Characteristics Of Business Models Research Articles

Impact of initial business model on the growth trajectory of new technology-based firms: a path dependency perspective

Impact of initial business model on the growth trajectory of new technology-based firms: a path dependency perspective

Exploring Characteristics of Regenerative Business Models through a Delphi-Inspired Approach

Amidst escalating environmental and social challenges, this study explores regenerative business models’ definition and characteristics. While sustainable models have made considerable strides in research, policy, and practice, the advent of regenerative business models offers a progressive leap forward. Regenerative business models aspire to contribute to ecological restoration and societal well-being. The regenerative business model concept is, however, still in its infancy and lacks a comprehensive definition. Our study aims to expand this knowledge, using a Delphi-inspired approach that builds on the knowledge of academic and business experts. Our approach includes three rounds of surveys: an open-ended survey, a survey for rating and ranking the earlier responses of all participants, and a final survey to select key characteristics. We investigate patterns and distinctions among regenerative, regenerative business, and regenerative business models, and analyze their positioning vis-a-vis circular and net-positive models. Findings underscore that organizations adopting regenerative business models focus on planetary health and societal well-being. They generate value across multiple stakeholder levels, including nature, societies, customers, suppliers, shareholders, and employees. Despite overlapping with circular and net-positive models, regenerative business models also emphasize interdependencies between humans and nature, and provide a more holistic approach, centered on restoration rather than mere mitigation.

What’s next in the Healthcare system? The contribution of digital innovation in achieving Patient-centricity

The pressure on the healthcare system due to the pandemic situation has exacerbated its main criticalities in terms of fragmentation, data management and lack of interconnections. There is a need to rethink the health system’s management and monitoring in a patient-centric view, in order to meet the growing demand due to extension of life expectancy and increase in chronic diseases. Innovation in technology enables patient-centricity by tying together the future healthcare system. This research aims at detecting and defining the main typologies and characteristics of innovative business models that are going to emerge in the healthcare context in the next years. Different data sources have been integrated to depict the future scenario of healthcare. At first, information available in reports, archives/documents has been analysed, in addition to conferences and 35 experts interviews available online. Thereafter, the National Recovery and Resilience Plan (PNRR) - launched to solve issues after pandemic crisis - has been examined. The data analysis allows outlining the business model typologies that will emerge in the sector, their characteristics and the gaps they are going to solve with specific technologies. This research depicts the healthcare framework for pursuing patient-centricity, providing also managerial implications and future researches directions.

Characterization of the key distinguishing features of a digital platform as a business model

The purpose of the study is to identify the most characteristic features of the business model of the digital platform and further compare them with the empirical experience gained in the analysis of the Yandex.Market company. The objectives of the study include determining the main characteristics of the digital platform as a business model, analyzing Yandex.Market, its core business, competitive advantages, and environment, as well as identifying the correspondence between the company's business model and previously established key features of the digital platform and analyzing the advantages that participants receive from interacting with the platform. The object of the study is the main factors of change and further business development under the influence of digital transformation. The subject of the study is the key features of the digital platform's business model in the Russian market, using the example of Yandex.Market. To achieve the goals of the research, theoretical methods such as literature analysis, studying interviews with business experts, synthesizing new knowledge based on them, conducting modeling, and empirical methods such as the method of expert assessments, experiment and observation of the company's activities. The importance of using digital technologies are now recognized by all participants in both the business and scientific community. This contributes to the emergence of a large number of studies devoted to this topic. So this work is aimed at identifying those features that are inherent in one of the most effective business models of our time, namely the digital platform. Considering the experience of Yandex.Market makes the work especially relevant for Russia. The scientific novelty of the work consists in identifying unique features inherent only in the business model of a digital platform using the example of one of the Russian platform companies. The work also examines in detail the experience of Yandex.Market and the key advantages that make the platform company one of the most successful in the Russian market.

