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Internet Business Models in the Consumer Market – a Typological Approach

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Abstract

This paper presents characteristics of business models adopted by Internet companies operating in the consumer market. The typology covers online vendors, e-service providers, content providers, multi-sided platforms, and community providers. The business model types are described here, also with respect to selected economic categories. Additionally, the paper discusses the notion of business models from systemic and typological perspectives and compares this term to the notion of strategy and revenue model.
... The e-economy is a business economy that includes all types of businesses built around the Internet in connection with other large-scale and impactful processes such as innovation, globalization and sustainable development [1][2][3][4]. At the same time, the increase in the volume of e-commerce activity is currently an indisputable reality. ...
... Previous research reveals that the environmental dimension of e-commerce sustainability is the most disputed one as the advantages and disadvantages directly connected with the e-commerce activity are hard to compare in an objective manner [1,4,7,16,17]. On one hand, there are positive trade-offs related with the reduction of individual consumers' travels and emissions, and the use of green initiatives for transportation of goods in the case of some e-commerce companies; on the other hand are the negative effects over the environment due to the increased number of shipments and transportations, increased number of packaging types and volume, and minimum compliance to laws and regulations forced by some e-commerce-involved companies, etc. ...
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E-commerce’s latest trends, highlighted by the global phenomena of the COVID-19 pandemic, explicitly show substantial changes in the online consumers’ behavior as well. More and more specialists are talking about the emergence of a new paradigm in consumption, and of possible evolutions toward sustainable consumption. The purpose of this research is to investigate how the antecedents of e-loyalty have changed their effect on consumer attitudes and perceptions of e-commerce sites. The results, obtained through a structural model of 523 validated questionnaires of Romanian consumers of electronic and household appliances, show the importance of the effect of website accessibility, a factor that, until recently, exerted an influence mediated by other elements grouped either under the umbrella of site quality or site design. The model validated after the analysis shows the direct effect of the accessibility of the websites on e-loyalty, satisfaction and trust of the consumers. Based on the results, the value of this study lies in the fact that it presents arguments on how the boost of e-commerce systems leads to sales processes’ sustainability improvement and, to the same extent, the improvement of the ways for reporting sustainability using IT tools (online databases with customers, software integrated into e-commerce platforms, electronic financial management).
... For the benefits that Internet technology promises to provide to society, it is in its best interests to be used. Also, one of the Internet's most essential characteristics is its ability to connect people via a communication network regardless of their physical location (Doligalski, 2018). In fact, the rise of the Internet was one of the most important turning points in the development of business ecosystems, and as the Internet becomes increasingly important for commerce, marketplaces have shifted from traditional markets to those available online. ...
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Purpose The purpose of this study is to assess the correlations between the e-entrepreneurial intentions, attitude toward e-entrepreneurship, subjective norms, perceived behavior control, attitude toward risk and entrepreneurial knowledge of Jordanian business students to start an online business and the e-entrepreneurial intention. Design/methodology/approach A sample of 392 undergraduate business students from different Jordanian public and private universities participated in the study. Data were collected using an online survey-based questionnaire (i.e. Google Forms) using emails and social media platforms (i.e. WhatsApp, Facebook, etc.); reliability and validity tests were ensured. This study employs a 50-item questionnaire (distributed online via Google Forms and in two languages) to collect data, utilizing 5-point Likert scales; correlation analysis, linear regression analysis, and structural equation modeling are used to analyze the data. Findings The results showed that the e-entrepreneurship intentions of Jordanian business students are significantly predicted by their attitude toward e-entrepreneurship, subjective norms, perceived behavioral control, and entrepreneurial knowledge. One’s attitude toward risk does not influence the ambition to launch an Internet company much. Furthermore, their affiliation does not significantly impact the students' plans to pursue e-entrepreneurship. Practical implications The study has important real-world implications, particularly for Jordan. The country could create more jobs and boost the economy by encouraging students to start online businesses and helping small businesses grow. This is especially important in Jordan, where many people, particularly young adults, struggle to find work. Therefore, true need for interventions to foster e-entrepreneurship among business students in emerging economies like Jordan. Originality/value The goal of this research is to examine Jordanian business students' aspirations to launch Internet businesses in developing nations throughout the digital age. The results offer valuable information on the elements influencing the e-entrepreneurial intents of Jordanian business students. This information may be utilized to create programs and policies that effectively encourage e-entrepreneurship in Jordan.
