Current Business Model Research Articles

Precursor considerations for new circular economy business models

Circular economy thinking encourages society to adopt sustainable patterns of consumption and production. This basic principle aligns with the objectives of the United Nations’ Sustainable Development Goals (SDGs), which include improving human welfare through equal access to drinking water and sanitation; together with reliable, sustainable, and modern energy supplies for all. Traditional approaches to delivering public utility services have been rooted within the Baconian view that the environment is a pool of resources that exist for the betterment of humankind. Whilst this tradition has delivered water supply, sanitation, electricity generation, and waste management services, that have improved the lives of countless humans, the provision of these services largely relies on business models and technologies that have had significant adverse impact upon the natural environment. To inform the development of new sustainable business models, this paper explores circularity concepts from the perspective of decision makers and actors responsible for the delivery of public utility infrastructure. Through a review of the secondary literature, this paper examines core circular economy principles and maps these against fundamental business model elements to synthesise a framework of precursor considerations for future business models. This framework has potential application in testing the extent to which existing business models in the utility sector support the transition to a circular economy and how current business models can be adapted to assist the achievement of sustainable development.

MODEL BISNIS KELOMPOK USAHA MADU LINOT DI KECAMATAN SAMATIGA KABUPATEN ACEH BARAT

In conducting business development, the Business Group must know how the business model is being run in business development efforts. The business model reflects strategic choices and operational implications that help companies to communicate, analyze, test and validate a causal relationship stemming from the strategic choices made (Shafer et al. 2005 in Wiska 2016). The potential owned by the group of linot honey cultivation business still can not be maximized by members of the group. This is seen by the market conditions of the product group of linot honey cultivation business group is still not developed compared to the market owned by the Business Group of linot honey cultivation located in other provinces. This is in accordance with the results of research by Sarma Year 2010 which shows that entrepreneurial behavior has an influence on the success of a company run. One of them is the innovative attitude of the company's actors. Then the Business Group must map the current business model. The research was conducted in business model mapping with Business Model Canvas (BMC) method.

Exploring Business Model Innovation in the Norwegian Grocery Market

This paper focuses on the under-explored dynamics between physical grocery stores and e-grocery through the lens of business model innovation. While e-grocery is expected to grow, we still know little about how it will affect the existing physical stores - and how these actors are reacting to this potential threat. We draw upon in-depth interviews with senior executives from grocery companies, academics, and experts. The data has been subsequently discussed in the light of market literature and the study’s' theoretical framework. We find that e-grocery and physical grocery operate with two very different business models, where neither would benefit from emulating the other. While some of the physical chains have been developing e-grocery as add-on services, they are not profitable because they are not compatible with the current business model. Seeing this, physical shops are primarily concerned with competing with other physical shops to survive the growth of e-grocery despite of the development from pure e-grocery players. However, these sustaining actions might over time turn consumers digital, as the reduction of number of physical stores might spark the change in consumer behavior needed by e-grocery to accelerate its growth.

Exploring the Business Model Innovation of Blockchain Technology

Blockchain is a technological innovation that performs a different paradigm (decentralized protocol) to change the way organizations or societies interact with others. Blockchain adoption evolves into different ecosystems (network of actors adopting BC) along with its development, namely public and private ecosystems. Although previous research has examined the role of BC on the business model, there is little explanation for how BC applies business model innovation (BMI) in different ecosystems. Using a multiple-case study approach, this study seeks to explain the innovation of the business model in different BC ecosystems. The study finds different formulas of BMI among the ecosystems. The potential BMI in the private/consortium BC emphasizes improving the existing business values. In the public BC, BMI potentially disrupts the current business model. The study also proposes a new theoretical model to identify the potential of BMI within an ecosystem. This study contributes to the technology management literature, particularly BC and BMI. Furthermore, the practical implications of this study are presented in this investigation.

