Business Value Creation Research Articles

Competing Business Models, Value Creation and Appropriation in English Football

This article integrates the business model concept with an understanding of industry recipes to show how competing business models can co-exist in a competitive market. Drawing on data from the English Premier League, we show that alternative models – based on the acquisition of talent on one dimension and the internal development of shared team experience on the other – lead to differing value creation and value capture outcomes. Drawing on the time series nature of our data, we also show that transitioning between business models can involve a decline in performance (which may be temporary), and draw some implications for managers faced with the challenge of changing their business models.

Mobile Devices in the Enterprise: CTO Roundtable Overview

The CTO Roundtable on Mobile Devices in the Enterprise focuses on the implications of the widespread use of mobile devices, such as smartphones, in the enterprise computing environment. These new personal devices have presented great challenges and opportunities for the protection of valuable information assets and creation of business value. What follows are the key points from that broader conversation.

Understanding IT Business Value Creation and Evaluation in Least Developed Economies

AbstractInformation Technology (IT) is an important resource that can facilitate growth and development in both the developed and developing economies. The forces of globalisation increase the digital divide between the developed and developing economies is increasing. The least developed economies (LDEs) are the most vulnerable within this environment. Intense competition for IT resources means that LDEs need a deeper understanding of how to source and evaluate their IT‐related efforts. This effort puts LDEs in a better position to source funding from various stakeholders and promote localized investment in IT. This study presents a complementary approach to securing better IT‐related business value in organizations in the LDEs. It further evaluates how IT and the complementaries need to managed within the LDEs. Analysis of data collected from five LDEs show that organizations that invest in IT and related complementaries are able to better their business processes. The data also suggest that improved business processes lead to overall business processes improvements. The above is only possible if organizations adopt IT and make related changes in the complementary resources within the established culture and localizing the required changes.

CREATING CONDITIONS FOR CONTEMPORARY ENTERPRISE VALUE

Under consideration is the process of creating business value for shareholders and other stakeholders. This process is not clearly determined. It should be at least an adaptation to the environment or situation ahead of the expected changes. The contents were identified to develop basic conditions which create dilemmas in the management of enterprise value. Enterprise value for its shareholders and other stakeholders is considered a new paradigm of governance.

Managing and Delivering Information Technology Value

Investment Information Technology (IT) has always been a primary objective of the business which is expected to provide value to businesses through its role as a competitive advantage and the creation of innovation. However, it is ot easy to measure how much value is successfully created, or determine whether the IT strategy is aligned with business strategy, or find out if the IT organization has a strategy that focuses on creating business value. Innovation Value of Institute (IVI) introduces a new concept known as the IT Capability Maturity Framework (IT-CMF) which can help IT organizations to align the business vision with the IT vision so that IT strategy could focus on value creation . the IT-CMF implementation which begins with the assessment of the maturity of IT organization can provide an overall picture, so that organization can prioritize the development of appropriate IT investments to support the value creation for the overall business.

Construmex: housing investments for Mexican migrants and their families

PurposeThe purpose of this paper is to explore the challenges and implications related to the integration of low‐income customers into the strategy of CEMEX, one of the world's largest building materials companies.Design/methodology/approachA case study with data from interviews of a wide variety of stakeholders as well as observation and review of company documents.FindingsConstrumex was launched following CEMEX's experience with Patrimonio Hoy, a socially minded business targeted at low‐income families. Since its inception in 2001, Construmex helped more than 14,000 Mexican migrants in the USA improve, build or buy a house for themselves or their families in Mexico. Through a comprehensive value proposition, Construmex provided access to remote sales, micro‐credit and professional design and planning assistance.Practical implicationsAmong early barriers was an initial overconfident approach from the company, as well as a low level of trust from potential clients. The program's success was possible through the establishment of key partnerships. By playing an intermediary role between migrants and their beneficiaries in Mexico, Construmex helped to increase the resource efficiency and effectiveness of housing investments. Migrants gained control of the destination of their money and saved time and resources. Among unsolved challenges was the need to reach a larger scale and financial sustainability. Opportunities to strengthen impacts were related to improved engagement of salespersons, local distributors and beneficiaries.Originality/valueThe case provides insights on how a low‐income market can be integrated to the business strategy of a large company resulting in the creation of social and business value.

