Disruptive Business Models Research Articles

Local Energy Community as a Small Hydrogen Valley – H2LEC

A Local energy community (LEC) is a vertically nested system in energy supply and an ecosystem with joint values and objectives. On-site integrated hydrogen-based systems connected to the grid, and consisting of electrolyser, hydrogen storage and fuel cell system - hydrogen prosumers - provide efficient balancing of local energy consumption and local production of renewable energy that can be extended over annual cycles. There is no transport of hydrogen needed. Thus, the H2LEC – Local energy community with integrated hydrogen systems - represents the carrier of dispersed energy and hydrogen production as a complement of concentrated energy and hydrogen production: on average, H2LEC will predictably achieve at least 75% self-supply. Additionally, with Combined Heat-and-Power systems, coupling to the thermal system adds to energy efficiency. H2LEC represents a virtual socio-economic system based on community values and thus engages initiative, innovation and capital of local actors, new technology start-ups and local industry; and represents opportunities for new disruptive business models. It brings into the energy supply system new players – prosumer who actively trade their flexibilities among themselves and on the external markets, and stimulates new enabling technologies - notably automated close-to-real time trading - thereby boosting end-to-end automated solutions. The H2LEC create the need and the market for smaller integrated hydrogen-based systems ranging from a few kWe for residential homes to a few MWe units for larger industrial companies or local districts with a complete range of capacities in between, for public or tertiary buildings and smaller enterprises. Thus, they provide an opening for participation of SMEs in local and international value chains and will create a strong complementary energy bottom-up pillar and hydrogen supply system locally and in Europe.

Global Scaling of Disruptive Business Models

Global Scaling of Disruptive Business Models

Disruptive Business Model in Logistics A Case Study on Unanu Technologies, Chennai

Disruptive technology is not only applicable for hardware or software, but the latest addition is logistics. The proposed case study will bring to light on how disruptive technology can change the outlook of logistics and supply chain management through UNANU, which can be considered as a blessing in disguise for the logistics industry. When the entire universe is going digital, so also is the dire need for logistics to go digital, which saves a lot of time and helps the service providers to make a good business. A detailed discussion will be conducted on UNANU, its model, U-DHAN, SWOT and the future ahead.

NORTH MACEDONIA AS AN EMERGING INNOVATOR

Innovation plays a vital role in advancing economic growth, benefiting consumers, businesses, and the overall economy. Economically, it involves the creation of new products and/or services, the implementation of novel ideas to enhance goods and services, or the integration of new technologies into production processes. Therefore, to thrive in the business world, organizations must innovate. Their survival hinges on the ability to introduce innovations, essential for maintaining a stable and attractive position in the market. Innovations can happen in any area or level of an organization – from manufacturing a tiny electronic component, to introducing a groundbreaking product line, to creating a disruptive business model. Another significant aspect to consider is the impact of government policies on innovation. Hence, its support for businesses is crucial. The purpose of this paper is to examine North Macedonia’s innovation standing within the EU relative to other countries in the region. It aims to analyze the trends over the years, identify the factors influencing performance, assess the reasons behind the results, highlight the country’s strengths, and pinpoint areas that need improvement to align with countries with higher innovation scores, as assessed by the European Innovation Scoreboard (EIS). The EIS offers a comparative evaluation of the research and innovation performance among European countries. North Macedonia’s indicator (46.3) ranks among the lowest, although there has been a significant improvement in the last year, narrowing the difference performance and that of the EU. However, there is still much work to be done. The study’s purpose is to identify the areas on which businesses and the government should focus in the future.

Insights and dynamics of circular business model in developing countries' context: The empirical analysis of the returnable glass bottles process

AbstractDespite the growing understanding that circular business models (CBMs) play a pivotal role in facilitating the transition from a linear to a circular economy, there is a lack of relevant literature on how CBMs can be implemented in businesses in developing countries. This study addresses this significant gap in the literature by revealing the insights and dynamics of the implementation of a CBM in a typical developing economy—Nigeria. A notable business model adopted by breweries and beverage companies in Nigeria—a returnable glass bottle process—was investigated through an in‐depth exploration of six companies in a qualitative case study that involves collecting data through interviews, exploratory field observation, and documented evidence (literature). The study generated empirical‐based evidence on how CBM can be implemented in a business value chain where formal and informal actors co‐exist and interact. It also discloses several barriers and enablers associated with CBM implementation in the context of developing economies. Collaboration, social inclusiveness, waste management, durable product design, and cost reductions are some of the enablers identified in the study. The key barriers are largely external and conspicuously linked to the socio‐economic disadvantages peculiar to developing economies such as the absence of effective legislature, lack of infrastructure, lack of technological innovation, unavailability of finance, and the emergence of large retail stores that operate on a disruptive business model. Finally, the current research provides practical suggestions and recommendations for the appropriate designing and transitioning of CBMs in developing countries' context.

