Business Model Adaptation Research Articles

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.

The impact of COVID‐19 on franchising in emerging markets: An example from Brazil

The outbreak of COVID‐19, the disease caused by the SARS‐CoV‐2 virus, has had significant economic, political, and social consequences worldwide. The franchising sector, consisting mostly of retail and service businesses, is an example of an industry that has been deeply affected. The experiences of franchising stakeholders in Brazil highlight the strengths of the franchising model in such situations. This investigation, based on primary data from webinars with food service, education, retail, and business‐to‐business service companies in Brazil, coupled with reports from commercial and franchising entities, reveals how the COVID‐19 outbreak has affected the franchising sector. It illustrates the measures that were taken, the negotiations that take place between suppliers and landlords, the adaptation of business models, the effects on franchisor‐franchisee relationships, and the impact the pandemic has had on relationships with customers. The strategies adopted by Brazilian franchisors and franchisees suggest lessons for other franchising companies in similar situations, such as those in developing and emerging economies.

A structured approach to strategic alignment between business and information technology objectives

Purpose: Information Technology (IT) is developing at an accelerated rate, making it virtually impossible to separate business and IT strategies. Consequently, the IT strategy of an entity must be integrated with its overall business strategy in order for IT to add value to an entity. It is important that both senior management and IT specialists be involved in the design, implementation, running and revision of IT solutions in order for IT to assist in meeting the strategic objectives of the entity. Miscommunication between senior management and IT specialists is however a major contributing factor to IT projects failing to deliver the desired value. This concept is known as the ‘IT gap’. The IT gap arises because there is a divergence in objectives between these two parties. The differences in objectives arises from the nature of their respective work and the tools they use. Management employs business model design tools (such as the Business Model Canvas), while IT management uses governance frameworks (such as the Control Objectives for Information and Related Technologies [COBIT]). In order for value to be generated, there needs to be alignment between these models and more importantly their objectives. The purpose of this study is to develop a comprehensive list of key driving forces of an entity, known as business imperatives, that can be used by senior management and IT specialists in an entity to ensure that the technology architecture of an entity is designed with the objective of supporting these business imperatives, thereby achieving alignment between the IT and business objectives of an entity. Design/methodology/approach: In this conceptual study the Business Model Canvas was studied and its elements, representing generic business objectives, were converted into business imperatives that could be seen as essential to obtain a competitive advantage in various industries and environments. These business imperatives were mapped to the fifth edition of COBIT (COBIT 5) processes to identify those business imperatives that will be achieved by the IT department when implementing COBIT 5 and can therefore be seen as objectives for the IT department. Findings/results: A comprehensive list of business imperatives was compiled. These business imperatives can be used to determine the design of the IT architecture of an entity, with the ultimate purpose of supporting the business objectives of the entity. Practical implications: By using the comprehensive list of business imperatives identified in this study senior management and IT specialists can work together to ensure that the technology architecture of an entity is designed with the objective of supporting the business imperatives in order to ultimately achieve alignment between the IT and business objectives of an entity. Originality/value: While previous studies primarily focussed on adapting business models to incorporate rapidly evolving technology, this study focussed on the manner in which technology architecture can be designed in order to support the business objectives of an entity.

Electricity distribution incumbents' adaptation toward decarbonized and smarter grids: Evidence on the role market, regulatory, investment, and firm-level factors

The transition to a cleaner and smarter electricity system is being spurred by new policy approaches aiming at delivering a decentralized, digital, and decarbonized energy future. This calls for the adaptation of incumbent technologies, policies, and actors, as well as for the introduction of new system components. The changing role of electricity distribution systems, and of distribution system operators, has been a focal aspect of recent market design efforts, given the critical role of network infrastructure and the importance to adjust its operations, and regulatory framework. We build on a novel dataset from 124 DSOs and apply a methodology combining Factor analysis and a Tobit model to evaluate the role of market, regulatory, investment, and firm-level factors on technological, business model, and market design adaptation. Our results indicate that hybrid regulatory models contribute to DSOs adaptation. Investing in smart grids is found to have a positive effect on adaptation. Regarding firm-level characteristics, the results indicate that unbundling does not affect adaptation, however larger DSOs are found to be better able to adapt. These findings provide timely empirical evidence for advancing regulatory and policy approaches toward the adaptation of incumbents in a rapidly changing electricity sector.

