Business model innovation of emerging consumer-centric enterprises based on user-oriented information interaction capabilities: a case study of ‘East Buy’ and ‘Adopt a Cow’ in China

When SME´s practice business model (BM) innovation (BMI), leading strategically BMs through the innovationprocess can be the difference between success and failure to a BM. Business Model Innovation Leadership(BMIL) is however extremely complex to carry out especially to small and medium size enterprises (SME).There are so many opportunities, pitfalls and strategies to consider while “the business” has to be operatedsimultaneously.The paper provides a study of BMIL in practise in SME´s and show different ways of how they handle BMILand BMIL strategies. The SME´s were examined through a framework model called the BMIL strategy canvas.The research approach was action research carried out from 2008 - 2012. Intense study of 35 US and EU SME´sand 97 of their different BM´s form the empirical background. The findings represent learning and characteristicof BMIL with a strong reference to state of the art theory in BM and BMI.The research reveals that SME´s focus on very classic BMI approaches and BMIL strategies. SME´s focus inmost cases on reactive “outside in and reactive “inside in” BMIL strategies. SME´s are primarily focusing onmeeting needs and demands of an inside out “predefined” set of user and/or customer groups. SME´s arereacting to a specific customer or market demand but the BMIL strategies do often not put them in a better ormore central strategic position in their market and industry – and in the BMI process.The research shows some common approaches about SME´s BMI and BMIL strategy - Specifically, 1) MostSME´s do not formulate explicitly a BMIL strategy – they are doing BMI rather blindly 2) Very few SME´s arestructured about their BMIL strategy and BMIL strategy process 3) SME´s focus in their BMIL on very few andoften the same building blocks of the BM - especially the building blocks value proposition, target customer andvalue chain [Internal] – often regardless of the actual specific BMIL task, market demand and context of BMI 4)SME´s often leaves big BM potential behind because they cannot see the potential and are often not able tocapitalised upon these 5) SME´s is generally in lack of BMIL skills.

Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges

The article is dedicated to exploring various strategies and approaches to business model development, emphasizing its role in enhancing organizational adaptability, competitiveness, and long-term sustainability. The study highlights the importance of business model development, innovation, and improvement in achieving sustainable success for organizations in dynamic market conditions. It identifies key factors that drive the need for continuous innovation of business models, including the impact of the external environment, influenced by rapid technological innovations, changing consumer preferences, economic volatility, and increasing competition. The article characterizes the main approaches to business model innovation depending on the enterprise's strategic focus (counteracting downturns or negative industry changes or striving for breakthrough growth) and the direction of transformation (transforming the core business activity or extending beyond it). Based on these approaches, enterprises are divided into reinventors, mavericks, adapters, and adventurers. We examine the forms of business model innovation: startups, transformation, diversification, and acquisitions, each involving different degrees of change to the business model. Criteria for classifying a business model innovation as sustainable or contributing to sustainable development are outlined. Popular strategies for business model innovation are summarized: integration, replacement, expansion, separation, exclusion, optimization, and relocation. For each strategy, opportunities and challenges are identified. Typical directions for business model development through these strategies are outlined. Internal and external factors to be considered in the analysis preceding business model innovation are defined. The article emphasizes that sustainable business models integrate technological, social, and environmental factors to ensure long-term success. Innovations toward sustainable development are key to achieving economic success and a positive societal impact.

How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation

Introduction: digital business ecosystems formation is a natural and integral process in growing digital economy. Digital transformation, as a consequence of the technologies development and complexity of the environment, inevitably causes a change in management and business models used, as well as the tools and technologies involved. The logic of business models development in the context of digitalization can be traced in the following sequence: “analog economy – traditional business models”, “transitional economy – mixed business models”, “digital economy – innovative business models and digital ecosystems”. Objectives: concept justification of a process scheme for digital business ecosystems formation, which allows building a comprehensive vision of management system approaches and decisions in the transition to digital business models and ecosystems in the context of the information society development. Methods: comparative and system analysis, processes modeling and decomposition, as well as statistical comparison methods based on a comprehensive approach to the study of digital transformation of the economy and business processes. Results: the modern approaches to structuring transition process from analog (traditional) business models to digital (innovative) ones have been summarized; business models characteristics typical of the process have been identified as well as the instruments ensuring the efficient transition. Conclusions: economic systems and business models digital transformation contributes to changing consumer behavior, increasing the efficiency of economic entities, expanding the market, building competitive advantages, and developing innovation.

