Emerging Business Models Research Articles

Emerging business models and implications for the transport ecosystem

This paper summarises our findings from discussing emerging business models in transportation. Going well beyond big data and regulatory issues, we also examine how new and emerging business models, leveraging on advances in digital technology, can enable more efficient, consumer centric and viable transport provision. One popular emerging solution is mobility as a service (MaaS), and we discuss both tension and partnership potential among government, operators and service providers. New disruptive models and market entrants as well as definitions of success, changing customer expectations, scalability of business models and the role of asset ownership are also shown in various case studies to shape the nature of future transportation ecosystems.

WeChat Usernames: An Exploratory Study of Users’ Selection Practices

As one of the most popular social networking applications in China, WeChat has recently attracted scholarly attention. To date, these studies have tended to concentrate on how it has been used as a social networking and emerging business model. However, little is known about the practices users follow when selecting usernames on WeChat. Using an onomastic lens, this study addresses this gap by examining 501 WeChat usernames. With data collected through an online survey, this study first investigates categories emerging from the name corpus and explores the reasons behind each of these categories. It then analyzes the sociocultural ramifications embedded within this use of names. As one of the first of its kind, the article provides key insight into how the interplay of online discourse, acquaintance networks, and Chinese culture contribute to the development of this important onomastic phenomenon.

Acing the Labyrinth - A Paper On Implementing Competition Law In Today’s Digital Economy.

The time has come to think again. Ushered into an era of innovation, with massive implications and complications, we are forced to re-evaluate all we once knew. With particular focus on emerging business models, competition authorities are faced with a new paradigm where applying the erstwhile economic principles and legal rationalisations are like hunting down an invisible target through a complex labyrinth with paper darts. In this digital age such concepts as “what is a market?”, “which type of behavior is considered anti-competitive?” have had to be re-examined vis-a-vis new concepts such as data partnerships, personalised pricing, tying and bundling strategies, hybridized platform and pipeline business models and structuralist approaches like the Blue Ocean Strategy. It is against the backdrop of this labyrinthine new reality that the following discussion sheds a nuanced light on how competition authorities have tried to balance the interconnected web of competing interests.

THE CONCEPTUAL PAPER OF BUSINESS MODEL INNOVATION ENVIRONMENTAL FACTOR

This study draws the themes on environmental factors from two prominent authors in the business model innovation field, Allan Afuah and Alexander Osterwalder, with partner Yves Pigneur. This study reveals that both models have the same concept, even though the arrangement of the process is vice versa. This paper aims to reveal the environmental factors that contribute to a business model innovation. Evidence has shown that the entrepreneur and organization lead to creating the environmental factors in achieving a complete ecosystem in business model innovation. A lack of models and theories in business model innovation studies has led to this study to develop a model based on the entrepreneurship field. Therefore, this study reveals the environmental factors that contribute to the emerging business model innovation. The findings from this study results in a combination of these factors which are categorized based on the current situation. This study is expected to give understanding and knowledge to academicians and will be helpful to practitioners to create and apply a real business model innovation in various industries.

The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0

Industry 4.0 is expected to impart profound changes to the configuration of manufacturing companies with regards to what their value proposition will be and how their production network, supplier base and customer interfaces will develop. The literature on the topic is still fragmented; the features of the emerging paradigm appear to be a contested territory among different academic disciplines. This study assumes a value chain perspective to analyze the evolutionary trajectories of manufacturing companies. We developed a Delphi-based scenario analysis involving 76 experts from academia and practice. The results highlight the most common expectations as well as controversial issues in terms of emerging business models, size, barriers to entry, vertical integration, rent distribution, and geographical location of activities. Eight scenarios provide a concise outlook on the range of possible futures. These scenarios are based on four main drivers which stem from the experts’ comments: demand characteristics, transparency of data among value chain participants, maturity of additive manufacturing and advanced robotics, and penetration of smart products. Researchers can derive from our study a series of hypotheses and opportunities for future research on Industry 4.0. Managers and policymakers can leverage the scenarios in long-term strategic planning.

