Definition Of Business Model Research Articles

On-demand insurance: idea, development, impact on market equilibrium

The article presents the definition, idea, development, and current state of a new business model known as on-demand insurance which has been in existence since the early 21st century. Moreover, the article does not only describe the premises behind the development of this new method of creating value for clients of insurance companies and the opportunities that appear in the market but also addresses the challenges that insurance providers can encounter. Based on the analysis and available source materials, the most interesting types of these insurance products and the entities that include such products in the portfolios were presented. In addition, some new regulatory challenges and trends were described. The purpose of this study is to analyse the behaviour of the insurance market after the introduction of on-demand products in light of the classical definition of equilibrium in a competitive insurance market under conditions of information asymmetry. The authors analysed the economic implications of implementing on-demand insurance, demonstrating its potential to enhance the overall welfare of the insured population by increasing utility for certain risk groups of clients.

New Business Models in the Digital Economy

This paper firstly clarifies the definition of new business model in the context of digital economy based on the research background, and on this basis analyses the business models in the context of digital economy and lists several common new business models in the context of digital economy. Secondly, this paper takes the retail industry as an example, analyses the original business model of a retail enterprise and the new business model after the transformation through the digital business model, and compares the impact of the new business model on the enterprise. Finally, the paper summaries the above and draws conclusions. Enterprises through digital tools for business model change, so that enterprises can better adapt to the current economic and social and thus obtain sustainable development.

Implementation of Analytical Accounting Models and Management Indicators and Development of Business Intelligence and Business Analytics Tools in Urban and Metropolitan Collective Transport Operators: A Case Study

Purpose: The study aims to conceptualize and describe tools for improving the strategic definition of business models and facilitating decision-making in urban transport. It focuses on integrating Information and Communication Technologies (ICT), Artificial Intelligence (AI) and Business Intelligence (BI) tools to address sustainability concerns and enhance operational efficiency. Method: The research explores the evolution of management tools in urban transport, and use the case study of Transportes Interurbanos de Tenerife S.A.U. (TITSA) in order to illustrates practical application. Result and Conclusion: The implementation of analytical accounting models and BI tools result in significant improvements in decision-making and operational efficiency. It allowed for better cost calculation, revenue analysis, and margin identification.

Retrospective analysis of business models classification in accordance with sustainable mobility

The article raises a controversial topic of classifying business models of contemporary enterprises and justifies the necessity of their transformation, considering the factor of sustainability. The author analyzes various definitions of business models and proposes their own approach to interpretation. The article provides a traditional classification of enterprise business models, as well as the results of the author's scientific research in the field of sustainable economic growth. The paper highlights the advantages of platform-based business models over traditional models in terms of determining sustainability. It has developed a classification of digital enterprise business models based on various criteria and formulated the main directions for further development and improvement.

Redefining business models for the energy transition: Social innovation and sustainable value creation in the European energy system

Business as usual in the energy sector has become more challenging in the EU as distributed energy technologies and supportive policy included in the EU Energy Package have meant that new types of stakeholders, including citizens, citizen collectives, and municipalities, can participate in the energy system in innovative ways. Their “new” relationships, behaviors, and actions in the context of the energy transition, vis à vis the existing system, are often referred to as social innovation in energy systems. Socially innovative activities may deliver products and services similar to those of incumbent energy business models e.g., sustainable energy generation, but also create social value that traditional energy business models may not. This paper views these socially innovative activities using elements of a sustainability-oriented business model – the business model for sustainability (BMfS) – analyzing them in terms of their goals, involved stakeholders, and value creation processes. Analysis is conducted in case studies that span Western and Eastern Europe, using a mix of primary data (semi-structured stakeholder interviews) and secondary data (online materials). In addition to showcasing how socially innovative activities may contribute to value creation processes in the context of an energy business model, the case studies also depict differences in the extent and types of social innovation that can occur in the European context, with some reflection on how infrastructure and historical dynamics may play a role in these differences. I conclude with some reflections on definitions of business models and the applicability of the BMfS for a decentralizing energy system.

