of Osterwalder's (2004) business model canvas has led researchers to develop analogous artifacts in a variety of domains. However, we still lack a conceptual foundation explaining the essential and common characteristics of the canvas, regarded as domain-independent artifact. In this study, we focus on how the canvas helps representing and theorizing about a particular behavior or structure. We develop a framework for canvas design, which characterizes the canvas design at the surface and deep levels. While the surface level concerns a lightweight representation, using components and implicit relationships, the deep level involves theorizing about a particular behavior or structure, using a systems perspective and considering a static and a dynamic view of the canvas. The proposed framework is demonstrated in a case addressing the design of the research contribution canvas. This study contributes to a domain-independent conceptualization of the canvas, which can be used to design canvases in various domains.
... BMI helps companies to create competitive advantages and revenue streams that lead to superior performance. Consequently, business model innovation has gained prominence in recent years (Wirtz et al., 2016). Dell (computer industry), Wal-Mart (retailing), Uber (transport), and Southwest (airline industry) are some iconic examples of groundbreaking innovative BMs and their association with the firm's performance and/or improved competitive advantage. ...
... The concept of business models has reached global impact, both for practitioners and scholars among different disciplines from strategic management, information system, and entrepreneurship, to innovation and technology management (Casadesus-Masanell and Ricart, 2010;KPMG, 2006;McKinsey, 2008;Wirtz et al., 2016). While the term "business model" has become prevalent in the mid-1990s, scholars do not agree on what a business model is. ...
... The discussion on BM definitions evolved during the last two decades. BMs are defined as a system (Amit & Zott, 2001), heuristic logic (Chesbrough & Rosenboom, 2002), stories (Magretta, 2002), concise presentation of the decision-making process (Morris et al., 2005), interlocking elements (Johnson et al., 2008), the architecture of a network to create value for customers (Bouwman et al., 2008), an abstract presentation to achieve strategic goals (Al-Debei & Avison, 2010), articulation of business logic (Teece, 2010), and architecture of value creation (Wirtz et al., 2016). In Table 2.1 some frequently cited definitions of Business Models are presented. ...
Thesis
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Firms need to be innovative and adaptive in competitive business environments subject to technological advancement and rapid changes in regulations and customers’ preferences. To do so, companies traditionally innovate their products or services, processes, marketing or organization. Since the advent of the Internet, business model innovation (BMI) has emerged as a new conceptual focus and a critical point to innovation. Compared to other traditional innovations, BMI is associated with high risk and uncertainty since it involves fundamental changes to the core components and/or the architecture of a firm’s business model (BM). Therefore, if not handled properly, a well-formulated BM may fail to improve performance. Therefore, knowing how and when to innovate a BM is a severe challenge for managers/owners of firms. Although most studies that combine strategic and innovation management with BMs mainly focus on large enterprises, the vast majority of firms worldwide (99%) are small and medium-sized enterprises (SMEs). To fill the gap, our research objective is: “To develop and test a conceptual model for implementation of Business Model Innovation in SMEs that focuses on “human and organizational” factors to improve performance. This research adopted a mixed-method approach consisted of five phases, e.g., two literature reviews, two quantitative studies (Survey, Structural equation modeling using SmartPLS 3) and one qualitative research (Case study, Cross-case analysis using Atlasti.9) to fulfil the research objective. Our research comprehensive conceptual model helps researchers understand the causal mechanism under which BMI influences the overall firm performance and serves as the grounding for empirical research in different types of companies, e.g., start-ups, SMEs, and large enterprises. On a practical level, our results give SME owners and managers insight into potential contingency factors on expected performance effects of business model innovation. Overall, this research analyzes BMI from different angles and develops a model to maximize business model innovation’s impact on a firm’s performance, especially from human and organizational perspectives. While the business world is constantly changing in terms of technology, regulations, and customer needs, these results advance BMI research by opening the black box of the causal relationship between BMI and a firm’s overall performance to better understand the BMI phenomenon.
... emerged during the Information and Communications Technology boom in late 1990s (Foss & Saebi, 2017;Magretta, 2002) that articulates "value creation, delivery, capture" (Osterwalder & Pigneur, 2010). Scholars suggest that major components of the BM include value proposition, revenue model, value network and leadership (Voelpel, Leibold, & Tekie, 2004;Wirtz, Pistoia, Ullrich, & Göttel, 2015). ...
... (p. 728) By searching for past literature on Ebsco, BiblioSHS and Google scholar with the query "business model", three comprehensive literature reviews on business model are identified: Pateli & Giaglis (2004), Wirtz et al. (2015), Zott et al. (2011). Each article classifies business model literature into several streams. ...
... Four years after that, Wirtz et al. (2015) identified 681 peer-reviewed articles on business models and classified them into three streams: 1) strategy-oriented, 2) technology-oriented and 3) organization theory-oriented. This categorization of literature allows a detachment from the periodical phenomena (= context) -ICT boom -from the business model study by [b^] considering it as one of the technology management issues. ...
Thesis
Business Model Innovation (BMI) is a way for companies to develop its competitive advantage. The upstream-supply of technologies and products, in parallel to the development of key infrastructures are indispensable for a company to build the value network of a new business model. However, the development of innovation ecosystems is dependent to the factors external to the company and to the managers.Companies face varying constraints to achieve BMI when the development of relevant innovation ecosystem remains uncertain. The thesis focuses on the pre-stage of a BMI: the phase when the technology or the product required to achieve a BMI is not yet available. How do managers deal with this pre-stage situation?The research uses a case-study analysis of a start-up based in Bangalore that was the first company in India to use Electric Vehicles (EVs) to provide Corporate Employee Transport (CET) services. The company aims to scale-up its service line-up beyond CET service before other potential market players in order to build a first-mover’s advantage. However, appropriate EV models required for service diversification are not yet available since the innovation ecosystem of EV remains under development. The thesis suggests that a clear recognition of the pre-stage of BMI is critical to better understand the BMI process, especially because the organizational capabilities required during the pre-stage differ from those of post-pre-stage such as Dynamic Capabilities: capabilities to execute a BMI.
... No generally accepted definition of business models is yet available (Wirtz et al. 2015). However, attributional definitions, which define a concept by enumerating its attributes or constituents (Bagozzi 1984) 4 , account for a major share of available business model definitions. ...
... Besides research on business models and strategy, we also add to research on cognitive fit because we demonstrate how cognitive fit theory (Vessey 1991), or more specifically, its extension to creative problems (John and Kundisch 2015) can be applied to derive predictions in a specific idea generation context. Finally, beyond idea generation, our research has implications for the long-lasting debate on the relative value of different business model definitions (e.g., Al-Debei and Fitzgerald 2010; Wirtz et al. 2015;Zott et al. 2011). While the academic debate so far has sought arrive at integrated and consensual definitions in the sense of one 'common denominator' or 'standard', we suggest to explore what value there is in distinguishing definitions -according to their purpose -into at least two types: 'aggregated' definitions that facilitate idea generation (and avoid overwhelming human idea generators) and 'detailed' definitions that facilitate communicating business models in their entirety. ...
... Moreover, we expect expert evaluation to be suitable in general for evaluating tools for business model idea generation, which includes the patternbased approaches that have been proposed (e.g., Abdelkafi et al. 2013;Gassmann et al. 2014), and other tools that in the future may, for example, follow from the cognitive view on business model idea generation that is advocated by Martins et al. (2015). Beyond idea generation, expert evaluation might also contribute to the already mentioned debate on the relative value of different business model definitions (e.g., Al-Debei and Avison 2010; Wirtz et al. 2015;Zott et al. 2011). So far, the arguments in that debate seem to have rested, at least to some extent, on the preferences and origin of the involved scholars. ...
Preprint
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The Business Model Canvas (or Canvas) has achieved tremendous popularity in research, practice, and education. However, despite its popularity, we know virtually nothing about what makes it more effective than competing approaches. To address this issue, we build theory that explains how the Canvas' visual template affects idea generation performance at the cognitive level. Our theory predicts that using the visual template of the Canvas leads to better ideas than a naïve benchmark: a simple list. To test that prediction, we employ a mixed-methods design that includes a scenario-based survey, three experiments and a participatory observation with altogether more than 700 participants (including pilot studies). While the scenario-based survey supports our prediction, in the experiments the idea quality of Canvas users is worse than that of the list users. We reconcile these conflicting results through insights from our participatory observation and subsequent reanalysis of the experimental data. From a theoretical perspective, our work is a first step towards the theoretically grounded design of visual tools for business model idea generation. From a methodological perspective, we extend prior business model research concerning idea evaluation and controlled experiments.
... Scholars have been guiding the business model study in three perspectives: technology, organizational theory and strategy (Wirtz, Pistoia, Ullrich, & G€ ottel, 2016). Those different perspectives and definitions have drawn the attention of Wirtz et al. (2016) who outlined a model that includes the innovation search and the BMs' evolution over time. ...
... Scholars have been guiding the business model study in three perspectives: technology, organizational theory and strategy (Wirtz, Pistoia, Ullrich, & G€ ottel, 2016). Those different perspectives and definitions have drawn the attention of Wirtz et al. (2016) who outlined a model that includes the innovation search and the BMs' evolution over time. They managed to converge models by integrating BM's concepts, foundations and components based on a dynamic business perspective. ...
... The integrative model proposed by the authors shows an analytical range of archetypes from different studies, perspectives and visions, going beyond the notion of business modeling tools (Wirtz et al., 2016). ...