Risk Framing and Business Model Adaptation: A Conceptualization Based on Threat-Rigidity Theory

Firm leaders’ inclination to adapt their business model is sensitive to how risk is framed (as an external threat or an opportunity) in the macro-economic environment. We apply threat-rigidity theory to examine the relationship between risk framing and business model adaptation. We also investigate if emotionality has explanatory value for how managers adapt to business models. We test our hypotheses in a field experiment involving 134 Scandinavian managers. Here, we relate managers’ inclinations to adapt to different business models to different risk scenarios. The results reveal that, in general, managers are more risk seeking in gain scenarios than in loss scenarios. This finding is in line with the threat-rigidity theory. Emotionality was found to relate more to risk aversion than to risk seeking in the domain of potential gain. We argue that emotionality has explanatory value for how managers adapt to business models, because emotions are key influences on risk perception.

ПРОФЕСІЙНА ПІДГОТОВКА ФАХІВЦІВ ДО ВІДБОРУ ПРІОРИТЕТНИХ СЕКТОРІВ ВПРОВАДЖЕННЯ ЦИРКУЛЯРНОЇ ЕКОНОМІКИ В РЕСПУБЛІЦІ ПОЛЬЩА

The article considers analysis the content component of professional training for the selection of priority sectors for the introduction of the circular economy in the Republic of Poland. It is emphasized that the study of the experience of the Republic of Poland, which has taken an active position in the development of the circular economy and professional training for its implementation, is important for Ukraine given its proximity territorially, historically and cultural heritage. It is emphasized that in the process of accelerating the transition to a circular economy, education and training of specialists to implement the goals and objectives of the circular economy, which are fully consistent with the goals of global sustainable development, are quite important factors. It is proved that the training of specialists in circular economics for forecasting, for the ability to see in which sector of economic activity can get the most effective results not only in terms of economic effect, but also the preservation of the environment and public health is important. It is concluded that the professional training of specialists in circular economy should be aimed at the formation of knowledge about: factors taking into account the priority of the industry for the introduction of circular economy; application of business models of circular economies; methodologies of evolutionary nature of activity; evaluation methods by means of expert evaluation; opportunities to implement specific models of the circular economy in Polish realities; adaptation of business models to certain industries taking into account the context of the Polish market; adaptation of circular business models to priority industries from the point of view of the circular economy in Poland.

New AI-IP-EI Trilogy Opens Innovation to New Dimensions; Another Chip in “the Innovation Wall”, What About Emotional Intelligence (EI)?

The red thread of the AI-IP-EI Trilogy fate of this study, may have the appearance of a pot-pourri of intellectual and intelligence natures, as a matter of fact that it emanates from the genesis and practical synergism of the trilogy components. Concretely: The paper goes from: AI (Artificial Intelligence)—to the related IP (Intellectual Property) domain—to the relevance of EI (Emotional Intelligence); thus, forming the new AI-IP-EI Trilogy and its attributes and specific impacts to the new innovation process, and business model dimensions. These impacts are outlined and illustrated in part in essays of specific sections and all along. Several concrete study cases are used in the various dedicated sections; such as cases respective to the inventor status, and the EI factor, to the sport education innovative dimension, as well as to biases as inevitably promoting and revealing, to drastically enlarge open innovation supported by constructivism and creations of musical group as a model of open reflexive education. Overall resulting adapted business models appear to have a massive potential, and a multidimensional reach with a necessary attention to the IP policy on going definition. The durable green dimension is exemplified as well. The Ethics-plus, “@LEAST?”, said corpus is proposed. Could a human centric, AI-adapted-IP policy, internationally embraced, take part to some level of arbitrage, normative and enduring reliability in the field of interest? This seems to be “en route”. Shall the EI (Emotional Intelligence) factor be supervised? Likely so. Is traditional open innovation renewed to a more comprehensive, more inclusive dimension reminding best business practice and now “beyond”? Definitely, and will remain an opportunity, all along the 4IR quantum game changer to come. Neither seeking an in-depth expert analysis, nor a grand public over-simplified bavardage, of the trilogy, AI-IP-EI, four authors here propose an illustrated view of scientific, educational, visionary, demonstrative value to the subject matter. They are aged about 30-40-50-60, being IP & Innovation strategist, future IP lawyer, children-teacher and professional academy sport coach, illustrator and bio-advanced materials engineering “Fellow Scientist”. With experience of large and smaller organizations, being involved innovators, inventors and private artists as well, they are sharing their “non-jargonized down-to-earth”, forward looking views through a structured analysis of the trilogy using realistic examples and data from rather diverse specialized independent sources, biotechnology, nanomaterials, sport… New invention and inventorship is been “reconceptualized” at least from an “insighter or insider” viewpoint, and sport team approach more broadly revisited from its academy level to its commercial asset impact, via educational virtues and values. Music group constructivism enters the scene as well with its exemplary reflexivity and alterity valued for open innovation. Science is the prime lead. “Emotional intelligence, EI, is still an emerging area within AI” and beyond? A new open innovation scheme is taking place. This prompted our intention to further contribute to this matter. Is EI, the tree gently challenging the wind? Generated by AI and IP streams and scientific applications therewith? Naturally. Conclusions are encouraging the follow-up of promising orientations underlined by the AI-IP-EI Trilogy, favoring human centric feature adoptions.