ОСОБЛИВОСТІ БІЗНЕС-МОДЕЛЕЙ БАНКІВ УКРАЇНИ

The article analyzes the business models of Ukrainian banks in the conditions of the military crisis. The key business models of the beginning of 2022 and the second half of 2023 are compared. Business models are evaluated based on bank balance sheet data published by the National Bank of Ukraine. Scientific and practical approaches to the definition of business models of banks are the subject of a debate reflected in the scientific literature. Our research uses indicators of the structure of bank assets, liabilities, income, expenses and other indicators of asset quality and performance. With the help of Kohonen's self-organizing maps (SOM), banks with close values of the selected indicator system are combined into homogeneous structural and functional groups of banks (SFGB). The structural and functional group of banks unites a homogeneous cluster of banks on the SOM with similar characteristics and patterns of response to external shocks. The method is useful for understanding the business models of specific banks at the macro level. Also, an important area of application of the SFGB method is the study of the general characteristics of the banking system at the macro level. The SFGB method makes it possible to assess the overall financial condition of the system, reveal hidden properties of homogeneous groups of banks, and model the trajectories of individual banks and analyze possible changes in their own business models. Banks sometimes migrate between business models, although the general trends persist. The SFGB's research for the period of 2003 confirms the existence of objective confirmation of the reasons for the migration of banks. The research was conducted at the macro level and in terms of changes in homogeneous groups with specific business models. Some business models have not changed between January 1, 2022 and September 1, 2023. Some models have completely changed. Most of the business model was transformed under the influence of external factors. The business model of domestic banks was significantly affected by the limitation of economic development, the reduction of classic credit operations, important measures of the state and the banking system to maintain a stable resource base, excess liquidity of banks, and the peculiarities of the design of the monetary policy of the National Bank of Ukraine during a full-scale war.

Modele biznesowe przedsiębiorstw w warunkach gospodarki cyfrowej

The article substantiates the influence of digitalization, which affects the development of socioeconomic relations. The trends that arose as a result of the development of digitalization and contribute to the gradual transformation of socio-economic relations and the economic base was identified. Digitization as a factor influencing the change of the economic base was substantiated. The economic basis of business models in the conditions of digitalization is considered. The most widespread business models of the modern type in the conditions of digitalization of the economy was characterized. An analysis of the evolution of scientific opinion regarding the transformation of business models from traditional to digital ones was made. It is proven that the business models used in the digital economy are client-oriented, which proves their purely marketing nature. The influence of “Industry 4.0” technologies on the evolution of approaches to the definition and formation of business models was substantiated.

When the business is circular and social: A dynamic grounded analysis in the clothing recycle

Nowadays Social Entrepreneurship (or SE) and Circular Economy (or CE) are recognized as reference points for the definition of sustainable business models. However, management literature seems to privilege one of these paradigms at a time, neglecting their possible integration for business model innovation. This paper seeks to contribute to such literature gap by investigating the interplay between SE and CE and presenting a qualitative case study in the clothing recycle sector. By combining Gioia methodology and system dynamics, the study develops a research framework based on an interpretive, participative, and iterative approach. The emerging ‘dynamic grounded model’ synthesizes the mutual reinforce of circular commercial business and social mission's features for the transition from non-profit organizations to social enterprises.

Carbon neutral district project for regenerating a suburban area within the Reinventing Cities C40 framework

A multidisciplinary approach to urban regeneration is crucial when the project of suburban areas provides a functional program that includes the combination of technological, environmental, and social innovation. The Reinventing Cities C40 design contest represents an opportunity for designers to deal with the crossing topics of innovation, sustainability, and circular economy. The project proposals focus on the regeneration of urban areas with specific needs, ranging from the reconstruction of urban ecosystems to the re-weaving of fragile and damaged urbanity, to the promotion of areas devalued by functional empty. The Reinventing Cities C40 framework is supporting worldwide the cities in the renovation process, oriented in developing the abandoned areas with the aim of social, energy, and environmental resilience. The framework promotes the link between the Municipalities, the designers, and the local communities to create innovation on multiple levels, in the design process, in the architectural product, in the validation tools based furthermore on the new contractual definition of business models for social support. The renovation of the Crescenzago area in Milan, Italy, is based on an architectural project that entails an integrated mixed-use system of tower and line buildings ensuring an adequate social and housing mix and connection with the surrounding points of interest and green areas. The architectural project relates to the existing context with a synthesis between macro and micro-urban scale: territory, neighborhood, and the new district. The project moves by the definition of the open spaces that imprints the built ones and defines a direct connection with the green system, which pledges the carbon neutrality of the intervention. The site-specific proposal results from the matrix of strategic and technological transferable solutions that provide solar electricity for 82% of the energy needs and the green capture allows to achieve the zero-carbon goal of the district.