The Business Value of Interactivity Managing Customers in the Electronic Marketplace

By offering interactive e-commerce applications and services, and thereby actively engaging consumers in the communication process, businesses increasingly are emphasizing solid and sustainable relationships that may help them achieve competitive advantages in the electronic marketplace (Porter, 2001). As a result, one might expect a rich literature and ample empirical insights into the important issue of interactivity management in the e-commerce domain. However, my own review of this literature concludes that a clear picture of the relationship between interactivity and its impact on the business value of an organization has not emerged from previous studies. Although creating business value from interacting with customers in the electronic marketplace is far from being a new academic proposition (Amit & Zott, 2001; Armstrong & Hagel, 1996; Zeithaml, 1988), the concept warrants closer study from the perspective of e-commerce management (Jiang, Chan, & Tan, 2010; Yadav & Varadarajan, 2005a, b) in an attempt to reconcile limited and contradictory findings resulting from a variety of deficiencies. These include: inconsistent conceptual definitions of interactivity, different units and levels of analysis (i.e., the question of identifying a locus of interactivity; does it reside in the infrastructure, distribution and/or end-user technology, the communication structures and processes, and/or in the perceived consumer control over the media and communication process?), and a largely incoherent base of theory for examining relations and interdependencies between the abovementioned factors.

Measuring performance of social network-based virtual community: a balanced scorecard approach

The objectives of this research are to propose a general framework and to illustrate development process of a balanced scorecard (BSC) performance management system for a non-profit seeking social network-based virtual community. Examples are used to derive a coherent set of strategies, objectives and measures to support the mission of the selected virtual community. The proposed framework augments the traditional social network performance measures by measuring performance from four different perspectives (customer, internal business process, value creation and learning and growth) for a more comprehensive view of the virtual community and by including means for continuous improvement. The proposed BSC performance management system allows the management to track the progress with selected measures, to monitor and articulate the value of the community delivers, to assess the performance of the network and to suggest improvements.

Web 2.0 business models and value creation

The focus of this study is to propose new internet business models using Web 2.0 applications. Based on the analysis of existing research and industry reports, we classify five basic business models: crowdsourcing, social networking, mashup, product customisation, and open market. These Web 2.0 business models can help create value by increasing efficiency in a company’s value chain, delivering new customer value, and expanding the market base. This research provides a good foundation for developing new conceptual and empirical research in this area of IT research.

Impacts of organizational assimilation of e-government systems on business value creation: A structuration theory approach

Governments worldwide are eagerly anticipating a digital future with the proliferation of information system applications, but assimilation of such enterprises could be a potentially formidable challenge. Assimilation of e-government systems by organizations is important for business value creation. Despite significant investments in e-government systems, the extent to which organizations have been able to assimilate and leverage these systems varies widely. We develop a theoretical model grounded upon structuration theory and the literature on organizational information systems assimilation to investigate the impact of organizational assimilation of e-government systems on business value creation by conceptualizing the notions of IS in organizations. Based on our model, we argue that the organizational meta-structures of signification, domination, and legitimization determine aspects of organizational e-government systems assimilation behavior that may affect its value creation potential. We experimentally validate our model using a total of 367 surveys collected from public organizations currently utilizing an e-governmental system. Our results largely support the proposed model and shed new light on the factors associated with organizational assimilation of e-government systems. Finally, we isolate the organizational, technological, and inter-organizational factors that shape the meta-structures for the assimilation of e-government system. Our findings indicate that assimilation of e-government systems has a substantial impact on business value creation. We conclude by discussing the theoretical and practical implications of our findings.