Aim: In the era of mobile internet, live marketing has become a new business model for network marketing, and is a product of the interactive integration of new technology and marketing activities in the new era.Method: Based on the business model theory, combining the value creation process, using live streaming platforms such as Taobao, Tiktok, Jingdong and Amazon as examples, and adopting a qualitative analysis method, the business model elements and innovation paths of live marketing are analyzed.Findings: The research found that: (1) The live marketing model has new integrated features and new values. The combination of technical system integration and marketing activities is a hotbed for live marketing;(2) Based on the anchors influence and audiences attractiveness as the classification criteria, live broadcast sellers can be divided into super sellers, famous sellers, ordinary sellers and low-level sellers. It is a new classification proposed for the first time, which provides important evaluation contributions for understanding and distinguishing the different categories of live broadcast sellers; (3) Based on the business model canvas, this article finds that the business model innovation of live marketing illustrates the nine elements logical relationship of the business model, value proposition is the key-hub linking other elements. The business model innovation of live marketing also follows the basic laws of value creation, that is, from value proposition to value creation to value transmission, and finally to value acquisition;(4) The business model innovation path of live marketing is also the path of value rebuilding, which increasing value is the essence of the sustainable development of business model innovation.Implications/Novel Contribution: Therefore, these new findings can help non-live broadcast marketers transform their marketing concepts and methods, and improve their sales capabilities. The analysis of the business model innovation and value creation of live marketing reveals the essence of live marketing, and the mechanism of value co-creation between sellers and customers, which this research also creatively proposes its innovation model and value creation process from the perspective of the relationship between business model and value creation. Finally, the article is not in-depth study of its relationship business model innovation and value creation from the perspective of explicit knowledge and tacit knowledge.

Purpose– The purpose of this study is to figure out the factors for sustainable growth of small- and medium-sized enterprises (SMEs).Design/methodology/approach– In all, 27 SMEs in the area of IT (Information Technology) in Korea were analysed through interview method basically.Findings– It is found that sustainable development of SMEs requires two kinds of open innovation which are knowledge strategy and business model. According to developing process, SMEs change their open innovation strategy in knowledge strategy and business model. The highest growth limit of SMEs depends on open innovation in knowledge strategy and business model in sequence from closed innovation in both, through open innovation in both, to open innovation in knowledge strategy and closed innovation in business model and to closed innovation in knowledge strategy and open innovation in business model.Research limitations/implications– First, the present study was conducted with IT sector SMEs in Korea. It is true that the IT sector is one of the most rapidly changing industrial sectors and is one of representative business types of SMEs in which manufacturing and service industries coexist and diverse sizes of SMEs exist (Malerba, 2002). Second, the present study relies on case study methods. It is true that case study is a method that gives excellent qualitative analysis in firm studies (Yin, 2008).Practical implications– SMEs cannot survive if they do not accept open innovation in knowledge strategy and business model. SMEs that show absolute limitations in resources and manpower should absolutely implement open innovation strategies to secure more diverse resources from markets and external knowledge bases rather than preparing all resources and capabilities by themselves (Van de Vrandeet al., 2009; Yun and Mohan, 2012a, 2012b).Social implications– SMEs should bear in mind the two different levels of open innovation, such as knowledge strategies and business models (Chesbrough, 2007; Chesbrough and Appleyard, 2007).Originality/value– SMEs should not confuse between temporally sustainable development and infinite sustainable development. Firms that take closed innovation strategies in both knowledge strategies and business models can also grow for some time. However, because of the deepening of knowledge-based economy, not only the amount of knowledge existing in the world and the speed of knowledge distribution increased but also the customers’ demands and expectations have been observed to increase in the market immediately through social networking sites (SNS), etc. (Yun and Ryu, 2012).