EVOLUTION OF BUSINESS MODELS DURING THE COVID-19 PANDEMIC

Purpose - The purpose of this study is to propose a comprehensive definition for business models, reviews and summarizes the findings of a previous work by Guckenbiehl and Corral de Zubielqui (2022) about how business models have evolved by providing insights from reshaped businesses during the COVID-19 pandemic. Methodology - In this study, an extensive literature review is followed to learn about definition of business models and how business model have been adapted or even innovated during the times of the COVID-19 pandemic. Findings - Construction of a well-planned business model is a requirement for an organization to reach success. In the times of disruptive events, business models go through adaptive or innovative changes which is a necessity for survival and further success. It is observed that organizations generate different responses to crises (e.g., the COVID-19 pandemic) in means of business model changes. The understanding of these differences is facilitated by the aforementioned work through grouping organizations in six different clusters. Conclusion - The structure of a business model prior to the COVID-19 pandemic was also one of the determinants of a business’s response to the pandemic. Businesses either made no changes in their business models, or made notable innovations, or little adaptations in response to the disruptive environment. Keywords: Business models, adaptation, innovation, COVID-19, pandemic. JEL Codes: M10, M15, M20

Zrównoważone modele biznesowe - charakterystyka, kryteria, innowacje

The previous approaches to the implementation of sustainable development are insufficient to create truly revolutionary transformations of organizations, markets and societies. As a result, humanity is on the verge of an ecological catastrophe which will have extremely serious socio-economic consequences. In the face of contemporary challenges of sustainable development, there is a need for a rapid and radical change in the approach of business to people and the natural environment. In this context, the concept of sustainable business models deserves attention, as it extends the existing understanding of the role of business in solving social and environmental problems. The aim of the article is to analyze the current state of knowledge and present the basic concepts, assumptions and definitions of sustainable business models. This is a review paper. The adopted research method is ananalysis and synthesis of English-language literature sources. At the beginning, the article indicates the place of research on sustainable business models in contemporary scientific works. Next, attention is paid to the concept of value as an element combining the logic of a business model and a sustainable business model. In the main part, various approaches and attempts to define sustainable business models and criteria for this type of projects are analyzed and presented. The role and types of innovation in sustainable business models are also presented. Finally, the evolution of the approaches to sustainable business models is considered, as well as the ways in which this concept might develop in the future.

Model biznesowy – kontekst innowacji

Theoretical background : The concept of the business model was introduced in the late 1950s, but did not gain any special scientific popularity in the first period. Only the appearance of the Internet and e-business at the turn of the century contributed to the renaissance of this concept. Currently, the concept of the business model is popular among scientists and business practitioners. A great deal of interest is accompanied by an equally large variety of definitions of the concept, but there is no commonly accepted consent as to its components. There is even talk of carelessness in using this concept. Business models need to be constantly developed not only when they become outdated, but also when they appear to be well developed. The proposition of the unique value for the customer, creating, delivering and taking over the value for the stakeholders is associated with innovations that do not have objective economic value in themselves, only their commercialization based on a business model gives such value. Therefore, companies should reorganize their business models to be more open to innovation, in other words, to make them open business models. Purpose of the article : To make a synthetic review of the definitions of a business model available in the economic literature, the role of innovation in this model and to indicate new trends in the interpretation of these concepts. Research methods : The publication is the result of a research procedure based on a review of the literature on the subject. The evolution of the understanding of the concept of a business model and its components as well as the role of innovation in the model were studied on the basis of an analysis of 69 definitions or conceptualization of the concept. Main findings : In the second decade of 20 th century, new elements appear more and more in the definitions of business models supplemented by innovation processes. Unfortunately, the terminology has not kept pace with the development of the ways of doing business: 1) the concept of the value chain is already too narrow for the complex network structures of various organizations. Value is created and delivered more and more often in complex structures, called partnerships, networks or ecosystems; 2) the current definitions of a business model refer to the phenomenon of value creation both on the supply and demand side, where value is also generated on the part of customers and other stakeholders within, for example, business ecosystems; 3) the business model is becoming an increasingly important concept in the field of innovation management, strategy implementation, sustainable development taking into account social and environmental values, and social entrepreneurship; 4) it is believed that the model should be open to open innovation and should favor their commercialization; 5) inviting undefined user/customer communities to cooperate is becoming more and more important. This kind of cooperation requires building open platforms on the Internet (crowdsourcing, co-production or coopetition, open sourcing); 6) it is now believed that the ability to define and redefine an organization’s business model is one of the key competences for building the value of an organization.