Research on the status quo and countermeasures of the commercial Model of live streaming with goods on vertical e-commerce platforms -- taking jewelry and jade industry as an example

With the gradual development of Internet live broadcasting platform, many e-commerce platforms begin to sell through live broadcasting with goods, which not only improves profits but also brings many problems to be solved.In view of the huge growth of major online sales and the rise of jewelry live streaming with goods industry, this paper first analyzes the business model of jewelry live streaming e-commerce platform with goods, summarizes the current mainstream jewelry live streaming e-commerce business model, and then analyzes the problems of jewelry industry in vertical e-commerce live streaming marketing. Finally, corresponding measures are proposed to deal with the problems existing in the live broadcast marketing of jewelry industry, which provides a theoretical basis for the online live broadcast of jewelry and jade industry and has certain reference significance for the marketing of similar vertical e-commerce products.

Why Do Organizations Respond Differently When Accused of Historic Crimes?

This paper contributes to the growing literature on corporate historic crimes by challenging the ways of thinking about moral evaluation that have hitherto informed research on this topic. We do so by examining managers’ responses to the ongoing campaign for corporate reparations for slavery. In recent years, social movements such as BLM have called upon the firms that historically profited from African slavery to apologize and pay reparations. We show that these firms have responded in strikingly different ways when confronted by activists who produced irrefutable evidence that they had once profited from slavery. Some of these firms apologising profusely and announced they would spend on restorative justice measures, while other firms facing essentially similar accusations refused to apologize or even comment on the accusation. We explain this difference in response with the Social Intuitionist Model (SIM) of moral reasoning. We find that while part of the observed difference in firm responses can be easily explained by looking at their current business models, firm responses were also strongly influenced by political ideology, a factor largely ignored by the extant literature on historic corporate responsibility. In the model we develop to explain firm responses to accusations of immoral behaviour in the past, a key factor is the nature of the moral universe inhabited by the firm’s managers and stakeholders. When a firm’s core stakeholders and managers inhabit the “moral universe” associated with the present-day Anglo-American left, the firm is much more likely to apologise for its historical connections to racial slavery than if its core stakeholders and managers inhabit the moral universe associated with political conservativism. We identify important implications for business ethics researchers and practitioners.

Riding the Roller-Coaster: A Pivot Process During Covid-19

This article investigates how a new venture responded to the challenges of the Covid-19 pandemic by performing a pivot. A pivot is a process of radically transforming the current business model of a young venture in case of a (potential) failure. So far, researchers have paid scant attention to the consequences of pivots, neglecting the “after pivot” phase of the pivot process. We propose that a pivot alters a new venture's business model, reallocates or restructures resources and capabilities, which, in turn, leads to a lasting impact on the organization and its identity. Drawing on an inductive, longitudinal case study of the fast-growing new venture “Gazelle”, this paper identifies three effects. First, it shows how a pivot is interrelated with “entrepreneurial vibrancy”, i.e. the unconditional maintenance of the entrepreneurial spirit and action despite hostile circumstances. Second, our case exemplifies how the Covid-19 pandemic created an existential crisis and triggered a unique recovery trajectory of the new venture, which we characterize as the “Phoenix effect”. Third, the “sedimentation effect” depicts how changes along the pivot process imprinted into the new venture’s identity.

Business transformation from connectivity to digital: case study “PT. MNO Indonesia”

The telecommunications industry plays a role in meeting the needs of digital connectivity services to the community, especially in line with the community's need for internet connections which is increasing rapidly. As one of the telecommunications service operators in Indonesia, "PT. MNO Indonesia" must meet this need to get maximum profit and the best service to the customers with the right business strategy. However, the current connectivity business model is still the mainstay, with revenue levels that tend to stagnate and even experience a decline. The provision of network services and investment in infrastructure development are still the main concerns, so a change in business strategy is needed. This study proposes several recommendations for business strategies to increase revenue based on reviewing and analyzing financial data and statistics for Indonesian and international telecommunications businesses. In this study, financial report data and digital sector statistical data were analyzed and divided into four aspects: traffic, finance, network development, and digital service with the min-max method, standard deviation, and average. From the analysis conducted in this research, "PT. MNO Indonesia" needs to transform its business into digital business model.