Conflicts between business and government in bike sharing system

PurposeThe purpose of this paper is to elaborate on the interactive conflicts between business and governmental authorities in the regulatory process of an emerging business model: sharing economy. Focusing on bike sharing system, the study also investigates the conflict-handling strategy of bike sharing companies and government regulation.Design/methodology/approachAn evolutionary game model is introduced to illustrate the interactive conflict between bike sharing companies and government regulation, combined with system dynamics (SD) to simulate the evolutionary conflict-handling strategies between the two players.FindingsThe dynamic strategies of the two players are observed, and under five conditions the conflict outcomes are evolutionary stable states. Simulations show that each party sacrifices part of its interest and adjust its strategy according to that of the other, indicating the conflict-handling strategy as a compromising mode. Furthermore, the strategies of bike sharing companies are sensitive to additional operation and maintenance costs for producing low-quality bicycles and costs of positive regulation, which provides theoretical guidance for regulatory authorities.Originality/valueThe station-less bike sharing come up in China recently, and it is an important research field of entrepreneurship. Owing to the uniqueness and novelty of the phenomenon, conflicts and challenges exist during the regulation process. Thus, the study practically contributes to the conflict-handling strategies of businesses and government under the context of sharing economy. Methodologically, as a novel issue with less available data to carry out empirical research, this study combines evolutionary game theory with SD to shed light on the complex interactions between businesses and government. The research method can be applied to other entrepreneurial studies.

Internet-of-things enabled supply chain planning and coordination with big data services: Certain theoretic implications

Recent advances in information technology have led to profound changes in global manufacturing. This study focuses on the theoretical and practical challenges and opportunities arising from the Internet of Things (IoT) as it enables new ways of supply-chain operations partially based on big-data analytics and changes in the nature of industries. We intend to reveal the acting principle of the IoT and its implications for big-data analytics on the supply chain operational performance, particularly with regard to dynamics of operational coordination and optimization for supply chains by leveraging big data obtained from smart connected products (SCPs), and the governance mechanism of big-data sharing. Building on literature closely related to our focal topic, we analyze and deduce the substantial influence of disruptive technologies and emerging business models including the IoT, big data analytics and SCPs on many aspects of supply chains, such as consumers value judgment, products development, resources allocation, operations optimization, revenue management and network governance. Furthermore, we propose several research directions and corresponding research schemes in the new situations. This study aims to promote future researches in the field of big data-driven supply chain management with the IoT, help firms improve data-driven operational decisions, and provide government a reference to advance and regulate the development of the IoT and big data industry.

Experiencing forest products – An innovation trend by rural entrepreneurs

There is increasing emphasis on innovation as a driver of continued prosperity in the rural economy. Globalisation poses challenges to rural areas given technological advances and intensified competition in agricultural markets, ageing rural populations and expansion of urban areas. However, in recent years, the conception of rural areas has shifted from places of production to places of consumption. In line with an increasing urban demand for consumption of products and services close to nature within the rural landscape, we observe the emergence of experiential offers based around non-wood forest products (NWFP) where the consumer is closely connected to the harvesting and use of the products. In this paper, we examine how such intersecting demands have created new forms of market for NWFP, by analysing in-depth four innovative examples in Austria and the United Kingdom. Semi-structured interviews were conducted with the managers of these businesses, and cases were analysed through application of both the experience economy and the innovation systems approach. We found that all four businesses were on the one hand derived from traditional, regional cultural skills and values and, on the other hand, directly connected to new consumers’ demands. The apparent success of these emerging business models lies in the accretion of new social values onto traditional products. Thus creative approaches blending offers designed to enhance cosumers’ experiences into traditional sectors, such as forestry, would have potential in the future. However, our results indicate that there is a lack of institutional support for the development of such businesses in both countries. Better suited innovation policies and support structures would be important for mainstreaming or encouraging the development of similar businesses, innovations and knowledge.