A Business Model and Business Case Development Methodology and Toolkit for Regional Decarbonisation Utilising CCUS

This paper presents a generic practice-based framework incorporating a business model and business case development methodology and toolkit resulting from studies and enquiries conducted within the European multi-lateral funded project ELEGANCY and taking account of public and private sector experience gained during the many attempts at progressing CCS projects in Europe. The framework also integrates the specific focussed work of five ELEGANCY case studies into large scale regional decarbonisation using hydrogen production combined with CCS technologies for reducing emissions. The methodology has been structured to enable facilitated engagement and workshops between public and private sector parties as early as possible for the joint definition of business models and business cases which could be approved by their respective stakeholders. The toolkit that accompanies the methodology complements standard project management tools and provides support for key data collection, assessment and decision-making activities. It is publicly available under a Creative Commons CC BY-ND licence.

A Soft Systems Methodology for Business Creation: The Lost World at Tyseley, Birmingham

Much has been written about the benefits of green infrastructure, but securing the resources necessary for its development and long-term maintenance is often difficult. This article’s premise is that, in general, people and organisations will take action to provide those resources when they can see value accruing to them; therefore narratives of value generation and capture (our definition of business models) are required to motivate and support that action. This article explores the application of soft systems methodology to the wicked problem of business model development in the context of a social enterprise, using a case study based on a piece of green infrastructure in the city of Birmingham, UK, called The Lost World. The research involved a workshop with several of The Lost World’s key stakeholders and aimed at identifying: The Lost World’s scope as a business; its potential value streams; and how they might be realised in a social enterprise. Analysis of the findings shows that while stakeholders can identify opportunities for their organisations, bringing those opportunities to fruition is difficult. The research demonstrates a compelling need for social entrepreneurs to act as catalysts and long-term enablers of the formulation and maintenance of businesses and business models—vital missing actors in the ambition to transform cityscapes.

Evolution of traditional banks' business models

The article considers topical issues of how banks are developing in the new realities of the digital economy, and presents the results of research on theoretical and practical aspects of banks' business models evolution. The methodology uses such approaches as scientific abstraction, system and factor analysis, methods of grouping, detailing, and synthesis. The topic is relevant for banks first of all from the economic science point of view, since until now the conceptual apparatus of not only the types of bank business models but also the definition of bank business models and their ecosystems remain controversial. However, in practice the applying of new strategic solutions is needed to solve the triune task: to ensure profitability of banks' business while maintaining liquidity and minimizing risks. The obtained results allowed us to reveal the important role of the banks' business models innovative transformation, as well as to reveal the tendency of improving the intermediary function of banks on the modern stage of digital technologies' development. The article substantiates the need to develop new approaches to administering business processes, expanding banking activities using digital platforms, and reveals the problem that requires the speediest solutions in developing regulation standards for financial ecosystems.

Contribution of Domestic Direct Investment and Direct Foreign Investment to Economic Growth in Indonesia Era Joko Widodo