Independent Cinema in the Digital Age: Is Digital Transformation the Only Way to Survival?

Development of digital technologies has resulted in the creative and cultural industries having to adapt business models in light of evolving consumer preferences. This paper aims to examine how independent cinemas can transform their delivery in light of the challenges posed by digital disruption, and more specifically, whether this has to focus entirely on digital transformation. This conceptual paper examines one independent cinema in Scotland, concluding that digitalisation should be used to complement existing activities, along with exploring other innovative business models. It is crucial to understand that the old-time patterns of running a business have irrevocably changed.

The spatial representation of business models for climate adaptation: An approach for business model innovation and adaptation strategies in the private sector

AbstractClimate change adaptation requires organizations to recognize the numerous natural and social dimensions of climate risk. In the private sector, local adaptation responses to climate change are observed as changes to the limited capacities of organizational processes to plan for social aspects of adaptation. This article applies a methodology to map these connections and presents empirical evidence of a firm's autonomous adaptation measures along their supply chain in Baja California, Mexico. The spatial conceptualization of the business model illustrates the potential to identify sources of climate‐related risks, autonomous adaptation actions, and the barriers to improving the feedback loops to facilitate the integration of local knowledge for business model innovation. The results suggest that coproduction of innovations is a mechanism for organizational learning that can help to overcome the challenges for business strategy to identify the wide array of local factors associated to climate adaptation and normalize adaptation planning into business models. This approach might accelerate leveraging the capabilities of the private sector for socially oriented forms of adaptation that amplify the transformational value of business model approaches for improved adaptation strategies.

Jumia travel in Africa: expanding the boundaries of the online travel agency business model

Purpose This study aims to analyse the business model of Jumia Travel, an innovative online travel agency (OTA) that operates in African markets. Focusing on market conditions and consumer behaviour in sub-Saharan Africa, where barriers to e-commerce are strong and tourism is viewed as a non-essential activity, the study examines the ways in which Jumia Travel carries out its development objectives in Côte d’Ivoire and revamps the OTA business model in relation to market constraints. Design/methodology/approach The study uses a descriptive-qualitative method based on desk research analysis of corporate sources, including websites, annual reports, public interviews of managers and newspaper articles. It also draws on primary sources collected through interviews with the Jumia Travel Côte d’Ivoire country manager. Findings The research shows that the demand- and supply-side constraints of African markets compel Jumia Travel to acquire new skills and competencies to adapt to and capture the Ivorian travel market. In doing so, the company expands the boundaries of the traditional OTA business models found in developed markets, demonstrating the dynamic capabilities that drive OTA business model transformation when deployed in a technologically immature market. Research limitations/implications The Jumia Travel venture provides an insight into the constraints faced by an OTA at the bottom of the pyramid and in emerging markets and shows concretely what skills and competencies are required to overcome them. It is also a new experiment still in the early stages of development, and this limits the proper assessment of sustainability of its business model. Originality/value This study examines a unique experience: an unconventional OTA that concentrates exclusively on domestic and regional markets in sub-Saharan Africa. The business model lens brings into focus the operational limits and innovation opportunities of developing an e-travel business in the fast-growing markets of Africa, characterised by major supply-side constraints, the predominance of low-income consumers and a poorly structured travel industry. In this context, OTAs’ innovation challenge is no longer to disrupt the travel sector in differentiating from competitors, as was the case in the mature markets of the first world but to develop business processes suitable for operating in the constraint-based environment of emerging markets and capturing the rising demand for travel products. This involves co-creating value in linking African hotel providers and clients and increasing economic returns from this value through various business model adaptations designed for and with local consumers and partners.

