Business Models in Transition Countries

Abstract

Transition countries have experienced major political, economic and socio-cultural changes not encountered elsewhere in Europe. They constitute invigorating environments in which service innovations may be nurtured without the inertia of existing practices. However, they are also challenging for new service providers due to the government’s continuing tendency to overregulate market activities and inherent corruption potential. There has been ample room for experimenting with policy measures in transition countries, which has also influenced business innovativeness and business model development and implementation. This chapter offers an insight into business environments and innovative business models for family forestry in transition economies. After a brief presentation of the business model concept, the most important aspects of the countries’ historical development during the transition period are described. Subsequently, the principal subject—family forestry—is narrowed down, and the impacts of key recognized factors of the business environment on business model development are presented. Three case studies from the countries are presented and discussed through the ‘classical’ goods-dominant and the ‘novel’ service-dominant logic lenses. In summary, an overall assessment and lessons learned are given.