Characteristics Of Business Models Research Articles

Persepsi Nilai dan Niat Pembelian pada Layanan Premium : Studi kepada para Gamers di Indonesia

This study focuses on the perceived value of premium games among users and its impact on usage and premium content purchase intentions. The research aims to explore how social value, quality, enjoyment, and economic value influence users’ willingness to continue using the service and purchase premium content. Using an online survey method through Google Forms with 150 respondents, the study found that the higher the level of enjoyment in the premium service, the lower the intention to purchase premium content, but it strengthens the intention to continue using the service. Other findings show that social value increases both premium usage and premium purchase intentions. Additionally, service quality has a positive correlation with usage intention, but does not affect premium purchases. Overall, the results of this study highlight the unique characteristics of the premium business model in enhancing user retention through high perceived value, although challenges remain in premium monetization.

The co-evolution of actor engagement and value co-creation on digital platforms

Increasingly, digital platforms connect suppliers, customers, and other ecosystem parties, facilitating the introduction of various Platform-as-a-Service (PaaS) offerings. This study examines the co-evolution of actor engagement (AE), reflecting actors’ dispositions to invest resources in interactions, and value co-creation (VCC), demonstrated through reciprocal resource integration. The focus is on PaaS initiatives in the asset management industry. Using a comparative case study approach, we analyze two fintech-generated PaaS offerings: a freemium model and a subscription-based model. Our findings reveal distinct pathways for platform development and scaling, driven by the interplay between AE and VCC. The freemium model fosters a “viral” community-building path, where early VCC serves as the engine for AE-VCC co-evolution. Conversely, the subscription model follows a “controlled” ecosystem-building path, with AE driving the process. We observe a gradual involvement of additional ecosystem partners, leading to upgraded solutions, expanded PaaS offerings, and platform upscaling. We identify key factors influencing these dynamics, including business model characteristics, actor roles, and feedback loops. Our study contributes to the literature on digital servitization and platform ecosystems by highlighting the importance of integrating AE and VCC practices to enhance platform utilization and scalability. We propose a framework and research propositions to guide future studies on PaaS development in complex, institutionalized industries. These insights also provide implications for managers aiming to implement effective PaaS strategies and foster innovation in the financial services sector.

Analysis and Prospects of Business Models in China's Emerging Catering Industry

Abstract: With the improvement of the national economic level and consumption upgrading, the catering industry plays an increasingly important role in daily life. It has become an important indicator to measure the social and economic development of a region and reflects the real situation of the living environment and investment environment of a region. The catering industry and the development of the times are closely related. the catering industry promotes the development of the times to a certain extent. Also, the progress of the times boosts the development of the catering industry, providing opportunities and challenges. This paper focuses on the development status and business model of the emerging catering industry and explores the characteristics of the relevant business model. Combined with the five-year financial statements of the emerging catering giant Haidilao Company, the company's business model is analyzed in depth to find out the factors affecting the company's financial situation. After that, this paper makes a scientific prediction for the future development of the company and puts forward reasonable suggestions.

International Expansion of Nigeria Banks: Constructing the Winning Business Model in Sierra Leone-A Case Study of Guaranty Trust Bank

The research study is aimed at examining the degree to which Business Model adopted impact corporate performance particularly in a low-income economy, identify the Business Model variables and suggest the best Business Model to operate in Sierra Leone. Exploratory research was conducted on Guaranty Trust Bank (SL) Ltd with findings compared and contrasted with that of notable competition, United Bank for Africa and Zenith Bank. The aim of the research was to facilitate understanding of the factors responsible for the successes recorded by the subsidiaries of Nigerian banks in one location and how these success factors could be replicated in other subsidiary locations. The research entailed gathering of qualitative data from the senior executives of these banks and quantitative data from the financial performances of the banks over a three-year period. The analyses of the qualitative and quantitative data were used to test the viability of the Business Models adopted by the sampled multinational banks based on identified features inherent in a viable Business Model. The study found that the competitive advantage of case study bank was due to the effectiveness of its Business Model in terms of alignment with the goals of the organization, reinforcement, virtuousness, and robustness. The study also revealed that the characteristics of an organization and inherent resources could be evaluated and assessed from the Business Model features and structured to deliver optimal results. The study demonstrated that a well-crafted Business Model is capable of providing a competitive advantage even in low-income economy and aid the replication of success in one location to another. The research findings provide practical implications to guide businesses in the designing of the most appropriate Business Model for optimal performance. The research study can help business leaders to develop a template for driving performances in their organizations, communicate performance actions and monitor performance objectives.

