Business Model Innovation Process Research Articles

Matching consumer segments to innovative utility business models

Energy as a service, smart home opportunities and electrification of heat and transport can lead to new ways of switching supplier or choosing new energy contracts. Here, we used business model collaboration workshops to create archetypes of new utility business models, which were then tested with a representative sample of British energy consumers to explore their attractiveness to different segments of society. We show that some of these segments have a substantial appetite for new business models. However, the segments that choose these models are more likely to be affluent, educated homeowners. Without intervention, innovation in utility business models risks exacerbating existing social inequalities, as lower incomes, lower home ownership and low education result in lower preferences for, or no ability to engage with, new utility business models. We also find that institutional trust beyond the energy sector is a key driver of consumer segmentation. Utility business models are changing to accommodate energy system decarbonization. Here the authors adopt a collaborative business model innovation process to define the business models that utilities are exploring, and then identify consumer segments based on their preferences for these new contracts.

A business model innovation process for tourism: findings from a literature review

ABSTRACT This paper reviews existing concepts and frameworks to propose a business model innovation process (BMIP) applicable to tourism businesses. A comprehensive literature review and content analysis is conducted by selecting, studying and coding applicable articles. The authors have reviewed 41 business model innovation (BMI) related papers, of which 14 are BMIP specific and four examine the phases of innovation in detail. Noting the lack of scholarly resolution about the most appropriate approach to business model innovation, the paper seeks to enhance current theories. A fifth and additional step is proposed to accommodate an essential extension of the existing model into the tourism context – continuous evaluation and improvement. The proposal offers business leaders the potential to benefit from a comprehensive understanding of the business model innovation process, including how to adapt to new conditions.

Circular economy business model for smart tourism: the case of Ecobnb

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

The Green Multi Business Model Innovation Brain

Advanced Green technologies integrated in Business Models and Green Multi Business Model Innovation processes introduce a new leadership and management agenda of Green Business Models. Fast innovation of sensing, persuasive and virtual Business Modelling that can operate autonomously and dynamically primarily lead by machines. Green Multi Business Model Innovation Brains will soon be the state of the art in Business that want to become Green – but also for businesses that want to do circular and/or sustainable business modelling.
 Businesses will build Green Multi Business Model Innovation competence and advanced Green Multi Business Models Innovation Brains capable to innovated and operate Green Business Models to all kinds of Business Model Ecosystems. This will open up to new Green Multi Business Model Innovation potential and create a new generation or archetypes of Business Models, new practice of Multi Business Model Innovation.
 The paper is a second articles and extension of a conceptual paper on Multi Business Model Brains. First paper was presented at the BIT Sindri IEEE Conference 2020 conceptualizing on how a Multi Business Model Brain could be constructed and would operate supported by advance sensor technologies, artificial intelligence technologies, deep learning, persuasive technologies, Multi Business Model Innovation pattern analysis and libraries of BM archetypes. In combination they will all be important supporting tools to the Multi Business Model Innovation Brain – but now also to the Green Multi Business Model Innovation Brain. 8 case examples shows how Green Multi Business Model Innovation Brains can work in different contexts – in physical, digital, virtual and combined Business Model ecosystems.

The Business Model Innovation and Lean Startup Process Supporting Startup Sustainability

Abstract In order to support entrepreneurs facing Business Model Innovation, the Lean Startup methodology is considered to be a powerful tool. However, the theoretical and practical evidences that relate both methodologies to startup sustainability is still to be investigated. The aim of this paper is to develop a unified theoretical perspective for understanding Business Model Innovation and Lean Startup processes and their contribution to a better organizational, economic, environmental and social performance of startup business.