Research trends of the knowledge-based economy: A bibliometric study

Purpose: In recent years, the Knowledge-Based Economy (KBE) has been an emergent field related to Information and Communication Technologies (ICTs). In current business models, organizations need to be part of the digital transformation and create value for customers, which has caused an increase in the number of scientific publications on the KBE. This study aims to analyze the research trends of the scientific literature on the KBE published between 1986 and 2021. Design/methodology: A bibliometric analysis was conducted using the Scopus database. The results were analyzed based on quantity, impact, and structure indicators and topics. In addition, this paper proposes a research agenda for future studies in this field. Contributions and results: The study of the KBE has attracted the interest of the scientific community, especially in 2006, 2010, and 2011. This literature review shows that developed countries (e.g., Poland, Romania, the United Kingdom, the United States, and Germany) have researched this field the most. Terms such as knowledge-based systems , knowledge management , and information management have become more common in the literature and are setting trends. These terms refer to essential components for the advancement of the KBE as an approach that can dynamize the economic development of organizations and countries. Originality/value: This study contributes to the literature because it analyzes the theoretical evolution of the KBE field. In addition, it proposes an agenda for future studies to advance the research fields related to the Triple Helix model of innovation in developing countries.

The dark side of business model innovation

AbstractExisting literature has tended to focus on the positive benefits and outcomes of business model innovation (BMI), despite emerging evidence that BMI can also have a dark side, with negative consequences. We systematically review the existing BMI literature, articulating it around three clusters of negative consequences: those affecting the firm as an entity; those affecting the firm's stakeholders; and those that are specific or context‐dependent. In a similar fashion, we identify the driving factors and circumstances leading to these negative consequences and group them into four clusters: (1) managerial choices and processes, and three underpinning circumstances that influence such choices or processes; (2) trade‐offs between the new and current business models; (3) managers’ ability to manage BMI; and (4) context within which BMI is situated. The paper provides the first attempt to gather prior research on the phenomenon and thereby develop a conceptual understanding of the dark side of BMI. Furthermore, by proposing a model that explains how the dark side of BMI may occur, we inform ongoing debates on the theorization of the consequences that may derive from BMI and how these can be managed to support firms’ innovative growth, arguing how the disruptive innovation literature can only partially explain the phenomenon. Second, our model provides important foundations to further distil the complex link between BMI and performance. Finally, we suggest a number of future research avenues, accounting for different dimensions of the phenomenon.

Capability Framework Implementing Pay-Per-Outcome Business Model in Equipment Manufacturing Companies

The primary objective of this paper is to enhance our understanding of the capabilities necessary for implementing a pay-per-outcome business model and how equipment manufacturing companies can successfully implement such a business model. Based on systematic literature research, we analysed 12 research publications that discussed pay-per-outcome capabilities in the equipment manufacturing industry. We identified 36 capabilities and formulated a capability framework for pay-per-outcome business models in the equipment manufacturing industry. We also identified that pay-per-outcome business models require specific capabilities related to customer relationship and contracting, compared with other service-based business models (such as pay-per-use business models). Since earlier studies have failed to distinguish the capabilities necessary for pay-per-outcome business models from those for other types of product–service system business models or focused on some specific required capabilities for the former business models, we contribute to current business model literature by uncovering the unique characteristics of pay-per-outcome business models in the equipment manufacturing industry.

Developing Business Model Based on Islamic Classical Economic Thoughts

This study aims to develop a business model based on Islamic economic thoughts pioneered by Muslim thinkers such as Abu Yusuf, al-Syaibani, Abu Ubayd, al-Mawardi, al-Ghazali, Ibn Taimiyah, and Ibn Khaldun. They existed from the early period of Islam until 1446. An absence of consensus on the definition of a business model that is universally accepted has led to the reassessment of the current business model towards pro-business and encouraged by profit margins. A holistic and comprehensive business model influences a business's enhanced performance. Hence, in reality, the survival rate of businesses, mainly businesses run by Muslims, is at a low ebb, although Islam has provided guidelines for all life activities, including business strategies. Hence, further studies should be conducted to seek solutions to overcome the resilience of Muslim businesses by referring to the thoughts of Islamic economic scholars. However, the scholarly thoughts were not organised as a scientific discipline, which eventually led to a decline in the Islamic economy, and consequently, humans began to follow the conventional economy. Data were collected through the document analysis and Focus Group Discussion (FGD) methods involving agency representatives, entrepreneurs, and academicians in the business field. It was then analysed using the content analysis method. Findings indicate that the business model comprised four components, namely production, business transactions, marketing, and the government's role, which was based on Islamic creed (aqidah), Islamic law (shariah), and Islamic morality and manners (akhlaq), acts as a catalyst for a successful business venture. This study has a significant impact and offers a new solution for overcoming and substantiating society's economic growth and development by making business a mechanism for empowering the Islamic economy.
 