Article
Purpose-The study aims to understand how dynamic capabilities (DCs) contribute to business model innovation (BMI) in sustainable family farming. The agrifood sector has been seeking solutions for the development of agroecological markets. Thus, the authors have analyzed the challenges imposed to innovation and sustainability strategic management and the value proposition to sustain the business over the years. Design/methodology/approach-Considering the complexity of organizations and through an exploratory multiple case study of initiatives identified in the Organic Fair of Curitiba's Passeio P ublico, it was possible to analyze the evolution of the business models (BMs) and the fair itself. Furthermore, it was possible to identify the DCs within the influence of agroecosystem elements on the innovation development. Findings-Analyzing each case individually, the authors understood the different dimensions of the evolution of BMs considering the organizational complexity. The authors conclude that the balance between organizational practices and changes in the environment, engagement and learning plays a significant role in the developing competitive advantage. The same applies to the patterns that precede the development of DCs and BMs. Originality/value-The article investigates innovation in agroecological BMs from a dynamic capability perspective. The agroecological BM is a subject that is still little discussed in the literature. In addition, the authors chose a context that includes socioenvironmental aspects and a few specificities of family farming in Brazil.
... The business model construct emerged in the 1970s and it was originally associated with system modelling in information technology [15]. The concept has been maturing and since the 1990s, with contributions from many disciplines, including technology and organizational strategy theories [46]. In the circular economy literature, scholars and practitioners from politics, business, and consultancies have emphasized the importance of business models for achieving systematic change to a circular economy [37]. ...
... Business models are considered to be simplified descriptions of mechanisms of how organizations create value, capture value, and deliver value to stakeholders through the conversion of scarce resources [7,46,[50][51][52][53]. Magretta [54] observed and commented that the business model represents a new form of narrative in management theory, as business models are the fundamental stories that explain how businesses work. ...
... Richardson [65] further refines the four pillars into three main forms of managing value: value proposition, value creation and delivery, and value capture, which represents a static view of a business model. Wirtz et al. [46] commented that business model frameworks meet at the concept of a value creation logic of a reference system such as, for example, organization, value chain, and industry sector, which can be presented by various elements. The British Standards Institute (BSI) [66] reported that there are six types of business models that have the potential to fit within a circular economy and that this is based on demand, dematerialisation, product life-cycle, extension/reuse, recovery of secondary raw materials/byproducts, products as service/product-service system (PSS) and the sharing economy and collaborative consumption. ...
Article
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The authors endeavor to investigate the intersection and relationship between sustainability, business models and a circular economy. These three concepts are believed to be at the heart of finding a solution to creating and implementing a circular economy. The three pillars of sustainability (society, environment and economics) have been identified as the golden thread when applied to developing circular economies and the business models used in these circular economies. These three pillars highlighted the areas of intersection and engagement between the circular economy and business models. The three pillars, or stakeholders, need to be considered equally and, where there is sacrifice and benefits, they need to be balanced. A scoping review was chosen, as the starting point, to ascertain the literature in the field. The results of the scoping review showed a lack of research conducted at the point of intersection between these three fields. Finding a solution by creating and implementing a circular economy will have positive effects on the economy, environment and society, as there is, proverbially, “not much time left” and everyone in the process will sacrifice and benefit. The research has highlighted the need to explore the intersection and relationship between sustainability, business models and the circular economy as a concept, and future research should develop frameworks to guide the development and implementation of this intersection to include all relevant stakeholders.
... From the above, it is obvious that there is no agreement on the common definition of the business model (Shafer, et. al., 2005;Teece, 2010;Wirtz et. al., 2016). The definitions do not include explicitly refer to co-operatives expressly, but they are pointers to the co-operative business model. However, there seems to be common understanding of the functions of the business models (Chesbrough, 2007;2010) that business models (1) articulate the enterprise's value propositioni.e., the value creat ...
... Since the concept of the Business Model Ontologyactually known as the Business Model Canvas (BMC)was introduced by Osterwalder (2004), there have been varied perspectives from various scholars (see Zott and Amit, R., (2013). Wirtz, et. al., 2016). The business model ontology began as (1) unity of business; then (2) a tool to create value; then (3) a concept to create, capture and deliver value including non-financial missions; while emphasizing the visual representation of the business' constitutive components, and then later on value proposition (see Osterwalder, 2004;Osterwal ...
... The knowledge of truth is that business models have transformed slowly from the technological orientation of original proponents (see Osterwalder, 2004;Osterwalder, et. al., n.d;Osterwalder, 2005;Osterwalder, et. al., 2005;Osterwalder and Pigneur, 2010) to organizational orientation (Wirtz, et. al., 2016), are turning to be a hybrid of the market (outside) -"right side"and the organization (inside) -"left side" (Lopes, et. al., 2019) as also illustrated in Figure 5. The BMC blocks are further categorized in this regard as follows. ...
Article
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Background: Today, cooperatives are increasingly becoming hybridized to fill the economic development gaps in the state-owned enterprises (SOE), not-for-profit social enterprises (NFPSE), and for-profit investor-owned firms (IOF). However, there is limited specialized attention accorded to the systematic analysis of cooperative business model ontology or structure. Purpose and Methodology: The purpose of this study paper was to help broadly understand the development of the business model ontology from Investor-Owned Firms (IOF), Social Enterprises (SEs), and Cooperatives and Mutual Enterprises (CMEs) perspectives; to reconfigure an elaborative Circular Cooperative Business Model Canvas (CC-BMC) that can complete the circular cooperative business modelling framework, which deepens the cooperative identity. Specifically, the study was to (1) explain the key elements of the CME business model from the epistemological, axiological, and taxonomical viewpoint, and (2) demonstrate how the cooperative business model canvas (of attributes component and building blocks) can be integrated from a conceptual perspective, (3) illustrate how the cooperative business model might be reconfigured to ensure cooperative sustainability. The qualitative approach was used for this study. This is a qualitative study based on interpretivism and constructivism of various related secondary data and based on experiences in Sub-Saharan Africa and the Middle East. Results: It was established that there is a possibility to understand how a sustainable cooperative business model can be designed to create, deliver, capture, measure, communicate and 'destruct' value in the changing contexts and periodic phases for self-adapting and self-renewal for sustainability. This study reconfigures 13-blocks' circular cooperative business model canvas (CC-BMC) that can be applied by cooperative practitioners in strategic management. They are drawn from the studies on cooperative epistemology, axiology and taxonomy. Conclusion: The result of this study stimulates structured strategic thinking, managerial practices, and the setting up of value propositions for the sustainable cooperative business models in the changing environment.
... As a firm's strategy means emphasizing value creation and conversion, business models (BMs) have gained widespread attention both in academia and practice in recent years ( Chesbrough & Rosenbloom, 2002;Morris et al., 2005;Johnson et al., 2008;Björkdahl, 2009;Demil & Lecocq, 2010;Teece, 2010;Zott et al., 2011;Casadesus-Masanell & Zhu, 2013;Wirtz et al., 2016). ...
... Neither have an underlying logic and an integrated framework based on the BM been well established (Zott et al., 2011). This is primarily due to the lack of clear ontological comprehension of this concept (Wirtz et al., 2016). ...
... Representative definitions such as a logic (Chesbrough & Rosenbloom, 2002;Magretta, 2002;Teece, 2010), a statement (Stewart & Zhao, 2000), a method (Afuah & Tucci, 2001), a conceptual tool (Osterwalder, 2004;Osterwalder et al., 2005), a hypothesis (Teece, 2007), an abstraction (Seddon et al., 2004), or a representation (Morris et al., 2005) show that all these understandings of the nature of a BM, in some ways, are related and converge toward the notion of knowledge. Moreover, definitions such as "an architecture" (Chesbrough & Rosenbloom, 2002;Teece, 2010), "a framework" (Afuah, 2004), "a structural template" (Amit & Zott, 2001), "a pattern" (Brousseau & Penard, 2007), or "a system" (Zott & Amit, 2010;Wirtz et al., 2016) imply that BM is the aggregation of knowledge in a specific structure. ...
... Consequently, the field still lacks a clearly structured research framework and a sound, coordinated framework for further research (Wirtz and Daiser, 2018). As a result, research on BMI remains in highly specialised and case-based 'research silos' drawn from the various sub-disciplines involved in reimagining BM approaches (Spieth et al., 2014;Wirtz et al., 2016b), such that these disparate characteristics "hinder the cumulative nature of research efforts" (Foss and Saebi, 2017). To address the mass of knowledge and research questions, this study provides an integrative meta-analysis to consolidate and integrate BMI research and its review articles by condensing and synthesising the existing literature. ...
... Examining the findings and insights from the literature on BMI conceptualisation and definition reveals two distinct perspectives. On one side of the debate, there is the standardisation of definitions and scope determination describing research on definitions and concepts BMI theoretically and along with cases (Schneider and Spieth, 2013;Wirtz et al., 2016b;Zott et al., 2011). On the other hand, there is the taxonomy of BMI types, which describes a reference to classify and distinguish different types and forms of BMI (Geissdoerfer et al., 2020;Shakeel et al., 2020;Von Delft and Zhao, 2021). ...
