Dominant Business Model Research Articles

Why “Surveillance Is The Dominant Business Model On The Internet”

New Perspectives QuarterlyVolume 32, Issue 2 p. 30-35 ArticleFree Access Why “Surveillance Is The Dominant Business Model On The Internet” ANDREW KEEN, ANDREW KEEN Author of The Internet is Not the Answer, is known as the “Antichrist of Silicon Valley.” He calls Google a monster, Uber a bad idea and wants governments to regulate both. He was interviewed by Max Tholl of The European.Search for more papers by this author ANDREW KEEN, ANDREW KEEN Author of The Internet is Not the Answer, is known as the “Antichrist of Silicon Valley.” He calls Google a monster, Uber a bad idea and wants governments to regulate both. He was interviewed by Max Tholl of The European.Search for more papers by this author First published: 27 April 2015 https://doi.org/10.1111/npqu.11511AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume32, Issue2April 2015Pages 30-35 RelatedInformation

The creation of successful business models through the extended application of design in business in Latvia and Estonia

Purpose – The purpose of this paper is to identify the dominant strategy and business models of companies and to analyse the awareness of design and the stage of design application in business in its broader sense from the perspective of business executives in the manufacturing sector and professional designers in the design industry that lead to creating successful business models in Latvia and Estonia. Design/methodology/approach – The questionnaire was used with two target groups – business executives (based on NACE 2, B-E sections, i.e. manufacturing companies) and professional designers in the design industry (NACE 2, M 74.10 section). In the first target group, 374 responses of business executives in Latvia and 371 responses of business executives in Estonia were received; in the second target group, 85 respondents in Latvia and 42 respondents in Estonia providing professional design services were analysed to identify the level of design awareness and its application in business in the respective co...

The origins and early diffusion of “shareholder value” in the United States

The shareholder value conception of the firm and its consequences for the functioning of corporations have been studied from a variety of disciplinary and theoretical perspectives. In this article we examine in more detail than has been done sofar the origins and early adoption of this particular conception. By investigating public business sources from the perspective of field theory, we argue that the rise and early diffusion of “shareholder value” are best understood as a function of the changing power relations in the economic field during the first half of the 1980s. The deep economic recession at the end of the 1970s and early 1980s led to a crisis in the prevailing management beliefs, offering newcomers the opportunity to promote alternative business strategies, among which the shareholder value conception became dominant. The sources studied indicate that the spokespersons of the new business conception were initially wealthy outsiders, corporate “raiders,” who used the economic crisis to oppose management and acquire shares in undervalued firms with the threat of restructuring and selling parts of them in the name of shareholders’ interests. Although these hostile take-overs, or threats of take-overs, were widely contested, the Reagan administration blocked regulation and stimulated the take-over market. The rivalry between “raiders” and public pension funds over the profits of these takeovers led to the founding the Council of Institutional Investors (1985), which adopted the shareholder value doctrine inaugurating the organized activism of public pension funds with regard to the management of firms. It was thus in all likelihood the competition and conflict among different groups of shareholders, primarily corporate raiders and pension funds, that triggered the shift in the balance of power between managers and shareholders. Since managers found profitable ways to adapt to the new balance of power, the shareholder value ideology spread rapidly through the economic field, becoming the dominant business model of North American firms in the second half of the 1980s.

Explaining Policy Responses to Danish and Irish Banking Failures during the Financial Crisis

The 2008 global financial crisis produced very different responses in Ireland and Denmark. While both countries embraced depositor guarantee schemes and recapitalisation programmes, these were designed and adopted in significantly different ways. Crucially, the Irish state initially assumed full responsibility for sector losses and only later defined terms for industry contributions. In Denmark, a negotiated settlement from the outset transferred most of the risk associated with banking failures collectively to the banking sector. The article assesses two explanations for these different responses: (1) variations in domestic exposure to the financial industry, notably its relative size, dominant business models and exposure to real estate markets and (2) variations in institutional features, notably banking sector preferences and legacies of collective action. While limited explanatory power can be attributed to the former, collaborative legacies decisively swayed policy responses in Denmark and Ireland in the hectic weeks of late September and early October 2008.

