Evaluation Of Business Models Research Articles

The Sky is the Limit: Evaluating Business Models from an Integral and Non-Reductionist View of Reality

The Sky is the Limit: Evaluating Business Models from an Integral and Non-Reductionist View of Reality

Measuring success: Evaluating the business model of rural mini-grid ecosystems

In Sub-Saharan Africa (SSA), the challenge of widespread electricity access, especially in rural areas, persists, with approximately half the population lacking basic electricity services. To tackle this issue, decentralized energy resource (DER) technologies, including solar home systems and micro/mini-grids, have gained prominence, aiming to revolutionize the SSA energy landscape. This paper aims to introduce a framework for evaluating business models in the context of rural mini-grid ecosystems. Conventionally, developers of rural mini-grids are responsible for all aspects of the project, from conception to operation and maintenance. However, with the emergence of new private sector facilitators, value creation in this ecosystem has become more complex. As multiple stakeholders apply different business models and patterns to create and capture value, evaluating the efficacy of these models is critical. The evaluation framework presented in this paper draws upon various business model theories and evaluation approaches and includes indicators for assessing performance. To demonstrate the framework's usefulness, we applied it to six companies currently operating in rural mini-grid projects in Africa. Consistent evaluation of these business models is essential for adapting to changing conditions, identifying areas for innovation, and sustaining competitiveness, furthering the field of business model assessment. By bridging this gap between business model evaluation methodologies and rural electrification studies, this paper contributes to understanding the transformative effects of mini-grid projects, extending beyond traditional energy access metrics.

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.

Rita Cloth Store: rethinking for the times

Social implications Cases currently available on business model canvas pertain to large multi-national companies. However, this case takes the happenings at a relatively small business and applies the business model canvas there. Through the case, the authors illustrate how small Indian businesses in various small towns and cities are adapting to the disruptions in their businesses. In addition, insight regarding omnichannel operations and their implementation and decision-making at the level of such small businesses is also provided. Learning outcomes The case intends to acquaint participants with the business model canvas and its application in evaluating business models, identifying shortcomings and adapting business models accordingly. The case also provides an overview of how small businesses across India are adapting to the disruptions brought about by their traditional business models. The case also provides insights into omnichannel operations and the challenges of implementation. Case overview/synopsis Small family-owned establishments/businesses today are faced with an onslaught of disruptions to their prevalent ways of doing business. This case deals with one such business, Rita Cloth Store. The case follows in the footsteps of Sampa Kar, who realises the need for re-evaluating their decades-old business and rethinks their business model to adapt to the changing times and consumer habits. She must consider a number of measures to transform Rita Cloth Store as she attempts to change the decades-old business models to ensure its survival. Complexity academic level The case can be taught in undergraduate and post-graduate courses on entrepreneurship, business models and operations strategy. Supplementary materials Teaching Notes are available for educators only. Subject code CCS 3: Entrepreneurship

Methods to increase equity, diversity, and inclusion in Canadian urology programs.

Women and ethnic minorities are underrepresented at all levels of training and practice in urology residency programs. Equity, diversity, and inclusion (EDI) is a growing field of interest in medical research and business literature, especially regarding recruitment. The objective of this review was to evaluate evidence-based strategies to increase EDI to improve urology residency recruitment. A review was conducted using Ovid Medline to identify publications reporting strategies to increase women and underrepresented minorities (URM ) in healthcare fields. An evaluation of business models was incorporated. Identified strategies were sorted and ranked based on how many papers reported an increased proportion of women or URM in their program following implementation. We assessed 234 publications from 1972-2022. Eleven underwent full review. Six additional pieces of business literature were reviewed and incorporated. The following methods were most often identified to increase diversity: mentorship and holistic application review (six publications), as well as funded internship programs and diverse selection committees (four publications). Diversity statements and application blinding were highlighted by multiple business sources but were each only reviewed in one medical publication. Recommendations identified include mentorship, holistic application review by diverse selection committees with bias training, and development of funded internship programs. Standardized questions and rubrics were also well-studied. Business strategies, such as publishing diversity statements and application blinding, are less studied in medical education literature. This study is unique in its inclusion of both medical and business literature and highlights concrete strategies for urology residency programs to increase EDI during recruitment.