... Despite their different areas of analysis (e.g. Internet companies, e-business companies) and the varying number of types or taxons they distinguish, most classifications designed around 2000 and more recently [20] differentiate between multi-sided platforms and virtual communities. ...
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This article presents a common typology of multi-sided platforms and virtual communities. The analysed entities comprise 69 of Poland’s most prominent websites, representing one of two business models. Based on three dimensions: collaboration among users, reputation-based user competition, and user multi-sidedness, we identified four business models. These are problem community, object community, object market, and reputation market. The differences in their logics of value creation go beyond the traditional division between multi-sided platforms and virtual communities. The identified business models were depicted in qualitative system dynamics diagrams. The typology was verified using the statistical clustering technique, which yielded corresponding results.
... Despite their different areas of analysis (e.g. Internet companies, e-business companies) and the varying number of types or taxons they distinguish, most classifications designed around 2000 and more recently [20] differentiate between multi-sided platforms and virtual communities. ...
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This paper presents a common typology of virtual communities and multi-sided platforms. The analyzed entities comprise 69 of Poland's most prominent websites, representing one of two business models. Based on three dimensions: collaboration among users, reputation-based user competition, and user multi-sidedness, we identified four business models. These are problem community, object community, object market, and reputation market. They were depicted in qualitative system dynamics diagrams. The typology was verified using the statistical clustering technique, which yielded corresponding results. This paper helps comprehend the diversity of value creation logic in virtual communities and multi-sided platforms.
... Не на последно място по значение е и екологичното измерение на устойчивостта на онлайн търговията, чието съдържание и приложение е най-критикувано, защото е доста трудно да се определи дали дадена компания е активна, и то в онлайн среда (Svobodová, Rajchlová, 2020;Doligalski, 2018;Kikovska-Georgievska, 2013). От една страна, се отчита, че това измерение има положителни страни, свързани с намаляването на различни разходи, които осигуряват екологичност. ...
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Потреблението и потребителското поведение се променят изключително бързо през последните няколко години. В условията на COVID-19 този процес протича още по-динамично, което представлява сериозно предизвикателство за всички мениджъри и най-вече за работещите в областта на маркетинга. Възниква и една доста специфична особеност, свързана с постигането на устойчивост в онлайн магазините. Много са факторите, които оказват влияние върху тази своеобразна връзка, но тя остава важна както за потребителите, така и за компаниите. Имайки предвид всичко това, в изследването са представени и анализирани реалните възможности и начини, по които може да се постигне устойчивост при онлайн пазаруването.1 JEL: M3 Ключови думи: потребителско поведение; устойчивост; онлайн магазин; онлайн пазаруване; COVID-19
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The financial sector is facing radical transformation. Leveraging digital technologies to offer innovative services, FinTech start-ups are emerging in domains such as asset management, lending, or insurance. Despite increasing investments, the FinTech phenomenon is low on theoretical insights. So far, the offerings of FinTech start-ups have been predominantly investigated from a functional perspective. As a functional perspective does not suffice to fully understand the offerings of FinTech start-ups, we propose a taxonomy of non-functional characteristics. Thereby, we restrict our analysis to consumer-oriented FinTech start-ups. Our taxonomy includes 15 dimensions structured along the perspectives interaction, data, and monetization. We demonstrate the applicability of our taxonomy by classifying the offerings of 227 FinTech start-ups and by identifying archetypes via a cluster analysis. Our taxonomy contributes to the descriptive knowledge on FinTech start-ups, enabling researchers and practitioners to analyze the service offerings of FinTech start-up in a structured manner.
