Business Information Research Articles

A new business model (BM) for small independent retailers

Purpose The purpose of this paper is to advance understanding of the key elements of a new business model (BM) for independent retailers, which reflects their current competitive position within the retail ecosystem. It is a conceptual paper, drawing on theory and practical examples of strategy changes made by independent retailers during COVID-19. Design/methodology/approach This conceptual paper builds on existing research into retail BMs and independent retail strategies during COVID-19. It incorporates findings from a significant review of UK Independents’ performance during the pandemic, titled “Against All Odds, a Grimsey Review research paper (2021)”. It highlights changes in business format, activities and governance during the pandemic, alongside managers’ reflections on the impact of these changes on their businesses. This paper advances theory by adapting current conceptualisations of a retail business model with insights from value co-creation found in Service-Dominant logic (Vargo and Lusch 2008; Vargo et al., 2023). Findings This BM identifies a set of design principles and design elements/themes, which allows for a clearer delineation of the sources of competitive advantage for the sector moving forward. Design principles include the adoption of a hybrid format with resource configuration capturing co-creation activities and governance co-ordinated by institutions and institutional arrangements. Consumers lie at the heart of value co-creation. Design elements/themes need to be underpinned by value drivers including flexibility and agility, a dynamic IT capability and collaboration and community engagement. Originality/value This paper makes a two-fold contribution. Firstly, drawing on theory and practical examples of change made by business owners during the pandemic, the authors develop a new BM for independent retailers that captures key elements and relationships relevant to their competitive position in the sector. Secondly, the authors draw on the model to advance a set of propositions to be tested by further research to support a more stable and sustainable future for the sector.

Developing analytics-driven maintenance data mining processes: a design science approach

PurposeData mining has been well-applied by maintenance service providers in identifying data patterns and supporting decision-making. However, when applying data mining for analytics-driven maintenance, maintenance service providers often adopt data mining with unstructured “trial-and-error” approaches. In response, we have followed design science to develop a comprehensive approach to diagnosing the problems with the existing data mining processes model for analytics-driven maintenance service.Design/methodology/approachThis study conducted an in-depth case study with Siemens in the UK for data collection in order to apply a two-cycle build-and-evaluate design process. Based on the literature, the preliminary model is built. It is evaluated through the case company in the first cycle. In the second cycle, the model is refined based on the comments from the case company and then re-evaluated from both business management and information technology perspectives to ensure the applicability of the designed model in a real business environment.FindingsFirstly, this study identifies three main shortcomings in the existing data mining process models for analytics-driven maintenance. Secondly, this study develops the “Gear-Wheel Model”, with a customer-oriented cycle, a project planning cycle and a machine comprehension cycle, to overcome all these shortcomings simultaneously and provide improvement solutions. Thirdly, this study highlighted that the data mining processes for analytics-driven maintenance service need interactions from different functional departments and supports of successive data collection.Originality/valueThe study expands data mining analysis beyond a single business function to include interactions with other internal functions and external customers. It contributes to existing knowledge by focusing on the managerial aspects of data mining and integrating maintenance service providers with their business customers.

Women’s Network Resource Acquisition in Informal Rural Entrepreneurship: A Developed View of Opportunity versus Necessity Dichotomy

This study explores the inherent interdependencies between microfinance social enterprises and two groups of women informal farm entrepreneurs and women informal tourism entrepreneurs in four impoverished rural regions in Iran. Using a qualitative constructivist grounded theory methodology, the findings suggest that women tourism entrepreneurs tend to engage in a greater coexistence of weak vertical and horizontal ties. In contrast, women farm entrepreneurs primarily develop strong horizontal ties. Consequently, members of the tourism group have greater opportunities to access a diverse range of resources, placing them in a more advantageous position along the opportunity–necessity entrepreneurship continuum. Guided by a network approach combined with strong structuration theory, this study develops a theoretical model that illustrates how these two groups of women entrepreneurs differently cope with gender constraints to grow their informal businesses. The findings highlight the need for tailored strategies and policies to empower various groups of subsistence women entrepreneurs.