Research on the Pricing Strategy of “Internet +” Recycling Platforms in a Two-Sided Network Environment

“Internet +” platform recycling is an emerging business model with two-sided market characteristics. How to meet the needs of consumers and manufacturers and how to formulate a reasonable two-sided pricing structure have become challenges faced by recycling trading platforms. Based on the theory of a two-sided market, the pricing mechanism of a monopoly platform and a model of competing platforms are studied. Consequently, a sensitivity analysis and comparison analysis are conducted, giving a pricing decision and the optimal profit of closed-loop supply chain systems. Finally, through a numerical simulation analysis, the impacts of the inter-group network externalities, service differentiation, and the matching efficiency on e-waste recycling prices and profits are obtained. The result indicates that the influences of inter-group network externalities on monopoly platforms and competing platforms are different; thus, platforms should choose pricing strategies according to their own market position. The pricing of the two types of platform is inversely proportional to the time-sensitive coefficient of the two platforms, while it is directly proportional to the matching efficiency. The improvement of the differentiation of service will increase the pricing of the platform for single-homing manufacturers without affecting the multi-homing consumers, and profits will increase accordingly.

New business models: Beyond the shareholder approach

Purpose – The first objective of this paper is to explain and compare new business models that are currently being successfully applied worldwide. The second objective is to carry out an empirical analysis to observe the perception of experts regarding these models, the differences between them, and their orientation toward the traditional theory of the firm or the stakeholder approach in some of the characteristic elements of the organizational structure of the firm . Design/methodology/approach – In a first step we conduct a literature review that compares the dominant theory of the firm (neoclassical model) with the stakeholder theory. Secondly, we present six additional business models and compare them with both the neoclassical and stakeholder approaches. In a second part of the paper we use a fuzzy D elphi methodology in order to collect q ualitative information from a group of experts about those six additional business models. Findings – The stakeholder approach is a valuable explanatory tool to address how firms can generate a broader positive impact at the social level. Identifying the stakeholders that interact within the firm allows the firm ’s managers to take into account their specific needs, which are usually not limited to profit maximization. Originality/value – Emerging business models can benefit from the stakeholder approach to integrate those needs due to an organizational structure focused on stakeholders' interests.

Macro-Economic Landscape of Media & Entertainment Industry in India: Emerging Business Models

Abstract: The Indian Media and Entertainment industry (M&E) registered a growth of 13.4 per cent in 2018 vis-a-vis 2017 at a CAGR of 11.6 per cent which is more than the GDP growth of the country. It reached USD 23.9 billion in 2018, and is expected to grow to USD 33.6 billion by 2021. This trajectory combined with India's young demographics, growth of digital infrastructure, paced personal content consumption, shift in consumer behavior from linear to non-linear content wherein content can be made available on multimedia devices across various genres unfastens exploratory future growth opportunities. The research paper is an exploratory work on M&E industry in India and presents an analysis on future trends and current challenges in a disruptive environment. The data has been collected from published government and consultant reports. The paper than summarizes the current macroeconomic landscape and evaluates viable business innovation models which can be envisaged by the industry veterans to leverage the current market synergies.

Farmer Producer Organisation: an emerging business model for empowering small and marginal farmers in India- A case study

Farmer Producer Organisation: an emerging business model for empowering small and marginal farmers in India- A case study

On-Demand Telemedicine as a Disruptive Health Technology: Qualitative Study Exploring Emerging Business Models and Strategies Among Early Adopter Organizations in the United States.