... Regarding internal BMI effects, the literature shows that there are primarily two effects of BMI: Fundamentally improved firm performance and the amendment of the competitive situation. Firm performance is improved due to, for example, improvements in the firm's revenue, process, and cost structures, increased efficiency in value creation, or improvements in the firm's ability to effectively use resources (Hossain and Kauranen, 2016;Schneider and Spieth, 2013;Spieth et al., 2014;Von Delft and Zhao, 2021;Wirtz et al., 2016b;Zhang et al., 2021;Zott et al., 2011). Competitive advantages come particularly from the firm's ability to create innovative value in the marketplace relative to its competitors (Axelson et al., 2021;Filser et al., 2021;Foss and Saebi, 2017;Wirtz et al., 2017). ...
Article
Driven by technological progress, new market trends, and deregulation, business model innovations (BMI) are becoming increasingly important for entrepreneurs, established companies, and corresponding researchers. Against the background of the vast number of current studies and research reviews and a resulting lack of oversight, this study aims to systematically analyse previous literature studies on BMI to find out which and to what extent specific BMI research topics are considered. This novel meta-literature study provides a systematic analysis of 34 selected review studies by comparing their research approach, focus and findings, citation success, and open research questions. In this context, 12 key areas could be derived, which can be grouped under the following headings: BMI definitions and terminology, BMI determinants, BMI configurations and processes, and BMI outcomes and impacts. The systematic and detailed analysis of the studies allows conclusions to be drawn about identified research gaps and helps to derive recommendations for future research and practical developments in the field of BMI.
... Through the concept matrix developed in this study, we analyze the type of approaches (e.g., those providing a repository of KPIs or a method to manage KPIs), decision-making support enabled by the approaches by using KPIs, the use of qualitative or quantitative KPIs in the approaches, and the context for which the approach is designed. Thereby our research responds to the multiple calls in the literature for investigating the use of KPIs for evaluating business models (Burkhart et al., 2011;Nielsen et al., 2018;Wirtz et al., 2016). We contribute to practice by providing a structured overview of the available approaches for managing business model KPIs that can be used during the different phases of the business model innovation process. ...
... Business model evaluation activities are performed during the early phases of the business model innovation process (i.e., analysis and design) to assess different business model alternatives and support design decisions Mateu and Escribá-Esteve, 2019). During posterior phases of business model innovation (i.e., implementation and operation), business model evaluation aids in assessing business cases, monitoring operational performance, and mitigating risks and uncertainty regarding the newly implemented business model Wirtz et al., 2016). ...
... These qualitative KPIs are then concretized when the newly designed business model is implemented (Heikkilä et al., 2016). Subsequently, KPIs are used in ex-post realization to monitor and control the performance of the new model, based on the concrete KPIs and their expected values Wirtz et al., 2016). We identify two types of KPIs: quantitative and qualitative (Domínguez et al., 2019). ...
Conference Paper
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To support decision-making during the business model innovation process, researchers have investigated approaches for evaluating business models. Key Performance Indicators (KPIs) related to business models can play an important role in evaluating the performance of business models, as they reflect the decisions and activities that drive the critical aspects of the organization. To date, there has been considerable research on business model KPIs. However, current research lacks an overall understanding of how business model KPIs are managed. Therefore, this paper aims to contribute with a classification of existing studies on business model KPIs in five categories relevant to KPI management, as well as future research avenues. In particular, we identify the development of methods and software tools to support selection, concretization, and reporting of business model KPIs, and the design of an integrated approach for business model KPI management as important areas for further research.
... It is essential to define a business model, because it shows the relationships between a firm, strategy and performance [23]. According to Table 1, business model terminology is fragmented, and consists of diverse understandings of its terms from various scholars in different fields of study [24]. The definitions of terms are therefore unclear, and lack a theoretical background. ...
... The second category defines a business model as a model [19,24,[37][38][39], a tool [40], a way [41], a series of activities [42], an articulation [43], a component [15,44], a description [45], an architecture [46][47][48], a system [49], a view [50], an element [51], a combination of business resources [26], a rationale [52], a version [53], a structure [54] and a device [55], focusing on how a firm creates, captures and delivers value. ...
... Wirtz, et al. [24] Apart from value creation and market component considerations, a business model simplifies and represents a firm's related activities to secure a competitive advantage. ...
Article
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Because of the scarcity of extant studies in the literature on airport business models, this study aims to identify a framework for airport business model design. Exploratory research obtained from key Thai respondents was used, and the data analysis was further enhanced by an extensive review of related grey literature available in public domains. With our qualitative data analysis , we propose the generic airport business model framework as a foundation for designing business models. Strategic partners, core business activities, human resources and sustainability-related projects should be considered basic components driving an airport to achieve high performance. The remaining business model components should be customised depending on business environments and location contexts.
... On the other hand, new business models can either facilitate the adoption of technological innovations or constitute non-technological innovations (Bidmon and Knab, 2018). Business models, as simplified and aggregated representations of the relevant activities of companies (Wirtz et al., 2016), are intrinsically linked to how companies operate. They can either be used to explain, develop or run a business (Spieth, Schneckenberg and Ricart, 2014). ...
... Amongst the different types of circular oriented innovations, business models have a key role to play in the transition to a circular economy (Suchek et al., 2021). A business model is "a simplified and aggregated representation of the relevant activities of a company […]" (Wirtz et al., 2016). It is often subdivided into three dimensions: (1) value proposition, consisting of what a company provides to its customers; (2) value creation and delivery, which defines how the firm creates and delivers the value proposition; and (3) value capture, which describe how the company makes a profit out of its value proposition (Richardson, 2008;Teece, 2010). ...
Thesis
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Economic growth is a major policy objective in most countries. Yet, it is associated with increasing environmental damages, related to an increase in resource use and waste production, making it unsustainable. One strategy to limit those damages consists in transforming the current economic system, where products are thrown away at the end of their useful life, into a circular economy in which products, parts and materials are kept in the production system by closing (recycling), slowing (reusing) and narrowing (reducing) resource loops. Such a replacement of the current “linear” economy with a circular one involves the transition of many socio-technical systems. One overlooked pathway to conducting such a transition relies on the adoption of circular oriented innovations by incumbent firms. It involves a change in the way incumbent firms create and deliver value, what can prove to be challenging. Hence, the objective of the present thesis is to explore how incumbent firms can create and deliver circular value. To this end, this thesis first investigates factors impacting the development or adoption of circular oriented innovations by incumbent firms using a literature review and interviews. This leads to the development of a novel classification framework, based on the motivation, opportunity, and ability concepts. This investigation particularly highlights the importance of (1) stakeholders’ behaviours at the network level and (2) resources and capabilities at the organisational level. Therefore, this thesis then focuses on ways to temper the impact of both aspects on the creation and delivery of circular value. At the network level, the impact of stakeholders on circular supply chains is analysed using a case study. The findings of this case study suggest decreasing the firm’s dependence on specific partners and support further stakeholder engagement in supply chain (re)design. At the organisational level, methodological frameworks supporting incumbent firms in developing and adopting circular business models are identified and compared using a systematic review approach. While this analysis supports the utility of methodological frameworks in compensating for a lack of dynamic capabilities, it also underlines the lack of consistency among them and the lack of validation among suggested tools. It calls for further specifying the business model innovation strategy considered by a methodological framework and for more integration of existing processes and tools. Overall, the present thesis supports the importance of jointly considering business models and supply chains in organizational transition processes towards circularity. It underlines the strong dependence of circular business models on the development of robust circular supply chains. This calls for further integration of both concepts, for example through the use of a broader ecosystemic perspective.
... ' (ibid.: 1038). Much has happened since; however, not all theoretical shortcomings could be overcome by research (Jensen, 2013;Fielt, 2013;DaSilva and Trkman, 2014;Wirtz, Pistoia, Ullrich and Göttel, 2016b;Foss and Saebi, 2018). One remaining theoretical problem is the relation between business model and business reality. ...
... This process is contingent on determining how a business model looks for a given business reality. the discussions about business model components (Wirtz et al., 2016b), business model representations (Zott et al., 2011), business model ontology (Osterwalder, 2004), and business model archetypes (Baden-Fuller and Morgan, 2010). ...
Article
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Purpose: The aim of this paper is to conceptualize the connection between business model and business reality. On this basis, the paper aims to put the business model on a solid conceptual basis and to build bridges to its neighbouring concepts. In this way, this paper should to contribute to more terminological and conceptual rigor of the business model construct. In addition, this paper aims to conceptualize the processes of constructing and using business models for decision-making. Design/Methodology/Approach: This is a conceptual paper; it introduces and specifies a new construct , the status quo, as real-world counterpart to the business model. Based on this, it develops a model of the interaction between business model and status quo. Findings: The key finding of this paper is that business model and status quo are shaped (and need to be described) by different characteristics. The characteristics of the status quo result from repetition (stability) and routinization (efficiency, low resistance, etc.). The characteristics of the business model result from observation, abstraction and simplification (purpose, observer perspective, etc.). Originality/Value: This is the first paper to develop the status quo as an independent construct for management research. It also offers the first comprehensive model of the relation between business model and business reality. Based on that, it allows establishing new connections between the business model concept and the theory of the firm, particularly with regard to innovation and routine.
... The development of business models for entrepreneurial initiatives has become an important issue for both researchers and practitioners (Zott and Amit, 2007;George and Bock, 2011;Del Bosco et al., 2019), along with the emerging trend of business model research within the fields of strategy (Wirtz et al., 2016;Foss and Saebi, 2017;Massa et al., 2017) and marketing (Mason and Spring, 2011;Wieland et al., 2017). However, inconsistent definitions and varied conceptualizations constrain our understanding of business models in entrepreneurial contexts. ...