Economic analysis of sector coupling business models: Application on green hydrogen use cases

Sector coupling will play a key role in the future energy system to realise greenhouse gas emission reductions. A major factor will be green hydrogen based on renewable energies to defossilise consumption sectors. Related business models of power to gas are not yet implemented on the market. However, given the urgency of the change, this is essential.This paper investigates hydrogen business models under current market conditions of high power prices, no existing market for green hydrogen and the given regulatory framework with no levies for green hydrogen production in the German market. For this purpose, an open-source business model evaluation tool for sector coupling, which enables a simple and generic evaluation of sector coupling business models including production and possible transportation infrastructure, is developed and applied. Furthermore, the impact of changes of the input parameters like power prices and the influence of regulatory changes on profitability are assessed.The results show that X-to-power business cases can be already profitable due to high power prices on the wholesale market. However, power-to-X business models like hydrogen production still have negative net present values and the net present value is worsened when infrastructure for hydrogen transportation is considered. Key parameters for the negative result are investment costs and low hydrogen prices. Nevertheless, it must be considered that higher hydrogen prices have a negative impact on the X-to-power business model. To allow for profitable business cases, the market conditions need to be adjusted to ensure sufficiently high prices for green hydrogen. Furthermore, subsidies on investment or operational and maintenance costs can support the integration of power-to-X into the market. Transportation infrastructure has a significant impact on profitability. Given these facts, it is necessary to create the required framework conditions to ensure the realisation of sector coupling.

Circular Economy Models in Industry: Developing a Conceptual Framework

One of the trends in sustainable economic development is the transition to circular business models, which aim to optimize goods and material flows by taking into account their cyclical nature at all production stages. Adapting circular business models to mining and mineral processing operations can serve as an impetus for mining companies to upgrade and move to a new level of technological sophistication. This article attempts to develop a conceptual framework for circular business models factoring in the nature of production chains in coal mining, power generation, and metal production to reduce production costs, expand the product range, improve sustainable development indicators, and deliver growth in company value. This article is based on desk studies that were aimed at analyzing the efficiency of circular models, organizing data on experience in rational resource use in the mining industry, and transforming basic circular models into adapted ones for the environment in which coal companies operate. This study developed a conceptual framework of options for the implementation and evaluation of circular business models using an interdisciplinary approach and taking into account the specific features of coal companies and the principle of a resource being valuable throughout its whole life cycle. The proposed conceptual framework of circular business models can be used by Russian coal companies to design corporate strategies and long-term development plans.

A framework for environmental evaluation of business models: A test case of solar energy in Kenya

Business models have the potential to deliver environmental sustainability in companies through innovative approaches to creating and delivering value. Business model innovation has been shown as a means to integrate circular economy principles into companies' operations. Several frameworks have been created to guide the transition from traditional to circular business models. However, there is a need for a framework that quantitatively evaluates business models to inform the transition based on their relative environmental performance in creating and delivering value. This study presents a new framework for evaluating the Environmental performance of Business Models (EBuM). The EBuM framework consists of sequential steps of life cycle assessment, participatory decision-making, and business model innovation. It enables organisations to integrate environmental considerations in their decisions and operations. The framework was applied to solar energy companies in Kenya. Life cycle assessments of the photovoltaic systems were conducted through the lens of business models of participating companies to provide insights into the hotspots of environmental impacts. Each company participated in two workshops to evaluate the potential of business model innovation in mitigating the environmental impacts of their activities. Findings showed that the environmental impacts of incumbent business models were generally higher than of their circular economy-oriented substitutes. Business model innovation could, for example, lower the climate change potential by 12 %–55 % and the metal depletion potential by 40 %–70 %. While the framework has been applied to solar energy companies, it can be applied to other business models in different sectors.