An empirical research of the effect of internet-based innovation on business value

In recent years, much debate about the value of information technology (IT) in general and e-business in particular and has been raised. Aiming to contribute to the investigation of whether and how Internet/WWW technologies create business value, this paper develops a conceptual model, grounded on a well established theoretical foundation from the strategic management domain, the resource-based view (RBV) of the firm, which analyzes web infrastructure and internet-based innovation as sources of business value. The methodology involved a large data source collected by the European e-Business Market Watch, an established e-business observatory organization sponsored by the European Commission. Results show that web infrastructure is not significantly related to business value, while on the contrary Internet-based innovation has a positive significant impact on business value. In addition, results show no significant complementarities between web infrastructure and internet-based innovation. These findings indicate that firms should be very careful when they decide to make this kind of investments, since they have to combine ‘hard’ investments in web infrastructure with ‘soft’ investments for the development of new products, services and processes exploiting the capabilities of this infrastructure. Key words: e-Business, information technology, resource-based theory, Internet, innovation, business value.

Organisational learning and value creation in business markets

Purpose – This paper has three objectives: first, to analyse the effects of organisational learning on customer value creation capability; second, to develop a better understanding of how organisational learning influences business performance; and third, to examine the moderating role that market turbulence plays in the learning‐value connection.Design/methodology/approach – According to the objectives of the research, and from an extensive review of the literature, the paper develops and tests a conceptual model on a sample of 181 Spanish manufacturing companies by means of a structural equation system.Findings – It is demonstrated that the manufacturer's organisational learning is a direct and positive antecedent of customer value creation capability, understood from a functionalist perspective. It is also confirmed that this organisational learning directly enhances the manufacturer's business performance. In contrast, the paper cannot confirm that the learning‐value connection is stronger when there ...

The Theft of Business Innovation: Overview

The joint ACM-BCS Roundtable on Threats to Global Competitiveness focuses on the new business security realities resulting from having practically all business information directly or indirectly connected to the Internet and the increased speed and volume of information movement. This new environment has enabled an entirely new dimension in what has been considered important business value-creation assets and in the criminal ways that information can be stolen or used to harm its owner. What follows are the key points from that broader conversation.

Value Creation in Electronic Business through Information Technology Competence, Novelty and Complementarities: A Theoretical Framework and Empirical Evidence

Although much of information systems research has been devoted to the study of electronic business phenomena, including the antecedents of electronic business performance, and the impact of electronic business technologies, not much research has examined the role of patenting information technology in value creation in electronic business. This is an important piece of the e-business phenomena because novel Internet business methods have been patented by several firms and serve as vehicles for value creation. In this paper, identifying patenting novel business methods or business processes as an important mechanism for value creation, I examine the determinants of the firm propensity to patent business processes or methods and the moderating role of such patenting on the impact of electronic integration and information sharing on revenues from e-business transactions. Using a secondary dataset of large firms from the US, and patent application data from USPTO, I analyzed the information technology research and development process and tested the impact of information technology patents on electronic business firm performance. I test two models for estimating the relationship between electronic integration, information sharing and patenting. The results indicate support for the moderating role of patenting on the effect of electronic integration with customers, on e-Business performance and strong support for the impact of information technology intensity on the firm propensity to patent. Specifically, investment in IT R&D did not have any effect on the firm's number of IT patents. However, the use of knowledge management systems contributed positively to the firm's number of IT patents. Investment in hardware resources and software applications had a significant impact on the firm's IT patents. Furthermore, IT patents did not have any effect on firm performance, but investment in IT software applications had a significant positive effect on firm performance. These results provide insight into IT R&D, IT innovation, IT patents and firm performance and the role of patenting business methods and processes in generating value from transactions in electronic business.

