Business Model Design Research Articles

Evaluasi dan Perancangan Model Bisnis UMKM Miss Bluder dengan Business Model Canvas

Miss Bluder is an MSME that sells bluder bread in the city of Bandung. In recent times, Miss Bluder has experienced a significant decline in sales. This is due to limitations in human resource management, suboptimal partnerships, and lack of effectiveness in the sales media used. This research aims to evaluate and design a new business model for Miss Bluder using the Business Model Canvas method. The data used included current business models, customer profiles from interviews, as well as business environment data from literature studies and online research. A SWOT analysis was carried out to formulate an improvement strategy, followed by the design of a Value Proposition Canvas, Channels, and Customer Relationships. After the business model design is completed, verification, financial simulation, and validation processes are carried out through evaluations and interviews with business owners. With the implementation of the new business model, it is hoped that Miss Bluder can overcome the decline in sales, improve business performance, and strengthen its position in the market.

Algorithmic human resource management: toward a functional affordance perspective

PurposeOrganizations are increasingly deploying algorithmic human resource management (HRM) for decision-making. Despite algorithms beginning to permeate HRM practices, our understanding of how to interpret and leverage the functions of algorithmic HRM remains limited. This study aims to review the stock of knowledge in this field of algorithmic HRM and introduce a theoretical perspective of functional affordance to enhance the understanding of the value of algorithmic HRM.Design/methodology/approachA systematic literature review was conducted in this study based on 283 articles. The articles are extracted from the Web of Science and Scopus. The content of the articles was then integrated to formulate the framework for this study.FindingsFunctional affordance highlights algorithmic HRM can be systematically embedded within the organizational environment, with its characteristics naturally suggesting the functionalities or actions available for HR managers to choose from. The findings of this study demonstrate five features of algorithmic HRM from the perspective of functional affordance: awareness of algorithmic HRM, alignment with business model design, action readiness, adaptation to business context and attribution to individuality.Originality/valueThis study provides a novel perspective for understanding the insufficiently theorized application of algorithmic HRM within organizations. It presents an integrated framework that elucidates the key features of algorithmic HRM and elaborates on how organizations can better develop algorithm-driven capabilities based on functional affordance.

Elaborating On Ethnic Entrepreneurship: How Differences in Immigrant Founders’ Strategic Choices Regarding Human Capital Sourcing Affect Business Model Designs and Evolution

Elaborating On Ethnic Entrepreneurship: How Differences in Immigrant Founders’ Strategic Choices Regarding Human Capital Sourcing Affect Business Model Designs and Evolution

An experimental design of the blockchain business model using a soft system dynamics modeling approach

PurposeThe growing discussion on blockchain and business models often falls short of demonstrating and evaluating systems consistently exposed to settings of dynamic complexity. Therefore, in practicing systems thinking, this study aims to provide a depiction of dynamic complexity in blockchain business models and develop policy-based scenarios to enhance blockchain-based systems behavior.Design/methodology/approachThis study integrated the soft system dynamic (SD) methodology approach, which focuses on a situation analysis and SDs in policy design. This single case study chose a firm engaged in the content industry, where the adoption of blockchains is a solution to tackle the industry’s significant challenges. Data were collected using a qualitative approach and then adapted into a simulation model.FindingsThe study pinpointed key parameters significantly affecting the system through a sensitivity analysis. Then, this experimental study found that all improvement initiatives delivered better system performance. At the same time, the study also identified counterintuitive findings, where the interventions using multiple value subsystems had insignificant effects on the system compared to a single advent.Originality/valueThis study illuminates the growing field of blockchain and business models through system modeling and experimentation, using an integrative approach like soft system dynamics methodology. It also identifies and demonstrates value distribution and the dynamic complexity inherent in the blockchain business model.

Digital technology‐based business model design and innovation to address grand challenges: A process model

AbstractResearch SummaryThe question of how a new venture designs and innovates on its business model (BM) to leverage digital technology to address multiple grand challenges has received little attention in the literature. We address this through a longitudinal case study of a new social enterprise in China. We develop an accessing‐embedding‐strengthening‐expanding process model of BM design and innovation by which a venture may increase both the scale and scope of its impact as a complementor in ecosystems addressing grand challenges. We identify the specific actions and contingencies underlying this process. Our findings contribute to the understanding of BM design and innovation based on digital technologies and propose that assessment of a BM's impact on grand challenges may be in terms of scope as well as scale.Managerial SummaryHow may founders build a BM that exploits a technology's potential to address diverse sustainability challenges? Our study derives insights from one for‐profit Chinese venture whose founders had the explicit objective of leveraging remote sensing data and analytics to address important and diverse social and environmental challenges. We identify the steps in its ecosystem‐based strategy (accessing, embedding, strengthening, and expanding) by which the founders targeted and entered successive application ecosystems as a complementor. This strategy has enabled them to achieve financial goals and also increase their contribution to sustainability objectives in terms of both scale (vis‐à‐vis one grand challenge) and scope (across multiple grand challenges). We also identify the specific questions that the founders had to answer in the process of executing this strategy.