Circular economy business models as progressive business models: Evidence from circular start‐ups

AbstractThe transition towards the circular economy—viewed as a holistic solution to meet the sustainable development goals—requires the crucial engagement of the corporate sector, and thereby, radically new business models. Whilst academic literature abounds of tools classifying and categorising circular business models, comparatively little is known in terms of how exactly they look like in the corporate context. Drawing on case studies of small, British circular start‐ups, this article illustrates the characteristics of circular business models and their fit with progressive business models, which are conceptualised as serving nature, future generations, and society, while maintaining financial profitability. This article also highlights how circular business models contribute to competitive advantage and the distinctive challenges met in implementation. As a result, this research contributes to the scant academic literature exploring circular business models implementation, particularly within the context of start‐ups and SMEs.

Impact of initial business model on the growth trajectory of new technology-based firms: a path dependency perspective

AbstractOur study explores links between the initial business model design and the post-founding development of new technology-based firms (NTBFs) through a selection of recently established NTBFs across Sweden, Finland, and France (481 firms). The trajectory of these firms’ performance has been observed and analyzed over the span of five years. The study examines the long-term effects of NTBFs’ initial business model design on their development and the path dependency of these designs on future firm performance. Our results indicate that high-growth and stable NTBFs have distinct initial designs, implying that new firms’ founders and their business design decisions have important consequences for subsequent NTBF development. Specifically, our study examines how business model characteristics impact the growth trajectory of NTBFs by empirically differentiating between the foundational characteristics of high-growth and stable NTBFs. We find that maintaining stable activity is linked to a low level of uniqueness, less demanding business objectives, and a lack of risk while high-growth is related to a larger early access to resources. We propose an explanation using path dependency literature, arguing how early business model choices predetermine long-term growth paths. Our research also provides valuable insights for stakeholders in designing targeted strategies for sustainable development.

Exploring Characteristics of Regenerative Business Models through a Delphi-Inspired Approach

Amidst escalating environmental and social challenges, this study explores regenerative business models’ definition and characteristics. While sustainable models have made considerable strides in research, policy, and practice, the advent of regenerative business models offers a progressive leap forward. Regenerative business models aspire to contribute to ecological restoration and societal well-being. The regenerative business model concept is, however, still in its infancy and lacks a comprehensive definition. Our study aims to expand this knowledge, using a Delphi-inspired approach that builds on the knowledge of academic and business experts. Our approach includes three rounds of surveys: an open-ended survey, a survey for rating and ranking the earlier responses of all participants, and a final survey to select key characteristics. We investigate patterns and distinctions among regenerative, regenerative business, and regenerative business models, and analyze their positioning vis-a-vis circular and net-positive models. Findings underscore that organizations adopting regenerative business models focus on planetary health and societal well-being. They generate value across multiple stakeholder levels, including nature, societies, customers, suppliers, shareholders, and employees. Despite overlapping with circular and net-positive models, regenerative business models also emphasize interdependencies between humans and nature, and provide a more holistic approach, centered on restoration rather than mere mitigation.

Characterization of the key distinguishing features of a digital platform as a business model

The purpose of the study is to identify the most characteristic features of the business model of the digital platform and further compare them with the empirical experience gained in the analysis of the Yandex.Market company. The objectives of the study include determining the main characteristics of the digital platform as a business model, analyzing Yandex.Market, its core business, competitive advantages, and environment, as well as identifying the correspondence between the company's business model and previously established key features of the digital platform and analyzing the advantages that participants receive from interacting with the platform. The object of the study is the main factors of change and further business development under the influence of digital transformation. The subject of the study is the key features of the digital platform's business model in the Russian market, using the example of Yandex.Market. To achieve the goals of the research, theoretical methods such as literature analysis, studying interviews with business experts, synthesizing new knowledge based on them, conducting modeling, and empirical methods such as the method of expert assessments, experiment and observation of the company's activities. The importance of using digital technologies are now recognized by all participants in both the business and scientific community. This contributes to the emergence of a large number of studies devoted to this topic. So this work is aimed at identifying those features that are inherent in one of the most effective business models of our time, namely the digital platform. Considering the experience of Yandex.Market makes the work especially relevant for Russia. The scientific novelty of the work consists in identifying unique features inherent only in the business model of a digital platform using the example of one of the Russian platform companies. The work also examines in detail the experience of Yandex.Market and the key advantages that make the platform company one of the most successful in the Russian market.