Temporalities of Arrival: Burundian Barbershops as an Arrival Infrastructure in a South African Township

Migrants from Sub-Saharan Africa have contributed to the diversity of the informal economy in urban South Africa. However, they have faced xenophobic violence and discrimination in urban spaces such as townships, which were previously designated only for Black people during apartheid. This article explores how arrival infrastructures in the township informal economy have enabled or hindered economic opportunities for those who have newly come to South Africa. Based on qualitative research on practices of solidarity and conviviality with migrant informal traders from Burundi, the Democratic Republic of Congo, and Malawi in the township of Umlazi in Durban, South Africa, in 2023, the article specifically focuses on Burundian migrants’ barber businesses as a node in the arrival infrastructure. These barbershops act as informal social spaces that provide access to “connectors” who help with networks to acquire labour, social, and material resources. These include local knowledge and information about new locations to construct a barber business or introductions to property owners. This article argues, however, that informal market and business spaces are often temporary for migrants who are always on the move, continually arriving and re-negotiating their belonging due to multiple waves and threats of xenophobic violence. Therefore, the barber business represents a temporary structure for futuring in uncertain times.

The impact of export diversification on business startups in Africa

This paper aims to examine the impact of export diversification on business formation in Africa. The study used a panel dataset comprising 10 African countries (Algeria, Gabon, Lesotho, Morocco, Nigeria, Sierra Leone, Togo, Tunisia, Uganda and Zambia) observed annually from 2008 to 2018. The model was estimated using an instrumental variable regression approach within a count data framework and the difference-in-difference method. Main findings of the study demonstrate that (i) export diversification facilitates the formation of new businesses in the sampled countries, (ii) the odds of a business start-up increase by 1.7 – 3.5 times in response to a percentage point increase in export diversification, and finally (iii) business start-ups are at least 95 percent higher in countries with high export diversification compared to countries with narrow export baskets. These findings emphasize the need for policies aimed at moving away from concentrated export baskets towards more diversified ones to leverage entrepreneurial effort in the selected African countries.

Are Historically Black Colleges and Universities an Ecosystem for Black Entrepreneurship? Some Evidence From the Brookings Institution 2022 Black Progress Index Data

Historically, Black Americans have owned businesses at a lower rate than White Americans. While there is a vast literature on the factors that explain this disparity, machine-learning analytics have not been exploited to capture relevant predictive determinants of the formation of Black-owned Businesses. In this paper, we utilize the Brookings Institution 2022 Black Progress Index Data to explore, similar to the approaches in criminology, the attractors and generators of Black-owned businesses across US counties. We augment the Brookings data to account for the presence of a Historically Black College/University (HBCU) in the county, and deploy a rigorous least absolute shrinkage and selection operator—a machine-learning analytical tool—to identify the best predictors of Black-owned businesses in a county, and classify them as attractors and/or generators in regression specifications. Parameter estimates from several mixed effects regressions specifications reveal that HBCUs are an attractor/generator of Black entrepreneurship. Treatment effect matching parameter estimates suggest that the HBCU effects on Black entrepreneurship outcomes are causal. Overall, our findings suggest that HBCUs constitute an ecosystem for Black entrepreneurship as they are an important catalyst and driver of Black-owned businesses, and can serve a substantive role in reducing racial entrepreneurship disparities. Our results suggest that policies that engender private or public investments in HBCU capacity to enhance their Black entrepreneurship ecosystem can be effective in reducing Black-White disparities in entrepreneurship and business ownership.

Foreign entrepreneurship in the Japanese startup ecosystem: Can deviance fuel innovation?

ABSTRACT The Japanese economy has experienced continued modest growth, and recently contraction, and has struggled with a formidable demographic crisis. In dire need of innovation, the Japanese government has started to focus on foreign entrepreneurship, encouraging innovation from abroad. This article examines the practices of knowledge-intensive, or “innovation-driven”, foreign entrepreneurship in contemporary Japan. Using qualitative data from in-depth interviews with foreign entrepreneurs of varied ethnic and national backgrounds, stakeholders of the Tokyo startup scene, as well as from participant observation at events of the Tokyo startup community, I propose that the concept of positive deviance can help us understand migrant entrepreneurs’ strategies for navigating business formation. As argued by previous migration literature, foreign migrants are suspected of deviance and are tightly controlled by the state. At the same time, the newly created Startup visa, which allows the entrepreneurs relatively easy and affordable access to the Japanese market, signals an unprecedented openness to migrants with the hope that their transnational experiences and connections facilitate innovative business creation and overcome Japanese norms of risk-aversity. The analysis reveals that the migrants walk a fine line between challenging social norms and slipping into illegality due to inflexible visa policies and structural constraints. Eventually, immigration policies, which have become increasingly flexible regarding skilled foreign employees, keep a firm grip on skilled foreign employers, thereby exposing migration authorities’ deeply ingrained notions of foreignness as negatively deviant. That said, migrants with sufficient socialization in Japanese institutions increasingly know how to maneuvre the legal system and the startup ecosystem.

