Business Model Adaptation Research Articles

CIRCULAR BUSINESS MODELS FOR SUSTAINABLE DEVELOPMENT OF UKRAINIAN ENTERPRISES

Purpose. The purpose of the research is to analyze Ukraine and its enterprise’s methods of implementation of circular principles and business models to ensure their sustainable development. Design/methodology/approach. The study examines the hypothesis of the global need and high efficiency of changing the economic model from linear to circular at different levels, including the adaptation of circular business models at Ukrainian enterprises. To assess the essence, advantages, practical approaches, and examples of transformation by enterprises of the circular principles and business models, general scientific theoretical methods of scientific research (formalization, analysis, and synthesis, systematization, and explanation) are used. Findings. The hypothesis of the global need and high efficiency of changing the economic model from linear to circular at different levels, including the adaptation of circular business models at Ukrainian enterprises, is proven. The world experience and practice, first of all, European, are analyzed, and successful examples of their introduction by the leading enterprises are given. They confirmed that circular principles are helpful not only for ecology and the environment but also for enterprises and states’ economic efficiency. Practical implications. The results of this research show that taking into account the world experience and provided recommendations, in particular on “green procurement”, it is expedient for domestic enterprises to implement promptly circular business models for sustainable development and international competitiveness boosting, and for the state – to develop a clear strategy for transition to a circular economic model. For its effective implementation, it is necessary to consider three aspects: economic, environmental, and social, as well as possible risks. Originality/value. Considering current environmental and economic problems, the circular model was recognized as especially relevant for Ukraine today on its way to the E.U. This study highlights the essence, principles, prerequisites, and world experience of transition from a linear to a circular model of the economy and ways of sustainable development and competitiveness of domestic enterprises by adapting circular business models. The results are valuable for enterprises and countries in their transition to circularity, providing waste recovery and recycling, using renewable materials and reuse of products, prevention of pollution and depletion of resources, ensuring profitability and sustainable development.

Post-COVID reorientation of the Sharing economy in a hyperconnected world

ABSTRACT The unbridled propagation of the sharing economy halted abruptly with the onset of the pandemic, forcing sharing economy companies to respond to the new set of challenges faced by them. There were marked differences between the pre- and post-COVID challenges. Post-COVID, sharing economy companies designed novel response strategies including tempering ambitions, adapting business models, designing new standard operating procedures, displaying empathy towards employees and partners, building trust, and sharing information with stakeholders. This signified a reorientation of sharing economy companies in the hyperconnected world where there is a blurring of boundaries as brand experiences and meanings are cocreated by stakeholders. Sharing economy companies would need to focus on different set of values to attain competitive advantage in the post-COVID world – partnership instead of confrontation, nurturing instead of destructive, open and sharing instead of closed, and empathetic instead of uncaring. This can help create meaningful differentiation and provide competitive advantage.

Entrepreneurship and Resilience in Spanish Sports Clubs: A Cluster Analysis.

Entrepreneurial orientation can be an effective response by sports clubs to manage a recession, such as the COVID-19 crisis. Therefore, its study can be fundamental to understand different ways of managing a recession. This study analyzes the entrepreneurial orientation of Spanish non-profit sports clubs to identify different groups and their profiles. The sample is composed of 145 Spanish non-profit sports clubs. Different validated scales have been used to analyze entrepreneurial orientation, business model adaptation, service quality, and economic and social performance (performance in social impact and performance in social causes). Entrepreneurial orientation is the variable used to differentiate the groups. This is made up of three dimensions: innovation, risk-taking, and proactivity. According to the results obtained, there are three groups of sports clubs according to their entrepreneurial orientation: non-entrepreneurs (n = 11), moderate entrepreneurs (n = 85), and strong entrepreneurs (n = 45). There are substantial differences between the three groups according to the adaptation of the business model, the perceived impact of COVID-19, and the returns analyzed. Strong entrepreneurs have considerably higher levels of business model adaptation, economic performance, social performance, and perceived service quality than non-entrepreneurs. Theoretical and practical implications have been drawn that can bring new information to the sports and organizational sector. For example, the diagnosis of the different profiles according to the level of entrepreneurship can be useful to propose strategies to improve performance. In this way, it can help to evaluate the return on the investment made by sponsors or governments in the organization.