Trends in the development of digital subscription services in international markets

Companies are trying to harness the potential of the current stage of development of the digital industry and make it cost-effective, which requires not only technological innovation but also the transformation of many existing business models. Based on an analysis of examples of digital subscription companies, this article provides additional explanations, including definitions and constituent characteristics of digital subscription business models. The aim of the article was to identify trends in the development of digital subscription services by analysing the number of active subscribers and the impact of COVID-19 on this indicator. Autoregression and analysis methods were used in the study, and the implementation of the selected models was carried out using the Python-3 programming language. The article describes a theoretical basis that determine the feasibility of using the subscription model for the company under non-deterministic critical conditions. The main approaches to forecasting the company’s performance indicators are identified. The type of data to be forecasted is determined, and the necessity of using autoregressive models for further analysis is declared. Factors associated with the COVID-2019 incidence that should be considered as exogenous variables were identified. The multicriteria selection problem was constructed by restricting the family of autoregressive models and determining the criteria for forecasting and data preparation time, forecast accuracy, and the possibility of considering external factors in determining the algorithm efficiency. It is found that moving average autoregression is the most effective. Given the further application of this algorithm to predict the number of subscribers, the expediency of implementing a subscription strategy for the company under non-deterministic critical conditions is declared. It is possible to effectively apply the selected mathematical model to predict the performance of a subscription company. The practical significance of the work lies in the possibility of creating certain benchmarks for the development of the market and a business strategy for product promotion, which will be based on an understanding of the potential benefits and threats of the market for digital subscription products and services

On the Link Between the Success of K-pop Groups in the European and American Markets and the Consumer Preferences of the Fan Base

This study analyzes the K-pop craze that is spreading globally, as well as analyzes the success of K-pop that has broadened to Europe and the United States, not only in Asia. In order to do so, this paper analyzes the effective strategies needed to further develop K-pop in Europe and the United States after observing the success of the existing K-pop in Asia and China, based on actual cases, and analyze the important reasons for the success of K-pop, which are the entertainment company (systematic production by planning companies and systematic communication methods), the active use of social media, the consumers (the love and preference of the huge fan base), and the performers (perfection of singing, choreography and image). On the other hand, nowadays, as K-pop continues to broaden its market in Europe and the United States, it is possible to find the tipping point of a tendency towards homogenized music and insufficient characteristics of K-pop's strong commerciality and insufficient systematic business model, in order to overcome this phenomenon and thus to gain insights from existing success stories.

Metaverse and Society 5.0: Pivotal for Future Business Model Innovation


 
 
 
 The area of interest is future business model innovation in Society 5.0. This is important as the transition from Society 4.0 to Society 5.0 is happening at an exponential pace driven by the Metaverse. Thus, the research question is: how should companies think and do business model innovation in the Society 5.0 / Metaverse space? The method is conceptual, where the business model characteristics of Society 1.0 to 4.0 are empirically stated for inductive arguments for equivalent characteristics of Society 5.0. This is framed with Society 5.0 theory, Metaverse theory, and Osterwalder and Pigneur’s nine business model building blocks from their iconic Business Model Canvas (BMC). The contribution is a framework cross-tabulating Society 1.0 to Society 5.0 with the nine BMC elements. Finally, a discussion is provided with findings and implications for managers regarding business model innovation, new businesses, outcome logic, ecospheres, and currencies.
 
 
 

COMPETITIVE STRATEGIES OF ENTERPRISES IN CRISIS PERIOD: THE MARKETING ASPECT OF AIRLINES

Goal. The article is devoted to the study of the modification essence of competitive strategies as a result of the impact of crisis phenomena on the example of the activities of airlines. Methodology. Research methods include methods of scientific abstraction, observation, synthesis, generalization to highlight the key features of airlines competitive strategies, system-structural analysis of the market. The classification system of Porter's general strategies was applied in the airline sector. Results. Functional-level strategies in different areas of the firm, such as marketing, operations, finance, can only be properly developed when there is clear understanding of the overall business strategy. The article discusses general strategies that are available to all firms regardless of the sector, in accordance with Porter's view of activities differentiation and low cost, taking into account the breadth of operational goals. The focus was on airline operations, indicating the competitive strategies of full-service network carriers, low-cost carriers, integrated cargo carriers, regional airlines, charter airlines, and carrier-within-a-carrier airlines. These business models form the spectrum of strategic choices that will mix and function in hybrid forms as airlines continue to add nuance to their diverse approaches. The impact of crisis phenomena is direct factor in the hybridization of competitive strategies, although budget airlines have proven to be the most stable business models in terms of staff reduction. Scientific novelty. The competitive strategies of enterprises for the aviation sector and the business models of airlines, which respond to the global crisis challenges to varying degrees, are adapted, among which the budget business model is the most stable due to low operating costs. It was established that the business models of airlines are characterized by the approach of hybridization and mixing of business model features. Practical significance. The obtained results contribute the further development of theoretical approaches to the marketing research of airline activities, the analysis of the functioning of the air transport market. The materials reflect the generalization of competitive strategies of airlines.