Evaluation of Business Models for Fecal Sludge Emptying and Transport in Informal Settlements of Kampala, Uganda

Various business models for fecal sludge emptying and transport have been developed to address challenges and their advantages have been documented; however, their evaluation has not been investigated. This study developed an evaluation framework, which was tested in informal settlements in Kampala for sustainable business models of fecal sludge emptying and transport. Through key informant interviews and stakeholder consultations, service delivery challenges from informal settlements in Kampala were identified and included in the framework, which were: high cost of emptying services, spillages, access to facilities, high operational costs and social stigma. The evaluation framework adopted six service criteria: Financial, Institutional, Environmental, Technological, Social and Scalability; these were further defined by fifteen service sub-criteria. The criteria were tested separately on eight business models—for mechanized (cesspool) and semi-mechanized (gulper) technologies. The key output of the evaluation framework (business model scorecard) revealed that two models (scheduled desludging and call center) for cesspool technology and three models (mobile transfer stations, scheduled desludging and call center) for gulper technology have high potential for service improvement in informal settlements. Scheduled desludging and mobile transfer stations can effectively optimize emptying services and subsequently reduce emptying charges, whereas the call center is critical for bridging service delivery.

Modelling the financial viability of centralised and decentralised black soldier fly larvae waste processing units in Surabaya, Indonesia

Black soldier fly larvae (BSFL) waste processing has proven to be a promising approach, which can be applied in centralised or decentralised settings. Financial considerations however still remain undisclosed given business secrecy. Building on the experiences of a facility and operational setup in Indonesia, this study conducted an in-depth cost analysis using methods such as time motion studies, activity based costing and a mass flow balance to evaluate business models. Thereafter followed an analysis of different scenarios on how to integrate the approach into the solid waste management system of Surabaya, Indonesia assuming different degrees of decentralisation with market rates and prices from 2020. Results show that a centralised plant, managing all steps of the BSFL process (Scenario 1), achieves the highest net present value (NPV), mainly through the economy of scale. When BSFL waste treatment is conducted using a decentralised approach, close to the waste sources, and the nursery and post-processing of larvae remains at a central location (Scenario 3), other benefits besides the still positive NPV can be shown. Such a scenario for instance would reduce the spatial footprint of the central facility, create jobs within the communities and reduce the transport costs and total costs for the municipality. Another scenario (Scenario 2) hypothesises a decentralised waste treatment as well as post-processing of larvae at the same decentralised location increasing storability and the value of products. Although this achieves higher NPV values compared to Scenario 3, it requires larger scale units to achieve financial viability. Coordination and facilitation by local government can further strengthen a network of decentralised BSFL treatment plants, as the city authorities could focus on operating a centralised nursery (Scenario 2), supplying young larvae at low cost or free of charge to increase the financial viability of the decentralised plants treating the waste.

Sustainability-Related Strategic Evaluation of Business Models

Recent developments, such as climate change, demographic change and resource scarcity, have forced companies to turn towards more sustainable resources, processes and products. Thus, their business models should be developed in a way that meets social, ecological and economic challenges. A vital part of this development process is the evaluation of business models against the background of sustainability targets during different phases of this process. This paper addresses the, thus far, largely neglected sustainability-related strategic evaluation in the earlier phases of business model development. Based on a sustainability-related canvas approach and concepts from strategic management theory, it suggests a method for sustainability-related strategic evaluation of business models as well as business model ideas and options. Therefore, a procedure for evaluation is presented and five main criteria are developed that should be taken into account: eligibility to create stakeholder’s benefit, market attractiveness, heterogeneity/singularity, permanence and eligibility to generate sustainability-oriented value.

Does the concept of “creating shared value” make sense for multinational firms?

