Business Model Theory Research Articles

Study on Intelligently Designed Business Innovation Service Models Driven by Big Data

Although conventional business models have been increasingly affected in front of the big data technology application, it has also brought new opportunities and challenges for enterprise development. In order to create a higher value, enterprises should keep pace with the times and actively develop business innovation service models. The greatest value brought by data is to help enterprises find potential business value. It can provide a broader user market and channels, avoid homogeneous competition, and realize the integration of upstream and downstream value chains. In addition, it abandons the extensive development under the traditional model and allows enterprises to return to real value services, which is also an irresistible trend of business model transformation. This paper studies and analyzes business innovation service models. First, the business model as required is presented, and the management system and risk evaluation method are introduced. Then, the construction of the business service model is discussed, and the typical big data technologies are reviewed. Next, according to the evaluation theory of business model, the index system of business innovation service model is explored, which can examine the development of business model objectively and comprehensively. Last, the operations of the business model under the big data are analyzed. The research on the business model in this paper can be provided with universality and has a certain practical value for the development of business innovation service.

Start-Ups as Adaptable Stable Systems Based on Synchronous Business Models

Business models have been a popular topic in research and practice for more than twenty years. During this time, frameworks for formulating business models have been developed, such as the business model canvas. Moreover, different business model frameworks have been proposed for different sectors. Yet, these frameworks have the fundamental shortcoming of not addressing directly and persistently the primary objective of start-ups: to survive in changing environments. The aim of the action research reported in this paper is to overcome that fundamental shortcoming. This is an important topic because the majority of start-ups do not survive. In this paper, first principles for survival in changing environments are related to business models. In particular, action research to reframe start-ups as adaptable stable systems based on synchronous business models is reported. The paper provides three principal contributions. The contribution to business model theory building is to relate survival first principles revealed through natural science research to business models. Reference to first principles highlight that survival depends on maintaining both external adaptability and internal stability through synchronization with changing environments. The second contribution is to business model practice through describing a simple business modeling method that is based on the scientific first principles. The third contribution is to provide an example that bridges the rigor–relevance gap between scientific research and business practice.

Sustainable digital transformation for ambidextrous digital firms: systematic literature review, meta-analysis and agenda for future research directions

The study examines sustainable digital transformation aspects, comprehensively unpack their nature and implications to digital marketing firms’ ambidexterity. Sustainable digital transformation building blocks are discussed in detail. It further identifies and delineates sustainable growth strategies for digital marketing firms in order to successfully transform digitally. Business Model Theory (BMT) has been used as the theory informing the current study and is based on the PRISMA methodology. Sustainable digital transformation is influenced by a variety of factors and as a process, it is triggered by digital disruption which forces digital firms to seek for value creation and structural changes. Systematic literature review period was from January 2012 to April 2022 (ten year time gap). A conceptual modelling framework has been developed for future research to test and validate its applicability and relevancy to similar studies to the current one. Future researchers are encouraged to consider alternative methodologies to examine sustainable digital transformation within a longitudinal research design.

Research on value co-creation elements in full-scene intelligent service

Compared with common intelligent service, full-scene intelligent service has its uniqueness in high integration, synergy, and technological spillover. However, the traditional service or business model theories cannot precisely elaborate its sociotechnical contextual nature and value creation logic. To fill this knowledge gap, we provide initial insights into the value co-creation logic in full-scene intelligent service by exploring the value co-creation elements using a data-driven text mining approach. We analyzed 171 business reports on the full-scene intelligent service by the topic modeling using the Latent Dirichlet Allocation (LDA). The findings reveal three main clusters: value proposition, participants, and connection platform. This study presents a theoretical framework for a further exploratory case study and quantitative research on full-scene intelligent service. This study also helps small and medium-sized enterprises to explore and exploit value co-creation opportunities.

Designing Sustainable Business Models

Sustainable Business Modelling is an emerging field of research and has started finding cross-linkages in the literature of sustainable economic development. The idea of building sustainability at the core of a business model is fast becoming a necessity instead of a uniqueness. Although the concept of sustainability is still abstract and evolving, however, when sustainability is coupled with business, the desired outcome is the realization of the triple bottom line. This paper is an attempt to validate the theory of Sustainable Business Models through case study analysis. The paper's tone is explanatory and explores the phenomenon of sustainability in business models through the lens of the tourism industry.