... Following the study by Timmers (1998), research on business models continues to grow (Lanzolla and Markides, 2021). However, the definitions and conceptualizations of business models remain divergent in extant literature (Wirtz et al., 2016;Foss and Saebi, 2017;Massa et al., 2017). Although a business model is regarded as a cost-and-effectiveness structure (Casadesus-Masanell and Ricart, 2010) and a valuebased architecture (Teece, 2010) that describes the functioning of a profit-seeking organization (Magretta, 2002), there are different views on its attainment. ...
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The survival of any entrepreneurial initiative depends on a working business model that could create value for the customers and, simultaneously, allow the firm to capture value from what has been created. Despite increased attention to business model research, the understanding of business models’ impact on entrepreneurial development is quite constrained. In particular, the question of how an entrepreneurial firm’s business model is influenced by its organizational members’ managerial cognition remains under-explored. To tackle this research question, we drew a linkage between the business model literature and a managerial cognition perspective to build the theoretical foundation. We used this theoretical lens to investigate the failure of Better Place, an Israeli entrepreneurial company that focused on its proprietary battery-swap electric vehicles. In our findings, we argued that organizational members’ managerial-cognition-based conceptual framework is critical to the business model decision-making of an entrepreneurial firm. The discrepant and strongly held conceptual framework may result in misjudgment of environmental changes, especially when emerging-market numbers in an industry are high, and consensus regarding technology innovation in an industry is still lacking. The improper conceptual framework can generate mistaken business models, which further bring about an organizational decline. It is crucial for entrepreneurial firms to learn and improve existing conceptual frameworks and consequent business models by business interaction in the initiative stage if they are to avoid failure. The research outcome paves the way for future empirical studies to contribute to machine learning in the field of cognitive automation, artificial-intelligence-driven smart manufacturing, and sustainable industrial value creation in the era of digital transformation.
... There is long-established literature on the concepts of BMs and BMI in the management canon (Amit & Zott, 2001;Gasparin et al., 2021;Wirtz, Pistoia, Ullrich, & Göttel, 2015). The definition and assessment of BMs and their innovation process has become a topic of paramount importance in the fields of strategy, innovation, and entrepreneurship (Ghezzi & Cavallo, 2020). ...
Article
This article proposes an empirically derived method, Slow Storytelling, to construct and articulate value propositions, as a contribution to Business Model Innovation. Organizational actors and customers must be clear on what value an enterprise, product or service offers. This is increasingly important for products and services that leverage social, cultural, and environmental values. However, few existing models provide the framework and method to facilitate business articulation of value proposition for stakeholders. Our participatory ethnographic study conducted before and during COVID-19 in craft micro-enterprises in Uzbekistan addresses this gap. We co-created a novel method, ‘Slow Storytelling’, to innovate, enhance and articulate value propositions, by mobilizing and communicating the social, cultural, and environmental values; for example, by explaining the lived and sustainable history of the product. The method consists of eight steps to elicit consumers’ emotional connection with craft producers and trigger attention towards their social and environmental impact. Slow Storytelling can be adopted beyond our craft setting, to support the construction and articulation of value propositions.
... The BM concept has been used intensively in the scientific entrepreneurship literature for the last twenty years. A reason for such interest is that the concept can be used for many things, such as understanding firm competitiveness and success, how to create and capture value from new technologies, and how to use it as a communication device to guide social action and persuade external stakeholders (e.g., Wirtz, Pistoia et al., 2016;Massa, Tucci et al., 2017). ...
Article
A worldwide transition towards sustainable energy systems requires the diffusion of renewable electricity technologies. To achieve this, recent research has put emphasis on the role of business models as catalysts for sustainability transitions, particularly in the case of solar photovoltaics. Authors have identified a variety of solar business models that can be characterized based on roles, activities, and applications. In contrast, on the market, solar firms use business models to communicate their offer to clients, focusing on customers’ needs, how they organize their resources and activities to meet these needs and, in return, create value for themselves. The aim of this paper is to bridge the gap between the way energy policy literature describes solar business models, and the way solar firms use them to communicate with their clients. The business models of 241 solar firms in Sweden were mapped and analyzed using a framework developed by Richardson (2008) as well as the roles, activities, and applications as highlighted in solar business model literature. This led us to identify six types of solar business models. We found that there are some gaps and overlaps between theoretical and empirical solar business models which, in turn, have implications for theory and policy.
... s model is a really broad sense and straightforward representation of a company and how it works to achieve its goals (for example, profitability, growth, social impact, and so on.) However, there is a difference in opinion among scientists on more pragmatic definitions of a business model that go beyond the evolutionary level (Klang. et al., 2014;Wirtz. et al., 2016;Zott. et al., 2011). Following the intensive growth in the Business Model literature in the 1990s, Innovation and Business Model studies began to draw attention in the 2000 decade. The conceptual integration process between Innovation and Business Models, on the other hand, required uniqueness and was more dependent on the alignment of r ...
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The main purpose of this study is to explore and examine the contribution of digital finance to the business model innovation in Licensed Finance Companies in Sri Lanka. There are 39 licensed finance companies in Sri Lanka that have been registered under the Central Bank of Sri Lanka. The appropriateness of studying the business model innovative practices in digital financing in Sri Lankan context was considered and accordingly identified two key players called LB Finance PLC and LOLC Finance PLC based on scrutinizing the secondary data and study was done using deductive approach. The main objective of the author was identification of the applications on digital financing as in a disruptive way while innovating the business model. Licensed Finance companies in Sri Lanka play an enormous role in the financial industry and therefore, going towards with disruptive innovations with digital financing is essential rather than completely depend on the traditional products and services as well as processes. This study presents the practices of two players and recognized many applications such as digital apps and wallets, designated websites for digital financing, process automation systems like oracle fusion and fusion X, BPR workout for recovery performed…etc which helps to innovate their existing business model. The observations emphasized that the key players have applied many digital financing techniques and platforms in a disruptive way to their business model innovation process.
... Prevalent digital technologies call into question the very roots of traditional business models that require large-scale transformations, such as: (a) the emergence of virtual products and services; (b) the foundation of innovative digital business; (c) the adjustments undergone by industrial structures; (c) the reconstruction of value-delivering patterns; (d) the redefining of the business scope in order to address the "not yet covered demands" of clients, etc. [12]. The literature bears witness to the process of business model reinvention with the incorporation of digital technologies in operations related to value creation and confinement [13]. ...
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The study analyzes the performance levels achieved by Romanian wholesaler SMEs from Hunedoara County and to advance some practical courses of action designed to support local entrepreneurs in improving efficiency and in embracing circular economy (CE) practices. We employed cluster and discriminant analyses with a focus on providing an accurate classification of trade SMEs, according to their performance. Three distinct classifications of SMEs resulted in: (i) a class of enterprises displaying high levels of the rates of return, whose business owners exhibited an increased risk appetite and applied investment policies focusing on future development by means of incorporating digital instruments; (ii) a class of SMEs displaying average levels of rates of return, which manage to survive in situations of crisis through maintaining the position previously gained on the market; and (iii) a class of SMEs exhibiting a precarious financial position and employing defensive strategies, with managers who are reluctant to take risks in the innovation processes. Furthermore, we present a cloud computing solution which was tailored for one of the companies from our sample that appeared to be the most likely to carry out the transition from the average SME performance class to the higher class. The main advantages that are brought about by the IT solution in terms of environmental sustainability consist of: improvements in energy efficiency, the decrease in carbon footprints, the lowering of operational costs and the diminishing of the amount of e-waste.
... From the sustainability perspective, the business model highlights the logic of the organisation's value creation and its effects and requires new forms of governance, transcending the narrow models of profitability and profit maximisation (Schaltegger et al., 2016). The business model is centred on three elements: value creation, delivery, and capture and their interactions in an organisational unit (Bocken et al., 2014;Wirtz et al., 2016;Geissdoerfer et al., 2018). Therefore, sustainable business models must seek to go beyond delivering economic value and consider other forms of value for a broader range of stakeholders (Bocken et al., 2013). ...
... From the co-operative taxonomies and clustering study, there is a clear contribution to the areas of cooperative business modellingeven as we conclude on the centrality of MSCs as the "heart" of co-operative taxonomies. In this path, illustrated by Wirtz, et. al., (2016), the co-operative taxonomy analysis can largely give us the "body" components of the business model, i.e., (1) definitions and scope (mainly by co-operative classification by the scope of purpose, sector, and targets), (2) forms and components (mainly by co-operative classification by the system of ownership and investment), (3) value s ...