PurposeThe paper aims to explore how Porter and Kramer’s “Creating shared value” (CSV) framework supports the multinational corporation’s business model to turn social problems into business opportunities in two contextually different international markets.Design/methodology/approachConceptually, the paper uses the CSV framework to argue that evaluation of business models in different societal contexts (geographically, culturally and economically) might be able to shed more light on the firm-societal needs. Empirically, the paper conducts a comparative content analysis of the business models of an international brand of a three-wheeler vehicle – Piaggio Ape – in Italy and India since its launch right after World War II. The content for qualitative analysis was identified using the Nexis Uni database.FindingsFindings reveal that CSV outlines the strategy for firms to integrate societal concerns uniquely into their business models, rather than solving them in isolation. However, the business model performances resulting from these firm–society linkages may vary in an emerging market and a developed market. Regulatory fit is yet another factor that decides how well CSV could be applied.Research limitations/implicationsGiven CSV’s contradictory perception in corporate governance literature, the study empirically establishes its theoretical value in explaining the actions and success of strategic decisions that large multinational firms take. The interactions between the underlying attributes of four CSV strategies, the regulatory fit and business model success are articulated in the form of propositions and an integrated CSV framework. Given the paper’s two-case comparative analysis, the generalizability of the identified attributes of the four CSV strategies is limited and therefore calls for future research using larger samples of firms practicing shared value perspectives.Practical implicationsCorporate and international business managers can use the study findings and the proposed framework to comprehend scenarios beyond business systems and to apply CSV as a tool to address market needs in concurrence with addressing environmental and societal concerns.Originality/valueThe paper is one of the initial attempts to evaluate and extend the “CSV” perspective in the international business context and, thus, promises a broad future research scope.

How circular is a value chain? Proposing a Material Efficiency Metric to evaluate business models

The concept of Circular Economy is a principle aiming to improve sustainable development by reducing resource use and impact on ecological systems. An increasing number of companies are applying this theory on design strategies and business models in order to close, slow and narrow material loops. To highlight the importance, guide practitioners, and evaluate the progress of circular economy, a high number of circularity metrics (C-metrics) have been developed. However, little attention has been given to creating a connection between quantification of circularity and environmental performance. Existing metrics also do not highlight the interplay between micro (product), meso (industrial symbiosis), and macro (regional) level circularity. Moreover, existing metrics do not capture all material loops and do not adopt a value chain perspective on material flows.To improve the connection between C-metrics and environmental performance, a framework connecting circular economy strategies and material flows was developed. Based on this framework, a material flow-based C-metric was designed aimed at converting mechanisms of closing, narrowing and slowing material loops into a single-point value. To evaluate its feasibility, the metric was tested on three circular business models that represent all three mechanisms in a value chain perspective. The results showed that the metric is feasible in more situations than existing metrics and that the circularity value is highly dependent on assumptions. In future studies, the metric should be tested and compared to Life Cycle Assessments on multiple system levels to ensure that it generates valid results. Furthermore, user input assumptions should be standardized to ensure metric reliability.

Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective

Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective

Business Model Evaluation: A Systematic Review of Methods

Background: As a result of factors such as digitization and rapid technology change, organizations are compelled to innovate their business models at an accelerated pace. While the domain of business model innovation has focused on understanding and structuring the process of innovation, it offers limited guidance for evaluating business models during the innovation process. Business model evaluation plays a vital role in supporting decision-making about the performance or viability of new business models and motivating continued investments. Existing literature on methods for business model evaluation and their application is limited and available information is scattered. Furthermore, as the BMI process covers a broad spectrum of activities - from business model initiation to implementation - the evaluation challenges and the effectiveness of evaluation methods vary across the phases of innovation. Thus, there is a need for a better understanding on methods for business model evaluation, and their timing and application for business model innovation. Method: Through a systematic literature review, we have investigated the methods available for business model evaluation and focused on understanding their characteristics and effective timing of application in the business model innovation process. Results: We have identified six groups of methods used for business model evaluation. Additionally, we find that early phase business model evaluation is predominantly qualitative in nature, whereas late phases of business model innovation are generally supported through quantitatively-oriented methods. Moreover, we observe that limited evaluation support is available in the literature to support the initiation phase of business model innovation. Based on our findings, we propose a guiding structure for aligning the available methods with the respective innovation phases. Conclusion: The proposed guiding structure offers guidance for business model evaluation in practice and serves as a basis for future research in developing more effective methods and tools for business model evaluation and development.

