Economy Business Models Research Articles

The economic viability of the sharing economy business model and its environmental impact

The sharing economy refers to a business model where access to products or services is shared among consumers through an online platform. This model has recently received much attention to determine whether it is economically viable and environmentally friendly. The main trade-off is this: a decrease in production volume possibly favoring the environment while reducing the manufacturer’s profits versus an increase in product usage potentially harmful to the environment while enhancing the manufacturer’s profits from increased margins. Furthermore, the sharing economy may prod the manufacturer to either elevate product efficiency so as to justify a higher selling price or to reduce it with the intent of cutting production costs. Given these arguments, we investigate both economic and environmental impacts of the sharing economy business model for comparison with the traditional models of pure sales and servicizing. We find that the manufacturer may prefer peer-to-peer product-sharing over pure sales or hybrid servicizing under two sets of conditions: (1) either consumers are sufficiently heterogeneous in their product usage needs, while concurrently the size of high-usage consumers being relatively small, or consumers are sufficiently homogeneous in their product usage needs, while concurrently consumer segments with different usage needs being similar in size, and (2) the marginal cost of production (per unit of efficiency) and the manufacturer’s ability to pool consumers’ needs are both sufficiently low. The sharing economy can also environmentally outperform traditional business models, especially for products where environmental impact accrues mostly at production/disposal than at usage. As a result, the sharing economy can yield a win–win outcome as to manufacturer’s profits and environmental impact.

Оценка зрелости шеринг-экономики в России: рынок аренды потребительских товаров

Abstract. Introduction: development of digital economy is accompanied by the growth of sharing economy business models which are based on short-term rental of underutilized resources with the help of digital platforms. Sharing economy covers many areas of consumer life, including car sharing (ridesharing), workspace (coworking), free space in the house (flatsharing), etc. The most classical sphere of sharing economy is rental of goods (goods sharing). Studying the development potential of this market is an urgent research task and may be of interest to both scientific community and venture investors, as well as representatives of large Russian companies. Objectives: to assess the maturity of Russian consumer goods rental market. Methods: sociological research of buyers in one of the largest marketplaces in Russia. A survey was conducted among 1,298 respondents who regularly make purchases on the selected marketplace and 2,092 respondents who make more than 2 items returns per month. Results: 40 % of respondents are potentially interested in renting items. First of all, they are interested in renting tools for repairs (40 %), items for tourism (25 %), sports goods (23 %) and items for cleaning (21 %). 2 % of respondents used to rent things during the previous year, while in those who did not use this service, 83 % do not know about it, and 18 % clearly report such a need. Respondents identify the main advantage of renting consumer goods as the possibility of using a product that will be needed “a couple of times” and the opportunity to try whether this product is suitable. The main barrier to goods sharing is the risk of paying the full cost of the items in case of its breakdown. Consumers who most often return goods are less aware of the possibility to rent goods, while they often have more need for this. Conclusions: consumers in Russia are moderately interested in renting items. To develop this segment of the sharing economy it is necessary to raise consumer awareness and effectively manage the renter’s risks in case of items damage.

Adopting circular economy business models: Evidence from a small island state

Adopting circular economy business models: Evidence from a small island state

Sharing economy business models (SEBMs): a study of global archetypes and from local industries in Georgia

This paper discusses the mapping model tools for Sharing Economy Business Models (SEBMs) and summarises the arguments and counterarguments within the scientific discourse. The main purpose of the research is to provide a comprehensive analysis of the SEBMs of local companies, contrasting them with global archetypes as defined by Curtis and Mont (2020). Systematisation of the literary sources and approaches for solving the problem indicates that local companies exhibit unique attributes in their SEBMs when compared to their global counterparts. The relevance of this scientific problem decision is that understanding these differences provides valuable insights into how local contexts and conditions shape SEBMs. Investigation of the SEBMs in the paper is carried out through detailed comparisons with global models. Methodological tools of the research methods were studying the companies’ models by exploring all available information on the web during the year of observation, 2023. The research object is the local companies because they offer insights into how local contexts and conditions shape SEBMs. The paper presents the results of an empirical analysis which reveals differences in areas such as governance model, price mechanism, and revenue streams. The research empirically confirms and theoretically proves that these variations could be attributed to local market conditions, consumer preferences, or strategic choices made by the companies. The research results can be useful for practitioners and academic researchers in the sharing economy, offering insights into local variations in SEBMs and their potential impact on business strategy.