Growing the Asset Management Franchise: Evidence from Hedge Fund Firms

We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. While first funds outperform follow-on funds, the superior performance of the former attenuates following the launch of the second fund. Multiple-product firms underperform single-product firms, but harvest greater fee revenues. Consequently, in an environment characterized by rising compliance costs and declining return expectations, the multiple-product firm has become the dominant business model in the hedge fund industry.

The livestock sector and its stakeholders in the search to meet the animal welfare requirements of society

Multi-stakeholder support is crucial to chain parties delivering against the (latent) demand and consumption of animal-friendly products. Actors take an ambiguous position in dealing with the issue of animal welfare improvements, partly because such improvements deviate from the dominant business model aimed at efficient delivery to export markets. This makes multi-stakeholder dialogues an important factor in channelling the issue of animal welfare and, ultimately, in migrating towards more animal-friendly production systems. This paper studies the dynamics in the chain - including lock-ins and barriers - through which the Dutch livestock sector searches for a new equilibrium with society; in this case, through the development of an in-between segment. This analysis improves our understanding of how transitions work on sustainability issues in the agriculture sector. Developing an in-between segment for animal friendly production requires many small steps and stakeholder interactions and the creation of a delicate balance between reactive and (pro)active efforts.

Meeting Heterogeneity in Consumer Demand for Animal Welfare: A Reflection on Existing Knowledge and Implications for the Meat Sector

The legitimacy of the dominant intensive meat production system with respect to the issue of animal welfare is increasingly being questioned by stakeholders across the meat supply chain. The current meat supply is highly undifferentiated, catering only for the extremes of morality concerns (i.e., conventional vs. organic meat products). However, a latent need for compromise products has been identified. That is, consumer differences exist regarding the trade-offs they make between different aspects associated with meat consumption. The heterogeneity in consumer demand could function as a starting point for market segmentation, targeting and positioning regarding animal welfare concepts that are differentiated in terms of animal welfare and price levels. Despite this, stakeholders in the meat supply chain seem to be trapped in the dominant business model focused on low cost prices. This paper aims to identify conflicting interests that stakeholders in the meat supply chain experience in order to increase understanding of why heterogeneous consumer preferences are not met by a more differentiated supply of meat products produced at different levels of animal welfare standards. In addition, characteristics of the supply chain that contribute to the existence of high exit barriers and difficulty to shift to more animal-friendly production systems are identified. Following the analysis of conflicting interests among stakeholders and factors that contribute to difficulty to transform the existing dominant regime, different routes are discussed that may help and motivate stakeholders to overcome these barriers and stimulate the creation of new markets.

Nutrigenomics-based personalised nutritional advice: in search of a business model?

Nutritional advice has mainly focused on population-level recommendations. Recent developments in nutrition, communication, and marketing sciences have enabled potential deviations from this dominant business model in the direction of personalisation of nutrition advice. Such personalisation efforts can take on many forms, but these have in common that they can only be effective if they are supported by a viable business model. The present paper takes an inventory of approaches to personalised nutrition currently available in the market place as its starting point to arrive at an identification of their underlying business models. This analysis is presented as a unifying framework against which the potential of nutrigenomics-based personalised advice can be assessed. It has uncovered nine archetypical approaches to personalised nutrition advice in terms of their dominant underlying business models. Differentiating features among such business models are the type of information that is used as a basis for personalisation, the definition of the target group, the communication channels that are being adopted, and the partnerships that are built as a part of the business model. Future research should explore the consumer responses to the diversity of "archetypical" business models for personalised nutrition advice as a source of market information on which the delivery of nutrigenomics-based personalised nutrition advice may further build.