The number of entrepreneurs in South Africa and, therefore, the Total Entrepreneurial Activity is lower than expected. The absence of entrepreneurial orientation is not the problem but, rather, instead of focusing on the innovative products and services, we should focus on innovative business models that change the processes. This chapter conceptualises an appropriate conceptual framework for effectively researching disruptive innovation and innovative business models at subnational level. We employ systems thinking to interrogate literature to realise three objectives. First, to understand the root causes and consequences of low innovation in new business ventures in South Africa and more specifically Gauteng Province. Second, to uncover the knowledge gap on this subject generally and specifically Gauteng Province. Lastly, to establish the most appropriate framework in innovation and entrepreneurship studies for interpreting anticipated empirical results. Eventually, this research will detail innovativeness in new business ventures after interrogating the theoretical material and empirical data and information on disruptive innovation and innovative business models. We have sufficient theoretical grounding on this subject but not empirical grounding to support some of our assertions. Even though most of the interrogations are general, it is within the context of Gauteng Province and, therefore, we may not generalise our conclusions and proposals. We do not address how innovativeness influences policies in general and we do not restrict ourselves to any specific sector.

Background InfAct is tackling the European Health Information (HI) sustainability. New population HI methods should be designed to be sustainable European-wide. Internet and digital health developments have also creating the need for innovative business model for the HI-RI that provides value to all involved stakeholders. Methods Leveraging from previous work and from a SWOT analysis, covering both market environment and health data opportunities, a set of health information services was designed. The evaluation of these services was done using Business Model Canvas (BMC), a strategic management template for developing new and innovative business models. Its visual chart was used for describing the services value proposition, infrastructure, customers, and finances. The usefulness of resources is paramount in healthcare. Therefore, it is important to assess the actual benefits obtained with the services. Results The SWOT analysis has shown the importance of addressing innovative HI business models to tackle the challenge of a healthcare sector more and more driven by information. Four main services were selected to support a European health information strategy: One-stop Shop, Innovation Research in HI (e.g. access to more updated HI), Capacity Building in HI (e.g., training support), and Knowledge translation research for decision-making (e.g., support policies with evidence-based). BMC analysis contributed to the identification of services value and innovative approach to the health data market. Moreover, from this analysis proper access to services required sophisticated HI infrastructure that should be able to brokering information in a competitive way. Conclusions Novel HI requires innovative business models services based on priority and planning for the next stages grounded on a sustainable roadmap towards the construction of a HI platform. BMC analysis provided the support for the prioritizations and helped designing the HI marketing and adoption strategy.

Climate change, deterioration of air quality and security of energy supply have necessitated the rethinking on traditional individual mobility based on internal combustion engines (ICEs). Electric vehicles (EVs) hold the potential to solve these challenges, but wider diffusion is frustrated by many obstacles. Business model (BM) innovation can connect technical potential with the realization of economic value, unlocks the dominant logic of ICEs, which is necessary for EVs development. In practice, the BM innovation for EVs firstly involves questions such as who will enter the value network of the new BM for EVs. Which incumbent actor will exist? So taking one individual firm as basic analysis unit is not appropriate. This paper constructs a ¡°3-7¡± system to define the BM for EVs, and then proposes a two-phase conceptual framework. This framework highlights the dynamics of BM innovation and argues innovation should be conducted on industry-level in the first phase and value network is the foundation. Then BM innovation enters the second phase at which innovation is conducted on firm-level just like the early literature highlights. The case of Shenzhen, China is studied. From the case, we can see the BM innovation in Shenzhen is still in the first phase and the government plays a critical role in the establishment of new value network. Based on the case study, this paper concludes two new barriers that are not highlighted by the early literature and developed a number of recommendations to help address the issues found in BM innovation.