Profit Analysis of Taxi Industry Under the Sharing Economy Business Model - Take Didi Kuaidi as An Example

The emergence of the sharing economy provides the value reconstruction of the scarcity of idle resources, provides an efficient business model for economic growth and transformation, and becomes an important driver of supply-side reform. Didi Kuaidi is a combination of transportation and the Internet, that is, a form of application that combines actual objects with the Internet. For people's travel, it can also better meet people's short-distance needs, and a new business model makes it have a larger commercial space. At present, Didi Kuaidi ranks in the forefront of domestic Didi Kuaidi operators and seems to be able to sit in Diaoyutai from the perspective of scale. However, Didi Kuaidi still faces many challenges. This paper analyzes the connotation and role of the sharing economy, expounds the operating mechanism and development status of the sharing economy business model, and then makes a case analysis of Didi Kuaidi's business model. It puts forward policy suggestions for the healthy and sustainable development of the sharing economy, including focusing on the construction of Didi Kuaidi, improving service management procedures, actively realizing automated system operation, rational business operation, transforming operating costs, and expanding Didi Kuaidi's promotion methods. It is of great significance to the development of Didi Kuaidi.

CIRCULAR ECONOMY AND INDUSTRY 4.0 INTO INDUSTRIAL ENGINEERING COURSES

Objective: This article presents a theoretical study of how the concepts of the Circular Economy (CE) and Industry 4.0 (i4.0) can be incorporated and introduced into industrial engineering courses and how they can help the implementation of circular economy business models. Design/methodology/approach: A theoretical analysis was conducted on a set of articles identified through a search based on the combination of keywords 'circular economy,' 'CE,' 'industrial engineering,' 'industrial engineer,' 'i4.0,' and 'Industry 4.0.' Two databases, Scopus and Web of Science, were consulted initially. A total of 29 articles were selected and utilized for the subsequent analysis. Following a comprehensive review of these 29 articles, we sought to determine how the concepts of the circular economy and i4.0 can be integrated into industrial engineering courses and their potential contributions to the implementation of circular economy business models. Results: The paper provides an overview of how the concepts of the CE and i4.0 can be incorporated into the curriculum of undergraduate industrial engineering courses, utilizing an interdisciplinary and cross-cutting approach. Furthermore, it was possible to verify that there is a strong and feasible relationship between the concepts of the circular economy and Industry 4.0. For the effective implementation of these concepts, there is a necessity to train professionals and the use of digital technologies in favor of the circular economy. Originality/value: The paper brings as contribution, the discussion about the importance of incorporating the concept of circular economy and i4.0 into the courses of future engineers, who work mainly in the management of production processes and management of resources. This is a theoretical study, not an empirical one, and perhaps this is the main limitation of the research. However, despite being theoretical, it brings as a practical contribution an important discussion about the need to train professionals, even in their undergraduate training, and the use of digital technologies in favor of the circular economy.

Циркулярна економіка: особливості та перспективи впровадження в Україні в умовах війни

