Leveraging the value from digitalization: a business model exploration of new technology-based firms in vertical farming

Abstract

PurposeThe purpose of this paper is to investigate how new technology-based firms (NTBFs) overcome established notions of scale and scope through business model innovation, leveraging the value from digitalization.Design/methodology/approachThe study adopts an exploratory research design, drawing on a novel data set of 50 publicly available interviews with vertical farming (VF) industry leaders and insiders who represent 36 different organizations from North America and Europe.FindingsThe study develops a framework showing how NTBFs leverage the value from digitalization via a paradoxical approach combining both efficiency and novelty value drivers.Originality/valueThe study extends current theorizing on the desirability of a combined business model approach leveraging both efficiency and novelty from digitalization. Furthermore, the study is among the first to investigate the unique and highly technological context of VF.