Foundation, Status Quo, and Future Trends of the Business Model Innovation Process Knowledge Base

Foundation, Status Quo, and Future Trends of the Business Model Innovation Process Knowledge Base

Framing and assessing the emergent field of business model innovation for the circular economy: A combined literature review and multiple case study approach

Widespread adoption of sustainable and circular business models is required to accelerate the transition to a more sustainable society, however, the literature supporting the process of Business Model Innovation for the Circular Economy - or Circular Business Model Innovation (CBMI) - is currently emerging. Several publications on this field have been published since 2014, nevertheless, there is still a lack of understanding on the process of CBMI, particularly for incumbent firms; and, as most of the literature is theoretical, further empirical insights are required. Furthermore, there is a need for an updated and comprehensive review of this fast-paced field, and a need to further integrate the CBMI field with the conventional Business Model Innovation (BMI) domain. The present research aims to first, map and frame the field of CBMI, building upon the structure of the conventional BMI field; second, to assess the current state of research of the field, proposing a future research agenda; and third, to explore the most relevant elements of the CBMI process in the practice. The article uses a combined literature and multiple case study approach. It begins by synthesizing a BMI framework, which is then combined with the findings of a systematic literature review (n=84) on the emergent CBMI field, to propose an original framework that structures the field. The review includes an assessment per article on the state-of-research. The framework is then illustrated through a multiple case study on ten incumbent firms that have implemented a substantial CBMI, revealing which topics are more relevant from a practice perspective and offering valuable empirical insights. We suggest that future research should prioritize those topics that are very important from the practice and still un- or under-researched in the CBMI field (i.e. organizational culture and structure as moderators of the CBMI change process, sustainability strategy as an antecedent of CBMI and top management role as key elements of the CBMI process) and to those identified as important though under-researched (i.e. organizational change management as a key element of the CBMI process; organizational inertia, ambidexterity and CBMI uncertainties as moderators of the CBMI process; and systemic change as an effect of the CBMI). The literature on Sustainable BMI is integrated to propose contributions to the identified gaps. This research contributes by framing and assessing the field of CBMI, proposing a future research agenda, providing a detailed literature state-of-research assessment and by further integrating CBMI with the conventional BMI field.

A Business Model Innovation Methodology for Established Organizations: Systematic Theory Validation

The goal of this paper is to validate a business model methodology in practice. The goal of the business model methodology is to generate new business models with disruptive potential by overcoming the blindness of organizations mindset. In total nine focus group workshops in automotive, home appliances and high-tech industry with defined tool set and methods are processed. By conducting the workshops in practice several methods of the theory could be validated and points of improvement identified.Among other findings, the applied methods of the new business model methodology are successful in identifying relevant levers for disruption. Even several starting points for new disruptive business models are found.In addition, the workshop participants’ feedback implicate that in contrast to other studies aligning the process of overcoming the organizational mindset within the business model innovation process, is more effective than implementing a prepending phase to it.In summary, the present research aims at contributing to the research gap within science regarding the consideration of organizational mindset within business model innovation. Conclusively, it becomes obvious that, while this research delivers a methodology, which serves as an indication on how to close the research gap of acknowledging organizational mindset within the beginning of the innovation process, further significant research gaps remain to be investigated. Thus, two research gaps are identified. First, the later stages of the business model innovation need further investigation. Secondly, the challenge of organizational mindset in the later steps have also not received sufficient scientific interest as yet.

Business models in process industries: Emerging trends and future research

This article reviews the literature on business models in process industries. The review reveals that the business model concept has gained an increasing amount of attention in process-industrial research, but it also shows that the literature exhibits a lack of construct clarity and that it is developing in different domains, depending on the perspectives scholars have taken to study business models in process industries. Specifically, while innovation management scholars have explored the relationship between technological innovations and business models as well as the process and outcomes of business model innovation, scholars from the domain of production management have focused on value chain (re)configurations and taken a system-based perspective to consider boundary-spanning exchanges with key stakeholders in the design of business models. However, despite variance in the perspectives, the review further shows that works in these divergent domains point to a family of emerging themes and to common ideas that have not been explored together. This allows us to identify the particularities of business models in process industries and develop a definition of process-industrial business models, which extends prior business model literature into the process industry context. Furthermore, we synthesize these connections to develop an agenda for future, cross-disciplinary research on business models in process industries that assists cumulative theorizing and subsequent empirical progress.