A Conceptual Model of Value Creation at the Base of the Pyramid and in Electronic Business Firms: An Integration of Theoretical Perspectives

While electronic business has created unprecedented value for Internet firms and other industries, the sources of value creation have remained ambiguous. Since such sources of value creation and the action repertoires of these firms are essential to their survival, there is continued interest in this stream of research. Although value creation in electronic business has been studied by both strategy and IS researchers, empirical evidence for value creation through specific mechanisms is still lacking. For instance, how does IT contribute to value creation in electronic business environments through efficiency, novelty and complementarities? I build on prior research to examine two sources of value creation in electronic business – IT patents and IT-enabled coordination mechanisms. While prior research has indicated that IT patents enable firms to execute a variety of strategic actions, which can create value, theoretical justifications for the role of such novelty have been lacking. Similarly, while IT-enabled coordination has been studied to understand their role in business value creation, specific mechanisms in electronic business and their impact on efficiency gains need to be clarified. Finally, there is also a need to understand the role of IT patents in enabling complementarities with other innovative activity.I examine the role of IT enabled coordination mechanisms and IT patents through three frameworks from strategy namely Porter’s five forces framework, the resource-based view of the firm and the dynamic capabilities framework in providing competitive advantage for firms. Using the dynamic capabilities framework as the theory base, I then analyze the impact of IT enabled coordination mechanisms on the organizational processes in electronic business as well as the role of patenting business processes on the impact of organizational capabilities on electronic business performance. I then develop a theoretical framework and a set of propositions to investigate value creation in electronic business through the strategic use of Information Technology (IT). Furthermore, I integrate the dynamic capabilities perspectives with the coordination theory perspectives to integrate the micro-level views about coordination mechanisms with the macro-level views about capabilities. The investigation of these mechanisms suggests that the strategic use of IT can indeed create sustainable value in electronic business and that the dynamic capabilities framework can be a suitable theory base for investigating such impacts.

The Importance of Process Thinking in Business Intelligence

The growing field of Operational Business Intelligence (BI) has resulted in increasing interest in BI-supported Business Processes (BPs), including their management and ongoing improvement. This has led BI practitioners to consider another field–Business Process Management (BPM)–that is closely related to business performance management. However, current approaches to the BPM and operational BI integration have been limited and reduced to the problem of technical integration of BPM and BI systems. This paper argues that by adopting process- thinking in BI, further opportunities for business value creation could be discovered through systematic analysis of the non-technical aspects of BI and BPM integration, including strategy alignment, human-centered knowledge management, and ongoing improvement of BI supported processes. The authors propose a theoretical framework founded in the related research in BPM, BI, and Knowledge Management (KM) fields, describing the ways it has been used to guide ongoing empirical research in diverse case organizations across different industry sectors.

텔레프레즌스 도입 및 사용에 관한 탐색적 연구: 국내 중소기업의 무역활동 지원을 중심으로

텔레프레즌스가 무역업무지원을 위한 중요한 커뮤니케이션 도구로 인식되면서 해외에서 텔레프레즌스의 사용필요성이 증가하고 있다. 이러한 상황에서 본 연구에서는 무역지원기관과 전시컨벤션센터 그리고 중소기업의 실무담당자들이 텔레프레즌스의 일반적 내용, 도입필요성, 사용가능성, 비즈니스 가치, 도입 시에 예상되는 문제점에 대해 어떠한 인식을 가지고 있는 가를 분석할 수 있는 탐색적 연구를 수행하였다. 분석 결과 텔레프레즌스의 도입과 사용에 대한 필요성과 실현가능성 사이에는 분명한 차이점이 존재하였고 시스템간 호환성 부족, 사용편의성의 부족, 가격 책정의 어려움 등의 문제점이 발생할 것으로 예상되었다. 또한, 실무담당자들은 텔레프레즌스는 비즈니스 가치를 창출하는데도 긍정적인 영향을 미칠 것으로 인식하고 있었다. 텔레프레즌스의 핵심적인 성공요인들은 안정적인 네트워크 환경, 인지도와 접근성, 교육 및 홍보로 나타났다. 본 연구에서는 인식분석을 통해 텔레프레즌스를 구축하여 사용 하는데 중요한 요인들을 발견하였고 이에 기초하여 중소기업을 위한 텔레프레즌스의 구축방향을 제시한 것에 본 연구의 의의가 있다. As Telepresence has emerged as a key collaboration tool for supporting trade business, the need for using Telepresence has also been increased in the foreign countries. In this context, we has studied an exploratory research to analyze how staffs-in-charges of trade support authority, exhibition & convention center and SME(Small and Medium-Size Enterprise) perceive the general concept of Telepresence, the necessity, feasibility, business values and expected problems of Telepresence's adoption and use. The finding indicated that there seemed to be significant differences between the necessity and the feasibility of Telepresence adoption and use. In addition, they were anticipating some problems when building Telepresence. Major reasons are incompatibility between Telepresence systems, lack of usability and difficulties of fixing a rental fee. The results of the perception analysis also showed that Telepresence would positively influence on creating business value. The analysis revealed that the core factors of the successful adoption and use of Telepresence are stable network environment, awareness and accessability, and education and promotion. Through the perception analysis, I came up with the core factors to implement Telepresence successfully and use it properly. And the fact that I presented the guideline to build Telepresence for SME makes this study meaningful.