Product-service system-oriented business models: a taxonomy of startups in the mobility sector

Startups are becoming increasingly important in the mobility sector and are putting established companies under pressure to adapt their business models. Especially, the automotive industry faces a significant change from an automotive manufacturer towards a mobility provider. However, literature does not provide a comprehensive understanding of the elements and archetypes of product-service system-oriented business models of startups in the mobility sector. This paper provides a taxonomy with six dimensions and 55 characteristics based on the analysis of 34 startups’ business models. Four clusters can be described as the result of a cluster analysis. Thus, a deeper understanding of the business models and a starting point for future research and practical application is provided. Furthermore, based on the results, implications for research and practice like dominated characteristics of product-service system-oriented business models as well as future research directions are pointed out.

Classification and Measurement under IFRS 9: A Commentary and Suggestions for Future Research

This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on the post-adoption impact of IFRS 9. We then discuss conceptual issues associated with the business model and cash flow characteristics assessment in IFRS 9, as well as issues associated with the presentation of fair value changes in other comprehensive income (OCI) and modifications to contractual cash flows. Finally, we identify gaps in the literature and provide suggestions for future research that can help inform accounting standard setters.

The internationalization of social enterprises: The impact of business model characteristics

Social enterprises (SEs) are firms that employ a business-oriented approach to tackling social problems. This paper quantitatively analyzes the importance of SEs’ business models for their internationalization using regressions as well as configuration methodology (QCA). Our unique dataset of 175 SEs in India reveals that SEs that have implemented a business model (1) that differentiates clients and beneficiaries are more likely to internationalize; (2) that does not have to engage in additional activities to create their intended social value are more likely to internationalize; and (3) that depend primarily on subsidies, grants, and donations are less likely to internationalize than those that also generate income. We elaborate on the contributions of our findings for the social entrepreneurship and international business literatures, and highlight the implications for practitioners and policymakers.

Social and solidarity economy insights for the circular economy: Limited-profit and sufficiency

Given the call for societal transformations to foster sustainability transitions, we consider in what way the Social and Solidarity Economy (SSE) contributes to a more circular society. We build on recent critiques of mainstream Circular Economy (CE) and engage with the notion of sufficiency, with respect to defining limits for and by society, in considering social and ecological imperatives over profit motives. The main aim of our article is to analyse the implications of the normative principles and values of the SSE for ensuring an integral circularity approach. For that purpose, we conducted qualitative research involving 26 in-depth interviews with 31 key informants from 20 initiatives in two case studies: SSE networks in the Basque Country and Western Switzerland. We reveal how one of the guiding principles of the SSE – limited-profit – is a clear basis for a distinctive circularity approach towards sufficiency. Our main contribution is to demonstrate how SSE principles foster specific characteristics of the Sufficiency-driven Business Model (SBM) and shape an integral social circularity approach. This perspective on circularity results in entities that embrace the following measures: seeking to transform the economic system as a whole; prioritizing the implementation of the more transformative Rs (Refuse, Rethink, Reduce); recognizing limited profit as a core distinctive principle; minimizing overall consumption; raising conscious consumer engagement (satisfying needs over wants); fostering stakeholders’ cooperation and collaboration; and maximizing social and ecological aims over economic profitability.