The circular economy is a prerequisite for the new industrial revolution, because it contributes to achieving maximum economic efficiency in industry and reducing the negative impact on the environment. Its implementation involves a set of measures aimed at the sustainable development of enterprises, the country and society. Introducing the concept of circular economy is an important and necessary step for the development of our country, its integration into the European Union and post-war recovery. The purpose of the study is to identify problems on the path of reorientation of Ukrainian enterprises to the principles of circularity and sustainable development and to develop methods for their rapid adaptation, in particular, taking into account the consequences of European integration and full-scale war. The goals of the research: analysis of the current state of waste management in Ukraine, clarification of the essence and key principles of circularity and sustainable development, identification of the main strategies for the implementation of the circular economy, analysis of the peculiarities of the implementation of circular business models in Ukraine, taking into account the experience of the EU, development of recommendations for rapid adaptation circular business models in conditions of war. The peculiarities of waste management in Ukraine, in particular in the conditions of war, the readiness of companies and resource provision for the introduction of new circular business models are analyzed. The advantages and weaknesses of the implementation of circular principles, the opportunities that open up to enterprises, the positive impact on the economic, social, technological spheres, etc. are characterized. Before the full-scale invasion into Ukraine, most of the factors of the external environment were generally favorable for the implementation of circular economy business models by Ukrainian enterprises: accelerated accession to the EU, commitment to Ukrainian business in the world market, attraction of foreign investments, development of innovative technologies in Ukraine, gradual change in the culture of consumption , increasing consumer trust in "green" brands, increasing the level of social responsibility of enterprises. The amount of waste in Ukraine as a result of military operations as of June 2023 was 12 million tons (excluding temporarily occupied territories): destruction of administrative buildings, private houses, agricultural lands, etc. At the same time, it was stated that the pre-war methods of waste management, which were already ineffective, cannot be used in principle today. Therefore, now more than ever, it is important to promptly and effectively eliminate its consequences, which, on the other hand, is also a potential for the development of the circular economy and the post-war reconstruction of Ukraine.

Designing a Sustainable Business Models for Green Transition of SEZ in Campania—Towards the Conceptual Framework

Launched by the Region of Campania in 2017, the special economic zone (SEZ) in Campania is being developed as a consequence of the various interventions supported by the Recovery Plan of the Italian government. Economic, fiscal, and regulatory measures are promoted in foreign nations (China, Africa, India, Europe, South-East Asia, etc.), and cur-rently in Italy, for the development of firms and the industrial sector in SEZ. Investment and consumption of production processes can lead to a polluted environment that impacts the lo-cal population and does not achieve the goal of sustainable development. This study proposes an analysis of all Campania SEZ and the introduction of a set of indicators to be used in Campanian SEZ to implement a circular economy business model across different areas (coastal, inner land, and intermediate areas) and to understand how these circular economy principles can interact with the current ecological transition for process decarbonization. This study’s methodology is based on a cross-qualitative investigation of indicators that link the sustainability of manufacturing and economic processes to environmental transformation. While foreign SEZs are rapidly increasing, Italian SEZs, notably in Campania, are still in their early stages. In this regard, the objective of this paper is to reinforce the topic of sustainability for the Campanian SEZ to support decision-making processes, as well as to provide further reflection on the development of Campanian SEZ in Italy through the lens of the ecological transition, and in line with foreign SEZs, to understand how decarbonization measures can be applied for a circular economy of production.

Information as a circular resource – facilitating information exchange to extend product-life

PurposeThis paper aims to study a circular economy business model that offers services with embedded information exchange capabilities to extend product life through maintenance and repair. Information exchange has been identified as a critical factor in advancing the principles of a circular economy, and this research was conducted to illustrate how information exchange can facilitate maintenance and repair.Design/methodology/approachThe study has a case study approach of collecting data through semi-structured interviews and questionnaires.FindingsInformation exchange on what and when to do something engages end-users in maintenance and facilitates learning. For repair, the problem description and possible solutions are information that must be exchanged. Both types of information exchange are facilitated by simple tech solutions relying on known and inexpensive technology (e.g. e-mail service, video call and text messaging).Research limitations/implicationsThe study contributes to the organisational development and knowledge management fields with novel insights on how information exchange and circular economy are related and can be facilitated.Practical implicationsThe study provides insights for companies looking for solutions on how to generate revenue from services and reduce resource consumption. The findings of the study suggest that the development of circular business models does not always require expensive high-tech solutions.Originality/valueTo the best of the authors’ knowledge, this study is unique as it is empirically based on insights into how information exchange can extend product life through the use of simple digital tools.