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Background: There are still complexities, paradoxes, and ambiguities in both cooperative business concepts and practices. Cooperatives will succeed only where people design the type of business that best meets their real needs. The question that remains then is, what the cooperative business models and classification are, and how to identify, select, design, and implement them successfully. Purpose and Methodology: The purpose of this study paper was to help broadly understand various cooperative business taxonomies developed by various scholars and practitioners, their possible theoretical grounding, their attributes, and interconnections to establish and strengthen their business model propositions, which deepens the cooperative identity. The qualitative approach was used for this study to expand and synthesize the formerly introduced cooperative taxonomies and in the lens of Sub-Saharan Africa and Middle East. Results: This study finds out that scholars' approaches to cooperative classifications can be clustered in four clusters. Classification by scope (of purpose, sector, and target coverage), system (of ownership rights and investment), structure (of membership, governance, and management), and strategy (of member participation and marketing). Additionally, the study finds out that the cooperative taxonomies have been largely based on a "linear" cooperative business modelling framework. No singular cooperative taxonomy can succeed and be sustainable in all contexts and at all times. The success and sustainability cooperatives in various contexts are determined by the hybridized models. Conclusion: Hybridization of the cooperative business model is inevitable for cooperative success and sustainability. Multistakeholder (solidarity) cooperative is the model that can sustain and deepen the cooperative identity in the face of the present socioeconomic and global complexities. The "circular" cooperative business modelling framework can help practitioners to develop successful and sustainable cooperative business models in different contexts and at different periodical phases of their life cycle. The originality of the study paper is (1) the introduction of "4S" clustering of cooperative taxonomies on basis of scope, systems, structure, and strategy; (2) reinforces the different cooperative classifications' conceptual frameworks and directions; (3) making an analogy of cooperative business models to the human anatomy; and (4) developing a concept of a "circular" cooperative business modelling framework to deepen the cooperative identity in different contexts and periodical phasesDefinition of Terms Terms Definition Cooperative According to ICA (1995) "a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise". Cooperative Axiology Is the branch of cooperative philosophy that study the cooperative principles and values Cooperative Business Ontology A set of cooperative concepts and categories in a business area or domain that shows their properties and the relations between them to create, deliver and capture value to members, other stakeholders, and the community. Cooperative Epistemology Cooperative epistemology is a branch of cooperative philosophy that deals with the sources of knowledge and beliefs, or cognitive states related to cooperative. Cooperative A process of combining two or more certain structural dimensions that are not easily Towards Deepening Cooperative Identity III: ReThinking the Cooperative Taxonomy for .. Terms Definition Hybridization defined in the traditional cooperatives on both community focus and business orientation to form a cooperative business model to succeed in different contexts. Cooperative principles A set of rules that give guidance on what members and the cooperative organization are to do for each other Cooperative Taxonomy The practice of naming, describing, categorizing, or classification of cooperatives. It is a scheme of classification, especially a hierarchical classification, in which cooperatives are organized into groups or types. Cooperative values The moral principles or accepted norms of a person or a group of people. Cooperative values consist of values or norms inherent in the minds of the members Degenerated Cooperative The term comes from the game-theoretical literature and refers to any type of organizational decline from cooperative values and principles. Entrepreneurial cooperatives Cooperatives that have tradable residual rights, such as New Generation Cooperatives. Governance Governance describes a firm's system of decision-making, direction, and control. Multistakeholder cooperative A cooperative with multiple types of members (key stakeholders) engaged with the cooperative in different capacities. Any combination of types of stakeholders could be members and may include such constituents as producers, consumers, suppliers, workers, volunteers, among others. They are sometimes referred to as the solidarity cooperatives New Generation Cooperative A cooperative that considered the internal organization as an important determinant of collective action performance. NGC organizes to improve efficiency by eliminating or ameliorating property rights constraints. Organizational complexity The condition of having many diverse and autonomous but interrelated and interdependent components or parts linked through dense interconnections. In the framework of a cooperative organization, complexity is associated with interrelationships of the individuals, their effect on the organization, and the co-operatives' interrelationships with its external environment. Stakeholder Those groups without whose support the organization would cease to exist; or any group or individual who can affect or is affected by the achievement of the cooperative organization's objective. They are typically understood in the corporate literature to include shareholders, employees, customers, suppliers, government, society, and more. There are single-stakeholder cooperative (SSC) and Multi-stakeholder cooperative (MSC). Traditional cooperative A cooperative that is riddled with technical, allocative, and scale inefficiencies; and inherent problems of free-riding, horizon, portfolio, control, and influence costs. Cooperative business ontology A set of cooperative concepts and categories in a business area or domain that shows their properties and the relations between them to create, deliver and capture value to members, other stakeholders, and the community.
... In recent years, more scholars have paid attention to the study of business model (Teece, 2009;Chesbrough, 2010;Foss and Saebi, 2017). By sorting out relevant literatures, it is found that scholars mainly study and expound the connotation of business model from the perspectives of value creation, resource capability, and stakeholders (Wirtz et al., 2016). As for the definition of a business model, the theoretical circles have not reached a consensus so far, and many scholars have put forward their own different opinions. ...
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Business model innovation has become a necessary means for enterprises to break through path constraints, achieve sustainable development, and obtain sustainable competitiveness, which has been paid more and more attention by entrepreneurs and scholars. Based on the resource conversation theory and signal theory, this study constructs a research model with psychological capital (PC) and social capital (SC) as independent variables and business model innovation as dependent variables along the logical path of “resource acquisition-resource utilization.” By dividing business model innovation into pioneering business model innovation and perfect business model innovation, we use fuzzy-set qualitative comparative analysis (fsQCA) to explore the impact of dual capital on business model innovation of new ventures. This study takes entrepreneurs from the eastern part of China's seven entrepreneurship active provinces as investigation objects, based on the analysis of the collected 242 valid questionnaire results, emphasizing that any single antecedent can not be a sufficient and necessary condition for pioneering and perfect business model innovation. In this case, we carried out research with a certain antecedent variable as the core and supplemented with other antecedent variables to form seven different configurations. The results showed that the combination of the antecedent variables could effectively achieve the pioneering and perfect business model innovation. The theoretical contributions of this study are as follows: (1) it enriches the research on the antecedents of business model innovation in new ventures; (2) it expands the application scenarios of resource conversation theory and signal theory; and (3) it is emphasized that the innovation of business model of new ventures is the result of the interaction and value-added linkage of various internal and external resources.
... This dynamic aspect of the business model can help to understand how provided information, products and/or services are transformed using value added component. Therefore to achieve a competitive advantage, it is crucial to consider and match value creation architecture with strategic elements related to customers and markets (Wirtz et al., 2016;Lukovszki et al., 2021). At the same time, apart from focusing only on the selection and configuration of resources, the method of organizing them is also important and can provide additional value for the business, its strategy execution and a company's performance. ...
Article
Purpose The purpose of this paper is to analyse the significance and impact of different resource types and their features on the operation of business model innovation (BMI) based on new technologies and their effects. Specifically, the relationships of nine different types of resources, as well as their features in terms of VRIO and VARIM concepts, and 10 BMI effects of operation were examined. The significance and impact of resources on the operation of BMI are pretty well established in the literature. However, when the analysis is narrowed down to BMI based on new technologies, there is very little research in this field. This is partly because of the subject’s novelty and the wide range and complexity of this phenomenon. Design/methodology/approach The research covers 483 Polish companies that implement BMI based on new technology. For gathering data, the computer-assisted telephone interview method was used. Analysis is based on Spearman correlation. Results meet the requirement of p -value = 0.01 and are statistically significant and representative. Findings The main findings of this paper is that there is a need for building interdependency and synergy between individual types and features of resources and thus properly arrange and orchestrate them to succeed. Moreover, there are several patterns that stand out from the analysis, with the leading role of employees, technology, dynamic capabilities and know-how being the key enablers of BMI transformation. Practical implications The paper presents several compounds and relationships that shed light on the application and effects of BMI based on new technologies in terms of resource utilization, which can help business owners and senior managers to make consistent decisions in matching and orchestrating resources. Originality/value This study clarifies theoretical concepts building a resource-based view (VRIO, VARIM, dynamic capabilities, etc.) and their impact on BMI based on new technology. The results expand and complement existing research by shedding new light on resource utilization and orchestration.
... Business models represent the main and relevant activities of the value creation of companies (Paiva & Carvalho, 2020;Wirtz et al., 2016). The division of the business model concept into three core dimensions -value proposition, value creation and value capture -can be used to characterize sustainable business models: For a business model to be considered sustainable, at least two of the three dimensions should be designed in a sustainable way (Bocken et al., 2014;Cosenz et al., 2020). ...
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With sustainability becoming an increasingly important factor in a globalized world, there is an increasing demand for ways to systematically incorporate sustainable activities into companies. Representing the value creation logic of a company, business models play an important role in this development. In this paper we suggest an approach to support organizations in developing and evaluating sustainability aspects in their business model by helping select appropriate measures as well as considering assessment indicators that help evaluate their successful implementation.
... Business models' concept in economics is not yet as clear as it should be (Foss and Saebi, 2018). The business model has been studied by researchers to know the different dimensions and ways to innovate the business for getting value (Wirtz et al., 2016) and sustainability of business (Babajide et al., 2021). Sustainability of business means a sustainable environment (Wang et al., 2021), a sustainable supply chain (Khokhar et al., 2020), and sustainable development (Lee, 2020). ...
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Firm innovation relies heavily on financing, which is why it is a hot topic in the fields of finance and innovation management. Organizations can make strategic investments in production factors to develop competitive advantages because they have access to financial resources. This study investigated how financial literacy, innovativeness, and environmental sustainability influence the sustainability of small and medium-sized enterprises (SMEs). This was set as the primary objective in order to better understand the nature of the impact of financial literacy and innovation on the sustainability of SME firms. To test the hypotheses, structural equation modeling (SEM) was applied using data collected from 300 small businesses firms in China. The results revealed that financial literacy and innovativeness significantly influence small firms’ sustainability. Additionally, social inclusion significantly affects small firms’ sustainability, and sequentially has a significant effect on their performance. Research findings suggested that small businesses incorporate sustainability models into their operations and enhance financial knowledge in order to maintain sustainability.