Sector coupling and business models towards sustainability: The case of the hydrogen vehicle industry

The concept of sector coupling has been gaining increased momentum in political discourses during the past few years but it has only recently received the attention of international academics. The private sector is particularly relevant to foster sector coupling through entrepreneurial action – specifically, innovative business models for more sustainable technologies are needed to promote a transition towards more sustainability. So far, however, the literature on business models from a sector coupling perspective is scarce yet strongly emerging. To address the identified research gaps and enhance the current knowledge on the emerging hydrogen vehicle industry and sector coupling, this study adopts a qualitative and exploratory research approach and builds on information gained in 103 semi-structured interviews to discuss emerging business models in Germany. In particular, 33 business cases have been analyzed. Anchoring business model theory to the concept of sector coupling, this study identifies 12 business model archetypes in the emerging hydrogen vehicle industry and its value chain. It can be shown that, while the market is still emerging and the market players are not defined and are evolving, companies are currently engaged in finding their position along the value chain, fostering vertical integration, and promoting cooperation between the different sectors. While this study is relevant for both the academia and the industry, it is particularly interesting for policy makers shaping the future of sustainable development, specifically considering integrated energy systems.

Building and changing business models: a qualitative study among Dutch physiotherapy primary healthcare organisations.

To gain insights into what business model-building and model-changing aspects make physiotherapy primary healthcare organisations (PTPHOs) attain and sustain superior performance in a changing environment, according to their managers. Since 2006, the transition towards managed competition in the Dutch healthcare market has been intended to improve the performance of primary healthcare organisations like PTPHOs. In such a market, competition on efficiency with reimbursement system has been introduced. Consequently, performance entails achieving and sustaining quality, efficiency, and financial outcomes. Superior performance requires that PTPHOs continuously align their external environment and internal organisation. The business model literature suggests that business model-building and model-changing support this alignment process. This qualitative study had an explorative design. A pre-defined interview guide based on business model theory was applied. Semi-structured interviews were conducted with physiotherapy primary healthcare organisation managers and transcribed verbally. The transcripts were analysed using directed content analysis. The study results show, both verbally and graphically, that PTPHOs generate superior performance in a changing environment through business model-building and model-changing. Participating managers (n = 25) confirmed extant findings that business model-building consists of strategy and business model configuration. In addition, business model-building entails establishing interfaces to exploit external environment and internal organisation information. Also, these interfaces are evaluative techniques and tools, action, and process - make sense of knowledge and information. To sustain superior performance, it is essential to change the business model. This can be achieved through three change cycles: business model change, short-term change, and long-term change. Managers of both superior and lower performance organisations independently stress the importance of the same business model-building and model-changing aspects related to attainment and sustainment of superior performance. However, superior performance PTPHOs address building and changing business models in a more diversified and integrated way than their lower performance counterparts.

Research of the Influence of the Innovations of the Business Models on the Economic Results of the Enterprises

An expanding amount of research and a growing number of scientific publications are devoted to the problems of business model innovations, given their increased theoretical and practical significance. However, this concept is not well developed. There are very few publications in Bulgaria dedicated to the theory of business models and in particular to their innovation. A study of the processes of innovation of business models in Bulgarian enterprises, including their activity and the actual results achieved by their implementation, has not yet been made. In view of this, the purpose of this article is to briefly present the results of a study of the effects of business model innovation, conducted in a sample of Bulgarian enterprises, as well as to clarify their impact on the economic results of enterprises. The results of the empirical study demonstrate the impact of the innovation capacity of enterprises on the level of economic results achieved through these innovations. The main hypotheses of the study are: 1. Firms that innovate their business models achieve higher economic results than the average level of results for the respective industries. 2. The positive impact of business model innovations on the economic results of enterprises is stronger than the impact of individual innovations of another kind. 3. The economic results of the conducted innovations of the business models are higher in the industries with high innovation capacity than in the industries with low capacity. 4. The economic results of the conducted innovations of the business models are higher in the big enterprises than in the small and medium enterprises with lower innovation capacity. The authors hope that this article would provoke a discussion on these and other similar issues related to this topic. The results would assist future research as well as business leaders in making management decisions in developing strategies. The paper is organized as follows: Section 1 is a introduction and a overview of relevant literature, Section 2 explains the methodology, Section 3 presents the results of the empirical study and a discussion of the results and Section 4 contains the conclusion.

