Abstract
Background: Malaysia is embarking on sustainable, resilient, and prosperous living conditions initiatives. Malaysian cities are embracing the smart city aspiration through their respective local authorities. However, they face challenges regarding funding allocation for smart city implementation. Local authorities primarily operate on a conventional business model. Based on their current business model, they are unlikely to sustain their smart city initiatives. A more financially sustainable business model is required by these local authorities to embark on smart city initiatives. This study presents a systematic review concerning the business models adopted by local authorities to implement smart cities. This paper also explores the applicability of frugal innovation towards developing a smart city business model. Methods: This article undertakes a systematic review based on combination sets of eight main keywords: smart city, business model, frugal innovation, local authorities, performance, inclusivity, technology and success factor. The search strategy includes journal articles and conference proceedings from five major online databases: Emerald, ProQuest, Scopus, IEEE Xplore, ScienceDirect, and Springer Link between 2001-2021. The data is tabulated for clear expression of knowledge gaps. Results: A total of 17 articles from 300 articles on smart city business models matched the search on smart city business models for local authorities . The study revealed that hardly any in-depth research providing the crucial elements for a successful smart city business model for local authorities has been conducted. No research has linked frugal innovation to smart city business models. Conclusions: The study calls upon the research community to explore further, the possible linkage between frugal innovation and smart cities for local authorities.
Highlights
In Malaysia, many goals have been adopted as compasses for smart city initiatives at the national and global level, such as the United Nation’s Sustainable Development Goals, the New Urban Agenda, the Twelfth Malaysia Plan, the National Physical Plan 3 and the National Urbanisation Policy 2
Through their respective Pihak Berkuasa Tempatan’ (PBT), cities around Malaysia are beginning to embrace digital city services, in line with the global movement to achieve smart and sustainable cities. They do not have enough funding allocated for that purpose. If they continue to operate on their conventional operations model, how can cities even hope to start embarking on the smart city aspiration when they do not have the financial means to do so? With the many challenges surrounding the financing of smart cities, practitioners and academics are exploring alternative methods
This study focuses on business models for local authorities to implement smart city initiatives and the applicability of the frugal innovation theory
Summary
In Malaysia, many goals have been adopted as compasses for smart city initiatives at the national and global level, such as the United Nation’s Sustainable Development Goals, the New Urban Agenda, the Twelfth Malaysia Plan, the National Physical Plan 3 and the National Urbanisation Policy 2. Malaysia currently has 150 local councils or ‘Pihak Berkuasa Tempatan’ (PBT), comprising 19 city councils, 37 municipal councils and 94 district councils.[1] Through their respective PBTs, cities around Malaysia are beginning to embrace digital city services, in line with the global movement to achieve smart and sustainable cities. They do not have enough funding allocated for that purpose. Local authorities primarily operate on a conventional business model Based on their current business model, they are unlikely to sustain their smart city initiatives. Conclusions: The study calls upon the research community to explore article can be found at the end of the article
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