... With the rise of the internet and the shift from traditional to electronic business in the 1990s, the term "business model" has received increasing importance and recognition (Wirtz et al., 2016). Since then, much effort has been made to formalize the term (e.g., Al-Debei and Avison 2010), but definitions differ between research strands and studies (Massa et al., 2017). ...
Conference Paper
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Digital technologies have led to the emergence of new ways of creating value and, by enabling business ecosystems, to a change in the way businesses are organized. However, due to their non-hierarchical and complementary nature, business ecosystems are not easy to create or sustain. To support the systematic design and analysis of business ecosystems, business modeling has emerged as a valuable tool. Our structured review of the literature on business model modeling languages has found 45 potentially relevant publications. Although a preliminary analysis shows that existing modeling languages only provide limited support for business ecosystems, they can provide a useful conceptual basis to enable further research. This research-in-progress paper outlines first steps taken to identify recently developed business model modeling languages and to synthesize and organize the knowledge dispersed across disciplines. Thus, the future results of study are expected to contribute to research on business model collaboration and business ecosystems.
... Business model is a widely accepted concept both by academia and the industry to describe the logic of how a company creates, captures and delivers value to the customers (Wirtz et al., 2016). Typically, it consists of elements describing what kind of product or service is offered, who the customers are, how the production is organized, who the partners are and how the company generates income. ...
... The idea of the business model is a concept of business activity which describes the mechanisms of creating, delivering, and capturing value ( Amit and Zott, 2001;Markides, 2006;Wirtz et al., 2016). It is a representation of the network of systems of a given organisation, of its resources and partners, its internal and external connections ( Adner and Kapoor, 2010;Amit and Zott, 2015). ...
... The concept of business models is integrated with a variety of academic disciplines (Chesbrough and Rosenbloom, 2002), such as business architecture (Gassman et al., 2014;Teece, 2010), innovation and strategy (Magretta, 2002), interconnected and interdependent activity systems (Zott et al., 2011), value generation (Osterwalder et al., 2005;Osterwalder and Pigneur, 2010) (Vanhaverbeke and Chesbrough, 2014;Podmetina et al., 2017) and managerial and entrepreneurial analysis unit (Schaltegger et al., 2016). The large stream of research on business models (Osterwalder et al., 2005;Osterwalder and Pigneur, 2010;Wirtz et al., 2016) converges to the idea that a business model is the sum of complementary elements, which define how a company creates, delivers, and captures value. ...
Article
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Energy transition is necessary, given that the share of fossil fuels in the total energy production ensures that we will not achieve the climate goals as set out in the Paris Agreements. Moreover, this energy transition is not only necessary because of the climate aspect, but also because of the geopolitical dependence on the supply and the easily accessible stocks of fossil fuels are in danger of being quickly exhausted. But this energy transition cannot only take place in a technological way-i.e., choice of energy source or generation-but must also be accompanied by an adapted flexibility, storage, and consumption. This can also evolve towards "energy as a service". To successfully make this paradigm shift possible, including the adapted business models, this is best done by involving the largest possible co-creation of as many stakeholders as possible, through social innovation. For the sake of additional knowledge, but also to achieve broad support and a smooth introduction. Transition teams play a key role in this respect in the context of a Multilevel Perspective approach with both monetary and social impact. This paper illustrates the role of three transition teams in a higher education institution in Belgium, an energy producer in the Netherlands and a grassroots experiment in the Netherlands. Their first realizations in "building coalition for change" are reported, together with the growth process into a "Change Through Network". This involves Energy as a service-including Public Civil Partnerships-and Energy Efficiency Service Companies that contribute to a smart sustainable building for a healthy human in a smart city. We show that this is a catalyst for a new corporate approach for the energy producer, a new social domain/neighborhood economy at the grassroot and a next level of pioneership for the Sustainable Development Goals within the higher education institution.
... Assim como em relação às definições, não há consenso sobre os componentes do modelo de negócios, e muitas propostas estão disponíveis (Afuah et al., 2003;Calixto & Fleury, 2015;Demil & Lecocq, 2010;Hedman & Kalling, 2003;Osterwalder & Pigneur, 2010;Wirtz et al., 2016). Osterwalder e Pigneur (2010) descrevem o modelo de negócio a partir de uma proposta com 9 componentes (proposição de valor, segmentos de clientes, canais, relacionamento com o cliente, atividades-chave, recursos-chave, parceiros-chave, estrutura de custos e fonte de receita) organizados em quatro áreas principais de um negócio (clientes, oferta, infraestrutura e viabilidade financeira). ...
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The technological transformations experienced in recent years have expanded the discussions about the impact of technologies on society in general and on organizations. Based on this context, the objective of this article was to analyse the relations between the construct’s digital transformation, business model, organizational strategy and dynamic capabilities, as well as their insertion in the theme of innovation. This is a theoretical essay based on the analysis of consolidated publications and recent discussions that address the themes of business model, strategy, and digital transformation. The results indicate a close relationship between the themes, with the search for new business models, digital transformation and the adoption of specific strategies by organizations being identified as ways to generate value for customers, foster innovation and, ultimately, create sustainable competitive advantage for organizations. It is concluded that, notwithstanding the common objective, the sectored conduct of these themes in the organizational context can be detrimental to the achievement of organizational objectives. It is understood that the article contributes to discussions about the relationships between business model and strategy, including the context of digital transformation as yet another element.
Chapter
The goal of this chapter is to explore the way in which companies can leverage new-age digital technologiesNew-age digital technologies in building marketing agilityMarketing agility to increase their performancePerformancein hyper-connected environmentsHyper-connected environments. To capture value from new-age digital technologiesNew-age digital technologies, companies need to be agile in innovating their strategiesStrategyand business modelsBusiness models and in developing new organizational capabilities. These developments lead to new decision-making issues and decision-making contexts, which in turn can raise both new requirements for and new capabilities of marketing management support systemsMarketing management support systems. By drawing on information systems, management, and marketingMarketing literature, we discuss the current understandings of organizational agilityOrganizational agility and provide a working definition of marketing agilityMarketing agility. Moreover, we discuss the contribution of new-age technologiesNew-age technologies to improving marketing management support systemsMarketing management support systemsand marketing agilityMarketing agility. We concluded that new-age technologiesNew-age technologies can enhance marketing management support systemsMarketing management support systems, which in turn can improve marketing agilityMarketing agilityand marketingMarketing-mix capabilities, so leading to improved competitiveness and performancePerformance of firms in hyper-connected environmentsHyper-connected environments.
Article
Purpose The purpose of this paper is to present the findings of a bibliometric analysis of the evolution and structure of business model research in industrial marketing scholarship during the period between 2011 and 2020 and to discuss potential directions for future empirical research. Design/methodology/approach Bibliometric methodologies are deployed to objectively evaluate the business model research that has made the most impact within industrial marketing scholarship as well as the prominent scholars and key topics driving the discipline at points in time. Findings The findings demonstrate the formative but increasing engagement that industrial marketing scholarship has had with business model literature and the limited but increasing degree that business models have influenced industrial marketing literature. Potential directions for the empirical development of business model literature are argued to lie in the areas of collaboration and coopetition by examining the notion of value within the relationships, interactions and/or networks evidenced in European seaports business models. Research limitations/implications Bibliometric analysis is retrospective in nature so developments in the literature appear only after some time has elapsed. Different keyword selection when formulating search strings for sampling may have brought some deviations in the analysis. Originality/value Research that investigates the link between business models and industrial marketing is still scarce. This paper is among the few that analyze objectively the evolution and structure of business model literature in industrial marketing scholarship from a longitudinal perspective with a particular emphasis on the period between 2011 and 2020.
Chapter
One of the key factors which influences the future of global economy is resource scarcity and the way businesses, policy makers and environmental scientists respond to climate change by finding solutions for reducing the use of finite natural resources and eliminating waste. With resources becoming scarce, businesses need to rethink and redesign the processes of designing, manufacturing, and delivering products and services. Businesses are responsible for creating products with longer lifetime which use fewer natural resources and are designed for repairability and recyclability. A circular economy model which focuses on designing out waste and pollution, regenerating natural resources, and keeping the materials and products in use offers a means to address environmental problems. In this scenario, businesses redesign their business models according to the principles of the circular economy, which also influences how they conduct international business operations. How internationally operating businesses organize their operations is not only affected by its environmental conscience and need for ecological reconstruction, but also technological advancements. With an increasing use of data and information in businesses worldwide, the opportunities digital technologies offer can increase businesses’ environmental sustainability development. Through the utilization of digital technologies, businesses can gain detailed insight into their environmental impacts by transferring, storing and analysis of data related to circular economy indicators and set goals to achieve greater circularity. This chapter aims to explore the complementary role of Artificial intelligence (AI) and Internet of things (IoT) in improving circularity goals, and how developing artificial intelligence of things (AIoT) in organizations results in more efficient international business.
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The importance of business model research has increased with diversification of competition, but the accumulation of empirical research has been relatively slow. This paper discusses the reasons for this trend and then introduces two analytical approaches suitable for academic discussion of business models: Within-case causal inference based on the Process Tracing Method and Qualitative Comparative Analysis. In addition, we discuss how both approaches can break through conventional empirical research on business models.