Концепт циркулярної економіки в контексті забезпечення сталого розвитку

The purpose of the article is to identify key differences between the circularity and sustainability of the system, to develop the systematization of the circular economy principles, innovative business models aimed to ensure it, as well as regulatory measures of public authorities to stimulate and support circular economy taking into account a progressive foreign experience. Research methods. In the course of the research the method of comparative analysis (assessment of measures of state regulatory policy in some countries of the world), abstract-logical method (problem statement, substantiation of conclusions), monographic method (analysis of evolution of national and foreign scientists works on circular economy), dialectical methods of cognition were used. Research results. The peculiarities of the circular economy are highlighted, it is emphasized that the circularity of the system and sustainability are interrelated concepts, but not identical. It is determined that the circular economy is a set of economic tools and methods used to ensure the sustainable development of the system. It is substantiated that the introduction of a circular economic model requires a change or adaptation of current business models according to new conditions and needs of housekeeping. The main measures of the state regulatory policy of some countries of the world to support and stimulate such business models are analyzed. Scientific novelty. The theoretical basics of the circular economy have been further developed, the purpose of which is to ensure sustainable development by optimizing the use of resource potential and innovative business models with systematic governmental support. Practical significance. It is proved that the development of a circular economic model is impossible without an active state regulatory policy. The measures of the state regulatory policy on support of circular business models are offered. Tabl.: 2. Refs.: 20.

The impact of customer ties and industry segment maturity on business model adaptation in an emerging industry

AbstractResearch SummaryWhy do some young firms change their business models while others do not? Why do some firms make small changes, while others make more substantial changes? And does industry context matter? Drawing on organizational learning theory and utilizing a unique database tracking 187 young firms through the first decade of the mobile health industry, we examine the role of customers in young firms' business model adaptation. We find a positive impact of customer portfolio breadth (capturing the number and diversity of customers) on both the likelihood and degree of business model change. Importantly, industry segment maturity moderates this relation: customer effects are strongest in the earliest, most uncertain stages. Our study provides a rare view into how a new industry and its young ventures co‐evolve.Managerial SummaryCustomers have been viewed as critical in a start‐up venture's search for an initial business model, but their role in young firms' business model adaptation has not been examined. In this study, we show that a young firm's customer portfolio breadth is an important driver of business model change, especially at the earliest, most uncertain stages of an industry. Our results highlight the value of customers as sources of knowledge in emerging industries, and suggest that when making decisions about establishing and fostering customer ties, entrepreneurs should consider the number and diversity of those ties in the context of the maturity of the young firm's industry segment.

Business Model Adaptation in Spanish Sports Clubs According to the Perceived Context: Impact on the Social Cause Performance

The COVID-19 pandemic has generated an uncertain and changing context that has greatly affected the development and sustainability of all sports organizations. In this hostile context, adaptation of the business model (BMA) can be a strategic alternative for sports clubs. A change in value proposition, change in target market, and change in value delivery are some of the aspects considered in this study in relation to the social performance variable. It is well-known that sports clubs have a marked social function, therefore analyzing their social cause performance is of great importance in modern society. However, there are still few studies that have analyzed BMA in relation to this type of variable in sports clubs. Therefore, the objectives of this study were to find out what perceptions of the environment can influence the BMA, and to investigate what influence the BMA has on the social performance of this type of entity. To this end, 145 Spanish sports clubs were analyzed during a period of limitations and restrictions arising from COVID-19. The results show that there are differences in BMA according to the perceived impact of the crisis and the perception of risk. In addition, BMA predicts the social performance of sports clubs, and this study provides new information for academics and professionals. Practical implications and management proposals were developed based on the results, and conclusions drawn.