The improvement of business performance in the shipbuilding sector driven by digital transformation and decarbonisation, and its impact on human resources

This study analyses the relationship between digital transformation, decarbonisation and Human Resource Management (HRM) on performance in the naval sector, with the aim of empirically confirming a correlation between these variables, achieving a deeper knowledge that allows companies to upgrade their results. The methodology used to obtain the results and contrast the hypothesis model has been the Partial Least Squares (PLS), using data from 102 questionnaires collected from employees belonging to the sector. The findings of this research represent a new contribution to the literature: the results of the analysis found evidence of decarbonisation contributing favourably to HRM, leading to performance improvement in the naval industry companies, as well as a positive correlation between digital transformation and performance. However, there was no sufficient evidence to prove the direct relationship between decarbonisation and performance in the sector. Finally, the results found in this research could be utilised as evidence to consider the trend variables in the current business environment to influence business model design aiming to promote efficiency and improvement of the results of the organisations in the naval sector. HIGHLIGHTS Improved performance in the shipbuilding sector Study on the importance of digital transformation, decarbonisation and human resource management in the shipbuilding sector. Development, validation and evaluation of a proposed hypothesis model based on the Partial Least Squares method. Conclusions for industry managers, so that they can design business models that improve performance.

Meaning is in the eye of the beholder: Reconciling business model design with customer meaning-making

Meaning is in the eye of the beholder: Reconciling business model design with customer meaning-making

Efficiency-centered vs novelty-centered: unpacking the impact of business model design on services in manufacturing firms

PurposeHow does business model design play a role in enabling manufacturing firms’ services? This study aims to investigate the impact of two distinct types of business model design, namely, efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), and their effects in balanced and imbalanced configurations, on two types of services: product- and customer-oriented services.Design/methodology/approachUsing matched survey data of 390 top managers and objective performance data of 195 Chinese manufacturing firms, this study uses hierarchical regression, polynomial regression and response surface analysis to test the hypotheses.FindingsThe results show that while EBMD positively affects product-oriented services, NBMD positively affects customer-oriented services. Both types of services exert a significant influence on firm performance. Furthermore, the degree of product- and customer-oriented services increases with an increasing effort level with a balance between EBMD and NBMD. Asymmetrical, imbalanced configuration effects reveal that the degree of product-oriented services is higher when the EBMD effort exceeds the NBMD effort, and the degree of customer-oriented services is higher when the NBMD effort exceeds the EBMD effort.Originality/valueThis study enriches the understanding of designing business models to facilitate service growth in manufacturing firms, ultimately benefiting firm performance. In addition, exploring balanced and imbalanced configurations of EBMD and NBMD offers new insights into business model dual design research.

Future ecosystem business model tool: Design science and field test in the efuel ecosystem towards the sustainability transition

This paper presents a novel business model design tool called Future ecosystem business model (FEBM). The FEBM aims to address the lack of managerial tools linking business models, foresight, and ecosystem strategizing in the context of systemic technological changes, as those characterizing the sustainability transition in a multi-level perspective. The tool has been shaped through a design science approach building on a structured review of the literature. A field test was conducted through a case study to test the proposed tool. The empirical context was that of a publicly funded project in the field of electrofuels (efuels). The project foresaw the development and integration of several technologies, whose adoption was likely to have significant implications within and across industries. The proposed approach contributes to the literature on business model design in the context of technology-driven transformations characterized by high uncertainty and interdependence, such as those related to the sustainability transition. Strategy and innovation managers may find in the proposed FEBM tool an actionable approach to shape decision-making against far-reaching technological and societal challenges.

A blueprint for success? Exploring business models of additive manufacturing ventures

Additive Manufacturing (AM) was expected to be the next great technological revolution, yet the predicted market growth has fallen short by 40%. Using a proprietary, cross-sectional data set of 350 ventures in the AM field founded between 2000 and 2017, this study analyses AM companies from a business model perspective. Specifically, we explore which value delivery and value capture mechanisms are decisive for AM venture success, measured via their operational and ownership state. We reveal that targeting the B2B market and selling via partner networks significantly increases firm survival likelihood. Further, applying a recurring revenue model increases the likelihood of an IPO. Our main contributions are two-fold: first, our research complements the business model literature by evaluating value delivery and capture in the AM entrepreneurial space, revealing that customer segments, sales channels, and revenue models are key to venture success. Second, we provide business model design guidelines to entrepreneurs as well venture capitalists in the AM field.