Uber's impact on Asia Pacific industries: An examination of strategic initiatives and market dynamics

<p>We investigated the ramifications of Uber's announcements on stock markets within the Asia Pacific region,focusing on four critical sectors: Insurance,transportation and automobiles,technology,and travel and tourism. Utilizing data extracted from the crunchbase.com platform,the investigation spanned May 2019 to November 2023, encompassing 827 announcements across 15 countries in the region. Through analysis of the timing and content of Uber's announcements and consideration of regional nuances,this research offers nuanced insights into market responses. In the insurance sector,a discernible decline in cumulative abnormal returns before and after Uber's announcements suggested market anticipation of the challenges posed by Uber's disruptive business model. This prompted a reevaluation of traditional insurance practices within the region. Conversely,the transportation and automobile sector witnessed a notable increase in returns post-announcement,which is indicative of strategic adaptation to leverage opportunities presented by Uber's presence. This adaptation underscores the sector's readiness to capitalize on the evolving market dynamics influenced by Uber. Significant increases in cumulative abnormal returns within the technology sector indicate sustained investor confidence in Uber's technological innovations,highlighting the sector's recognition of Uber's transformative impact and its potential for growth opportunities. However,the travel and tourism sector exhibits a comparatively muted response to Uber's announcements,suggesting a limited immediate impact on the financial performance of companies within this sector in the Asia Pacific region.</p>

Research and Effectiveness Evaluation of Word-of-Mouth Marketing Strategies Based on Social Media

The rapid development and popularization of mobile internet technology have changed the way information is obtained and communicated. Various social media and e-commerce websites have emerged one after another, providing convenience for the public to participate in online comments and creating a good communication environment for Internet Word of Mouth (IWOM). Social networks are either a brand new internet application, a revolutionary way of information exchange, or a disruptive business model, but they are also a powerful booster for integrating the virtual world of the internet with the real world of humanity. Word of mouth (WOM) communication on social media has the characteristics of anonymity, fast communication efficiency, and rich communication forms, as it is utilized by many enterprises as a marketing model with low investment and high returns. Using social media platforms for word-of-mouth marketing (WoM) has advantages that traditional marketing models cannot match, but it also brings challenges to enterprises. This article constructs an optimization model for e-commerce WoM strategy based on social media and demonstrates the existence of the optimal solution. Analyzed the advantages of using social media for WoM and provided relevant marketing strategies, hoping to provide reference for relevant researchers.

A Comprehensive Approach to the Governance of Universal Access to Sustainable Energy

Achieving universal access to energy by 2030 (Sustainable Development Goal 7.1) hinges on significantly scaling up and accelerating electrification efforts in developing countries. Governing the ecosystem of government agencies, energy utilities, practitioners, development and finance institutions, banks, NGOs, academia, and, most importantly, beneficiary communities to accelerate the pace of electrification requires the interweaving of technological innovation, disruptive business models, improved institutional frameworks, and inclusive multi-stakeholder decision-making, to ensure that no one is left behind. The foundation of this article is based on extensive insider research, including 14 national electrification plans, numerous visits, field studies, and semi-structured interviews with these actors conducted over ten years in 25 countries. This article presents a novel comprehensive conceptual approach that integrates both macro (national and global) and micro (local and individual) level mechanisms and the role of cultural factors and shared values within the ecosystem in driving and accelerating action within a harmonized regulatory, policy, and planning framework. It outlines the essential mechanisms for effectively engaging and empowering governments, utilities, donors, and local actors to accelerate the path to universal electrification through the most cost-effective articulation of diverse technologies and business models.

Disruptive Business Model Innovation and Digital Transformation

Abstract Background Innovating how organisations run their business is a strategic decision to create more value for customers using or consuming the product and/or service provided. In addition to the incentive of everybody embracing digital transformation, digital technologies, and digital innovation, which frame changes of operating business models today, disruptions, i.e., another incentive that occurs suddenly and impacts globally, all force businesses to adapt and change. Objectives This research aims to provide a conceptual model that can be used for organisations to evaluate and propose feasible options for responding to disruptions that influence the businesses’ strategic innovation initiatives while assisting decision-makers in choosing the most appropriate option. Methods/Approach Considering internal and external factors that influence digital transformation, the conceptual framework is designed to assess readiness and willingness to transform and create opportunities for future success digitally. Results A conceptual framework was developed, tested, and demonstrated in a case study. The case study organisation rated positively the composition of steps to be perf readiness and willingness and choose the most feasible option to change. Conclusions: The digital environment and the influence of disruptions force organisations to change. The conceptual framework developed in this research helps the management choose the most feasible change option about the real as-is and the desired to-be state.