BackgroundOn-demand telemedicine is increasingly adopted by health organizations to meet patient demand for convenient, accessible, and affordable services. Little guidance is currently available to new entrant organizations as they consider viable business models and strategies to harness the disruptive potential of on-demand telemedicine services (in particular, virtual urgent care clinics [VCCs] as a predominant and catalyst form of on-demand telemedicine).ObjectiveWe recognized on-demand telemedicine as a disruptive technology to explore the experiences of early adopter organizations as they launch on-demand telemedicine services and deploy business models and strategies. Focusing on VCC service lines, this study addressed the following research questions: (1) what is the emerging business model being deployed for on-demand telemedicine?; (2) what are the core components of the emerging business model for on-demand telemedicine?; and (3) what are the disruptive business strategies employed by early adopter organizations as they launch on-demand telemedicine services?MethodsThis qualitative study gathered data from 32 semistructured phone interviews with key informants from 19 VCC early adopter organizations across the United States. Interview protocols were developed based on noted dissemination and implementation science frameworks. We used the constant comparison method to transform study data into stable dimensions that revealed emerging business models, core business model components (value proposition, key resources, key processes, and profit formula), and accompanying business strategies.ResultsEarly adopters are deploying business models that most closely align with a value-adding process model archetype. By and large, we found that this general model appropriately matches resources, processes, and profit formulas to support the disruptive potential of on-demand telemedicine. In total, 4 business strategy areas were discovered to particularly contribute to business model success for on-demand disruption among early adopters: fundamental disruptions to the model of care delivery; outsourcing support for on-demand services; disruptive market strategies to target potential users; and new and unexpected organizational partnerships to increase return on investment.ConclusionsOn-demand telemedicine is a potentially disruptive innovation currently in the early adopter stage of technology adoption and diffusion. On-demand telemedicine must cross into the early majority stage to truly be a positive disruption that will increase accessibility and affordability for health care consumers. Our findings provide guidance for adopter organizations as they seek to deploy viable business models and successful strategies to smooth the transition to early majority status. We present important insights for both early adopters and potential early majority organizations to better harness the disruptive potential of on-demand telemedicine.

Evaluation of M-Payment Technology and Sectoral System Innovation—A Comparative Study of UK and Indian Models

The paper constructs a sectoral system of innovation model specifically for the mobile payments (m-payments) sector. Both the UK and Indian sectoral system of innovation were studied in regards of the actors involved in providing the m-payment service with an emphasis on emergent business models. We integrated open innovation and Ogle’s ideas into our model and demonstrated the importance of active agency in shaping innovation systems, for example in leveraging existing social networks. The research draws upon original interviews with companies and regulators in both India and the UK. Our overall conclusion is that the m-payments sectoral system of innovation in India is more customer-oriented and far-reaching as compared to the practices in UK. It concludes that no matter the context, the importance of integrating firms’ activity into integrated service systems in demand-driven innovation is key for success.

The Economics of Line-Sitting

This paper studies an emerging business model of line-sitting in which customers seeking service can hire others (line-sitters) to wait in line on behalf of them. We develop a queueing-game-theoretic model that captures the interaction among customers, the line-sitting firm, and the service provider to examine the impact of line-sitting on the service provider’s revenue and customer welfare. We also contrast line-sitting with the well-known priority purchasing scheme, as both allow customers to pay extra to skip the wait. Our main results are as follows. First, we find that both accommodating line-sitting and selling priority can bring in extra revenue for the service provider, although by different means—selling priority increases revenue mainly by allowing the service provider to practice price discrimination that extracts more customer surplus, whereas line-sitting does so through demand expansion, attracting customers who would not otherwise join. Second, the priority purchasing scheme tends to make the customer population worse off, whereas line-sitting can be a win–win proposition for both the service provider and the customers. Nevertheless, having the additional option of hiring line-sitters does not always benefit customers as a whole because the demand expansion effect also induces negative congestion externalities. Finally, despite the fact that the service provider collects the priority payment as revenue but not the line-sitting payment, which accrues to the third-party line-sitting firm, we demonstrate that, somewhat surprisingly, accommodating line-sitting can raise more revenue for the service provider than directly selling priority. This paper was accepted by Charles Corbett, operations management.