Staying alive: entrepreneurship in family-owned media across generations

PurposeThis study provided a unique opportunity to analyze five generations of a small but continually evolving family-owned media organization with multiple media outlets operating across delivery platforms. The purpose of this paper is to identify variables that contributed to entrepreneurship and sustainability, holding the family business intact for more than 100 years.Design/methodology/approachThis study used organizational ecology in a qualitative case study to interview entrepreneurs from three of five generations. Additionally, current employees, family and friends, along with letters, cards, published articles and financial data were included in the analysis. Entrepreneurial themes based on organizational ecology were identified including variation, selection, retention, as well as values, innovation, service and adaptability.FindingsThe company in this study began with the purchase of newspapers and start-up of a news service in 1904. By the third generation, entrepreneurial initiatives included additional newspapers, as well as a television start-up. In the fourth and fifth generations, the company evolved into what the family termed a “media development company” with a mix of revenue platforms including electronic newspapers, websites, radio stations, live events and syndicated programs.Research limitations/implicationsLimitations included sample size and focus on the perspectives of family members. More research is needed to identify the struggles within the family media firm and the more troubling aspects of a family company as indicated in the literature and their possible downside to both employees and family members who work for the short term or long haul in smaller, family-owned companies.Practical implicationsSustainability of family-owned media organizations occurred through a balance of entrepreneurial activities and family values. Revenue flows resulted from adapting business models from selling advertising in local newspapers to providing funding and other support to local businesses gaining footholds. Market innovation, risk and community-minded solutions resulted in survival through stages of variation, selection and retention.Social implicationsFor family media companies to thrive, entrepreneurship and adaptability are key. Significant contributions to theory from this study indicated organizational ecology is a useful tool in analyzing the evolution of a media company through stages of variation, selection and retention. After almost 80 years of operation in the retention stage, the company started over in the variation stage with new products including radio, internet, live events and community business ventures. Timely diversification was key as media and community landscapes changed.Originality/valueUnique findings indicated sustainability came through a family-oriented approach to business that carried on throughout generations: a long-term view with a commitment to family values, the promotion of entrepreneurial opportunities for family and non-family members and an external focus as media development companies on the success of local businesses and communities in which they operated.

The Effects of Objective and Subjective Perceived Threat on Business Model Adaptation

Despite its importance some organizations seem to fail to adapt their business model in times of environmental change, whereas others seem to strive under these circumstances. Theories such as the ...

Adapt fast or die slowly: Complex adaptive business models at Cisco Systems

Industrial high-tech markets are characterized by profound levels of market and technological uncertainty and so firms herein must navigate extraordinarily dynamic and fast-moving environments. In such settings, traditional top-down modes of strategic planning are ill-suited to generate the flexibility and speed of change necessary for firms to maintain environmental fitness over time. Survival requires that significant decision-making powers necessarily be located on the operational periphery of the firm. To understand how the resultant multiplicity of micro-strategizing and decision-making might engender macro-level change(s) to business models, we conduct a cross-sectional case study of two business models at Cisco Systems. After problematizing two broad strands of extant theory, we conjecture that a rival theory – complexity theory – might allow us to better explain how Cisco's business models evolve in practice and we utilize our case study to test this conjecture. We find that the business models studied have the capacity to change themselves spontaneously and autonomously from executive-led decisions in response to external stimuli. We offer a novel theoretical insight by postulating the existence of complex adaptive business models and we advance knowledge in a way that is useful for practitioners by suggesting they perceive themselves as facilitators and orchestrators of business models rather than owners or even controllers of them.

NOAA’s Physical Oceanographic Real-Time System (PORTS®)

ABSTRACTThe National Oceanic and Atmospheric Administration’s (NOAA) Physical Oceanographic Real-Time System (PORTS®) is an integrated system of sensors concentrated in seaports that provide accurate and reliable real-time information about environmental conditions. PORTS measures and disseminates observations for water levels, currents, waves, bridge air gap, water temperature, salinity, and meteorological parameters. PORTS was developed and implemented in the early 1990s in response to an accident in Tampa Bay where a vessel struck the Sunshine Skyway Bridge resulting in a substantial loss of life and property. The programme was established as a public-private partnership where the local community funds the establishment and maintenance of the local observing system, and NOAA provides the programme and data management. Today, PORTS has grown to over 30 locations around the country and services over 80% of the tonnage and over 90% of the value of cargo transiting U.S. seaports. A number of economic benefit studies have shown PORTS can reduce accidents by over 50% and significantly increase efficiency. This article examines the evolution of the programme in terms of addressing emerging observational needs, infusing new technology, enhancing products, conducting economic benefit studies, adapting business models, and serving other societal needs.