Business Model Enriched With User Experience, as a Systemic Tool in Service Design

Service design and business model design are considered in the literature as separate approaches to value creation for the customer. User experience, as a concept that represents a holistic emotional and meaningful result of the interaction with information technologies, is nowadays an important ingredient of the customer value. This paper aims to theoretically set the ground for using the business model concept as a systemic tool in service design that will support the design for user experience. Against this background, we ask: Can the business model concept successfully represent a system that is required for the value proposition-based service exchange? We investigate this question based on service-dominant logic and accompanying service science, and semantically compare elements of the service system, service ecosystem, and ten service science basic concepts. The analysis shows that the business model canvas, the chosen model for business model representation, satisfies the systemic perspective and can erve as a system platform for integrating with service design.

Business model innovation themes of emerging market enterprises: Evidence in China

Business model innovation (BMI) is an important carrier for the rapid growth of emerging market enterprises. Yet, the role of the institutional context in BMI themes has seemingly received little attention in the literature. This study aims to conceptualise the BMI themes by integrating the business model theory with institutional attributes of BMI. Drawing on the literature, we propose two BMI themes – pioneering and perfecting, where pioneering BMI creates new market rules and perfecting BMI improves existing transaction rules. Following three sequential studies, we developed and empirically validated the scales of the two themes using two separate primary datasets collected in China. The results suggest that both transactional innovation and legitimacy building are critical to BMI in the emerging market. We contribute to the BMI theory by incorporating institutional attributes to the BMI themes, which allows a better understanding of the BMI activities of emerging market enterprises.

Business model theory-based prediction of digital technology use: An empirical assessment

Firms invest heavily in their future use of digital technology to create and appropriate value and thereby survive and prosper. Such decisions regarding the future are part of a firm's foresight, which is a core element of a firm's dynamic capabilities. The contemporary toolbox for generating foresight is dominated by procedural methods, thus ignoring theory-based predictions of the future uses of digital technology. This paper presents the first empirical assessment of business model theory's ability to predict the future uses of digital technology by a given firm. Predictions for a specific niche of hemophilia firms are investigated. Outcomes related to these predictions are then observed. The results show the power of business model theory for deriving such predictions, implying that the managerial toolbox for foresight generation should be extended to include this theory. This study also provides several directions for further development of business model theory to increase its ability to account for value creation and appropriation from the use of digital technology.

Digital Government: Business Model Development for Public Value Creation - A Dynamic Capabilities Based Framework

Rapid advances and the spread of digital technologies have changed the expectations of citizens, firms and organizations towards government services, which increasingly receive the call to transform services and structures according to changed needs and preferences. The concept of business model development provides a suitable approach for public institutions aiming at adjusting their services and operations. Since government institutions increasingly develop new services and products, this study provides a theoretic foundation to operational readiness as well as a guideline how to set up digital business models in a public sector context. Therefore, a framework is derived from conceptual studies in the field as well as related theoretical concepts such as business model theory in the public sector context, dynamic capacities and public value creation. Building on this foundation this study conceptualizes a process of business model development to create user oriented digital services in the public sector.

Research on the Impact of Network Embeddedness on the Growth of Scientific and Technological Enterprises: The Chain Mediating Effect of Organizational Legitimacy and Business Model Innovation