Modeling of Accounting Information Systems in Companies Implementing the Sharing Economy Business Model

The purpose of this study is to offer modeling of the Accounting Information System, especially the payroll system, using the concept of the Business Process Management System. The object of this research is the online media company PT Kreasi Ngalam Media (AboutMalang.com). Currently, the system that is being used to manage employee data, calculate salaries, and generate reports still relies on manual processes. The use of a web-based employee payroll information system application is expected to provide significant assistance to companies in managing employee data, calculating salaries, and preparing reports. The research method used is qualitative, and the data collection uses primary data sources in the form of direct observation and secondary data sources from the company's payroll reports. The results of this research are in the form of a business process model based on the Business Process Model Notation (BPMN), which can improve effectiveness and efficiency, with an impact on improving the quality of the company's business processes.

Towards a comprehensive analytical framework and future research agenda for research on sharing economy business models: thematic analyses approach

The sharing economy is considered to be an important pathway for economic growth, increasing employment and household income, and the transition toward sustainability in the twenty-first century. In spite of the widespread use of the sharing economy concept, the understanding varies, and there is disagreement about what constitutes an analytical framework of the sharing economy business model (SEBM). This research quantitatively analyzes and categorizes the fundamental elements of the current SEBM literature. A comprehensive analytical framework is presented, identifying three distinct segments of SEBM: (1) the knowledge of sharing economy (incl. innovation, new technologies, determinants, and ecosystems); (2) supplier-oriented studies (incl. hospitality-oriented, transportation-oriented, and other platforms and models); and (3) consumer-socioeconomic-sustainability-focused research (incl. consumption and customer satisfaction, collaborative consumption, sustainability, social effects, and economic growth). In addition to contributing to a better understanding of SEBM research, the framework has implications for SEBM development policy and practice. It can also be used as an instrument for evaluating business models. Furthermore, the paper identifies six key research directions for the post-COVID-19 era, covering the studies of determinants and ecosystems, emerging economies, new SEBMs, location- and culture-specific models, sustainability, and combined impacts on socioeconomics.

Bright and dark sides of adopting a platform‐based sharing economy business model

The sharing economy is primarily a socio‐economic concept that is built upon organizations sharing resources between each other. It includes sharing a single platform by multiple organizations. These organizations can be rivals competing in the same marketplace. Often, organizations can share their employees, data, and other resources. Although there are multiple benefits in a platform‐based sharing economy business model, there are some ethical concerns, too. Limited studies have extensively investigated how adopting a platform‐based sharing economy business model could provide both opportunities and challenges impacting the intention of the organizations to adopt this model. From such a perspective, this study aims at an in‐depth investigation of employees' perceptions regarding the intention of adopting sharing economy models through which organizations could enjoy various benefits that overcome the risks. With the help of a resource‐based view with other theories and the extant literature, a conceptual model has been developed, which later has been validated using the PLS–SEM technique considering 376 responses from different organizations in India. This study has demonstrated how the benefits derived from adopting a platform‐based sharing economy business model overcome the risks involved and could motivate organizations to intend to adopt such a business model.

Optimal investment policy in sharing and standalone economy for solar PV panel under operational cost

The transition to sustainable energy sources, driven by the need to address climate change and resource depletion, has led to the increasing adoption of renewable energy technologies. Among these sustainable alternatives, solar energy stands out prominently. Harnessing the power of the sun aligns with various Sustainable Development Goals (SDGs) by providing clean and affordable energy, promoting climate action, and supporting sustainable communities. Solar PV panels face challenges despite their advantages, including susceptibility to natural disruptions like hurricanes, hailstorms and extreme temperatures. In 2019, the solar energy sector experienced a stark contrast in losses, with average solar losses resulting from conventional natural disasters or severe weather conditions being nearly 24 times higher than the average losses unrelated to weather events. Furthermore, a significant 70% of solar losses within the past decade have emerged since 2017. Similarly, in 2019 hail storm damaged more than 400,000 solar panels and caused insurance losses totaling $70 million in Texas. The research addresses the effect of natural disruptions on investment decisions. It explores the viability of a sharing economy business model that allows multiple participants to collectively invest in solar PV systems and share the benefits to ensure the future expansion of solar PV installations. The study formulates the problem as a game theory model to strategize and find optimal solutions for both the standalone economy and sharing economy scenarios, considering operational costs, net metering and the unpredictability of natural disasters. By providing valuable insights into the dynamics of the PV market with the help of computational results, the research aims to enhance the resilience of solar installations and promote sustainable energy practices. Through this work, individuals and communities can make informed investment decisions, contributing to a cleaner, greener and more sustainable world.