Особенности реализации социальных проектов в Донецкой Народной Республике: сущность проблематики и специфика формирования категориального аппарата

The quality of life of the population is a multifaceted indicator of the level of development of any state. The foundation of modern society is comprised of four spheres of public life: economic, social, political and spiritual. Each of these spheres has its own constituent elements that determine the tasks of state regulation. The state's management of the quality of life of the population is carried out through the use of appropriate tools, namely the implementation of certain policies and the guarantee of compliance with life support standards in designated areas. The improvement of the quality of life of the population depends on the coordinated work of the mechanism for implementing a set of certain tools in all of the listed spheres of society, which are interconnected, complement each other and ensure mutual functioning. The modern understanding of quality of life encompasses not only the provision of material goods but also the possibility of free expression in society. This should be considered when implementing social projects aimed at improving quality of life. The article hypothesises that the solution to a number of problems of social and spatial development of new constituent entities of the Russian Federation is possible through the organisation of a business incubator for social projects. In order for a business incubator to function effectively, it must be able to fulfil additional functions that are not typical for it. These include the generation of ideas and the design of business models for their implementation, taking into account the specific political and economic circumstances of the region in question, as well as the low level of entrepreneurial activity in the social sphere of the Donetsk People's Republic.

Business Model Design When Facing Competing Goals: Unveiling the Role of Regulatory Focus

Business Model Design When Facing Competing Goals: Unveiling the Role of Regulatory Focus

Exploring the Impact of Founder Social Identities on Sustainable Business Model Design

Exploring the Impact of Founder Social Identities on Sustainable Business Model Design

Stairway to Impact? Tracing the Business Model Design Processes of Nascent Sustainable Ventures

Stairway to Impact? Tracing the Business Model Design Processes of Nascent Sustainable Ventures

Knowledge Leaks in Data-Driven Business Models? Exploring Different Types of Knowledge Risks and Protection Measures

Data-driven business models imply the inter-organisational exchange of data or similar value objects. Data science methods enable organisations to discover patterns and eventually knowledge from data. Further, by training machine learning models, knowledge is materialised in those models. Thus, organisations might risk the exposure of competitive knowledge by sharing data-related value objects, such as data, models or predictions. Although knowledge risks have been studied in traditional business models, little research has been conducted in the direction of data-driven business models. In this explorative qualitative study, we conducted 28 expert interviews in three rounds (two exploratory and one evaluatory) and identified five types of risks along the three basic types of value objects: data, models and predictions. These risks depend on the context, i.e., when competitive knowledge could be discovered from shared value objects. We found that those risks can be mitigated by technology, contractual regulations, trusted relationships, and adjusting the business model design. In this study, we show that the risk of knowledge leakage is a relevant risk factor in data-driven business models. Overall, knowledge risks should be considered already during business model design, and their management requires an interdisciplinary approach via a balanced assessment. The level of knowledge protection from a technology perspective highly depends on computer science innovations and thus is a moving target. As an outlook, we suggest that knowledge risk will become even more relevant with the extensive usage of machine learning and artificial intelligence in data-driven business models.

Exploring Sustainable VR Use Cases for Startup Business Models: A Customized Customer Development Approach

Startups often face uncertainty and the potential Valley of Death. To address these challenges, Sustainable Development Goals (SDGs) can serve as a starting point to identify business opportunities in markets driven by SDG-related issues. In this case, we propose using virtual reality (VR) technology as a “painkiller”. This study aims to explore VR use cases and their implications for startup business models and discover a problem–solution fit, i.e., identify the degree to which VR applications effectively address actual problems as “killer applications”. The study employs a customized customer discovery technique, an essential process in the Customer Development methodology. By exploring VR’s applicability in various domains such as entertainment, training, education, and tourism, this study unveils compelling use cases that align with SDG aspects, thus validating the hypothesis on startups’ potential to harness VR for SDG contributions. Furthermore, the study produces VR business model designs based on solutions to SDG-related problems. Thus, startups can function effectively as “painkillers”, offering solutions that are not only desired but urgently needed (problem–solution fit). The implications of these findings extend globally, underlining VR’s role in addressing SDG issues and offering practical insights for startup business model development that are applicable to broader technology adoptions.