Network embeddedness, which determines the various resources obtained by the sci-tech enterprise and ultimately affects its growth status, is the stable connection formed in the enterprise due to its previous ties and interactions. This paper introduces organizational legitimacy and business model innovation as causal dual mediating variables, constructs the chain mediating conceptual model of “network embeddedness–organizational legitimacy– business model innovation–enterprise growth”, and presents the research hypothesis accordingly.We conduct the research in the form of questionnaire and select the scale widely used in the Chinese context. In order to ensure the rationality of the questionnaire, we carry out a small sample prediction test for managers of scientific and technological enterprises as well as university experts, in which the questionnaire is modified according to their feedback results. Following this, we commission a professional research company to collect 371 valid questionnaires. The conclusions are carried out through exploratory factor analysis, correlation analysis, hierarchy regression analysis and Sobel model.The research shows that: First, both relational embeddedness and structural embeddedness promote the growth of scientific and technological enterprises. Second, organizational legitimacy and business model innovation play a mediating role in the relationship between network embeddedness and the growth of scientific and technological enterprises respectively, in which the mediator effect of organizational legitimacy is more significant. Third, organizational legitimacy and business model innovation play a chain mediating role in the relationship between relational embeddedness and growth of scientific and technological enterprises. Fourth, the improvement of organizational legitimacy promotes the influence of relational embeddedness and business model innovation on the growth of scientific and technological enterprises. Therefore, this paper verifies the chain mediating role of organizational legitimacy and business model innovation, clarifies the influence mechanism of network embeddedness on the growth of scientific and technological enterprises, enriches the research content in the field of network embeddedness and firm growth, and expands the applicable scope of the iceberg theory of business model.The main contributions of this research are as follows: First, it analyzes the influence mechanism of network embeddedness on the growth of scientific and technological enterprises, confirms that network embeddedness, organizational legitimacy and business model innovation are important antecedent variables in the field of enterprise growth, and further enriches the related studies of network embeddedness and enterprise growth theory. Second, it introduces organizational legitimacy and business model innovation as causal dual mediating variables, analyzes the chain mediating role of organizational legitimacy and business model innovation, as well as explores the moderating role of organizational legitimacy. These results expand the research on the influence mechanism of network embeddedness on enterprise growth, and provide a novel perspective to explain the divergence in previous research. Third, it takes Chinese local scientific and technological enterprises as the research samples, and explores the antecedents and after-effects of business model innovation from an empirical perspective, which further develops the research content of the iceberg theory of business model and establishes a foundation for the follow-up research.

Workshop methodology design: Innovation-oriented participatory processes for sustainability

Workshop methodologies based on overarching knowledge structures are necessary for a shift of the tourism sector towards sustainability. We adopted a participatory action research approach and designed a workshop methodology based on the main tenets and tools of the theory of change, design thinking, and sustainable business models. We tested this methodology within a project initiated by a destination management organisation to promote innovation during the covid-19 crisis and used the results to identify improvements and recommendations for future applications. Although further tests are needed, the study proved that the developed methodology has great potential for promoting the systemic change, creativity, collaboration, empathy, and empowerment that are necessary for a sustainability shift.

How machine learning activates data network effects in business models: Theory advancement through an industrial case of promoting ecological sustainability

A firm’s business model accounts for direct and indirect network effects, where the network size is a key enabler of value creation and appropriation. Additional conception of a business network’s contribution is provided by a recent advancement of the theory of data network effects, where machine learning is used to analyze large data sets to learn, predict, and improve. The more learning there is, the more value is generated, producing ever more data and learning and creating a virtuous circle. For the first time, this study combines the theory of data network effects with business model theory. The contribution lies in extending a business model’s lock-in effects through direct and indirect network effects to encompass data network effects. This paper provides a case study that supports the theoretical advancement and illustrates how this form of machine learning can increase profitability while reducing negative ecological impacts in an industrial context.

Design of the Internet plus Drug Circulation Business Model Based on Value Chain.

With the continuous development of computers and the Internet, all industries in China have brought new opportunities for change, and pharmaceutical e-commerce has also shown great potential for development. With the call and encouragement of national policies, the “Internet + drug distribution” business model has shown great potential to replace the traditional drug distribution model in the near future due to its advantages of shortening the transaction process and reducing the cost of enterprises. This paper presents a literature review on theories related to “Internet + drug distribution,” value chain and business model at home and abroad, and focuses on how traditional drug distribution enterprises should adopt the “Internet + drug distribution” model when the country is vigorously promoting it. The study focuses on how traditional pharmaceutical distribution companies should innovate their business models from the perspective of value chain to seek better development. By comparing the business models before and after the innovation, the new business model of “Internet + drug distribution” can help enterprises establish diversified value propositions, increase revenue channels, and reduce operating costs. At the same time, it can integrate and innovate the internal and external value chains of enterprises, so that traditional pharmaceutical distribution enterprises can further enhance their competitiveness and expand their market share. This thesis can enrich the application of value chain and business model theories in the field of “Internet + drug distribution,” and it is hoped that the model experience developed in this thesis can be used as a reference for similar enterprises in their transformation process.