Business Model Dynamics from Interaction with Open Innovation

In today’s competitive environment, firms face strong challenges. We live in a volatile, uncertain, complex and ambiguous (VUCA) environment where open innovation is a strategic choice and, on top of that, the COVID-19 pandemic has emphasized most of these disrupting forces. Incumbent companies must act strategically by adapting their business model to minimize the risk and to capture the new value that emerges. This article intends to contribute to the development of the nascent stream of research that seeks to understand the evolution of Business Models through time—known as Business Model Dynamics (BMD)—and explores how to better align this evolution to the implementation settings of strategy. This exploratory study is built upon a meta-synthesis approach to identify, analyze, and clarify how academics have dealt with the three terms used in the Business Model Dynamics research strand: Business Model Innovation, Business Model Adaptation, and Business Model Evolution. The results of the meta-synthesis show that a disambiguation of concepts is necessary as, from an organizational learning point of view, it is required to provide a better connection between strategic value appropriation and changes on Business Models. This article contributes to the researcher and practitioner’s literature on Business Model Dynamics offering a clear and rigorous definition of each term from a strategic point of view, thus preventing the conceptual incoherence and their reiterated wrong use as synonyms.

A Network-Design Analysis of Airline Business Model Adaptation in the Face of Competition and Consolidation

By focusing on the intrinsic relationship between business models and network configurations in the airline industry, this paper develops a two-stage methodology to estimate the strategic drivers of network design of the major carriers in Brazil. The empirical approach decomposes their domestic network-building rationales into the ones adopted by virtual archetypical carriers. We consider the previously conceived low-cost, full-service, and regional carrier archetypes. Our main contribution is the development of a model that allows airlines’ networks to be strategically designed in a time-evolving pattern, reflecting a dynamically chosen blend of these archetypes. Moreover, we also consider the effects that mergers and acquisitions may have had in inducing changes in these blends. Our results suggest that all analyzed airlines have repositioned themselves through their trajectories to adopt a hybrid configuration, aiming at the intersection of at least two archetypical network-design rationales. Besides, the effects of consolidations point to certain diversions of the acquiring airlines’ domestic network-building rationales toward the ones of the acquired carriers, providing evidence that the consolidations may have served as stepping stones for market-repositioning moves.

The journey of incumbents’ sustainable business models: unveiling the role of cognitive processes in the evolution process of business models

ABSTRACT There is growing attention in theories and practices to achieve sustainable business models (SBMs). However, achieving SBMs for incumbents is an arduous and challenging process. Based on the literature on SBMs and managerial cognition, we explore how managers use their cognitive processes to adapt business models to environmental changes. Based on the study of a Chinese incumbent, this paper reveals the evolution process of incumbents’ SBMs in the manufacturing sector and indicates managers’ effective cognitive processes under different environmental conditions. This study attempts to open the black box of the link between cognitive processes and SBMs, reveal the role of cognitive heuristics, and provide practice guidance for incumbent firms to achieve sustainable development.

Platform-based servitization and business model adaptation by established manufacturers

Digitization is receiving a lot of interest in recent servitization research, but the use of platform-based Industry 4.0 technologies to boost product-service innovation (PSI) is less covered. This study aims to explore how companies successfully leverage platforms for servitization in an Industry 4.0 context. Building on theories of PSI, platform leverage and business model adaptation (BMA), we use longitudinal and interpretive research methods to conduct an exploratory study of the servitization pathways of four Chinese textile and apparel manufacturing companies. Results reveal companies’ roadmaps in undertaking digital and smart servitization strategies enabled by platform leveraging, and show the implementation approaches for related BMA. Further analysis identifies platform-based servitization destinations and pathway dynamics. This study constructs a theoretical basis and a typology for explaining platform-based servitization.