KOMPLEKSITAS MODEL BISNIS ADAPTIF BERBASIS TEKNOLOGI DIGITAL DAN JARINGAN BISNIS INTERNASIONAL

This paper develops a complexity of adaptive business modelson digital technology and international business network towards a sustainable competitive advantage. Furthermore, this paper aims to integrated the concept of adaptive organizational design with complex business models based on digital technology and and international business network. Adaptive organization design should change consistently with changing technological, ecological, economic, social, digital technology and international business networks.Theoretical basis of the concept of business model and relate it to elements of business model, digital technology and international business network. The complexity of adaptive business models based on digital technology emphasizes the importance of building change, international business networks, developing complex and adaptive organizations for innovation in achieving sustainable competitive advantage. Keywords:complexity,adaptive,technology<br /><br />

Unpacking the Disruption Process: New Technology, Business Models, and Incumbent Adaptation

AbstractDespite the growing importance of digital transformation and the notion of disruptive innovation, strategy literature still lacks a more complete picture of how incumbent organizations adapt their business models after disruptions. This research sheds light on this important process by analyzing a major Italian news media publisher reacting to the advent of the internet and the emergence of new business models by entrants into the industry (1995–2017). We specifically examine: (1) the drivers and impeding factors of business model adaptation; (2) how incumbents change strategies to cope with different components of the disruption process; and (3) how a closed business model can be renewed to develop an open, platform‐based business model to seize external opportunities, incur lower costs, and fend off disruptors. This study contributes to the burgeoning literature on disruption, business models, and platforms.

Hybrid model of airlines as a determinant of the development of air carriers

The aviation market is one of the most dynamic factors determining economic develop-ment in the world. In addition, it is susceptible to economic and political crises. The air services market is also characterized by a very large diversity of clients within the market segments. Adaptation of an appropriate business model may be a condition for success, with the increase of ASK, RPK and LF ratios. The aim of the work is to indicate the basic elements of business models of airlines that make up the hybrid model. The article also describes the evolution of Ryanair, which from the carrier emphasizing the lowest price aspires to the carrier offering flights with better quality than its competitors. The source materials of the study are available literature on the subject, own analysis based on secondary sources.

Legitimacy in Adaptive Business Model Innovation: An Investigation of Academic Ebook Platforms in China

ABSTRACTThe purpose of this research is to investigate the importance and influence of seeking legitimacy from the value network for adaptive business model innovation in emerging markets. Drawing on institutional theory, it is believed that legitimacy can mitigate environmental uncertainties and risks, and help firms to survive and prosper. However, little is known about the role played by legitimacy in firms’ business model innovation. This article introduces the concept of legitimacy to examine how adaptive business model innovation responding to exogenous threats in emerging markets. By using the framework of value network, we employ comparative case studies of three foreign academic ebook platforms in China and investigate two types of adaptive business model innovation driven by legitimacy needs. Furthermore, we elucidate regulative, normative, and cognitive legitimacy in business model innovation and trace its origins, including regulatory authorities, partners, customers, and, in some cases, parent companies. Finally, we relate legitimacy seeking to adaptive business model innovation and elaborate on the process of how legitimacy needs motivate adaptive business model innovation, which would defend firms’ survival and growth in emerging markets.

Netherlandish Reports in German Newspapers, 1605–1650

The shift away from case-studies on individual newspapers towards the study of the geography and space of news is one of the most profound changes in the recent history in the historiography of the newspaper. The new medium that came about at the beginning of the seventeenth century succeeded in parts because it could rely on an efficient international network which transported news. First, this article focusses on the influence as well as the importance of the Netherlandish press for publishers in Germany. It will uncover the exact origin and measure the amount and frequency of Netherlandish news in the German press. This will be done on the basis of a bibliographical analysis of all surviving German periodicals printed between 1609 and 1650. Netherlandish reports formed part of the backbone of international coverage in German newspapers. Secondly it traces the intellectual and economic influence of Netherlandish publishers. Many of the early publishers failed to establish a business model that would turn their newspaper into a lucrative enterprise. Some of those who managed to keep their periodicals running owned part of their success to the adaptation and appropriation of business models developed in the Northern and Southern Netherlands.