The Business Model Innovation of Agtech Startups

Indonesian startup founders show increasing enthusiasm for agriculture and fisheries. However, globally startup success rate is only 5%. On top of that, many Agtech startups fail to create a sustainable business modeland, many of them face the business model challenges. Thus, the researcher wants to study the business model innovation adopted by Agtech startups and capabilities needed to conduct the business model innovation. This study is conducted in qualitative research by a semi-structured interview method because the study aims to get in-depth information. The research is conducted to 6 Agtech startups, which represent six categories of Agtech startup. The founded data are analyzed with thematic analysis method, word frequency analysis and combined with a review of recent literature to give a deep insight. Addressing this problem will have a practical benefit for Agtech startup in Indonesia in conducting a business model innovation and helping to develop a better understand the business model innovation in Agtech startups. The research shows that value creation aspect which is people, asset, and partner focus on operation and marketing area . Agtech startup put their focus on their product, people, partner, pricing strategy and their way of getting customers. The business model innovation process heavily relies on people in their organization, partner, and customer. Thus, the capabilities needed for innovating is sensing opportunity from people, partner, and customer, seizing their stakeholder and improve continuously. Future study is recommended to explore deeply about the effect of each the business model innovation on the startup’s success with a quantitative study.

Organizational transition management of circular business model innovations

AbstractScholars and practitioners across fields increasingly recognize that business models for the circular economy may be an effective lever for solving ecological persistent problems such as climate change, biodiversity loss, and growing natural resource scarcity. Despite a growing interest in the potential of circular business models, interconnections between the organizational dimensions of firms and their business model innovation processes remain underexplored. Based on problem‐centered expert interviews with business consultants experienced in circular business development, this study creates a conceptual model that offers structured knowledge about why firms steadily reproduce linear BMs and how incumbents manifest themselves as a constant linear‐oriented value creation system. The model also demonstrates organizational conditions and management strategies that frustrate the reproduction of linear BMs and, thus, enable initial moves towards CBM innovation. Building on this, the article provides a set of propositions on how an organizational transition management may be configured and what incumbents require to successfully navigate circular business model innovation. The findings provide a foundation for a contemporary understanding of circular business model transition management, which simultaneously serve as impulses for future research investigations.

Unveiling the Experimentation Process of Business Model Innovation: A Sociomateriality Perspective

Innovative business models have been on the radar of strategic management scholars for their ability to lead to better competitiveness. Yet, the trial-and-error process leading firms to create new and innovative business models, referred to as the experimentation process, remains largely unknown in business model innovation (BMI) literature. To further advance BMI’s scholarship and to enable further theorizing on BMI performance, we suggest researchers should focus their efforts on unveiling the micro- processes and dynamics of the experimentation process over time. As such, we adopt a sociomateriality perspective to reveal how a new business model emerges in an established firm. We offer process-based narratives based on evidence collected at a multinational firm which operated architectural business model changes over the course of ten years. Our contribution to the BMI stream of research is twofold: First, we further expand knowledge on the discovery-driven experimentation process demonstrating the crucial role of agency – both human and material – in shaping a new business model. In doing so, we corroborate the driven by fate nature of the experimentation process as understood in current BMI literature. Second, we demonstrate the counter-intuitive notion that order naturally invites itself in the experimentation process, which we conceptualize as a dynamic conversation between the upper and the middle management levels. Our novel outlook thus invites business model researchers to evaluate established firms BMI’s performance through ordered sequences of dynamic conversations.

Business Model Innovation and Resource Reconfiguration in a Digitally Enabled World

One factor affecting business model innovation is the original template of what gets innovated. There isn’t much work on how it originates, and especially how new business models affect resource reconfiguration. This paper provides a process model of business model innovation. It centers on the sponsor-based business model through which firms monetize their offering through sponsors instead of setting prices to their customer base. We conduct an exploratory study of a business model innovation occurring in the GPS navigation industry. The results suggest eight distinct subprocesses that were grouped into three aggregated business model innovation processes enabled via resource re-configuration. This study contributes to the literature on strategic entrepreneurship by incorporating the ramifications of business model innovation into the theory on firms’ resource configuration and its underlying processes to enable strategic entrepreneurship.