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The building construction industry in Saudi Arabia is plagued by poor performance that drastically reduced future sustainable practices. This long-term risk should be rectified using inclusive construction methods, without posing a threat to the environment, society, and economy. Value management (VM) is a valuable tool for resolving difficulties, such as restricted assets, tight schedules, cost, and sustainable alternatives in the building construction industry. VM adoption in the building construction sector had proved to be beneficial in both developed and developing countries. Therefore, this paper aimed to examine and provide insight into critical success factors (CSFs) that enable VM adaptation in Saudi Arabia. A mixed method approach of both quantitative and qualitative was applied using interviews from ten (10) experts with considerable experience in the construction field. Five hundred and fifty (5 5 0) questionnaires were designed for construction professionals. Construction experts suggested ways to enhance VM adoption by defining 25 CSFs that affect VM implementation in the construction industry. The findings further showed that building professionals have significant expertise in VM activities. However, the level of application remained unchanged and hoovers on the average spectrum. This study has contributed to a better understanding of VM implementation in the construction industry. It also facilitates SCFs monitoring, improve the efficiency of VM practice and development of future VM policies.
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The concept of circular business models, defined as firm activities to create and capture value in a circular manner by, for example, extending or continuously reusing product materials, has received increasing attention in management research. The emerging literature, however, lacks theoretical underpinning and empirical findings are not cumulative. Therefore, this article analyzes existing and related research in much detail and presents a comprehensive research model on antecedents, moderators, and outcomes of circular business models. The theories and related research streams considered for the research framework include Institutional Theory, Managerial Cognition, Dynamic Capabilities, Corporate Social Responsibility, Business Model Innovation, and Ecosystems. Gaps within and across the respective research streams concerning circular business models are revealed, and relevant avenues for future research are suggested.
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Purpose: The main objective of this article examines the differences in the switching behaviours of older (Generation X and baby boomers) and younger (Millennials and Generation Z) customers of banks in the UK, with emphasis is on online and offline banking services. The secondary objective is also to evaluate the influential factors of customer satisfaction in the banking sector relating to customer switching behaviours. Design and Methodology: The study adopts a positivist approach by using questionnaire survey to gather data from 106 clients of banks in the UK. The questionnaire comprises 30 questions, the majority of which use a 5-point Likert scale. Findings: No statistically significant difference is found when the switching behaviours of older and younger customers are compared. However, younger customers perceived online banking as more useful due to their greater ease-of-use. Critically, security and ease-of-use are the most noticeable determinants of customer satisfaction influencing switching behaviours. Research Limitations: This study lacks a managerial perspective on switching behaviours. This means that the applicability of the findings to banks in the UK is limited, suggesting that a further exploration in that respect may be warranted. Practical Implications: Banks in the UK are urged to re-focus their customer relationship strategies to improve security and perceived ease-of-use. It is also recommended that marketing campaigns are launched to inform the clients about the benefits of online banking with a specific emphasis on perceived usefulness and ease-of-use.
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This project is the result of a volunteer program that took place in the Republic Guinea-Bissau (RGB) at the Paediatric Hospital. The Paediatric Hospital was working with the same technologic skills as Portugal in the 70’s years. There was no wired network between departments, no informatic system and all work was handmade. The physicians received incomplete clinical reports and, sometimes, with gross errors. There was no triage neither outpatient short list during the medical urgency period. The outpatients needed to wait for long time to get the analytical report and most time without meal or single bread. On the Clinical Analysis Laboratory, the biologic sample identification and the manual data report were lower changes to be credible and there was no final checklist. This paper describes the improvements made by the authors in the hospital logistical processes and in the development and implementation of an information system that was started in March 2018. These improvements were developed based on lean manufacturing principles, on methods and best practices for some referenced case studies fromAmerica, Saudi Arabia, Italy and England. As a result, the hospital reduced outpatient waiting time, improved Hospital, Laboratory and outpatient outcomes, increased confidence work for physicians and laboratory technics
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Dieser Beitrag beleuchtet die Auswirkungen von Smart Services auf Geschäftsmodelle und Preissysteme. Dazu wird ein grundlegendes Verständnis von Smart Services vorgestellt. Anschließend werden Geschäftsmodelle diskutiert und die Business Model Canvas als konzeptioneller Rahmen für die Analyse des Beitrags ausgewählt. Vor diesem Hintergrund werden mögliche Veränderungen der Business Modell Canvas aufgezeigt, die durch Smart Services bedingt sein können. In diesem Kontext wird das Zusammenspiel von Smart Services und Preissystemen detailliert analysiert.
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Thesis
L’Open Source est apparu dans l’industrie du logiciel au début des années 1980 sous le terme de logiciel libre (Von Hippel, 2001). Il est maintenant utilisé dans toutes les infrastructures digitales et certaines industries en dehors du logiciel ont commencé à s’y intéresser. L’Open Source est une forme aboutie d’Open Innovation (Chesbrough, 2003, 2006, 2017) qui fédère autour de projets Open Source des organisations et des communautés externes (Von Hippel & Von Krogh, 2003) générant ainsi des formes nouvelles d’organisations et de business models. L’adoption organisationnelle de l’Open Source se décline en deux axes, un axe d’utilisation de méthodes, outils et composants Open Source et un axe d’implication dans ces communautés Open Source. Les organisations font face à des dilemmes d’ouverture pour l’adoption de l’Open Source et sous-estiment les rôles de leur implication dans les communautés et du degré d’ouverture de leur offre dans la performance de leurs business models. Nous nous concentrons sur les organisations utilisatrices et offreuses de solutions Open Source. L’objectif de la recherche est d’étudier pourquoi et pour quelles conséquences les organisations adoptent l’Open Source comme mode d’innovation. Nous montrons qu’envisager ces dilemmes d’ouverture sous la forme de paradoxes permet de trouver des voies vertueuses de développement et de performance (Lauritzen & Karafyllia, 2019; Smith & Lewis, 2011). Nous utilisons pour étudier ces business models le cadre d’analyse RCOV – Ressources, Compétences, Organisation, proposition de Valeur - (Demil & Lecocq, 2010; Warnier, Lecocq, & Demil, 2012). Avec un positionnement « positiviste aménagé », dans une première phase de notre design de recherche, grâce à 24 entretiens d’experts, nous explorons et améliorons les panoramas conceptuels des déterminants et facilitateurs principaux pour l’adoption de pratiques Open Source par les organisations informatiques et industrielles. Puis dans une deuxième phase quantitative, par une modélisation structurelle appliquée à une enquête commanditée par le CNLL, le Syntec-Numérique et Systematic-Paris-Région en 2017, nous identifions trois formes d’implication dans les communautés et nous distinguons deux types de business models. Nous montrons par une analyse multi-groupes qu’en fonction de ces deux types, les facettes d’implication dans les communautés n’ont pas le même impact sur la performance perçue par les organisations. L’implication de type formalisé qui est la plus choisie par les organisations est moins performante que d’autres formes d’implication.
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Business models are fundamentally linked with technological innovation, yet the business model construct is essentially separable from technology. We define the business model as a system that solves the problem of identifying who is (or are) the customer(s), engaging with their needs, delivering satisfaction, and monetizing the value. The framework depicts the business model system as a model containing cause and effect relationships, and it provides a basis for classification. We formulate the business model relationship with technology in a two-way manner. First, business models mediate the link between technology and firm performance. Secondly, developing the right technology is a matter of a business model decision regarding openness and user engagement. We suggest research questions both for technology management and innovation, as well as strategy.
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This study examines the development of a networked business model for emerging technology-based services. Few studies explore the development and use of business models, and research on networked business models is particularly Scarce. With observation and interview data from a network pilot of technology-based services the study presents the concept of a networked business model as a dynamic device in planning an emerging business in a net of actors. The findings identify phases of business net evolution when business opportunities are identified, created, and potentially exploited and recognize the role of entrepreneurial actors in the development.
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In this essay, we address the research question of when is the business model idea useful? We argue that the use of the term business model as a description of how a traditional venture operates is strong on redundancy and weak on theoretical grounding. We argue that the idea behind a model of value creation, especially involving nonmonetary exchanges is, however, of great importance moving forward. Up to this point, there has been a quite practical approach used in understanding the idea and its effects. But now, there is a need to transition from the idea-as-given perspective to a not-given perspective in order to place the business model in a theoretical perspective where it can be understood in more abstract terms and then applied in new ways. That transition leads to new research questions, a new determination of the idea's value in nontraditional contexts, and new effects on existing related theories and on policies to control potential effects.
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While research has shown a positive impact of open business models on value creation, it has remained silent on the configuration of the corresponding partner networks and their effect on performance. Studying three cases of solution providers which involve external service partners for solution delivery, we find that solution customer centricity – the degree to which the focal firm focuses on solution customers in the joint delivery of solutions – moderates the relationship between partner networks and open business model performance. For open business models with low solution customer centricity, a network configuration characterized by many weak ties to service partners leads to superior performance. Conversely, for open business models with high solution customer centricity, few but strong ties to partners lead to superior performance. Based on these findings, three ideal configurations of networks for open business models are derived: the controlled, the joint, and the supported model. The findings of this paper are especially relevant for managers of product-focused firms who seek guidance in evolving their business models into solution providers. The paper also contributes to business model research by linking extant insights from network research to open business model performance.