Development of a methodology for the derivation of technical requirements for (cyber-) physical product-service systems in service-oriented business models

Digitalization and Industry 4.0 are catalysts for business model innovation, particularly in machinery and plant engineering. Service-oriented business models (Subscription, pay-per-use, …) have emerged as a promising avenue, fostering sustainable product-service systems (PSS) and nurturing enduring customer relationships. Unlike traditional transactional models, where customers make one-time purchases of products or services, subscription models involve regular payments for access to offerings over time or provide on-demand access to services or resources, often through cloud-based platforms. This offers significant advantages for vendors, allowing for predictable, recurring revenue streams and the ability to tailor offerings better, thus evolving customer needs. Simultaneously, customers benefit from increased flexibility, cost-effectiveness, and access to the latest solutions, creating a win-win scenario for both parties. The transition to "as-a-service" models significantly changes the prerequisites and requirements for the PSS and thus requires a comprehensive reassessment of its core requirements. While various approaches exist for designing PSS within the machine tool industry, none systematically delineates the specific design guidelines required to adapt effectively for service-oriented business models. This paper describes a methodology for the derivation of characteristics of service-oriented business models in the machine tool industry and their implications for the design of (cyber-) physical PSS.

KI-Geschäftsmodelle in der Produktion/AI business models in manufacturing – Characteristics of AI business models in manufacturing

Das technische Know-How zur Entwicklung und Implementierung eigener KI-Lösungen hat Einzug in Unternehmen der Produktionstechnik gefunden. Eine Herausforderung besteht jedoch fort: Es mangelt an erprobten Geschäftsmodellen, die jenen durch die KI-Applikation generierten Mehrwert an ihre Anbieter weitergeben. In diesem Zusammenhang ist es entscheidend Strategien zu entwickeln, die den KI-Einsatz nicht nur technisch, sondern auch wirtschaftlich und organisatorisch optimieren.

What’s next in the healthcare system? The contribution of digital innovation in achieving patient-centricity

The pressure on the healthcare system due to the pandemic situation has exacerbated its main criticalities in terms of fragmentation, data management and lack of interconnections. There is a need to rethink the health system’s management and monitoring in a patient-centric view, in order to meet the growing demand due to extension of life expectancy and increase in chronic diseases. Innovation in technology enables patient-centricity by tying together the future healthcare system. This research aims at detecting and defining the main typologies and characteristics of innovative business models that are going to emerge in the healthcare context in the next years. Different data sources have been integrated to depict the future scenario of healthcare. At first, information available in reports, archives/documents has been analysed, in addition to conferences and 35 experts interviews available online. Thereafter, the National Recovery and Resilience Plan (PNRR) - launched to solve issues after pandemic crisis - has been examined. The data analysis allows outlining the business model typologies that will emerge in the sector, their characteristics and the gaps they are going to solve with specific technologies. This research depicts the healthcare framework for pursuing patient-centricity, providing also managerial implications and future researches directions.

Trends in the development of digital subscription services in international markets

Companies are trying to harness the potential of the current stage of development of the digital industry and make it cost-effective, which requires not only technological innovation but also the transformation of many existing business models. Based on an analysis of examples of digital subscription companies, this article provides additional explanations, including definitions and constituent characteristics of digital subscription business models. The aim of the article was to identify trends in the development of digital subscription services by analysing the number of active subscribers and the impact of COVID-19 on this indicator. Autoregression and analysis methods were used in the study, and the implementation of the selected models was carried out using the Python-3 programming language. The article describes a theoretical basis that determine the feasibility of using the subscription model for the company under non-deterministic critical conditions. The main approaches to forecasting the company’s performance indicators are identified. The type of data to be forecasted is determined, and the necessity of using autoregressive models for further analysis is declared. Factors associated with the COVID-2019 incidence that should be considered as exogenous variables were identified. The multicriteria selection problem was constructed by restricting the family of autoregressive models and determining the criteria for forecasting and data preparation time, forecast accuracy, and the possibility of considering external factors in determining the algorithm efficiency. It is found that moving average autoregression is the most effective. Given the further application of this algorithm to predict the number of subscribers, the expediency of implementing a subscription strategy for the company under non-deterministic critical conditions is declared. It is possible to effectively apply the selected mathematical model to predict the performance of a subscription company. The practical significance of the work lies in the possibility of creating certain benchmarks for the development of the market and a business strategy for product promotion, which will be based on an understanding of the potential benefits and threats of the market for digital subscription products and services