The poverty of journal publishing

The article opens with a critical analysis of the dominant business model of for-profit, academic publishing, arguing that the extraordinarily high profits of the big publishers are dependent upon a double appropriation that exploits both academic labour and universities’ financial resources. Against this model, we outline four possible responses: the further development of open access repositories, a fair trade model of publishing regulation, a renaissance of the university presses, and, finally, a move away from private, for-profit publishing companies toward autonomous journal publishing by editorial boards and academic associations.

Crisis and transformation: On the corso and ricorso of human systems

Advanced and mature societies are undergoing a fundamental transformation of their economic, political, technological and social lives. Developing countries are rapidly catching on and accelerating their participation in the transformation which is equally rapidly becoming global. Yet, at the same time, the process of globalization itself is exhibiting signs of a reversal towards relocalization, i.e. rebounding after the strong global outbound of the past fifty years. The change of paradigms and change of dominant business models accompany such transformations. Yet, transformations get naturally confounded with ongoing recessions and crises. Disentangling the phenomena of crisis from those of transformation remains a challenge, especially for politicians. In this paper we primarily address the issues of unemployment and the changing nature of employment in mature economies.

Developments in the recycling industry and the growth of product stewardship: the role of enterprise information systems

This article discusses the growth of product stewardship as the dominant business model for recycling, and examines some of the issues and challenges faced by product stewardship organisations. It highlights the crucial role of information in contributing to the success of product stewardship and argues that enterprise information systems, widely used in large companies but not yet in the context of recycling, provide the types of functionality needed to support this form of business activity. Examples are provided of some specific areas of activity in product stewardship that can be well supported by an enterprise information system. Finally, some potential problems and challenges in IES implementation are discussed and conclusions are drawn regarding the case for the use of this type of information system in product stewardship.

Nurturing a service orientated paradigm of management within a traditionally manufacturing enterprise: A South African case study

Purpose: The purpose of this paper is to analyse and draw a correlation between service science theory and practice as it relates to the complexity of engendering a services orientated paradigm of management within a traditionally manufacturing enterprise. It is suggested that the traditional manufacturing paradigm is founded on scientific management principles whereas that of service science is far more multidisciplinary and complex in nature. It would seem that the service science paradigm is directed at co-creational value in contrast to a transactional paradigm of management that form the foundation of the manufacturing era. Problem investigated: With the emergence of an essentially services orientated global economy, manufacturing enterprises are increasing adding a range of services to the value offerings they make available to clients. The first part of this paper constitutes a literature study directed at gaining a theoretical understanding and insight into the underlying principles of management involved in moving from an essentially manufacturing management setting to one that incorporates services and in some instances where services assume the dominant paradigm of management. The second part of the paper attempts to correlate the theoretical insights gain from the literature study with relation to that of practice by means of a case study undertaken at a South African manufacturing enterprise that has implemented a servitization strategy. Methodology: A multidisciplinary literature review and analysis is undertaken to gain an insight of contemporary management theory and practice, as it relates to servitization or the transition from an essentially manufacturing to a services inclusive operational setting. With the insights gained from the literature research serving as a source of information and reference a case study was undertaken at a South African enterprise to determine if a correlation exists between theory as expressed in the literature and practice as reflected in the enterprise concerned. As only a single case study was undertaken it is acknowledged that the research concerned needs to be extended in scope to gain a far more representative insight into the validity of the correlating insights gained from this research study. South African research in relation to servitization would seem to be extremely limited in extent and this paper needs to be seen as an attempt to address the knowledge base, from a South African perspective, and not as providing a fully fledged servitization research study. Findings: Findings indicate that the incorporation of services necessitates fundamental changes to the enterprises' essentially manufacturing dominant business model and the socio-cultural context, often termed to be "the way things are done around here". This has very fundamental implications in terms of nuance differences in paradigms of management. Value of the research: Increasingly South African manufacturing enterprises are incorporating services into their value proposition offered to clients and the research findings could be used to mitigate some of the possible pitfalls in managing paradigmatic shifts involved in implementing a servitization strategy.Conclusion: A primary conclusion drawn from the study is that the implementation of a servitization strategy entails some very fundamental changes in manufacturing paradigms of management. The paradigms that underpin a service science based dominant logic of management have very fundament nuance differences, which if not addressed could derail the servitization strategy in implementation.

