Sources of Dependence and Non-Profit Business Model Trajectory: Evidence from Lyon e-Sport

The Internet short video is booming in recently years, but its business model architecture and corresponding mechanism of value creation remain obscure. This study aims at answering the question of “how does the Internet short video business model realize value creation”.Specifically, based on the perspective of factors’ architecture and the theoretical foundation of network effects, and following the business model’s logic among the dimensions of value proposition, value creation and value capture, this study compares Douyin and Kuaishou to investigate the theoretical architecture of the Internet short video business model and analyzes its mechanism of value creation. The findings suggest that the Internet short video business model consists of four key factors, namely, content, flow, operation, and monetization. Content belongs to value proposition dimension, including media oriented content and social oriented content; flow and operation belong to value creation dimension, flow including public flow and private flow, and operation including centralized operation and decentralized operation; monetization belongs to value capture dimension, including deal-promoting monetization and emotion-tied monetization. According to the logic among the business model’s dimensions, these factors are integrated as three theoretical architectures, which are labelled as “content-dominant business model”, “socialization-dominant business model” and “two-wheel driving business model”. These three kinds of Internet short video business model are respectively supported by cross-side network effect, same-side network effect and two-side network effect in the mechanism of value creation. Furthermore, “two-wheel driving business model” reaches the organic combination between “content-dominant business model” and “socialization-dominant business model”, which is more crucial for Internet short video platforms to gain sustainable competitive advantages.Compared with the extant literature, this study makes three main contributions: First, it supplements the research on the Internet short video business model by depicting its key factors and theoretical architectures. Second, it enriches the research on the architecture drivers of business model value creation by adopting the paradigm of “factor-architecture-value”. Third, it strengthens the research on the mechanism of value creation for the platform business model under network effects by combining the concepts of strategy management and economics such as positioning, resource, capability and rent. Overall, this study not only opens the “black box” of value creation in the Internet short video business model, but also sheds light on the business model innovation of Internet short video both theoretically and practically.

Non-profit organisations play a critical role in many societies because they fulfill the needs in areas that are not covered by the public or private sector. The primary purpose of all non-profit organisations is not generating income and, in most cases, the income from their own activities is not enough to survive. Therefore, they are forced to look for additional ways of funding and are dependent on them. These types of financial resources can be divided into two main groups – internal and external resources. Income from own activities and member-ship fees can be an example of internal resources. Subsidies from the state or municipalities, sponsorship money, and donations are part of organisations’ external resources. The main aim of this paper is to reveal the influence of different types of financial resources of non-profit sport organisations on their strategy. The article applies general findings for non-profit organ-isations from the paper of Stone, Bigelov, and Crittenden (1999) on “Research on strategic management in non-profit organisations” on the organisations from the sport area. Funding and financial resources may influence the components of a strategic process: formulation, content, and implementation. This paper focuses on the extent in which funding and financial resources affect the organisation’s strategic management and describes the influence of different types of financial resources on non-profit sport organisations’ strategy by reviewing a range of studies on the strategic process and funding of non-profit organizations that are applicable in sports. The article summarizes different findings and issues that have been de-scribed and published in the pre-reviewed academic journals with no restriction on the date of the issue.

Despite the increased attention of researchers to the nonprofit sector (Lu, 2018), studies on nonprofit organizations (NPOs) business models remain limited. This thesis aims to propose a conceptualization of NPO business models in order to understand the mechanisms underlying the creation and capture of societal value: what are the fundamental mechanisms underlying NPO business models? To answer this central question, the thesis develops an innovative theoretical framework through Bourdieu's theory of forms of capital (Bourdieu, 1979, 1980, 1986) to understand and map out the specific nature of NPO business models. This thesis contributes to the literature on business models and the nonprofit sector by demonstrating the existence of distinct NPO business models characterized by differentiated mechanisms of value creation and capture. A central finding is that the sustainability of NPO business models is closely linked to their ability to accumulate and convert complementary forms of capital.

From an integrative view of paradox and culture, this research aims to elucidate the impact of cultural heterogeneity on the compositional structure of business models (BMs) in the Asia Pacific by focusing on the core BM content about the mechanisms of value creation and innovation. After a systematic review addressing the knowledge void, we refine the widely accepted, renowned model of a BM canvas to propose a new, indigenous Confucian BM canvas using the Yin-Yang harmony cognition as the underlying rationale for identifying the peculiar, innovative value-creating patterns of BMs in Confucian Asia. Our canvas encompasses three new building blocks: Social Legitimacy, Institutional Enabler, Institutional Disabler, that reflects the idiosyncratic Confucian cultural values and, thereby, can serve as a vital strategic map. Based on the insights distilled from this new canvas, we further suggest a novel ‘networked synergistic mode of innovation for value creation’ with an example of the electric motor industry in the Asia Pacific region. Theoretical, practical and policy implications are also discussed.