How to overcome the disruptor's dilemma: Exploring strategic alliance reconfiguration of new market entrants

Disruptive innovation studies show entrants face the disruptor's dilemma — an interplay with the incumbents they stand to disrupt. Previous research has characterised this interplay by relational and contextual tensions that may dissuade the entrants from disrupting. Yet, we know little about how entrants develop and grow disruptive business models despite such tensions. So, we studied two entrants that continued disruptive business model developments in the German fashion retail and insurance industries from 2014 to 2019. We found that these two entrants continuously reconfigured alliance portfolios, developing alliances with partners unaffected by the disruption who supported the entrants' value creation, delivery, and capture. These partners shielded the entrants from relational and contextual tensions. Our study contributes to the relational view in the disruptive innovation literature by showing that entrants reconfigure alliance portfolios unaffected by the disruption. It also demonstrates that entrants proactively and strategically combine social and timing defence mechanisms to overcome the disruptor's dilemma and continue disruptive business model development. Finally, our study contributes to the ex-ante view of disruptive innovation by showing how entrants can overcome the disruptors' dilemma by combining alliance portfolio reconfigurations and social and timing defence mechanisms to continue disrupting. This contribution holds vital managerial implications for disruptive entrants.

When causal attribution meets cuisine type: how consumer power and moral identity moderate virtual kitchen patronage

PurposeVirtual kitchens are a new business phenomenon, and how customers react to the new business model is still a largely unexplored topic. The purpose of this study is to examine the underlying mechanisms of consumers’ different responses to their reasoning of the new and disruptive business model of the virtual kitchen.Design/methodology/approachBased on the attribution theory and situated focus theory of power, this study conducts three online experiments to test the proposed framework. A total of 487 US residents who had prior experience with restaurant food delivery participated in the studies.FindingsThe results indicate that external attribution (vs internal attribution) and ethnic cuisine (vs mainstream cuisine) are more likely to elicit customers’ empathy and justice, leading to higher purchase intentions with virtual kitchens. A mainstream virtual kitchen is better off attributing itself to external factors. The significant effects of causal attribution and cuisine type on purchase intention only exist with powerful customers and those with high moral identity.Research limitations/implicationsThe results of this study provide valuable insight to virtual kitchen businesses to better position and market themselves to gain customers’ support. The findings also suggest that ethnic and mainstream restaurants should strategize their marketing communications about virtual kitchens differently.Originality/valueTo the best of the authors’ knowledge, this study is one of the first to provide in-depth insight into the growing phenomenon of virtual kitchens. It also contributes to the extant literature on attribution theory and situated focus theory of power.

Countering disruptive technologies and entrants: Fujifilm prevails

Purpose This paper argues that when incumbent firms counter disruptive threats head-on, they may fail to develop the required new skills. This paper aims to propose an adjacent strategy which proved useful to Fujifilm to counter disruption of its core business of manufacturing photographic film. Design/methodology/approach The study uses an inductive methodology. Based on a detailed case study of Fujifilm, the study proposes two frameworks: for the conditions under which an adjacent strategy is likely to be fruitful and how firms can make the strategy work in their organizations. Findings The study finds that an adjacent strategy can be useful to firms under specific circumstances. Not only will the strategy help to counter decline in the core business, but it will also open up new avenues of growth. The success of the strategy requires significant efforts in aligning the leadership and the organization, however. Practical implications The frameworks proposed in the study can be useful to incumbent firms in many industries as they battle new disruptive business models and players. Originality/value The study’s key argument that incumbent firms can leverage skills from their core business is novel. The study also proposes frameworks that can help firms decide whether an adjacent strategy is appropriate for them and how they can implement it.