Bank monitoring, profit efficiency and the commercial lending business model

We build a bank-specific, fixed-effects regression model to develop proxies for a bank's monitoring effort. Our results show that banks that devote more resources to monitoring (based on these proxies) are more profit efficient and the effect is large. A very important theoretical literature in finance suggests that monitoring is value enhancing; we provide empirical evidence consistent with the theory. This research thus establishes an important link between the large literature on bank monitoring and the equally large literature on profit efficiency. Monitoring is a key technology in the commercial lending business model (e.g. Mester, Nakamura, & Renault, 2007). Thus, these results point to considerable strengths in the dominant business model used in the banking industry.

Peaceful coexistence? Library-delivered e-textbooks and traditional student purchases: findings from a series of trials during 2009–10

During the 2009-10 academic year, eight textbook publishers, three aggregators and ten UK higher education institutions came together in a series of trials to help inform future pricing models for library-delivered e-textbooks to students. Funded by JISC Collections and co-ordinated by Content Complete Ltd, the trials were designed to help identify the drivers and resistors to making core and adopted e-textbooks available to higher education libraries. For publishers, access to their content via libraries is a risk given that the dominant business model is one of student purchase. For libraries, finding funds to purchase this content has always been difficult, given the protection afforded the serials budget.What sort of compromises might be possible to meet the needs of both parties?This paper reports on the trials themselves and the key issues that emerged for the principal stakeholders.

Business Models in European Banking: A Pre-and Post-Crisis Screening

The next few years will be critical for Europe's banking industry. It faces a number of financial sector reforms that will have a decisive impact on the dominant practices and business models followed across the European Union. This timely volume presents the results of the first screening exercise conducted on the performance, stability, risk, efficiency, and corporate governance of twenty-six major European banks -before, during, and after the financial crisis. The authors use those findings to help identify the key strengths and weaknesses inherent in the dominant business models, in light of the upcoming regulatory changes.

Machine/organism dichotomy and free-market economics: Crisis or transformation?

The free-market economy is being continually challenged – by governments, monopolies, “too big to fail” enterprises, global banks and social experimentation. Crisis is still considered to be a failure of the capitalistic system rather than a failure of politicized state and governmental institutions unable to abstain from interfering with free-market fundamentals. Crisis represents a necessary catharsis which periodically renews and regenerates prevailing business ecology. At the same time, especially with the current crisis, the system is undergoing fundamental transformation, change of paradigm and change of dominant business models. Transformations get naturally confounded with crises. Man’s failure and challenge is that we repeatedly fail to do the catharsis of crisis – without the crisis. Disentangling the phenomena of crisis from those of transformation is the main charge of this paper. We address the issues of unemployment in the post-crisis environment, especially in the U.S. We trace the difficulties to treating economy as a deterministic machine while it behaves as an adaptive organism.

Is the Internet Bad News? The Online News Era and the Market for High-Quality News

We review and model the impact of the internet on the production and uptake of high-quality news. Our review of trends in the market for news suggests three stylized facts: i) particular quality news markets are dominated by merely a few providers, ii) demand for quality news appears stable, but provision of news has become specialized; mainstream news is decoupled from quality news, and iii) the dominant business model of internet news mirrors that of radio, television, and newspapers in that costs of news production are recouped via advertising. We build a stylized model that rationalizes these facts. Our model captures three conflicting effects: (1) economies of scale in the production of news lead to monopolies on particular markets, (2) easy access to information on the internet makes it cheaper to provide high-quality news and to disseminate it via the web, which increases the production of such news; and (3) the existence of bloggers and news aggregators who recycle the stories of news-providers reduces the effective property rights of high-quality news producers, thus forcing the business model of the internet to be advertising-based. For the most likely cases, our model would imply that the internet does not constitute bad news for the provision and uptake of quality news.