A Value Proposition Analysis of Emerging Circular Economy Business Models in the WEEE Sector

Due to the rapid economic growth, growing demand for high-tech products, and decreasing service life of products, global waste generation from the electrical and electronic equipment sector is increasing. From the environmental and economic perspective, the circular economy (CE) emphasizes e-waste prevention as it is one of the fastest-growing waste streams having both valuable and rare materials as well as toxic substances. It is common to manage electrical products at their end-of-life through circular practices however, knowledge and implementation of CE in the waste electrical and electronic equipment (WEEE) sector still need to be improved. End-of-life practices center on recycling, and the percentage of valuable resources recovered is low. There is a missing insight into the business opportunities for alternative end-of-life options such as reusing, repairing, and re-manufacturing that hold stakeholders from implementing circular strategies. To fill the gaps identified, we developed a research question for investigating and analyzing the services offered and the electrical products adaptable to CE business models (CEBMs) of young companies operating in the WEEE. This study aims to explore the business models (BMs) of circular practice-based business options such as buyers and sellers of used and refurbished electronic devices, information technology asset dispositions (ITADs) companies, and e-waste recyclers to enhance other researchers with a better understanding of business options toward end-of-life e-waste handling and emerging issues in this industry. We conduct a literature review on CEBMs in the WEEE and conduct a multiple-case analysis of 412 emerging circular companies in the WEEE selected from the Crunchbase database to explore their BMs. Key findings show that most young WEEE companies focus on IT and telecom equipment and consumer electronics. Emerging WEEE companies mostly involve asset management and e-waste Recycling service, followed by ITAD services, trade-in/buyback, and reselling of preowned and refurbished electrical devices service, and e-waste collection, recycling, and disposal service. These companies provide unique offerings such as information security, compliance, trustworthiness, convenience, quality, social responsibility, and charitable purpose. Studies in the future may explore other dimensions of these BMs to gain a comprehensive picture and support the design of CEBMs.

Pricing and operating strategies for products in the sharing economy

The sharing economy represents an emerging consumption mode in which the right to utilize products is obtained via transactions instead of conventional ownership exchange. Thus, the idle period of a product during its life cycle can be minimized to promote environmental protection. This study focuses on the business-to-consumers (B2C) business sharing model, in which products are possessed by a firm and there are general and green consumers in the market, and it investigates the optimal operation strategy for a firm in consideration of both self-operated and third-party sharing platforms. The results show that when both general and green consumers are in the market, adopting a sharing economy business model will dramatically elevate a firm's profits. Moreover, when there are more green consumers than general consumers in the market, firms should adopt a compound operation strategy with both self-operated and third-party platforms. Since consumers would rather obtain a product by sharing to lower product usage, firms can determine whether to adopt the sharing economy business model by determining market demand for a product.