Dominant Logic and Business Model Innovation: Resolving Cognitive Dissonance on the Component Level

Dominant logic is generally seen as a cognitive barrier in the different steps of business model innovation processes. This particularly applies to micro-firms, where the business owner espouses the dominant logic and at the same time plays a vital role in innovating and potentially changing it. We engaged in an action research with forty butcher’s shops’ owners to shed more light on the conflicts between dominant and emerging logics at every business model component (i.e. (1) value proposition, (2) value creation, (3) value network, (4) value delivery, and (5) value appropriation). Furthermore, these conflicts triggered a state of cognitive dissonance among dominant and emerging logics. To investigate how butcher’s shops’ owners restored equilibrium we subsequently conducted a multiple embedded case study, with four positive cases (i.e. innovative butchers), and four negative cases (i.e. non-innovative butchers). Positive cases resolved cognitive dissonance by embracing emerging logics through a set of consistent ideas supporting the emerging logic at all five business model components, assessing the limitation of the dominant logic at the value proposition, as well as on the value delivery levels. In contrast, negative cases resolved cognitive dissonance by adding elements sustaining the dominant logic at the value proposition, value creation, value delivery, and value capture levels, and by reducing the importance of factors supporting emerging logics at all five business model components. The present study contributes to the business model innovation literature, by pointing to the dual role of cognitive dissonance between dominant and emerging logics at the level of different business model components.

Overcoming hierarchy in business model innovation: an actor-oriented approach

PurposeBusiness model innovation is a key element for firms' competitiveness. Its development can be supported by the establishment of an actor-oriented scheme to overcome hierarchical structures. The actor-oriented scheme is characterized by intra-organizational networks of relationships that can be established and dissolved between individuals. However, we lack an empirical perspective about its establishment; therefore, the purpose of this research is to advance our understanding of intra-organizational networks for supporting business model innovation.Design/methodology/approachIndividuals create and manage knowledge aimed to innovate the business model through cognitive search and experiential learning mechanisms. Knowledge is spread within organizations by using intra-organizational advice networks, whose patterns reflect the presence of an actor-oriented scheme. This work applies social network analysis to network data from a multi-unit organization specializing in personal care services. We use a Logistic Regression-Quadratic Assignment Procedure to analyze intra-organizational network data on managers' advice exchange related to the learning modes of cognitive search and experiential learning.FindingsOur research empirically identifies the main elements of an actor-oriented scheme in a business model innovation process. We find that managers are able to self-organize, because they are not influenced by their organizational roles, and that commons for sharing resources and protocols, processes and infrastructures enable advice exchange, thus showing the presence of an actor-oriented scheme in business model innovation process.Research limitations/implicationsThis research is based on a cross-sectional database. A longitudinal study would provide a better understanding of the network evolution characterizing the innovation process.Practical implicationsThe results of our study support organizational decision-making for business model innovation.Originality/valueThis study provides empirical evidence of how an actor-oriented scheme emerges in a business model innovation process.

Addressing the design-implementation gap of sustainable business models by prototyping: A tool for planning and executing small-scale pilots

Next to the redesign of industrial products and processes, sustainable business model innovation is a strategic approach to integrate environmental and social concerns into the objectives and operations of organizations. One of the major challenges of this approach is that many promising business model ideas fail to reach the market, which is needed to achieve impact. In the literature, the issue is referred to as a “design-implementation gap.” This paper explores how that critical gap may be bridged. In doing so, we contribute to sustainable business model innovation theory and practice. We contribute to theory by connecting sustainable business model innovation with business experimentation and strategic design, two innovation approaches that leverage prototyping as a way to iteratively implement business ideas early on. Using a design science research methodology, we combine theoretical insights from these three literatures into a tool for setting up small-scale pilots of sustainable business models. We apply, evaluate, and improve our tool through a rigorous process by working with nine startups and one multinational company. As a result, we provide normative theory in terms of the sustainable business model innovation process, explaining that piloting a prototype forces organizations to simultaneously consider the desirability (i.e., what users want), feasibility (i.e., what is technically achievable), viability (i.e., what is financially possible), and sustainability (i.e., what is economically, socially and environmentally acceptable) of a new business model. Doing so early on is functional to bridge the design-implementation gap of sustainable business models. We contribute to practice with the tool itself, which organizations can use to translate sustainable business model ideas defined “on paper” into small-scale pilots as a first implementation step. We encourage future research building on the limitations of this exploratory study by working with a larger sample of companies through longitudinal case studies, to further explain how these pilots can be executed successfully.