Emerging business models for the cultural commons. Empirical evidence from creative cultural firms

ABSTRACT Cultural assets can be seen as a particular type of commons as they belong to a group or society that inherits them from past generations, maintains them in the present and preserves them for the benefit of future generations. The cultural commons are exposed to specific forms of the tragedy; however, little is known about how the tragedy of cultural commons can be managed and overcome. This study argues that cultural and creative firms could play a pivotal role in addressing this issue, and it inductively develops a business model for Cultural and Creative Firms to manage cultural assets as commons that are threatened with neglect or misuse. In doing this, a multiple-case study is employed to develop a new business model. This study contributes to knowledge about how creative and cultural firms can implement cooperative and participative business models to address the fragility of cultural commons.

Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK

This paper explores the evolving renewable energy ‘prosumer’ phenomenon in the United Kingdom (UK). It identifies and evaluates how prosumer business models can exist beyond direct subsidy and the range of prosumer business model archetypes currently in operation. Through a series of in-depth interviews and document analysis, the paper identifies the key opportunities and challenges for these innovative energy business models. The analysis shows that recent developments in technology such as the diffusion of smart meters, li-ion batteries, peer-to-peer trading platforms and electric vehicles are opening up a range of new value propositions, which in turn are beginning to be exploited by a range of new business models. In many cases the regulatory, financing and institutional governance landscape of the UK lags behind, however, inhibiting these emerging business models. Moreover, these business models rely on managing a complex set of values for consumers that reach deeper into their lives than traditional tariffs. Thus, successful business models must manage this complexity if they are to be adopted by the disengaged majority. Energy policy and energy practitioners can leverage these emerging trends in service of a low carbon energy transition by adopting ‘ten principles’ of prosumerism; and six UK policy recommendations.

Beyond business as usual: the role of women professionals in maritime clusters

This paper examines the relevance of gender with respect to the concept of maritime clusters. Though the concept of maritime clusters has gained popularity from a strategic economic development perspective in increasing the overall efficiency of the industry through innovation, maritime clusters have rarely been discussed in relation to the empowerment of women in the maritime sector. Women’s participation in the maritime industry has been reported to be fairly limited in many parts of the world and both horizontal and vertical segregations can still be observed even today. This paper demonstrates a limitation in the existing literature in respect of acknowledging the role played by maritime women professionals in operationalizing the concept of maritime clusters. As such, to facilitate mainstreaming of the United Nations Sustainable Development Goal (UN SDG) 5 (gender equality) into national maritime plans, Rapid Integrated Assessment (RIA) is used as a tool to examine women professionals’ contributions to maritime clusters. Four stages of RIA offer steps towards defining a roadmap for a country to implement the SDGs. Foreseeing the Fourth Industrial Revolution or Industry 4.0 as well as emerging business models in the maritime industry, gender equality is an opportunity to go beyond business as usual and advance sustainable development in the maritime sector.

Customer Shopping Network on a Multi-Sided Platform

Multi-sided platforms (MSPs) e.g., Alibaba and Google Express, are an emerging business model that is growing rapidly. MSPs in retail are partnership networks that use the internet to bring multiple stakeholders together. One of the benefits of retail MSPs is the network effect, where customers can buy from various retailers on an MSP creating a customer shopping network. However, very few studies have explored what types of retailers benefit more from network effects. Using network theories of centrality and structural holes, we examine network positions that are advantageous or disadvantageous for retailers in the MSP. Using panel data from one such MSP, our results show that retailers who have higher customer reciprocity, structural centrality or the ability to bridge structural holes have higher sales as compared to other retailers. This has implications for an MSP as it decides which retailer to court and promote and also with whom to renegotiate terms of contract. Theoretical contributions are also discussed.

Use cases for Blockchain in the Energy Industry Opportunities of emerging business models and related risks

This paper focuses on use cases for blockchain architectures with the goal of identifying major issues to study further in future research works. The paper will also consider aspects related to energy consumption of blockchain architectures, and risks and opportunities of emerging business models while ensuring a reliable distribution network and security of supply.