On the Link Between the Success of K-pop Groups in the European and American Markets and the Consumer Preferences of the Fan Base

This study analyzes the K-pop craze that is spreading globally, as well as analyzes the success of K-pop that has broadened to Europe and the United States, not only in Asia. In order to do so, this paper analyzes the effective strategies needed to further develop K-pop in Europe and the United States after observing the success of the existing K-pop in Asia and China, based on actual cases, and analyze the important reasons for the success of K-pop, which are the entertainment company (systematic production by planning companies and systematic communication methods), the active use of social media, the consumers (the love and preference of the huge fan base), and the performers (perfection of singing, choreography and image). On the other hand, nowadays, as K-pop continues to broaden its market in Europe and the United States, it is possible to find the tipping point of a tendency towards homogenized music and insufficient characteristics of K-pop's strong commerciality and insufficient systematic business model, in order to overcome this phenomenon and thus to gain insights from existing success stories.

Metaverse and Society 5.0: Pivotal for Future Business Model Innovation

The area of interest is future business model innovation in Society 5.0. This is important as the transition from Society 4.0 to Society 5.0 is happening at an exponential pace driven by the Metaverse. Thus, the research question is: how should companies think and do business model innovation in the Society 5.0 / Metaverse space? The method is conceptual, where the business model characteristics of Society 1.0 to 4.0 are empirically stated for inductive arguments for equivalent characteristics of Society 5.0. This is framed with Society 5.0 theory, Metaverse theory, and Osterwalder and Pigneur’s nine business model building blocks from their iconic Business Model Canvas (BMC). The contribution is a framework cross-tabulating Society 1.0 to Society 5.0 with the nine BMC elements. Finally, a discussion is provided with findings and implications for managers regarding business model innovation, new businesses, outcome logic, ecospheres, and currencies.

COMPETITIVE STRATEGIES OF ENTERPRISES IN CRISIS PERIOD: THE MARKETING ASPECT OF AIRLINES

Goal. The article is devoted to the study of the modification essence of competitive strategies as a result of the impact of crisis phenomena on the example of the activities of airlines. Methodology. Research methods include methods of scientific abstraction, observation, synthesis, generalization to highlight the key features of airlines competitive strategies, system-structural analysis of the market. The classification system of Porter's general strategies was applied in the airline sector. Results. Functional-level strategies in different areas of the firm, such as marketing, operations, finance, can only be properly developed when there is clear understanding of the overall business strategy. The article discusses general strategies that are available to all firms regardless of the sector, in accordance with Porter's view of activities differentiation and low cost, taking into account the breadth of operational goals. The focus was on airline operations, indicating the competitive strategies of full-service network carriers, low-cost carriers, integrated cargo carriers, regional airlines, charter airlines, and carrier-within-a-carrier airlines. These business models form the spectrum of strategic choices that will mix and function in hybrid forms as airlines continue to add nuance to their diverse approaches. The impact of crisis phenomena is direct factor in the hybridization of competitive strategies, although budget airlines have proven to be the most stable business models in terms of staff reduction. Scientific novelty. The competitive strategies of enterprises for the aviation sector and the business models of airlines, which respond to the global crisis challenges to varying degrees, are adapted, among which the budget business model is the most stable due to low operating costs. It was established that the business models of airlines are characterized by the approach of hybridization and mixing of business model features. Practical significance. The obtained results contribute the further development of theoretical approaches to the marketing research of airline activities, the analysis of the functioning of the air transport market. The materials reflect the generalization of competitive strategies of airlines.