ЦИФРОВА ТРАНСФОРМАЦІЯ ЯК СПОСІБ АДАПТАЦІЇ БІЗНЕС-МОДЕЛІ В УМОВАХ ДІДЖИТАЛІЗАЦІЇ ЕКОНОМІКИ

The article is devoted the problem of business models adaptation to the modern digital economy conditions and based on the latest research and statistics on this issue. The objective processes of digitalization, which are taking place at a fast pace and stimulate accelerated growth, modernization and improvement of competitiveness of key sectors, primarily in the field of means of production, innovative development, introduction of new business models, are highlighted. Substantiated the necessity of digital transformation of business models based on the modern technologies. The analysis of influence information and communication technologies on the creation of new and transformation of existing business models in different countries carried out on international indicators. Given statistics of the level of using key digital technologies in Ukrainian enterprises and enterprises of EU countries. The author emphasizes the needed for digital transformation and implementation the "Industry 4.0" concept, which inevitably leads to increasing in productive forces based on digital production. To achieve this goal, in article used methods of statistical research and comparative analysis to assess the level of use of digital technologies in enterprises. We believe that such a comprehensive study determines the relevance of this work and requires further scientific study in the context of digital transformation of Ukrainian enterprises and the conditions of technology implementation. The author presents the features of business model adaptation to the processes of digital transformation. The advantages of digital transformation are demonstrated on example of successful cooperation of a leading industrial enterprise and an IT company. The key benefits, both direct and indirect, arising from investments in the digital transformation of business models are highlighted. Further development of this issue can be expressed in the development of a set of measures that will contribute to the formation of digital space in economic sectors and provide competitive advantages at the sectoral and national levels.

Building and adapting business models for innovation in times crisis

This opinion article briefly reviews the evolution of the business model concept to understand its importance and adaptation to current times. In the same way, the key elements for the construction of business models based on innovation in times of crisis are presented, taking into consideration that this concept is a key element that must be focused on the current or potential consumer. For the construction of a business model it is important to identify all the elements that are subject to innovation and that contribute to the generation of attractive value propositions for the market. For this, the Canvas proposed by Osterwalder and Pigneur (2010) has been taken as the basis of analysis, where nine factors are proposed that must be analyzed and that are interconnected for the generation of innovative value proposals. Realidad Empresarial No. 10, 2020: 2-6

Adapting business models in buyer-seller relationships: paradoxes in the fast fashion supply chain

Purpose This paper aims to deal with the issue of business model change in industrial markets. It considers the fast-fashion supply chain by addressing the following research questions: What are the paths of change of the supplier’s business model to match the business model of fast fashion customers? How can a supplier’s business model be adapted to customer’s requirements in these paths of change? Design/methodology/approach Empirically, the paper presents a multiple case study of 10 semi-finished textile suppliers, carried out through a long-term research programme in the Italian textile industrial district of Prato. Findings The multiple-case study shows some key drivers of change in the suppliers’ business models. Three main paths emerged from the interactions with fast fashion clients. Paradoxes in the supplier’s business model changes are identified and discussed. Research limitations/implications The paper proposes implications for suppliers interacting with fast fashion clients and discusses how the adaptation of business models may be interpreted. This study points out how matching the business model of the customers does not call for alignment of similar features. Originality/value The paper deals with an understudied topic within the literature: business models change in business to business markets, taking into consideration the perspective of the supplier. It considers buyers-seller relationships in industrial supply chains as being part of a chain of business models and the need for the supplier’s business model to adapt and match one of the clients. The paper proposes two potential interpretations of such adaptation.

Effects of COVID-19 on Business Models in Romania and the Netherlands, A Digitalization Perspective

Abstract The research objective is to study how Romanian and Dutch organizations’ business models have changed under COVID-19 conditions. The role of digitalization in adapting business models and business practices is studied. The theoretical background reviews literature about business models and their dimensions. Literature review investigated digitalization in Romanian and Dutch organizations. Research questions were: To what extent do Romanian and Dutch organizations use: • more digital methods in their offer to their clients now than before the crisis? • more digital methods in their business processes now than before the crisis? • more digital methods in communicating with their clients now than before the crisis? To what extent are there any significant differences between Romanian and Dutch organizations regarding the use of digital methods? Using qualitative and quantitative methods, conclusions show that Romanian and Dutch organizations adapted their business models to the ongoing COVID-19 crisis by applying digitalization in their value creation and value delivery using different digital methods. The frequency and choice of specific digital methods are in line with digitalization levels of Romania and The Netherlands as per the DESI index. In both countries, digitalization helped business models resilience although the level of digitalization in the organization’s country were significantly different.