 Received: 16 April 2022 / Accepted: 25 June 2022 / Published: 5 July 2022

Is the syndicated loans market ready for distributed ledger technology?

ABSTRACT The syndicated loan market has a centralised nature dominated by intermediaries. Such a structure not only requires manual labour and back-office workloads, but it is also prone to human error and fraud. Distributed ledger technology (DLT) and smart contracts are promising tools to overcome the factors which adversely affect the efficiency of the current and classical business model in the primary and secondary market of syndicated loans. DLT eliminates the need for intermediaries; provides transparency, accuracy, and authenticity; lowers transaction costs; makes it easier to comply with Know Your Customer obligations; and provides efficiency in the secondary market for syndicated loans. However, existing legal rules and institutions fail to create a predictable and legally safe environment for the spread of DLT in the syndicated loans market. Therefore, proper regulation is required for the widespread use of DLT technology in the syndicated loan market.

Myth and Machine: The Other Side of the Innovator's Dilemma: Beware the quiet disruptors

In 1997, Harvard Business School professor Clayton Christensen created a sensation among venture capitalists and entrepreneurs with his book The Innovator's Dilemma. The lesson that most people remember from it is that a well-run business can't afford to switch to a new approach—one that ultimately will replace its current business model—until it is too late.

Farmer Producer Organisations in North India: Potentials and Challenges

This article seeks to analyse the current business model of FPOs to understand socio-economic consequences for individual members. The study selected 10 farmer producer organisations from Uttar Pradesh, India considering diversity along with geographical location, the field of operation and business model. In total, 10% of the villages covered by each chosen FPO and 5 members from each selected village were randomly selected for data collection. Two separate schedules for FPOs and members were administered for data collection. The study found that FPO members, particularly small and marginal farmers, experienced a positive socio-economic impact on their lives due to exposure to new techniques and enhanced bargaining power due to collectivisation. However, lack of capital due to constraints in accessing finance from banks was found to be a major challenge. The article concludes by underlining what needs to be done to make FPOs sustainable.

Driverless Industry: Current State, Business Model, Challenges and Prospects

Digital transformation in the automotive industry promotes the emergence of autonomous vehicles, having a significant impact on people’s daily life and microeconomic environment. This paper presents the current situation of the self-driving industry, its prospects, and the potential value chain in the future. Being the bellwether in the self-driving industry, Waymo has had the largest driverless taxi service in the world. Although there are many obstacles in the process of autonomous vehicles being the mainstream, its future is still promising. We predict the changes in the value chain mainly come from driverless technology and its convenience. This research could enable autonomous vehicle manufacturers to know which aspects should be developed into core competencies.

Sustainable business model for local council’s smart city initiatives: a systematic literature review

Background: Malaysia is embarking on sustainable, resilient, and prosperous living conditions initiatives. Malaysian cities are embracing the smart city aspiration through their respective local authorities. However, they face challenges regarding funding allocation for smart city implementation. Local authorities primarily operate on a conventional business model. Based on their current business model, they are unlikely to sustain their smart city initiatives. A more financially sustainable business model is required by these local authorities to embark on smart city initiatives. This study presents a systematic review concerning the business models adopted by local authorities to implement smart cities. This paper also explores the applicability of frugal innovation towards developing a smart city business model. Methods: This article undertakes a systematic review based on combination sets of eight main keywords: smart city, business model, frugal innovation, local authorities, performance, inclusivity, technology and success factor. The search strategy includes journal articles and conference proceedings from five major online databases: Emerald, ProQuest, Scopus, IEEE Xplore, ScienceDirect, and Springer Link between 2001-2021. The data is tabulated for clear expression of knowledge gaps. Results: A total of 17 articles from 300 articles on smart city business models matched the search on smart city business models for local authorities . The study revealed that hardly any in-depth research providing the crucial elements for a successful smart city business model for local authorities has been conducted. No research has linked frugal innovation to smart city business models. Conclusions: The study calls upon the research community to explore further, the possible linkage between frugal innovation and smart cities for local authorities.