Goal: Product-service system (PSS) is a business model implemented by organizations aiming at generating profitability and competitiveness, and contributing to sustainability. However, companies need to build up new skills to develop and implement PSS focused on business models that should be able to generate value. This context calls for a theoretical analysis with the objective of identifing characteristics of this type of business model by means of a literature review. Design/Methodology/Approach: A descriptive review was conducted, and 313 publications related to PSS business model were selected. A final set of 48 articles related to PSS and business models were identified as well as the number of publications per year and main journal. Mechanisms for generating value from the PSS business model and its components were described after content analysis. Results: Most of PSS business model publications were published in recent years with the main focus on sustainability. Fourteen business model components were identified from the literature to be considered when structuring a PSS, associated with value proposition, creation, delivery, and value capture mechanisms. The most common components were ‘value proposition’ and ‘key partners’, although their concepts need a clarification. The business model should be designed with a value-centric vision in an iterative process. Moreover, it must cover the interests of the entire PSS value network, considering environmental, economic, and social dimensions of sustainability. Limitation of the investigation: The analysis has not considered the related research field on servitization, and nor the publications related to the ‘value’ concept from interdisciplinary areas (e.g., marketing). Practical implications: Developing a PSS business model requires forming a value network, considering the interests and responsibilities of those involved for the generation of mutual value as well as the inter-organizational relationships. Originality/Value: As PSS as a business model is a promising field of study, this paper devotes more attention on developing this kind of business model.

Firms compete in online markets through business models that have not yet been studied in sufficient detail. First, this chapter contributes to the literature on Internet business models through the study of the main mechanisms for creating and capturing value in electronic markets. The chapter describes how the main mechanisms of value creation on the Internet are aggregation, efficiency and customization. This chapter also discusses how companies can capture value in online markets by increasing the switching costs for consumers or leveraging network effects. Second, the chapter sets out four broad categories of business model based on specific mechanisms of value creation and value capture: Internet Malls, Content Providers, Merchants and Connectors. Finally, the chapter reflects on the dynamic nature of Internet business models and how most online companies tend to adopt hybrid business models which are continuously evolving.KeywordsElectronic marketsNetwork effectsSwitching costsTwo-sided marketsElectronic commerceSocial network sites

In recent times, continuous evolutions in digital technologies are triggering new business models (BMs) within virtual environments. This phenomenon is defining a new economy staging in so-called metaverses. Here, physical-world BMs are modified, virtual-world BMs are implemented, and combinations of physical-world and virtual-world BMs are performed. As a result, new mechanisms of value creation and value capture at the crossroads of physical and virtual economies arise in the metaverse. This paper aims at understanding which are these value mechanisms and how organizations can develop them. To this aim, the paper analyzes the cases of four cross-industry incumbents (namely, Gucci, Samsung, Hyundai, and Nike), which are pivoting their BMs in the metaverse. A framework indicating how to innovate BMs in the metaverse is provided, by looking at both “phygital” transformations (i.e., transformations aimed at joining physical and digital worlds’ realities) and completely virtual immersions shaping firms’ internal processes and relationships with customers. In this way, the paper supports companies in turning the metaverse into value, while also extends the scant academic knowledge on the metaverse’ impact on innovation of BMs.

Research question We identify the key components of the business models (BMs) of professional European football clubs, introducing a structured business model approach to sport management and presenting a BM taxonomy. Research methods To derive a picture of European football clubs’ BMs, we develop a BM taxonomy in three iterations. In the first step, we conduct a structured literature review. Second, we analyse case studies and subsequently examine 98 real-world objects. We utilise the 98 clubs as real-world objects of Europe's top five leagues during the 2018/19 season, the last complete season prior to the COVID-19 pandemic. Results and findings Our taxonomy, consisting of 63 characteristics allocated to 13 dimensions, shows and structures the components of European football clubs’ value creation mechanisms. Our evaluation shows that the clubs follow different BMs, proving our taxonomy's applicability. Implications We contribute to theory by identifying and illustrating the existence of different BMs in European professional football. Further, our taxonomy assists club managers to analyse their BMs, enabling them to improve their managerial performance for sustainable success and to avoid mismanagement.

Personal Health Systems are believed to have great business potential among citizens, but they might reach also an important market in occupational health care. However, in reaching the occupational health care market, it is important to understand the value creation and value configuration mechanisms of this particular market. This paper also claims that in such a business-to-business market service integrators are needed to compose for the various customers specific offerings combing a tailored variety of products and services to suit their specific needs.

The article starts analysis from the recent trend of fast growing importance of emerging markets for Western TNCs and the related shifts in the geography of their foreign investment activities. Despite this visible investment boom the actual performance of many TNCs in emerging markets has not met their expectations and a number of major players have already lost enormous sums of money. The author argues that one of the main reasons is the obvious desire of Western firms to adopt their domestic business models in the new structurally different environment which is frequently rejecting them as inefficient. Special attention is given to business model definition which, according to the author’s concept, should include three fundamental characteristics: (1) mechanism of value creation and delivery to the target client group, (2) mechanism of profit generation, and (3) mode of maintaining sustainable balance between two mechanisms above on the basis of the given resources and processes and simultaneous creation of sustainable competitive advantages. An attempt is made to disclose why business models, quite successful in the developed market economies, are often failing when TNCs try to transfer them unchanged to the emerging markets. The author explores the main directions of effective business models’ re-engineering bringing them in line with the specifics of local economic environment. These include significant product adaptation and related re-orientation to the new customer segments, re-building of local supply chain, distribution, and even financial infrastructure. The author also draws attention to the new features of TNCs’ global organization emerging under the conditions of simultaneous deployment of multiple business models in various host economies.