RETAIL BUSINESS MODELS: ADAPTATION TO NEW CHALLENGES

Background. The retail sector in Ukraine is in crisis due to COVID-19. New risks and challenges have emerged that have put at risk the functioning of the trading industry. Therefore, there is a need to find ways to adapt and transform business models in retail to new, crisis conditions. Analysis of recent researches and publications. Peculiarities of trade business functio­ning in conditions of uncertainty, risks, and crises are actively studied by many scientists and practitioners. However, the issue of changing retail business models in the face of instability, which would allow companies to adapt to today’s challenges, remains insufficiently studied. The aim of the article is to study the process of transformation and adaptation of business models in retail to new economic realities, challenges, and threats associated with the situation around COVID-19. Materials and methods. The information base of this study was scientific work on the adaptation of business to modern conditions of instability and rapid change. The research methodology is based on a system of general scientific and special methods, in particular: analy­sis and synthesis; systematic and integrated approach. Results. The peculiarities of the instability of the modern world according to the VUCA concept, in particular its manifestations related to the COVID-19 pandemic, have been studied. The main threats to business development in the field of retail trade in the current crisis situation have been identified. Changes in business models in retail are proposed, which will help in adapting to difficult economic conditions and maintaining the competitiveness of retail enterprises in the consumer goods market. Conclusion. The necessity of transformational changes of business models in retail in order to adapt them to crisis conditions and ensure the survival of retail enterprises in today’s unstable world is proved.

Development of Business Schools in Emerging Markets: Learning through Adoption and Adaptation

The purpose of this study is to contribute to the understanding of the critical resources and capabilities that business schools (BS) have developed to achieve sustainable development. Framed within the resource-based theory, it analyzes seven of the top 50 BS from emerging markets (EM). It argues that these schools have grown through a development process of adopting and adapting business models, including teaching and research methodologies, organizational structures, and business practices; when they consolidated their local leadership, they started to follow a more idiosyncratic process. The findings shed light on the challenges that schools from EM face to deliver local impact while being measured by international standards and have implications for theory development, practice, and policymaking. In terms of theory, the findings show how the Global North model has exerted a determining influence in the development path of BS in EM, and, subsequently, how the pressure to respond to domestic demands has guided the acquisition of resources and the development of capabilities. For practice, the study reveals development patterns, clues about the challenges these BS face, and the range of solutions they have implemented. For policymaking, the case studies offer valuable lessons on how governments can design support systems for BS development.

УПРАВЛІННЯ АДАПТИВНІСТЮ БІЗНЕС-МОДЕЛІ АВІАПІДПРИ-ЄМСТВА ДО УМОВ ЗОВНІШНЬОГО СЕРЕДОВИЩА

У статті проведено аналіз проблем адаптації авіапідприємств до умов зовні-шнього середовища. Запропоновано напрями адаптації бізнес-моделей авіа-підприємств, систематизовано методичні підходи до побудови бізнес-моделі авіапідприємства, серед яких виокремлюють: орієнтований на бізнес-процеси; орієнтований на цінність чи клієнта. Визначено низку факторів зовнішнього і внутрішнього середовища, які впливають на формування конкурентної бізнес-моделі на ринку. Охарактеризовані основні риси для авіапідприємств, які потребують оптимізації та адаптації до змінних ринкових умов зовнішнього середовища. Узагальнено основні підсистеми впливу зовнішнього середовища на авіапідприємство. Запропоновано комплекс заходів для підвищення ефективності управління адаптивністю бізнес-моделі на авіапідприємстві, яка ґрунтується на управлінських бізнес-процесах задля підвищення ефективності процесу управління та координації рішень.