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Recent technological advances have enabled the emergence of novel platform business models based on digital marketplaces. Marketplaces like Airbnb or Uber offer platforms to connect previously unmatched demand-side and supply-side participants through innovative forms of value creation, delivery and capture. While countless firms claim to offer the next 'Airbnb for X' or 'Uber for Y', we lack knowledge about the defining characteristics of these business models. To close the gap, this paper provides a conceptually and empirically grounded taxonomy of marketplace business models. Applying a mixed methods approach, we first develop an integrative framework that integrates the value creation, delivery, and capture choices. Guided by the framework, the research systematically analyzes 100 randomly selected marketplaces with content analysis and binary coding. The gathered data is analyzed with cluster analysis techniques to develop a taxonomy for digital marketplace business models. The clustering process reveals six clearly distinguishable types of digital marketplace business models and thus shows that there exists no one-size-fits-all approach to creating, delivering, and capturing value with digital marketplaces. We characterize these distinctive business model types by integrating the qualitative and quantitative insights to advance the understanding of platform business models.
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Why is news sometimes free? Although the commercial press’s history is, in part, the search for new forms of commodification, journalism sometimes distances itself from commerce and economically decommodifies its work. We investigate one such moment in the form of “paywall exceptions”: instances when online news organizations drop or temporarily reconfigure their paywalls to let news circulate unmetered among subscribers and nonsubscribers alike. We document 69 exceptions from 1999 to 2015, categorize publishers’ publicly stated rationales, and reflect on what they reveal about the networked press’s negotiations between democratic and commercial logics.
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Purpose: To bring to the fore the scientific significance of classification and its role in business model theory building. To propose a method by which existing classifications of business models can be analyzed and new ones developed. Design/Methodology/Approach: A review of the scholarly literature relevant to classifications of business models is presented along with a brief overview of classification theory applicable to business model research. Existing business model classifications are evaluated in terms of their propensity to contribute to theory building and a method for designing classifications schemes is proposed. Findings: Little attention has been paid to the rationale underlying the design of business model classifications and often there is no explicit consideration of the suitability of the classification for its intended purpose. Each classification contributes to the understanding of business models in practice but there is a dearth of taxonomical research that can facilitate progression of business model research towards theorizing. Originality/Value: This paper addresses the research element of classification that is largely overlooked yet is crucial for business model theory building. The nature of business model classifications is examined in the light of classification philosophies and a structured method of classification design is proposed. A case is made for the development of a general classification of business models that can facilitate the progression of business model research towards theory building.
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The purpose of the paper was to identify approaches to value proposition in online companies and their consequences for firm performance. The paper presents a deconstructivist view on online value proposition. Based on this approach a survey of 150 Polish online firms was conducted. The research allowed to distinguish five segments of companies: suppliers of unique offerings, specialized newcomers, comprehensive incumbents, productivity enhancers and run-of-the-mill retailers. The findings contradict some results reported in other related studies, e.g. despite different characteristics identified segments do not show statistically significant differences in sales profit margin.
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Although survival is a crucial performance concern for new products in markets with network effects due to high uncertainty and innovation risk in such markets, it has received scant academic attention. This paper investigates pioneers' survival (dis)advantage compared with their early followers in networked markets. We develop a conceptual framework suggesting that a pioneer's survival (dis)advantage is jointly affected by network effects and two fundamentally different types of product compatibility: (1) cross-generation compatibility, and (2) within-generation compatibility. Our empirical study, based on data from 45 markets, reveals some intriguing systematic patterns of contingency of pioneer survival advantage on the two types of compatibility. Specifically, in markets with very weak network effects, the two types of incompatibility affect the pioneer's survival advantage in opposite directions: Cross-generation incompatibility strengthens, but within-generation incompatibility weakens the pioneer's survival advantage. As network effects increase, however, the impact of both incompatibilities becomes weaker in their original directions, and eventually their directions are reversed. Despite the lower average survival duration of pioneers compared to their early followers in these markets, we find that pioneers can have a survival advantage in markets with both strong and weak network effects; however, the two cases require opposite compatibility conditions.
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