Information technology (IT) advancements enabled new delivery models (i.e. Cloud Computing), thereby facilitating the emergence of new business models in the IT industry, such as Cloud platform ecosystems. With their growing acceptance and diffusion in practice, we need a deeper understanding of their IT capabilities in order to implement their business model, thereby creating and appropriating value. We draw on empirical data from four case studies of Cloud platform ecosystems utilizing a framework on IT-enabled business models for data analysis. We found four key motivations for interfirm collaboration that each generated business model requirements specified in the context of Cloud platform ecosystems. These drive the development of unique B2B IT capabilities enabling value creation and appropriation mechanisms. We propose three dyadic (relation-specific) IT customization and two network IT standardization (network-oriented) capabilities based on our cross case analysis. Furthermore, we describe prevalent value creation and appropriation mechanisms and suggest two additional mechanisms grounded in the data: downstream capabilities and platform resourcing. We provide a possible reasoning on the underlying logic of IT capabilities, value creation and appropriation of Cloud platform ecosystems.

The Impact of Internal and External Resources, and Strategic Actions in Business Networks on Firm Performance in the Software Industry

A significant increase in the use of services is observed for some industries in GVCs (Global Value Chains). The paper has shed light on important dimension of the servitization which is the sale and export of services by manufacturing firms, often bundled together with goods. Firm-level data confirm that many firms are involved both in the production of goods and services and that there are complementarities between these activities. Not only manufacturing firms are involved in the distribution, transport and logistics services needed for their international operations in GVCs but also, they provide installation, maintenance, repair services as well as a variety of other business support and complementary services that increase value for their customers. The servitization has important policy implications, particularly when taking into account the fact that trade in services is generally more restricted than trade in goods. As the lines between goods and services are blurred, economic policy today might be more challenging than in the past, particularly for companies moving to new business models that imply more interactions with customers and a more intensive use of digital technologies. Services themselves are split into different modes of supply for which there are different levels of economic policy. A closer look at the mechanisms of value creation in the case of services suggests that there are still the needs of new economic policy addressed at business models described as value networks or value shops. As technologies become more disruptive and more companies move to ‘servicified’ GVCs, the need for a more consistent international economic policy regime, particularly at the multilateral level, will become more urgent.

Purpose The chapter provides empirical research results on the peculiarities of social innovation and the specific features that its business model must support. It concludes by proposing a Social Innovation Business Model Canvas and steps towards Social Innovation typologies. Methodology/approach The research is based on the results of a comparative analysis of 25 business case studies and 32 biographies conducted within the SIMPACT research framework. We then implemented a process of reverse engineering to uncover the business models behind the cases which facilitated the creation of a typology for different social innovation business models. Reverse engineering is the application of tools and processes used to study new business ventures in comparison with existing ones. As such, it sheds further light on the broad characteristics of social business models and their value creation mechanisms. The evidence coming from the cases were analyzed within a new business model and clustered to identify a typology of business models of social innovations. Findings The main SIMPACT findings, resulting from the reverse engineering process and upon which our discussion is based, can be seen in the following distinguishing characteristics of SI business models. SI business models are: configured around finding complementarity between antagonistic assets and seemingly conflicting logics; often structured around a divergence in the allocation of cost, use, and benefit leading to multiple value propositions; modeled on multiactor/multisided business strategies, and developed as frugal solutions and through actions of bricolage. Four typologies of social innovation were identified: beneficiary as actor, beneficiary as customer, beneficiary as user, and community-asset-based models. Research implications While much attention has been placed on for-profit business models, there is little literature on social/not-for-profit business models. This chapter can add to this gap by providing substantial empirical evidence. Practical implications Practitioners in the field of social innovation, particularly the growing intermediary sector, could integrate the findings of the research in their work. Social implications The work is also leading to the construction of a future business toolbox for social innovation, which will be even more useful for incubators, accelerators, and supporting structures. Originality/value Research presented in this chapter is the result of an extensive comparative analysis across all of Europe, including examples of failure, and the first to propose a typology of SI Business Models.

The purpose of the study is to investigate how the value mechanisms of advanced services business models interact with each other in their post-implementation stage. To better understand these interactions, the study adopts Teece’s (2010) business model conceptualisation which integrates value creation, capture and delivery mechanisms in the form of an architecture. In particular, the study focuses on the architecture of the value mechanisms, identifying interdependencies between them to understand the dynamics of advanced services business models. A multiple-case research method was employed to investigate the advanced services business models and the interaction between the value mechanisms of four multinational manufacturers. The analysis identified different ways the value mechanisms continuously affect each other in their development, creating virtuous circles of interdependencies. The study and its findings contribute to advanced services research by showing the interactions and dynamics of business models in their post-implementation stage and illustrating the role of digitalisation in the context of advanced services business models. It provides a holistic understanding of advanced services business models and generates a number of theoretical and practical implications.