MPharma: health-tech start-up makes medicines affordable and accessible to patients in Africa

Learning outcomes After discussing this case, students will be able to understand the challenges faced by social entrepreneurs in starting a health-tech start-up in Africa; create and evaluate lean business models of health-tech companies as a social enterprise; evaluate how health-tech start-ups were developing innovative business models and supply chain networks to make prescription drugs accessible and available in Africa; understand how inorganic growth strategies can help health-tech start-ups scale up; and evaluate what promises investors were seeing while investing in social enterprises in the health-care sector in Africa and what social wealth they were creating. Case overview/synopsis In August 2022, Gregory Rockson (Rockson), social entrepreneur and founder of for-profit health technology (health-tech) social enterprise in Ghana, mPharma, stated that he had plans to replicate the company’s business model, which provided people access to drugs and at affordable prices, to other African nations, beyond the company’s existing footprint. However, analysts pointed out that the fragmented drug supply chain and poor regulation in the health-care market across Africa could act as a challenge for mPharma to replicate its business model successfully across the African continent. People in Africa were forced to pay higher prices to buy life-saving drugs due to the continent’s fragmented drug supply chain. To add to their woes, pharmacies struggled to keep life-saving and life-sustaining medicines in stock. Often, patients traveled miles to a pharmacy only to find out that the drugs they needed were not in stock. In addition to this, the markets were flooded with counterfeit drugs. And the Covid-19 pandemic only exacerbated the situation. mPharma managed the prescription drug inventory for pharmacies and drug suppliers using its proprietary vendor management information system. By using the technology infrastructure it had built, the company connected patients, pharmacies and hospitals through a cloud-based software. The system enabled doctors to track in real-time which drugs were available and at which location, thus giving patients reliable access to medicines. Patients registering with mPharma with their prescriptions and medical history received an alert on their mobile phones notifying them where the drugs they needed were available. mPharma bought drugs from major drug manufacturers such as Novartis International AG, Pfizer Inc. (Pfizer) and Bayer AG, on behalf of the pharmacies. This enabled the pharmacies to save on the up-front costs of stocking the drugs, reduced supply constraints and ensured availability of drugs to consumers in these underserved markets. The company had a consignment model wherein member pharmacies had to pay only for what they sold. Most pharmacies forecast the number of drugs they needed and purchased them from mPharma at pre-agreed rates. The company took the inventory liability to prevent pharmacies from going out of stock. As mPharma used its purchasing power to buy drugs in large quantities from drug manufacturers and suppliers, it was able to help patients realize cost savings of 30% to 60% in the purchase of medicines. mPharma was focusing on achieving its ambitious goal of dominating the health-care market in Africa in future. However, analysts felt that the company would face challenges related to poor regulation in the health-care market, high prices of drugs and the fragmented pharmacy retail market in the continent. Complexity academic level This case is intended for use in MBA/MS level programs as part of a course on Social Entrepreneurship, Sustainability, Business Model Innovation, Disruptive Business Models, and Supply Chain Management in the Drug Industry. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

The Role of DLT for Beyond 5G Systems and Services: A Vision

Security, privacy, and trust are the key factors to unlock the full potential of future communication as beyond 5G and 6G systems enable new and more disruptive business models involved with multiple stakeholders, including mobile network operators, mobile virtual network operators, infrastructure providers, third party service providers, policy makers, end-users, and etc. The huge set of data, interaction process, and service management across these stakeholders require new technologies that can help the telecom industry to manage various data related to users, interaction process, and services in a way that is immutable, transparent, and secure with reduced OPEX to stay ahead of the market and to meet the evolving horizontal and vertical service and security requirements. This article presents an overview of the more promising key enablers, such as blockchain, permissioned distributed ledger technologies, and smart contract that can tackle the challenges of data security, privacy, and trust management in various potential beyond 5G and 6G application scenarios.

Estimating the Impact of Digital Nomads’ Sustainable Responsibility on Entrepreneurial Self-Efficacy

Digital nomads live outside of the classical organizational borders and can be seen as ‘contemporary entrepreneurs’ who bring disruptive business models into different industries, giving value to different working cultures and different types of capital. Because they are operating out of their home country, their social responsibility as entrepreneurs may have different implications. This study aims to explore the outcomes of digital nomads’ social responsibility in terms of self-efficacy and innovation. To test the hypothesis model, structural equation modeling (SEM) was used to analyze survey data. The results show that tourism firms should always have in mind their social responsibility levels to attract this target niche and should pay attention to the fact that they are mostly solo travelers, so they value the sense of community of a place and its legal, bureaucratic, and flexible terms of living. Findings also show that social and environmental concerns are more associated to social self-efficacy than to self-efficacy. The results complement existing research by helping tourism businesses and destination managers to understand the implications of the digital nomads’ social responsibility.