The ability to develop innovative Business Models (BMs) with high speed and good Return of Investment has become the cornerstone for the competitiveness of many successful businesses operating in many different Business Model Ecosystems (BMES) today. Business Model Innovation (BMI) appears even more important in these days—as well as in the Biogas 2020 BMES—as digitalization affect all areas of innovating and operating businesses. Increased digitalization leads to new ways of working, communicating, cooperating and supporting BMI. Thanks to these new technologies todays businesses are more interconnected in physical, digital and virtual networks. The cooperation between businesses, academia and the use of competences across different domains becomes more important to strengthen BMI and advance BMI. One main challenge however of digitization of BMI is modeling human behavior and cognitive processes in BMI processes into logical expressions that can be digitized and automated. Our state-of-the-art review shows that has been no research in this field related to BMI. The aim is therefore to find a way to value the BMI process and support the BMI process in a more advanced way than previously supported by sensor technologies. This paper report on a first experiment carried out in a cross interdisciplinary CGC research group with 3 different European Biogas Technological BMI (TBMI) challenges. The aim of this first experiment was twofold. (1) To support the test and further development of a conceptual model of a future agile BMI learning environment first presented at the Global Wireless Summit 2017 conference in Cape Town, South Africa. The the aim is later to adapt these results, findings and experiment recommendation to prepare a largescale global experiment in 2019. The used sensor technology backbone was to this experiment made as a special build cloud-based sensing BM and sensing BMI room—imbedded in special built BMI rooms called B-lab/Beecube. The B-labs was embedded with advanced mobile and wireless sensors, both environmental and wearable by the participants. The aim was to test use and utilization of these sensors in BMI to improve observations, improve analyzing abilities and predict in a latter stage human behavior in BMI processes, (2) to support the development of an advanced network based BMI environment and in a latter perspective to support a Multi Business Model Innovation (MBMI) framework embedded with AI, machine learning, AI, Multi Business model archetypes and pattern techniques. In our experiment we were able to use the Biogas 2020 BMES and project as a testbed. We report on our preliminary findings and draw some proposals to how the large scale experiment technical and BMI wise can be adjusted.

Business model innovation（BMI）is becoming the important carrier of corporate transformation and upgrading, and its theme design as the value source of corporate sustainable competitive advantage has attracted much attention in recent years. Being embedded in a particular social situation and institution environment, BMI theme design is a product of contextualization. However, most researchers don’t have sufficient understanding for start-ups’ BMI institutional context. BMI under China’s transitional economy is much different from that one under western situation, China has become ‘a legitimate and viable context for management and organization reasearch’. Widespread ‘institution vacuum’ and ‘institution defect’ in transitional context have sharpened antecedents of business model design, have triggered a responsive motivation and creative challenge, and have provided theme design space with pioneering BMI and perfecting BMI. Therefore, it is very necessary to design the theme of BMI in China’s context and incorporate its operation to make measurement more meaningful and effective. In conformity with the research logic of theme business model design, based on China’s unique context, and focusing on how China’s start-ups change trading institution through BMI, this paper firstly excavates the trading and the institution attributes of business model, analyzes the influence of China’s transitional context on start-ups’ BMI, and refines out the theme design connotation of pioneering and perfecting BMI. Then, according to the development logic of measurement scale, by the use of combined approach, this paper initializes the scale of pioneering and perfecting BMI. Finally, by virtue of two sets of independent sample data respectively, we conduct EFA and CFA quantitative research to purify and validate the scale. Empirical analysis results show that BMI in transitional context is composed of 2 theme dimensions and 16 items, thus confirming our pioneering and perfecting BMI theoretic framework and developing a corresponding scale with a favorable reliability and validity, which is better to explain start-ups’ BMI behavior in the context of China’s transitional economy. The pioneering and perfecting BMI theme design which respectively acts on ‘institution vacuum’ and ‘institution defects’, frames not only the design elements of business model, but also conveys organization meaning, beliefs and values. This paper makes up for the lack of BMI contextualization in the answer of how China’s start-ups actively change incumbent institution, brings out the operative definition of pioneering and perfecting theme design, and makes theoretical contribution to the literature of BMI and corporate strategy. Moreover, the flexible use of pioneering and perfecting BMI, the equal attention to transaction innovation and organizational legitimacy, and the diagnostic tool function of theme scale all provide practical implications for start-ups’ business model innovative catching-up.