The New Economy Business Model and the Crisis of U.S. Capitalism

Driven by industrial innovation, in the last half of the 20th century the population of the United States attained, on average, a very high standard of living. Yet, in the first decade of the 21st century, large numbers of Americans are economically insecure. In this paper, I summarize the findings of my research into the ways in which over the past three decades the transformation of the dominant “business model" that prevails in the information and communication technology industries has contributed to the rise of economic insecurity in the United States. I describe how the “Old Economy business model" (OEBM) that was in place in the immediate post-World War II decades gave way to the “New Economy business model" (NEBM) that is now ubiquitous in U.S. high-tech industry. Under OEBM, an employee could hold the realistic expectation of a career with one company. Under NEBM, career employment depends much more on interfirm labor mobility, which in and of itself makes continuous employment less certain. Nevertheless, in the ICT industries, NEBM has been an engine of economic growth so that a strong demand for high-tech labor can potentially offset a lack of employment security with one company. Since the early 1990's, however, this demand for high-tech labor has tended to be a demand for qualified lower-wage labor, which has meant that ICT companies have favored the employment of younger workers over older workers and of workers in developing nations over workers in the United States. At the same time, acting as both a motive for employing lower-wage labor and as a rationale for laying off experienced workers has been the adherence of U.S. corporate executives to the ideology that their companies should be run to “maximize shareholder value." The most important manifestation of the influence of this ideology on corporate resource allocation is the extent to which U.S. companies repurchase their own stock to support their stock prices. I conclude this essay by arguing that neither the ideology of maximizing shareholder value nor the practice of stock repurchases has any economic merit. Indeed both must bear the blame for contributing to the rise of economic insecurity in the United States.

Corporate Governance in India

The Indian corporate governance system has both supported and held back India's ascent to the top ranks of the world's economies. While on paper the country's legal system provides some of the best investor protection in the world, enforcement is a major problem, with overburdened courts and significant corruption. Ownership remains concentrated and family business groups continue to be the dominant business model, with significant pyramiding and evidence of tunneling activity that transfers cash flow and value from minority to controlling shareholders.But for all its shortcomings, Indian corporate governance has taken major steps toward becoming a system capable of inspiring confidence among institutional and, increasingly, foreign investors. The Securities and Exchanges Board of India (SEBI), which was established as part of the comprehensive economic reforms launched in 1991, has made considerable progress in becoming a rigorous regulatory regime that helps ensure transparency and fair practice. And the National Stock Exchange of India, also established as part of the reforms, now functions with enough efficiency and transparency to be generating the third‐largest number of trades in the world, just behind the NASDAQ and NYSE.Among more recent changes, the enactment of Sarbanes—Oxley type measures in 2004—which includes protections for minority shareholders in family‐ or “promoter”‐led businesses—has contributed to recent increases in institutional and foreign stock ownership. And while family‐ and government‐controlled business groups continue to be the rule, India has also seen the rise of successful companies like Infosys that are free of the influence of a dominant family or group and have made the individual shareholder their central governance focus.

Business models for mobile Content Aggregator

This paper proposes a framework for analysing the Content Aggregator (CA)'s business model, a core part of business planning, in the mobile internet market of Korea and to introduce its applicability in various studies to be performed in the future. To accomplish this, this study reviewed literatures related to business models and mobile internet business, and selected three research dimensions for analysing the business model of mobile CA: form of partnership between CA and Content Provider (CP), content location and service for billing of content. These research dimensions are combined into a framework for conceptualising a CA business model. A case study using the framework shows that Master CP, Facilitator, Hub CP and Syndicator are dominant CA business models in the mobile internet market of Korea and each type of CA has its own different role, function and revenue stream.