Believing in change: The role of implicit theory on consumer's perception of the brand's corporate social responsibility message

AbstractWith the sustainable consumption paradigms, corporate social responsibilities (CSR) across industries have been under scrutiny. However, little research exists on how brand's business model and consumers' characteristics are intertwined to influence CSR evaluation. Our study aims to examine how the brand type (e.g., fast vs. slow business model) influences the relationships among CSR‐brand fit, authenticity, and skepticism, thus improving attitudes toward the brand. In addition, based on the implicit theory, how the consumer's incremental mindset (vs. entity) influences a brand's CSR evaluations are studied. Through two studies, our findings demonstrate consumers perceived a higher CSR‐brand fit for the slow fashion/food brand than the fast fashion/food brand. A higher CSR‐brand fit heightened the CSR authenticity and alleviated skepticism, which in turn resulted in positive brand evaluations. Importantly, incremental mindsets weakened the effect of brand type on CSR‐brand fit. As one of the first studies to examine the relationship between consumers' implicit theory orientation and a brand's CSR message, our findings demonstrate that an incremental mindset is a powerful consumer characteristic in evaluating a brand's CSR activities that are less congruent with the brand's established business model.

What business model factors make SMEs more profitable?

The aim of this article is to detect the business model factors that increase firm performance. To carry out this research, a survey was conducted among the CEOs of seventy companies in the Region of Murcia, Spain, belonging to different sectors of economic activity. The empirical evidence obtained indicates that the characteristics of a company's business model affect its performance and future viability. In this sense, the article confirms that the business model factors that contribute to improving the future viability of a firm are mainly innovation, professionalization of the economic-financial area, investment in employees, and strengthening of the commercial area. Therefore, firms that wish to improve their long-term performance should especially strengthen these characteristics of the business model.

Overcoming the challenges of cooperative startups businesses: insights from a bibliometric network analysis

In recent decades, advances in technology have led to the adaptation of business models to the connected era. This has resulted in the modification of the goals of both startup and cooperative models, leading to the emergence of a new hybrid business model combining the two and known as cooperative startups. The present study aims to investigate the evolution, functioning and characteristics of cooperative startups as a potential research area that may be of future relevance due to its potential growth. To this end, a bibliometric analysis using Web of Sciences academic database and VOSViewer software is conducted to identify specific characteristics, opportunities, and challenges that cooperative startups should understand in order to achieve business success. In this regard, a co-citation analysis, bibliographic coupling and keyword concurrency analysis are computed to understand the literature published in this research field to date. The findings of this analysis contribute to the creation of knowledge on cooperative startups identifying 19 future research questions linked to 5 research categories in cooperatives startups: strategy, members of the team, performance, finance and economy and innovation. The results provide insights on the challenges and characteristics of this new business model that is characterized by the management of investments and economy democracy while boosting innovation and handling competence. Finally, theoretical and practical implications are presented.

District heating in the future - thoughts on the business model

In this study, we apply a combination of methods for understanding how business models need to change to meet changing business conditions in the future (time horizon 2050). The process of applying the value proposition canvas and the business model canvas for understanding the future business models to the case of district heating has been documented. The energy transition necessitates a combination of new and existing solutions. District heating is one existing and enabling technology. The sector is, however, facing several challenges that will impact the way that business must be conducted in the future. We provide new knowledge about the characteristics of the future district heating business model and illustrate that technical development must be accompanied by business development otherwise the competitiveness of new technology is reduced. Main results show that a high level of digitalisation, enabling customers to make choices that are efficient to the district heating system, is a key future feature. Additionally, co-creation with a small group of dedicated customers will drive the sector's ongoing development. The results from the study are replicable and of relevance to other sectors undergoing large change.