Crafting business models for conflicting goals: Lessons from creative service firms

The business model construct has become attractive to both managers and academics. It reflects how the most important organization's strategic and tactical choices regarding the allocation of resources interact in order to create and capture value. Yet with the growing entrepreneurial complexity, managers often end up pursuing conflicting and even paradoxical strategic goals, thus rendering the business modelling processes more complex, too. Well-known examples are profit versus social value, stakeholder versus company interests, exploration versus exploitation and environmental sustainability versus economic returns. The academic business model literature so far has provided limited insights on how to implement business models beyond a single goal and focused mainly on the initial strategic choice of a business model, ignoring that such salient tensions are often persistent and resurface within the business practice. In this study we leverage paradox theory to investigate how managers of creative firms make tactical choices to accommodate (not solve) salient tensions within their business models, focusing on the domains like services provided, choice of clients, networking and resourcing practices, revenue models and new venture creation. Based on qualitative case study research, we found four integrating and three differentiating decision-making tactics that managers deploy to create both economic and creative value through their business models. Adding to the business model theory, we show how business models are crafted in managerial practices by making tactical decisions to solve conflicts and paradoxes. The results equally enrich the paradox literature by providing for tactical-level approaches toward working through the paradox.

Using Business Models beyond Business

Business models describe the way organizations create and deliver value necessary for their existence. In the mid-1990s, they arose as a buzzword relating to the development of “dot-com” firms and their hunt for capital. The theory and application of business models have focused on business.Consequently, the definitions and archetypes of business models proposed in the extant literature have addressed profit-making organizations. This paper argues that business models are equally useful in the establishment, evolution, and analysis of non-profit organizations. Moreover, there is a real need for these models, as non-profit organizations are part of the national and international economic governance. Thus, the paper reframes business models through a non-entrepreneurial lens and proposes a new archetype with generalized applicability to all organizations, whether for-profit, non-profit, public, or private. A “hybrid” archetype is developed, synthesizing existing business model archetypes while extending their reach to better embrace the overarching core logic of organizations, reflecting the political mandate of not-for-profit entities and the business remit of firms. The validity of the proffered archetype is tested on two international not-for-profit organizations and serves well as a conceptual map of their decision-making and policy-making activity. Furthermore, the testing process demonstrates that business models, when devised externally and retrospectively, can be equally well used in hindsight as organizational analysis tools, possibly conjointly with other methods.

Research on the innovation and path of the business model of live marketing

Aim: In the era of mobile internet, live marketing has become a new business model for network marketing, and is a product of the interactive integration of new technology and marketing activities in the new era.Method: Based on the business model theory, combining the value creation process, using live streaming platforms such as Taobao, Tiktok, Jingdong and Amazon as examples, and adopting a qualitative analysis method, the business model elements and innovation paths of live marketing are analyzed.Findings: The research found that: (1) The live marketing model has new integrated features and new values. The combination of technical system integration and marketing activities is a hotbed for live marketing;(2) Based on the anchors influence and audiences attractiveness as the classification criteria, live broadcast sellers can be divided into super sellers, famous sellers, ordinary sellers and low-level sellers. It is a new classification proposed for the first time, which provides important evaluation contributions for understanding and distinguishing the different categories of live broadcast sellers; (3) Based on the business model canvas, this article finds that the business model innovation of live marketing illustrates the nine elements logical relationship of the business model, value proposition is the key-hub linking other elements. The business model innovation of live marketing also follows the basic laws of value creation, that is, from value proposition to value creation to value transmission, and finally to value acquisition;(4) The business model innovation path of live marketing is also the path of value rebuilding, which increasing value is the essence of the sustainable development of business model innovation.Implications/Novel Contribution: Therefore, these new findings can help non-live broadcast marketers transform their marketing concepts and methods, and improve their sales capabilities. The analysis of the business model innovation and value creation of live marketing reveals the essence of live marketing, and the mechanism of value co-creation between sellers and customers, which this research also creatively proposes its innovation model and value creation process from the perspective of the relationship between business model and value creation. Finally, the article is not in-depth study of its relationship business model innovation and value creation from the perspective of explicit knowledge and tacit knowledge.

Research on the Business Model of Multi-station Integration of Grid Enterprises

In the context of national strategies such as the energy revolution, “Internet +” and innovation drive, the transformation of traditional energy-based enterprises to integrated energy service providers has become a general trend. Multi-site integration is an important field of integrated energy services. This article takes the business model theory as From the perspective, based on the interpretation of the basic connotation and business model theory of multi-site integration, starting from the four-element model of the business-level business model, the four aspects of business layout and scope, value proposition, target customers, and profit model are the power grid under the energy Internet environment. Provide suggestions on the design of multi-site integrated business model for enterprises.