Business Model Adaptation Through Inclusion of Environmental Sustainability Measures

Purpose of the article: The article aims at understanding and description of how and why the business model (BM) of an incumbent manufacturing B2B company adapts, collaboratively with a dominant customer, through measures leading to an improved environmental sustainability performance. The research question was: How is a business model of an incumbent, businessto-business company adapted through the inclusion of environmental sustainability measures, with the customer’s involvement? Methodology/Methods: A qualitative research approach, drawing on a descriptive-explanatory, single case study conducted on a Czech manufacturing company active in the field of steel processing was performed. The study draws on the analysis of the focal company’s internal and external documents related to sustainability, as well as on semi-structured interviews with the examined company’s executives. The analysis also include the externally available sustainability related documents of a dominant customer. Scientific Aim: Understanding the impact of the environment-related sustainability measures on the adaptation of the extant BM of the focal company, and the role a dominant customer plays in the process. Findings: The inclusion of environment-related sustainability measures leads to an adaptation of the process and the product, as well as of the focal company’s BM and most of its key elements. A value capture by the focal company has been identified as the mainly affected element of a BM through both cost savings and a more business gained. The element value proposition adapts towards a “greener company”. The core logic of the BM remains unchanged. Conclusions: B2B incumbent companies implement environmental sustainability measures into their BMs, aiming to contribute to the preservation of the environment. The economic side continues to be carefully considered. It can even be a trigger of implementation. The large customers get strongly involved in the process, contributing to the adaptation of all four key elements of the BM. The BM’s adaptation happens dynamically, in incremental steps.

Problematic aspects and potentialities of applying the principles of a circular economy in the mining industry

The concept of a circular economy (CE) gradually penetrates into various spheres of production and consumption as part of the “Green Course” ideology, ensuring sustainable development in the long term. The mining sector cannot be called interested in transforming the linear economy into a more resource-efficient circular economy using regeneration systems. The idea of cyclical recovery of values from waste and used products in closed supply chains is aimed at minimizing the use of scarce primary resources. The mining sector actors perceive this idea as a threat rather than an opportunity to improve their market position. Along with the drivers there are barriers and bottlenecks that impede the implementation of CE principles in the mining industry. There are very few studies related to development or adaptation of circular business models for mining companies. The aim of the work is to analyze the possibilities of applying the principles of CE in the Russian mining industry, taking into account European experience. Mineral extraction waste considerably affects the environment and can be a potential source of raw materials. Environmental problems associated with mining are acute in Arctic mining regions such as the Kola Peninsula. For struggling against wastes and harmful emissions the state began applying environmental regulations based on the best available technologies. In the metal ores mining segment, there are certain prerequisites for forming circular business models based on revealing the relationship between separate elements of the CE concept and introduction of BAT. The presence of such opportunities allows a consistent review of production waste within the CE framework, as well as linking the principles of circularity with the strategies for innovative development of mining enterprises to adapt them to new external challenges.

EVOLUTIONARY NETWORK OF BUSINESS MODEL STUDIES AND APPLICATIONS IN EMERGING ECONOMIES

Business models are crucial for explaining firm performance. In practice, managers apply business models to increase firm’s advantage. Particularly, innovative business models solve many economic and social problems in emerging economies. To show the knowledge development in the field, we explored the knowledge network and identified the role of business models in emerging economies. To examine the primary topics in business model studies, we reviewed the academic literature and applied main path analysis (MPA) to explain the development in this field since 2000. The valid sample of this study comprised 665 papers, and citation information was used in the MPA. We further investigated the role of business models in emerging economies through keyword analysis and case analysis. The results for the main path indicate that the development of business model studies proceeded in three stages. In general, the literature in business model studies has transitioned from discussing internal and external value to framing business model structures. Specifically, in the latest stage, sustainability in a business model was conceptualized, and studies focused on how a business model can function as a structured model for explaining how various businesses operate. Moreover, studies on emerging economies have noted the importance of sustainable business models and model adaptations for firms in developing countries.