Exploration of the initiation and process of business model innovation of successful Chinese ICT enterprises

Purpose This paper aims to investigate four successful Chinese ICT enterprises to determine what initiated their business-model innovations and the process they went through by exploring how they adapted and innovatively renewed four key elements of their business models. Design/methodology/approach This investigative and exploratory research adopted a multiple-case-study design exploring four purposively selected successful Chinese ICT enterprises which had all engaged in significant business model innovation since their inception. Data for the case studies were collected through in-depth interviews with the founders and analyses of the companies’ history to gain a detailed account of the evolution of the firms’ business models since their formation. Findings The research identified three key initiating factors to business model innovation in the firms studied, namely, constant and rapid product iteration, along with an emergent strategy, leading to business model innovations to take full advantage of the firms’ competitive advantages; a reaction to threats and environmental changes; and an opportunistic behaviour to extend the business model to new markets. The research found that networks were a key factor in the process, including the customer base, financial investors and network collaborators. Research limitations/implications This research is limited to four successful Chinese ICT firms; this in-depth approach means the information may have only limited transferability but provides depth on a burgeoning Chinese sector. Originality/value This research addresses the call for more research and a greater understanding of what initiates business model innovation and the process firms go through to develop the key elements of their business models by looking at a purposively selected sample of successful Chinese enterprises in a fast-moving and technologically driven market.

Business Model Innovation: Responding to Volatile Business Environment in the Indian Banking Industry

ABSTRACTAccording to the dynamic capabilities view, a volatile business environment requires organizations to constantly adjust to changes, and be dynamic with respect to the value they create for their customers, and capturing of that value. A research agenda requiring an understanding of the elements and process of business model innovation in response to increasing environmental volatility is required. The research through multiple case studies of Indian banks identifies the integrative nature of different elements of the business model and the business model redesign themes used by banks to counter volatility in the business environment.

Business model schema: business model innovation tool based on direct causal mechanisms of profit

ABSTRACTDefining business model as the logic/mode/way/framework to seek profit/money and glancing at the evolution of concept business, this paper develops a business model schema (BMS) as a holistic two-dimensions multi-level tool/method for business model innovation (BMI) based on the direct causal mechanisms of profit (DCMP). First, this paper takes DCMP as the logical/theoretical framework by which business model innovation process is identified and specified. And according to that process, it develops a BMS, illustrates an example of BMS to show up its practical usefulness, compares the similarities and differences between BMS and the existing powerful one business model canvas (BMC), and finally asserts that BMS must be a good and useful method in theory and practice because it stands on DCMP that ensures the genuine causality of profit and also it turns out practically useful, recalling the Kurt Lewin’s maxim (1945), “There is nothing so practical as a good theory.

Barriers to circular business model innovation: A multiple-case study

Abstract The concept of circular economy has been suggested as a possible avenue to sustainable development. The adoption of circular business models at a company level, which is a key element in the transition to a circular economy, has nevertheless been slow. The purpose of this article is to provide an overview of the barriers that hinder adoption of circular business models to facilitate circumvention of the barriers and a faster uptake. The article presents a multiple-case study of the circular business model innovation process in 12 Danish companies that includes a cross-case analysis across start-ups and incumbents and across different company sizes, industries and customer segments. The article furthermore compares the barriers derived from this empirical work to barriers found in the sustainable innovation literature. The research shows that barriers to circular business model innovation are found at all socio-technical levels and, overall, most barriers are encountered by companies at the organisational level, followed by the value chain level, the employee level and, finally, the market and institutional level. However, there are significant variation between the case companies regarding what barriers are encountered and how many in total. The cross-case analysis shows that factors other than company size, industry and customer segment affect what barriers are encountered. The comparison of empirically derived circular business model innovation barriers from the multiple-case study with barriers compiled from the broader literature on sustainable innovation shows a good correspondence between the two lists. The empirical study, nevertheless, identifies additional barriers not previously reported in the literature.