The influence of start-up entrepreneurship and disruptive business model on firm performance

The influence of start-up entrepreneurship and disruptive business model on firm performance

Liderstvo poslovne organizacije u digitalnom svetu - iskustva i izazovi na nivou Evropske unije

In the modern world of digital technologies, in parallel with the ongoing business and organizational changes and the wave of transformation in the way of doing business, leadership through digital tools is emerging as one of the new paradigms and leadership styles. As a concept of recent times, the leadership of a business organization in the digital world is a direct consequence of understanding technological changes as rooted in an evolutionary, interactive and permanent development cycle (so-called digital Darwinism). As a kind of reconfiguration of the traditional concept of leadership (leadership in an offline environment), leadership through digital tools takes place in an environment that implies knowledge, adoption and effective use of the latest technological solutions, as fundamental mediators (intermediaries, interfaces) in daily work, as well as tracing on that basis business direction of the organization. According to the above, the primary goal of the work is the analysis of the leadership of a business organization in the light of digital transformation processes and all the challenges that it entails, with special reference to the situation at the level of the European Union. Namely, we are talking about the fact that the biggest digital opportunity on European soil lies in the very transformation of the existing industry and business operations of the company, and we have in mind the starting premise according to which it also represents a huge potential for generating growth and raising the level of competitive performance of the union itself. At the same time, disruptive business models and improved production processes strengthened by digital investments will create new opportunities for the EU and on the world market. For the purposes of data interpretation and general facts, and their empirical validation, the compilation method and the descriptive method will be used in the work.

Application of the COHRV Conceptual Framework to Enhance Sustainable Manufacturing

For the implementation of Industry Industry 4.0 (I4.0), companies need the commitment of several departments, knowledge and technology within data management, cyber physical systems, and Internet of Things, among other pillars of I4.0. This industrial revolution (I4.0)offers opportunities for the development of competitive advantages, new market positions within a supply chain, new product design and processes, and manufacturing sustainability. Regardless of such benefits, for small and mid-size enterprises (SMEs) it represents a challenge, because they lack specific capabilities, qualified human resources, and technological and/or financial support. The challenges for SMEs from industrial sectors can be dealt with by means of strategic joint ventures, known as horizontal collaboration. Seen as the new vertical collaboration, horizontal collaboration offers a way for enterprises to combine their strengths in order to gain competitive advantages and develop new market opportunities. This paper presents the Resources and Value Horizontal Collaboration Model, “COHRV”, for its acronym in Spanish, structured as a guide to merge enterprises’ strengths such as knowledge transfer, qualified human resources, technology, and more. The COHRV model was designed as a disruptive business model, presenting a new perspective for horizontal collaboration projects between SMEs. To show the effective applicability of the COHRV model, data obtained from nine SMEs in a previous case study were used. The objective was to observe how the COHRV model works as a framework to create new strategies for SMEs, to work on a sustainable manufacturing venture.

A two-way satisfaction model for sharing economy

Customer satisfaction has been gaining the attention of researchers hoping to develop a model that integrates different constructs to achieve the satisfaction that leads to customer loyalty. Under the sharing economy paradigm, satisfaction is vital to the development of this disruptive business model. Trust between the consumer and the supplier allows its collaboration, and digital platforms connect the consumer with the supplier by creating a framework of trust around transactions. Producer satisfaction is as important as consumer satisfaction; however, it has not had the necessary attention— hence the need and motivation to develop a two-way review system. Based on the American Customer Satisfaction Index, we propose a cause-effect model for the consumer and supplier, connected by the common trust construct. Based on the literature review and choice of relevant publications, we define a conceptual model that will allow the development of a two-way satisfaction model to serve as a contribution to future satisfaction studies in the sharing economy.

Effective Business Disruptive Model in Malaysia: Concept Paper

This paper aims to study disruptive business models’ effectiveness in the Malaysian market. The study will focus on why there is a need for disruptive business models and how to execute the model and the benefits also criticism of the business model. In further, this paper also aims to explore the characteristics of that conceptualize and element influence in qualifying disruptive business model. This study also explores the source of events that occurred in Malaysia that derived the changes in the Malaysian market, how the Government made changes in response to the event’s occurrence, and how the firms reacted to both the market situation and government response. The Asian crisis was an eye-opening event for Malaysia; invaluable lessons of the crisis were reflected in its relentless efforts as well as its persistent commitment to fiscal and structural reforms, making Malaysia become financially sound and more resilient to exogenous and endogenous shocks under extreme but plausible market events. The literature on disruptive business models will be analyzed using a simple literature matrix method. By the end of the discussion, this study will see the links and correlation between the purpose of disruptive business models against the impact on its stakeholders and ecosystem members. In conclusion, this study found Corporate Social Responsibility, industry 4.0 and cloud computing, and Fintech are elements that influence the effectiveness of disruptive business models. This study suggests identifying the level of effectiveness, the researcher should further with empirical study.