Sustainability-Oriented Business Model Evaluation—A Literature Review

Since the need of sustainable development is indisputable, companies are forced to strive for resources, processes, and products that are sustainable. Thus, their business models as the main representation of their activities should be designed in an ecologically, economically, and socially beneficial way. However, designing and developing sustainable business models is closely linked to their evaluation. Sustainable business model evaluation as a vital part of business model development has been addressed in literature in the past with increasing frequency. As a consequence, the plethora of different approaches of sustainability-oriented business model evaluation calls for a systematic literature review. Thus, in this study, we reviewed existing articles on sustainability-oriented business model evaluation and identified four main categories of evaluation methods: single indicators (I), indicator system/framework (II), simulation-based evaluation (III), and multi criteria decision-making (IV). By analyzing and structuring the proposed approaches, their benefits and limitations are revealed, pointing out gaps and future research needs for successfully designing and evaluating business models today and in the future.

Investment Valuation of Modern Business Models

The paper's purpose is to identify the changes in investment decision-making processes in the hybrid (traditional and digital) economy. It is hypothesized that business models and the digital environment change the classical prerequisites for making investment decisions, and this needs to be reflected in the investment valuation. Methods of system and critical analysis, value-oriented approach are used. The predominance of competition between business models (including within ecosystems), rather than organizations, and the reduction of the investor's need for the organizational and legal design of the investment object with a variety of digital solutions are established. It is argued that the investment potential of a modern business model is influenced by the organizational architecture, the infrastructure, the value formed by the consumer, communication and interaction with the immutability of the supply. The authors developed the business model's architecture with the allocation of nine basic elements and options for investment decisions in order to reflect the increasing design complexity and individualism of the business model. New cost factors for investment evaluation of business models are identified, including digital rent, pricing approaches, digital paradox, ecosystem protection from the market, etc. The qualitative features of an effective business model are established while maintaining a quantitative assessment based on the generated cash flow. The deduction is that as the complexity of business models increases and it is possible to integrate digital business metrics and traditional financial indicators. However, at present it is advisable to maintain the existing methodology of investment assessment, supplemented with new qualitative adjustments.

How does the financial market evaluate business models? Evidence from European banks

AbstractThis paper investigates the way in which the financial market defines and evaluates different business models, using a sample of listed European banking groups from 2006 to 2015. The main findings suggest that the financial market seems to associate a better risk‐return trade‐off to non‐banking fees than to banking ones and that the performance of different business models varies depending on context conditions. In particular, in the current economic context, characterised by the combination of slow economic growth with historically low levels of interest rates, the market‐oriented business model tends to over‐perform. These findings have strategic implications for bank managers, regulators, and supervisors, due to the impact of the crises on banking business, profitability and risk and the new challenges they entail.

Digital transformation model for the development of tourism companies

The way of consuming information and the way we communicate is evolving thanks to advances in technology, the digital transformation breaks new ground in the tourism sector when communicating its services, offers and messages to customers. One of the challenges facing tourism professionals is understanding technological trends to innovate and reinvent their services towards clients. For which we propose a model to adopt the digital transformation in the development of tourist companies. A questionnaire was carried out with 20 managers from the sector with 95% reliability related to customer management, competition and innovation strategy regarding digital transformation; organizational culture and change management regarding business development. The results show that 45% indicate that they rarely keep a record with updated customer data. 35% indicate that they sometimes evaluate business models to anticipate their competition. 35% rarely use any methodology to develop a business model. This reflects that companies must manage data for later use, invest resources in innovating the business model, and have technological professionals who reinvent business processes.

Determining the KPIs of the German engineering industry based on the evaluation of contemporary business models

This study determines the correlation between industry-specific success patterns of the German engineering industry and the business models applied within. In order to identify this correlation, the following objectives are addressed within the framework of this paper: (1) identification and description of business models used by the German engineering industry; (2) analysis of industry-specific success patterns of the German engineering industry by the usage of Key Performance Indicators (KPIs); and (3) determination of correlation between the KPIs and the effectiveness of the business models of the German engineering industry These objectives are mainly achieved by literature research and expert surveys. The findings highlight the KPIs (overall 41) that are relevant for the respective business models. This enables a better understanding of the interrelationships of the business model, in order to derive relevant conclusions. The paper contributes to the literature as it advances this field of research in Germany, and it is one of the first studies to examine the relationship between business models and industry-specific success patterns with relevant KPIs.