Product-service system-oriented business models: a taxonomy of startups in the mobility sector

Startups are becoming increasingly important in the mobility sector and are putting established companies under pressure to adapt their business models. Especially, the automotive industry faces a significant change from an automotive manufacturer towards a mobility provider. However, literature does not provide a comprehensive understanding of the elements and archetypes of product-service system-oriented business models of startups in the mobility sector. This paper provides a taxonomy with six dimensions and 55 characteristics based on the analysis of 34 startups’ business models. Four clusters can be described as the result of a cluster analysis. Thus, a deeper understanding of the business models and a starting point for future research and practical application is provided. Furthermore, based on the results, implications for research and practice like dominated characteristics of product-service system-oriented business models as well as future research directions are pointed out.

Classification and Measurement under IFRS 9: A Commentary and Suggestions for Future Research

This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on the post-adoption impact of IFRS 9. We then discuss conceptual issues associated with the business model and cash flow characteristics assessment in IFRS 9, as well as issues associated with the presentation of fair value changes in other comprehensive income (OCI) and modifications to contractual cash flows. Finally, we identify gaps in the literature and provide suggestions for future research that can help inform accounting standard setters.

The internationalization of social enterprises: The impact of business model characteristics

Social enterprises (SEs) are firms that employ a business-oriented approach to tackling social problems. This paper quantitatively analyzes the importance of SEs’ business models for their internationalization using regressions as well as configuration methodology (QCA). Our unique dataset of 175 SEs in India reveals that SEs that have implemented a business model (1) that differentiates clients and beneficiaries are more likely to internationalize; (2) that does not have to engage in additional activities to create their intended social value are more likely to internationalize; and (3) that depend primarily on subsidies, grants, and donations are less likely to internationalize than those that also generate income. We elaborate on the contributions of our findings for the social entrepreneurship and international business literatures, and highlight the implications for practitioners and policymakers.

Social and solidarity economy insights for the circular economy: Limited-profit and sufficiency

Given the call for societal transformations to foster sustainability transitions, we consider in what way the Social and Solidarity Economy (SSE) contributes to a more circular society. We build on recent critiques of mainstream Circular Economy (CE) and engage with the notion of sufficiency, with respect to defining limits for and by society, in considering social and ecological imperatives over profit motives. The main aim of our article is to analyse the implications of the normative principles and values of the SSE for ensuring an integral circularity approach. For that purpose, we conducted qualitative research involving 26 in-depth interviews with 31 key informants from 20 initiatives in two case studies: SSE networks in the Basque Country and Western Switzerland. We reveal how one of the guiding principles of the SSE – limited-profit – is a clear basis for a distinctive circularity approach towards sufficiency. Our main contribution is to demonstrate how SSE principles foster specific characteristics of the Sufficiency-driven Business Model (SBM) and shape an integral social circularity approach. This perspective on circularity results in entities that embrace the following measures: seeking to transform the economic system as a whole; prioritizing the implementation of the more transformative Rs (Refuse, Rethink, Reduce); recognizing limited profit as a core distinctive principle; minimizing overall consumption; raising conscious consumer engagement (satisfying needs over wants); fostering stakeholders’ cooperation and collaboration; and maximizing social and ecological aims over economic profitability.

Believing in change: The role of implicit theory on consumer's perception of the brand's corporate social responsibility message

AbstractWith the sustainable consumption paradigms, corporate social responsibilities (CSR) across industries have been under scrutiny. However, little research exists on how brand's business model and consumers' characteristics are intertwined to influence CSR evaluation. Our study aims to examine how the brand type (e.g., fast vs. slow business model) influences the relationships among CSR‐brand fit, authenticity, and skepticism, thus improving attitudes toward the brand. In addition, based on the implicit theory, how the consumer's incremental mindset (vs. entity) influences a brand's CSR evaluations are studied. Through two studies, our findings demonstrate consumers perceived a higher CSR‐brand fit for the slow fashion/food brand than the fast fashion/food brand. A higher CSR‐brand fit heightened the CSR authenticity and alleviated skepticism, which in turn resulted in positive brand evaluations. Importantly, incremental mindsets weakened the effect of brand type on CSR‐brand fit. As one of the first studies to examine the relationship between consumers' implicit theory orientation and a brand's CSR message, our findings demonstrate that an incremental mindset is a powerful consumer characteristic in evaluating a brand's CSR activities that are less congruent with the brand's established business model.