Islamic virtue-based ethics for artificial intelligence

The twenty-first century technological advances driven by exponential rise of artificial intelligence (AI) technology have ushered in a new era that offers many of us hitherto unimagined luxuries and facilities. However, under the guise of this progressive discourse, particularly in the backdrop of current neo-liberal late-capitalist postmodern world, AI development also has prompted an increasingly uncertain ethical tomorrow. This paper aims to probe the question of ethics by exploring the true ramifications of AI and interrogating its various ethical dimensions. It questions the essential goodness that is attributed to unstinted AI development before elucidating the ethical repercussions of AI advancements and the aptness of the current market logics and business models that govern the tech-industry. The paper next positions a holistic Islamic virtue-based AI ethics framework grounded in the context of Islamic objectives (maqāṣid) as an alternative ethical system for AI governance. We argue that this distinctive Islamic virtue-based ethical approach, which can be used to explore AI-related ethical problems more holistically due to its ontological base and rich tradition while keeping in check undue influence from the current socio-politico-economic climate, can be a valuable addition to the global discourse on AI ethics.

Higher Granular Sectoral Demand Forecast Under Data Scarcity: An Integrated Physics-Based Top–Down and Bottom–Up Approach

The proliferation of renewable distributed energy resources and transportation electrification has created new challenges for the utilities in integrating these new technologies. Consequently, the utilities and electric distribution companies need to adapt their current business models to maintain service reliability, while higher granular data scarcity hinders accurate decision-making processes. In this context, this article proposes an integrated top–down bottom–up approach that aims at estimating the essential higher granular demand data through a two-layer physics-based framework. In the top–down model, various economic-demographic regression models are developed to unlock higher granular demand in geographic areas and technology/policy adoptions, while in the bottom–up layer, our in-house-developed physics-based building simulator is employed to simulate sectoral disaggregated demand patterns. The simulation error is modeled by the least-squares estimation of a Fourier series, extreme gradient boosting (XGBoost) algorithm, and long short-term memory (LSTM) network, where the numerical results show the superiority of the LSTM in capturing the simulation errors. To reveal the merits of the proposed hierarchical framework, the state of New Jersey in the US is chosen as the test case directed by the Energy Master Plan to pursue a set of targets by 2021, which is the target year in this article, while data scarcity is in place.

Evaluation of the Development Potential of Hainan Free Trade Port Industrial Chain Driven by the Internet of Things Distribution Mechanism.

This paper starts from the industrial structure and characteristics of the Internet of Things and compares and analyzes the development ideas of the Internet of Things industry in the market economy under different systems. We also discuss IoT business model innovations and analyze the inadequacies of current IoT business models. We use the cost-benefit analysis method to analyze, from the aspects of social benefits, economic benefits, environmental benefits, and externalities. In this paper, factor analysis and quantitative statistics are used to calculate the weight of influencing factors, and the multilevel fuzzy evaluation method is used to score the influencing factor indicators to calculate the final score result, so as to judge the applicability of the multilevel fuzzy evaluation method to judge the profit model. In order to verify whether the establishment of economic regions plays a positive role in regional economic development, a double-difference model is established. Two sets of data from the Free Trade Zone and Hainan Free Trade Zone are selected for regression analysis, and robustness tests of various methods are carried out. This paper regresses various samples of the Hainan Free Trade Zone by region and city level to explore their characteristics in different regions. From the empirical results, it can be seen that the establishment of the Hainan Free Trade Zone has indeed promoted the economic development of the region where it is located, and this result is still significant after repeated robustness tests. Judging from the regression results by region, the establishment of the Hainan Free Trade Zone has a greater role in promoting the economic development of the eastern and western regions and it has a stronger pulling effect on the western regions than in the western regions. The policy effect of establishing a free trade zone may not be significant due to too few samples and short establishment time.