PurposeThe purpose of this study is to help gain an accurate and distinct understanding of information-based business concepts and critical steps in designing an appropriate business model, by providing a framework for designing an innovative information-based business to help fledgling businesses development in the information and communication technology (ICT) industry of Iran. What is a business model framework with the strategic innovation approach in the small and medium enterprises (SMEs) of ICT industry? What are the components of this model and the relations between them? Business model is a logical response to how a business can create value. Changing business environment means that business models are rapidly growing; accordingly, innovation is no longer optional. However, innovation is important in general, but the kind of innovation that is widely and directly dependent on business model will be quite critical for all parts of the organization. In fact, business model innovation is an exquisite technic to create, deliver and earn value by changing one or more components of a typical business model. Business model innovation needs information and form business environment based on dynamic information system.Design/methodology/approachThe present paper focuses upon SMEs in ICT. Grounded theory has been used for this purpose, with 15 interviews conducted.FindingsAn emerging market is one in which commercial exchanges of a particular industry between the countries are relatively new but possess great investment attractiveness and a high potential to grow (such as Iran).As the ICT industry of Iran is a leading industry, and the country itself is an emerging market, the main purpose of this study is to provide a framework for designing an innovative information-based business to help fledgling businesses development in the ICT industry of Iran.Originality/valueThe purpose of this paper is to help accurate and distinct understanding of the business model concept and critical steps in designing an appropriate business model. Studies conducted to simultaneously deal with the business model and strategic innovations are few, and by the time the proposal was written, there was no research observed from Persian sources.

PurposeThis research explores the moderating role of Enterprise Resource Planning (ERP) in (Business Model (BM) innovation by comparing two groups of Small and Medium-sized Enterprises (SMEs) that are still in the process of considering adoption of ERP or already have implemented ERP. In particular, the aim is to see whether ERP enables or hampers the relationship between BM experimentation, i.e. the process of BM innovation, and BM performance. An important mediator, with a focus on downstream value delivery and creation, is the novelty of the BM in question. Design/methodology/approachThis research is based on a large quantitative study among Spanish firms that are engaged in BM innovation activities and in different phases of implementing ERP. A representative sample of 208 Spanish firms engaged in Business Model Innovation from different sectors was used to collect data, which was analysed using heterotrait-monotrait (HTMT) for scaling and Structural Equation Modelling (SEM) for model testing. FindingsQuantitative findings show that there is a direct positive impact of BM experimentation on BM performance for firms that did not implement an ERP, while downstream novelty leads to improved value capture due to increased efficiency and the associated cost reduction. By contrast, firms with ERP show a better performance, depending on the degree of the downstream novelty of the BM. Originality/valueThere is no previous research exploring the moderating role of ERP in BM Innovation for SMEs. This is the first study to examine whether BM experimentation affects BM performance and value capturing, as mediated by BM novelty and moderated by implementation by ERP.

Business model (BM) innovation driven by corporate social responsibility (CSR) has attracted considerable attention from scholars. However, the understanding of whether and how CSR influences BM innovation is limited. Therefore, this paper aimed to fill these gaps by exploring the influence of CSR on BM innovation through the mediating role of organizational legitimacy (OL). This paper proposed research hypotheses on the relationships among CSR, OL, and BM innovation and empirically tested these hypotheses by using the hierarchical regression analysis method with data collected from 186 firms. The results of this study show that both CSR and OL positively influence BM innovation. The results also show that CSR positively influences OL and OL mediates the relationship between CSR and BM innovation. This paper provides new insights into the relationship between CSR and BM innovation by answering questions of whether and how CSR influences BM innovation. This paper may help managers better understand how to link CSR and BM innovation.