Value creation architecture and engineering

Purpose – The purpose of this paper is to develop a conceptual framework for a value creation business (VCB) model. It seeks to unlock two essential research questions: “what constitutes value”, and “how do firms create value for customers?” in the context of the firm‐customer dyad.Design/methodology/approach – The paper is conceptual and is premised on a review of the extant literature on value and value creation. It addresses the limitations pertaining to the dominance of the value‐in‐use perspective. It also addresses the call for a paradigm shift toward customer‐centric marketing and operant resource‐based dominant logic. Building on the review, the paper identifies essential components of value in value creation processes.Findings – The VCB model is developed by integrating three perspectives of value including creating value for customers, value‐in‐offering, and value‐in‐use, capturing a contingency approach to theory building. The model enlightens how value creation architecture (the strategic spac...

Responding to the crisis: redefining corporate value

PurposeThis submission aims to set out a new conception of value creation. In examining the impact of the downturn on notions of business success, and contemplating potential scenarios for new measures of corporate value, it is proposed to examine the implications for business in adapting to the new economy.Design/methodology/approachThe paper is based on Accenture's unrivalled access to business leaders around the world, both through work with leading multinational companies and a survey of over 800 global CEOs conducted on behalf of the United Nations Global Compact – the largest CEO study on sustainability to date.FindingsIn the wake of the financial crisis, significant implications are seen for conceptions of corporate value creation. In examining four potential scenarios for the development of the new economy, it was found that changing notions of business success will demand new capabilities for companies. New skills will be required in creating, measuring and communicating value, from the mechanics of performance management and complex negotiations with stakeholders, often utilising new technologies (such as social networking).Originality/valueThe paper, based on extensive conversations with an unprecedented set of leading global CEOs, posits a new conception of value creation for business in the new economy. By examining the forces shaping businesses' response to societal demands, there are set out some of the ways in which business could respond – and some of the capabilities that will be required to make the transition to a new era of sustainability.

Analyzing the Essence of Stakeholder Relationships: What do we Need in Addition to Power, Legitimacy, and Urgency?

This article contributes to the body of stakeholder literature by providing an in-depth analysis of the dynamics of stakeholder relationships as a part of change in value creation. The article presents an argument that the stakeholder salience model as a tool for analyzing stakeholder relationships is not sufficient for understanding business value creation. In the recent stakeholder literature, understanding business value creation has become an important theme. Through an analysis of an empirical case, the article shows how the three stakeholder relationship attributes, legitimacy, power and urgency help to reveal the definitive stakeholders and to capture dynamics of stakeholder relations. However, in the case of strategic change, where the value creation of a firm is in transition, a more profound understanding of stakeholder relationships is needed. As a result of our empirical analysis, six characteristics of stakeholder relationships were identified. To conclude, the question of who and what really counts should be replaced by the question of how value is created in stakeholder relationships.