Response to COVID-19: building resilience through water and wastewater management in Ghana

Abstract This study assessed the effects of COVID-19 on Ghana's WASH system. It focused on low-income households and WASH sector stakeholders using Ayawaso East Municipality as a case study to document lessons from the pandemic's impact on the WASH sector. We used the water and sanitation system approach to understand the effects of COVID-19 mitigation measures on the WASH system. Data were collected through surveys, stakeholder engagements, and document analysis. We found that the government's WASH response increased hygiene practices, solid and liquid waste generation, and water consumption. Sanitation service providers experienced reduced demands for their services, lost clients, and increased operational expenditure. The pandemic's impact is gendered, with women and girls experiencing a greater burden. We argue that responses to the pandemic highlight the need and opportunities for sustainable management of sanitation waste through integrated, circular economy business models, turning waste into valuable resources. Responses to COVID-19 in the WASH system are multisectoral because of its interconnected nature, highlighting the need to integrate sectors beyond water and sanitation. This requires improved institutional structures, policies, investment, and professionalising service providers.

Presenting a circular economy business model for knowledge-based companies

Presenting a circular economy business model for knowledge-based companies

Analysis of Fans' Economy Business Models in the Perspective of Behavioral Economics

In recent years, with the development of new media, big data and the Internet, a new economic model - fan economy is rapidly emerging, with the growing fan base, its formation of social influence and commercial value is also increasing, in the present, the fan economy ecology is richer, has been Nowadays, the ecology of fan economy is richer, which is no longer limited to the dimension of pan-entertainment industry, but also adds the fan economy of commercial brand IP. Based on the perspective of behavioral economics, this paper analyzes the business model of fan economy and puts forward suggestions.

Legal Aspects of Sharing Economy Business Model

Artikel ini menyelidiki aspek hukum yang terkait dengan model bisnis ekonomi berbagi. Model bisnis ini telah mengubah lanskap ekonomi dengan memfasilitasi pertukaran barang, jasa, dan sumber daya secara peer-to-peer melalui platform online. Artikel ini menganalisis berbagai aspek hukum yang relevan, termasuk tanggung jawab hukum platform terhadap pengguna, status hukum penyedia jasa dan konsumen, perizinan dan regulasi yang berlaku, serta isu perlindungan data dan privasi. Dalam konteks hukum kontrak, pertanggungjawaban produk, pajak, dan perlindungan konsumen, artikel ini menggambarkan tantangan dan perkembangan yang muncul dalam mengatur model bisnis berbagi. Dengan merinci studi kasus dari berbagai sektor dalam ekonomi berbagi, penulis artikel ini mengidentifikasi tren hukum yang muncul dan memberikan pandangan tentang arah perkembangan regulasi di masa depan. Melalui analisis komprehensif ini, artikel ini bertujuan untuk memberikan pemahaman yang lebih baik tentang kerangka hukum yang membentuk model bisnis ekonomi berbagi dan implikasinya terhadap berbagai pemangku kepentingan.

Industry 4.0 and circular economy for emerging markets: evidence from small and medium-sized enterprises (SMEs) in the Indian food sector

AbstractThe linear economic business model was deemed unsustainable, necessitating the emergence of the circular economy (CE) business model. Due to resource scarcity, increasing population, and high food waste levels, the food sector has been facing significant sustainability challenges. Small and medium-sized enterprises (SMEs), particularly those in the food sector, are making efforts to become more sustainable and to adopt new business models such as the CE, but adoption rates remain low. Industry 4.0 and its associated technological applications have the potential to enable CE implementation and boost business competitiveness. In the context of emerging economies facing significant resource scarcity constraints and limited technology availability, CE principles need to be adapted. CE could create a new job economy in emerging economies, bringing scale and a competitive advantage. This study explores the enablers of and barriers to Industry 4.0 adoption for CE implementation in fruit and vegetable SMEs in India from a resource-based perspective. The purpose is to develop an evidence-based framework to help inform theory and practice about CE implementation by SMEs in emerging economies. Fifteen semi-structured interviews were conducted with experts in food SMEs. The interview transcripts were first subjected to thematic analysis. The analysis was then complemented with sentiment and emotion analyses. Subsequently, hierarchical cluster analysis, k-means analysis, and linear projection analysis were performed. Among others, the findings suggest that Industry 4.0 plays a key role in implementing CE in SMEs in emerging economies such as India. However, there are specific enablers and barriers that need to be considered by SMEs to develop the resources and capabilities needed for CE competitive advantage.