The European Union (EU) Directive 51/2003, “Modernisation of Accounts,” together with the recent issue (June 2009) of the International Accounting Standards Board (IASB) Exposure Draft (“the draft”) on management commentary, attest implicitly to the narrative power of the “Business Model” concept, stressing its role in garnering forward-looking information and its relevance for financial reporting. According to the draft, if listed companies want this narrative report to be decision-useful for present and prospective capital providers, they will soon have to include much more information related to their own business model within the management commentary (Relazione sulla Gestione in Italy). The business model concept has gained a large popularity over time, despite its lack of a generally accepted definition. In brief, the business model describes how a company has configured its structure (in terms of processes, resources, and competences) in order to create and capture value in its own competitive context; for this reason, it is doubtless a high-end non-financial piece of information for firms, analysts, and investors. Against this framework, the paper investigates the extent to which Italian listed companies are acquainted with the business model concept and whether they voluntary disclose it by performing the qualitative analysis of their annual reports. The resulting analysis reveals that the vast array of meanings associated with the business model concept complicates the value-relevance of this high-end non-financial piece of information. Finally, this ambiguity results in both a “cognitive” gap (the lack of a business model definition) and in a “technical” gap (a lack of guidelines) which companies must address when reporting on their own business model. To our knowledge, this is the first study in the field of financial reporting which investigates voluntary business model disclosure within financial statements. It intends to offer a useful insight into the current disclosure behaviours of Italian listed companies; this can be helpful for security regulatory and accountancy bodies, complementing the IASB’s guidelines for a fair representation of business model within the future management commentary.

A framework for the adoption of green business models in the Ghanaian construction industry

PurposeDespite the amount of considerable investigations on business models, much studies have not been undertaken in the construction industry emphasising the adoption of green business models to drive sustainable construction. Construction activities continue to increase the carbon footprint and eject contaminated materials into the ecological environment with dire consequences for economic and social sustainability. As a result of the adverse impacts of construction activities, it is necessary for construction firms to rethink their approach to the use of conventional business models. The purpose of this study is to explore a framework for the adoption of green business models to drive sustainability in the construction industry of Ghana.Design/methodology/approachThis research is exploratory due to its focus on emerging economies in which there is a perceptible gap in the adoption of green business models. As a result of this, this paper is entrenched in the interpretivist philosophical stance, which led to the adoption of the qualitative approach. Semi-structured interviews were undertaken involving 13 senior managers of construction firms. A thematic analysis was used with the aid of qualitative data analysis computer software package to code the interview transcripts.FindingsThe results demonstrate the six definitions of green business models among the managers of construction firms. The study also shows the need for developing green business models to address the issues of circularity and sustainability goals to reduce carbon footprints in the construction industry. Similarly, the paper found various sources of information to drive the awareness, understanding and adoption of the components for green business models. These sources include international conferences and training workshops on green business models. Finally, the study presents a framework that integrates the building information modelling (BIM) and the Internet of things (IoT) into the components for green business models adoption in construction firms.Research limitations/implicationsThere is a need to use the quantitative approach to undertake further empirical studies, as this paper focuses mostly on the qualitative approach to ascertain the nature of the relationship between green business model and the various components of the circular economy in the construction industry.Originality/valueThe study contributes to the existing knowledge on green business models by demonstrating six key pillars of green business models by the inclusion of digital technologies such as BIM and IoT, which hitherto this investigation have not been considered in the adoption of green business models in the construction industry. This study extends the existing knowledge on green business models, which has the potential to increase the awareness and understanding of practitioners and managers of construction firms.

Business models in process industries: Emerging trends and future research

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

Business Models and Copyright Reform: The Legal Business Model

Examining the role of business models and copyright in the digital media industry against the backdrop of technological change, this paper identifies a shadow concept of business models in copyright debates: the legal business model. A critical analysis of over 300 publications by the UK digital media industry trade and related organizations identifies that business model innovation and copyright reform is resisted by the industry. The existing copyright system, or a strengthened version of it, is framed as crucial to supporting existing business models. Paradoxically, the industry’s definitions of business models minimize the role of copyright. The paper develops the concept of the legal view of business models; business models viewed through the lens of copyright do not match copyright viewed through the lens of business models.

What can Strategy Learn from the Business Model Approach?

AbstractThe use of the business model concept has grown dramatically over the past several years, yet it remains difficult to distinguish the concept from conventional strategy. Despite a lack of consensus on a definition of business model, proponents of the concept assert that it is quite different from strategy. We generate alternative definitions of the business model concept and compare these to the received strategy literature to determine where/if potential theoretical or empirical advances might be likely. We identify opportunities for business model concepts to yield theoretical contributions and highlight why the concept may be so attractive to entrepreneurs and managers.