Digital-based business model design and firm performance: the mediating role of ambidextrous innovation

PurposeBusiness model design (BMD) is essential for firms to interact with stakeholders and gain competitive advantages in a changeable business environment. The advances in digital technologies create plenty of opportunities for the transformation of BMD. However, the effect of digital-based BMD on firm performance and the underlying mechanisms are unclear. Based on dynamic capability theory, this paper aims to introduce a framework elaborating on how digital-based novelty- and efficiency-centered BMD impact firm performance.Design/methodology/approachTo examine the hypotheses, the authors collect data from 277 Chinese manufacturing firms and use hierarchical regression analysis to process the data.FindingsThe results indicate that ambidextrous innovation partially mediates the impacts of digital-based novelty- and efficiency-centered BMD on firm performance. Interorganizational learning only strengthens the impact of digital-based efficiency-centered BMD on ambidextrous innovation.Originality/valueThis study reveals the impacts of two distinct digital-based BMD on firm performance and uncovers the underlying mechanisms, which enrich the BMD literature and provide a deeper understanding of B2B marketing.

Digital and International Growth Hacking Business Models: Born Globals, Born Digitals, and Synergies

This research delves into growth hacking models embraced by Born Digitals, Born Globals, and other firms, emphasizing the dynamic interplay between innovation and internationalization. Despite their unique origins and focuses, these concepts frequently intersect in business strategies, models, and entrepreneurial pursuits. Growth hacking models can be conceptually categorized based on the degree of digital innovation and the scope of business, whether local or global. This study underscores the pivotal role of growth hacking across diverse company profiles, transcending the domain of Born Digitals reliant on digital platforms. Various strategic pathways within each company's business model showcase diverse innovation routes to achieving growth and global presence. The analysis accentuates the importance of hybridity or synergistic approaches in growth hacking business model innovation within today's market landscape, offering valuable managerial insights for growth-oriented companies from their inception. It advocates for companies to embrace innovative and international strategies for enduring success, while judiciously balancing considerations of scalability and profitability against novelty and efficiency in business model design.

Seizing Capabilities and Performance of Supermarkets in Kenya

In Kenya the supermarkets provide market access for the manufacturers’ and small and medium enterprises’ products. In the recent past renowned supermarket brands such as Nakumatt, Tuskys, Choppies and Uchumi have collapsed due to underperformance. This paper examines the influence of seizing capabilities on the performance of supermarkets in Kenyan cities. The study was anchored on the dynamic capability theory (DCT). The study was grounded on positivism research philosophy and adopted crossectional descriptive research design. A structured questionnaire was used to collect primary data from 629 licensed supermarkets. A sample size of 304 respondents from a population of 1258 senior managers was used. Stratified random sampling method was used to select the sample size in Nairobi, Mombasa, Kisumu, and Nakuru. Descriptive statistics such as mean and standard deviation and inferential statistics which included correlation and regression are the statistical tools that were used to analyse the data. Statistical package for social scientists (SPSS) software version 28 was utilized to explore the data. The findings demonstrated that seizing capabilities have a statistically significance (β = 0.511, t = 12.501, p < 0.05) influence on the performance of supermarkets in the Kenyan cities. The study demonstrated that it is vital for supermarkets’ management to consciously design business models and allocate resources that can facilitate the optimal exploitation of new business opportunities to add value to the supermarkets. The management should develop a resource mobilization strategy to fund long term projects that are aimed at seizing opportunities that will improve supermarket’s survival and performance.

Aligning servitization and circularity: The role of institutional confluence in sustainable business models

This conceptual study explores the alignment between servitization—a shift from selling products to offering services—and circularity principles. The study introduces institutional confluence—a configuration of institutional pressures that enhance business model legitimacy to stakeholders and facilitate operational success— which can serve as a driver aligning servitization with circular principles. Institutional confluence has the capacity to trigger novel business models, shape resources and processes, enhance value capture, and inhibit unsustainable business models. The study develops the concept and underscores the role of institutional confluence in promoting this alignment and subsequent environmental sustainability. The article utilizes illustrative case examples from servitization and circular business models to develop the concept of institutional confluence serving sustainable servitization. The study offers strategic insights for managers and policymakers, emphasizing the need for a holistic approach that integrates servitization and circularity from the outset of business model design. It advocates for policies that leverage regulatory, normative, and mimetic pressures to foster sustainable business practices. The article contributes to the servitization literature by delineating the mechanisms through which institutional forces facilitate or hinder the integration of servitization and circularity, offering directions for future research to explore these dynamics across different contexts and industries.