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Business models are key tools to provide a means of operationalizing theories about firm and industry level strategies, and to understand the nature of value drivers and the role of marketing in these processes. In this paper we assess empirical evidence for a plurality of co-existing business models within firms by developing a typology of business models in a single industry, the New Zealand Wine industry. We examine the co-existence of the types of models using in-depth analysis of seven case firms that vary in size and ownership. Our findings show how value creation is done in the context of interactions and they provide support for multiple business models that co-exist alongside each other with varying degrees of separation. Plurality better explains the complexity of value drivers and strategies for firms in this rapidly changing industry environment, where businesses are under extreme financial pressure. Our findings challenge assumptions that firms have (or should have) a single business model thus allowing a plurality of approaches within a single firm or industry that shifts the focus from implementing strategy A or B or C, to implementing strategy A and B and/or C.
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This paper provides the first formal model of business model innovation. Our analysis focuses on sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We also show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist. Copyright © 2012 John Wiley & Sons, Ltd.
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Purpose ‐ Traditionally, management scholars have conceptualized the business model as a locus of innovation, planning tool, heuristic logic, or market device. However, so far, little is known about how the model is being applied in practice. To address this gap, this study aims to introduce a strategy-as-practice perspective and to explore the implications and limitations of applying the business model as a strategizing device. Design/methodology/approach ‐ A single-case study design was selected to explore the implications and limitations of using the business model as a strategizing device in a high-tech firm. Findings ‐ The business model provides a valuable structural template for mapping the current business model of a firm. However, in developing and discussing strategic options, it acts more as a symbolic artifact stimulating a creative decision-making process than as an analytic tool with a clear sequence of steps. Practical implications ‐ When working with the business model concept in practice, its technical and linguistic legitimacy is initially highly limited. In the process of gaining legitimacy, however, a collective lock-in to the current strategic identity may arise. Managers have to be aware of these limitations and need to achieve an appropriate balance within the organization. Originality/value ‐ The study introduces a social practice perspective into the business model debate, with a special emphasis on the implications and limitations of applying the business model concept as a strategizing device in a real-life setting.
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Design science research (DSR) has staked its rightful ground as an important and legitimate Information Systems (IS) research paradigm. We contend that DSR has yet to attain its full potential impact on the development and use of information systems ...
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The development of the Internet assumed that users would remain anonymous, but more and more services now need to identify users in order to provide personalized services or introduce users to other users. As in real life, users interact with services ...
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The term ‘private equity business model’ (PEBM) refers to private equity investors that delist publicly quoted firms, managing them as private equity-controlled portfolio firms. But how and in what form do these investors diffuse a preferred template for the PEBM in portfolio firms? Is diffusion codified, institutionalised or merely tacit? What is the difference between these forms of diffusion? As a method of financial control, how is diffusion evident for managers and workers? Theoretically, while ‘financialisation’ is a contemporary pressure on the British economy, there is a ‘disconnection’ between competitive pressures for financialisation and the diffusion of practices to manage these pressures in portfolio firms. Forty-two interviews in eight portfolio firms and five associated private equity firms concludes that potentially transformative and decisive restructuring for managers and workers is more evident than a defined template.
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The agility of companies can be increased when implementing merged or changed business models in the organization and when using business cases to determine if it is time to change the business model. This study clarifies the relation between business models, as an implementation of a company's strategy, and business cases, as an abstraction of a company's operations. The relations are analyzed from a static as well as a dynamic point of view by means of inductive reasoning and literature review. The explorative findings may be used as a starting point for further research and for the design of future information systems which utilize these relations.
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In the decade before the 2008 economic crisis, the US biotechnology industry was booming. In a 2006 book, Science Business: The Promise, the Reality, and the Future of Biotech, Gary Pisano implies that, given the 10–20 year time-frame for developing biotech products and the lack of profitability of the industry as a whole, the US biotech boom should not have happened. Yet the biotech industry has received substantial funding from venture-capital firms as well as from established companies through R&D alliances. Why would money from venture capitalists and big pharma flow into an industry in which profits are so hard to come by? The purpose of this article is to work toward a solution of what might be called the “Pisano puzzle”, and in the process to provide a basis for analyzing the industrial and institutional conditions under which the growth of the US biopharmaceutical (BP) industry is sustainable. One part of the answer has been the willingness of stock-market investors to absorb the initial public offerings (IPOs) of a BP venture that has not yet generated a commercial product, and indeed may never do so. The other part of the answer is that the knowledge base that BP companies can tap to develop products comes much more from government investments and spending than from business finance. Indeed, we show that, through stock buybacks and dividends, established corporations in the BP industry have been distributing substantial sums of cash to shareholders that may be at the expense of R&D. We use the framework that we have developed for analyzing the sustainability of the US BP business model to pose a number of key areas for future research and policy, with an emphasis on the implications of the financialization of this business model for the generation of safe and affordable BP drugs as well as the need for a theory of innovative enterprise.
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Recent ICT advances have allowed companies to interact with external stakeholders, especially users, in more efficient and effective ways, with the result that more and more companies are striving to take advantage of these new opportunities and harness their users’ creative potential by integrating them into core business processes. Successful companies like Threadless or Dell - which were designed to allow user innovation and co-creation from the outset - have clearly demonstrated the potential value of such approaches. However, introducing user-centric value creation processes at established companies is a complex task, requiring major adaptations to traditional manufacturer-centered business models. At present, little is known about how such companies can successfully implement user-centric business models: this article explores (1) the success factors for attracting and engaging users in core business processes, and (2) effective strategies to overcome internal resistance at established companies wishing to introduce user-centric business models. We apply a multi-case comparison methodology between three well-known companies (LEGO, IBM and Coloplast) which have successfully integrated users into their core business processes, and find that implementing user-centric business models successfully requires a comprehensive approach encompassing an appropriate social software design, a transparent intellectual property policy, proper incentive systems, evolutional learning and nurturing as well as employee empowerment.
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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.
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Moving from free to "free and fee" for any product or service represents a challenge to managers, especially when consumers have plenty of free alternatives. For one online content provider, this article examines (1) the sources of long-term revenue loss (through attracting fewer free subscribers) and (2) how the firm's marketing actions affect its revenue gains (through attracting paid subscribers). The authors quantify revenue loss from several sources, including the direct effects of charging for part of the online content and the reduced effectiveness of search-engine referrals and e-mails. The analysis suggests several managerial implications. Managers should focus their price promotions on stimulating new monthly subscriptions, rather than the current promotional focus on stimulating new yearly contracts. In contrast, e-mail and search-engine referrals appear to be effective at generating yearly subscriptions. Meanwhile, free-to-fee conversion e-mail blasts are a double-edged sword; they increase subscription revenue at the expense of advertising revenue. Finally, further analysis shows that the move was preceded by the buildup of momentum in new free subscriptions, which appears to be beneficial for the move's success. The decomposition and comparison of the sources of revenue loss versus gains reveals several trade-offs facing companies moving from free to free and fee.
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The subject of this paper is a multi-stage, multi-person business game which will be used for executive training purposes by the American Management Association. A discussion of the basic philosophy of game play, and of the many analytical, computational, and conceptual difficulties encountered in the construction of business games, is followed by a description of the game in question, as actually constructed and played, with particular attention to four features which, it is felt, merit consideration: 1 Absence of an explicit criterion function; 2 Principle of marginal change; 3 Hidden formulas; 4 Minimal computation. The game which, in a number of preliminary plays with top management participating, has met with a favorable reception is outlined in some detail with a view to showing how it circumvents or overcomes a number of the obstacles described.
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This article describes a business model that is growing in prevalence and that carries novel implications: the development of general-purpose technologies for licensing to downstream specialists. In their archetypical format, these general-purpose technologies are constructed in ways that can be employed by different potential downstream licensees, and can accommodate their different strategies. This strengthens the hand of innovative firms in the rising markets for knowledge-based assets, and can be expected to improve their ability to capture a greater share of the value their technology creates. The innovation of business model designed for licensing such technologies will have unpredictable, but inevitable, consequences for industry structure and organizational capabilities, as well as for the content and context for the upstream science.
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Although the existing literature indicates that the business model concept can be useful to implement product–service systems (PSS), there is still a paucity of guidelines to assist companies in this respect. Therefore, this paper proposes a framework to support the adoption of PSS employing the business model concept. This framework was developed based on literature review and intends to guide the company on the analysis of their business context, on the choice of the appropriate type of PSS and on the definition of their PSS characteristics. A single case study was then performed to illustrate an application of the framework in a machine tool manufacturer and provide research insights. Overall, results indicate that the framework can provide companies with a useful reference to PSS implementation, helping on the investigation of different PSS scenarios as well as the main barriers and challenges to be overcome.
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There is a keen interest in marketing to move away from the neo-classical market definition suggesting that markets are places where demand and supply meet to reach equilibrium. In the present study, markets are defined as configurations of interdependent elements (market actor's mental models, market actor's business models, market practices) that make an increased density of resources, capabilities and value cocreation possible for the participating actors. The findings of the research indicate that firms can actively alter market configurations by engaging in market scripting: offering market propositions that illustrate their view on how the market should be configured and engaging actors in activities aimed at creating a shared market view. In market scripting the scripting actor aims to align the mental models and business models of other market actors so that they reinforce the mental and business models of the scripting actor and increase the ‘marketness’ of the market configuration.