ТРАНСФОРМАЦІЯ БІЗНЕС-МОДЕЛІ ПІДПРИЄМСТВА: ЕКОСИСТЕМНИЙ АСПЕКТ

The modern business environment is characterized by rapid changes, significant diversity and increased interconnection between its elements. These factors require new approaches to the reconfiguration of existing business models. Using the concept of entrepreneurial activity on the ecosystem base, enterprises can significantly increase the social and economic efficiency of their activities. The article describes three main archetypes of business models, each of which has a different content. The first type of business models is based on long-term partnerships with customers. The strategy of mutually beneficial relations with clients is formed in the front office. The basis of the second type of business models is operational efficiency, which involves improving of back-office operations. The third type involves creating value through the coordination of the front office and back office. Thus, the prerequisites for creating innovative business models, namely digital platforms, are being formed. Progressive changes in the quantitative and qualitative characteristics of business models require appropriate conditions to ensure the effective implementation. A mechanism for constructing actions and an outlined sequential phasing of changes are necessary. Without business models modifying, it is impossible to achieve the goals of sustainable social, economic and environmental development of enterprises. The business models priorities will be determined by the level of economic development, scientific, technical, social and environmental needs of enterprises. The directions of the business models transformation are outlined: digital and ecosystemic. It is determined that the business model transformation is a synthesis of various aspects of social, economic and ecological convergence. It is emphasized that special attention during the business models transformation towards ecosystems is paid to shaping a relative management system, organizational structure and corporate culture. The mechanism of the business model transformation is developed. The mechanism provides the growth of the enterprise’s ecosystem development as a result of consolidation of ecosystem components, increase of resource efficiency, modernization and greening of business process management.

Characteristics of business models for innovation clusters in decarbonation projects

Roughly 97 % of the European Union (EU)’s building stock is not considered energy efficient, and 75 to 85 % of it will still be in use in 2050. Residential buildings account for around two thirds of final energy consumption in European buildings. The rate at which new buildings either replace the old stock, or expand the total stock, is about 1 % per year. Similarly, the current renovation rate of existing buildings in the EU is about 1–2 % of the building stock renovated each year.The transformation of today’s electric power sector to a more sustainable energy production based on renewable energies will change the structure of the industry. In this transformation towards a smart energy system interaction between sectors and technologies the main stakeholders (energy service providers; utilities) will face new challenges in their traditional way of doing business. Therefore, adapting their business models to remain competitive is seen as an important step.We chose to characterize these business models by content, structure and governance of transactions for creating value by exploiting business opportunities. In the energy sector the following characteristics to the business models for energy supply have been identified.The most predominant archetypes of business models for the energy supply are presented and discussed. Further, we propose to set up (or use existing) innovation clusters, based on these promising BM to ensure that innovative business environments (innovation clusters) will grow that have the potential for upscaling and replication of District Decarbonization Solutions. There are no specific business models for energy supply applied to renovation of districts. Uncertainties in the supportive measures for the application of DER makes it difficult to develop new business models for the utilities.

Sustainable Business Models—Crisis and Rebound Based on Hungarian Research Experience

Sustainable business models can help us move beyond the current consumer society and integrate sustainability into our lifestyles. The COVID-19 crisis was a strong test of sustainability for these models. In our study, we assessed which business models are highly dependent on the economic cycle and are highly embedded in consumer society. We conducted our research at the height of the second wave of the pandemic and asked university students about changes in their consumption patterns and their expectations for the future. We carried out cluster analysis on our sample of 622 respondents. We were interested in the extent to which participation in certain business models could be associated with the rebound effect that could be predicted after the epidemic. The stronger this effect, the more embedded a sustainable business model is in consumer society and the less able it is to reduce its environmental impacts in the long term. We found that resource efficiency, the sharing economy, and digitalization fall into this category. Participation in sufficiency and stewardship-based business models predicted much less rebound impact. These models showed more clearly the sustainability characteristics of sustainable business models.

Digital Business Models in the Hospitality Sector: Comparing Hotel Bookings with Yacht Charter Bookings

Within the fast paced digital transformation of the tourism and hospitality sector, the modalities of booking a tourist accommodation have been radically transformed by the uptake of digital business models and digital platforms. This study examines the underlying mechanisms and key specificities of digital business models for two of the sector’s sub-segments—hotel accommodation bookings and yacht charter accommodation bookings. Based on the literature review findings, the case study method was applied in relation to key digital business models relevant for hotel bookings. On the other end, in relation to the yacht charter segment and its digital business models, an empirical research was conducted, encompassing a final sample of 162 yacht charter agencies from 42 countries worldwide. The analyzed digital business models have multiple similarities, while there are specific differences between the two hospitality segments. Even though digital business models are highly important in both segments, they are generally more developed and sophisticated in the hotel segment, which is related to the segment’s sheer size, in comparison with the younger and smaller yacht charter segment. The novelty is reflected in shedding more light on the characteristics of digital business models in the fast-developing yacht charter segment, including through an empirical study.