Analysis of Challenges Encountered by Local Politics in Dealing with Squatter Settlements in Tanzania: The Case of Mwanza City

This study analysed challenges encountered by local politics in dealing with squatter settlements in Mwanza city, Tanzania. This study employed mainly qualitative research approach with minimal quantitative research approach through a case study strategy. The study involved 390 respondents. Interviews, questionnaire, focus group discussion and observation yielded primary data, while documentary review provided secondary data. Several challenges included poor infrastructure; unplanned areas; unscrupulous buildings; environment unfriendly areas; poor energy sources for cooking as well as lighting; inadequate social services like poor waste collection as well as disposal; illicit behaviour patterns; and informal small scale businesses. There are government initiatives in dealing with squatter settlements. Authors suggest Mwanza city with five concentric zones following Concentric Zone Theory. There are recommendations for the government, civil society and individuals in dealing with challenges of squatters in Mwanza city.

The specifics of knowledge transfer in franchising. The case of a beauty salon

The transition from a direct sales business model to a franchise model requires a review of the company’s strategy, structure and key business processes. One of the key tasks for the company’s management is knowledge management, which plays an important role in ensuring its competitiveness. Changing the business model involves alterations in the value chain and organizational structure of the company in the context of franchising.This study focuses on the business format franchise, where the management company not only transfers the right to a product and service, but also provides a complete business format, including a marketing strategy, quality standards, and a set of organizational knowledge about the specifics of providing services. Using the example of the 4hands manicure and pedicure salon network, practical aspects of transformation are demonstrated, such as the transfer of operational functions to franchisees and difficulties in communication within the network. The importance of effective knowledge transfer is emphasized as one of the factors of sustainable growth of the franchise network. Knowledge is also considered as a strategic resource that provides a competitive advantage of the company, which is confirmed by the analysis of the VRIO model.

Ethical Generative AI: What Kind of AI Results are Desired by Society?

There are many publications talking about the biases to be found in in generative AI solutions like large language models (LLMs, e.g., Mistral) or text-to-image models (T2IMs, e.g., Stable Diffusion). However, there is merely any publication to be found that questions what kind of behavior is actually desired, not only by a couple of researchers, but by society in general. Most researchers in this area seem to think that there would be a common agreement, but political debate in other areas shows that this is seldom the case, even for a single country. Climate change, for example, is an empirically well-proven scientific fact, 197 countries (including Germany) have declared to do their best to limit global warming to a maximum of 1.5°C in the Paris Agreement, but still renowned German scientists are calling LLMs biased if they state that there is human-made climate change and humanity is doing not enough to stop it. This trend is especially visible in Western individualistic societies that favor personal well-being over common good. In this article, we are exploring different aspects of biases found in LLMs and T2IMs, highlight potential divergence in the perception of ethically desirable outputs and discuss potential solutions with their advantages and drawbacks from the perspective of society. The analysis is carried out in an interdisciplinary manner with the authors coming from as diverse backgrounds as business information systems, political sciences, and law. Our contribution brings new insights to this debate and sheds light on an important aspect of the discussion that is largely ignored up to now.

Uncertainty and entrepreneurship in oil-rich developing countries: Does institution matter?

This paper aims to investigate how institutional quality can influence the relationship between uncertainty and entrepreneurial activities in a sample of 20 oil-rich developing countries. The World Uncertainty Index (WUI) is employed as the indicator for uncertainty. To mitigate endogeneity issues, we employ a series of panel data models estimated using the Generalized Method of Moments (GMM). We find a higher level of WUI is negatively associated with the new business formation. Furthermore, our findings underscore the vital role of institutional quality in moderating the adverse effects of uncertainty on entrepreneurship. These results remain consistent across various measurements of institutional quality, uncertainty, and new business formation. Additionally, the estimation results confirm the existence of the oil curse hypothesis. The results of this research offer valuable insights for both policy development and management practices.

Black Shadow: Effect of Energy Poverty on the Informal Economy in Developing Countries

Energy poverty is a major problem in developing countries, with informal businesses often forced to use inefficient generators or equipment to produce electricity, which can lead to high production costs and lower productivity. As a result, these businesses may be less competitive on the market, which may lead them to operate informally to avoid the high costs associated with regulation and taxes. The aim of this paper is to assess the effect of fuel poverty on the informal sector in developing countries. We start from a sample of 95 developing countries, over the period 1993-2017, specify and estimate a static and dynamic model by Robust Pooled Ordinary Least Squares (Robust POLS) and System Generalized Method of Moments (sGMM). The results suggest that energy poverty increases informality in developing countries. The analysis remains robust to the consideration of disaggregated indices of fuel poverty, and alternative measures. The mediation analysis suggests that the effect passes through several mediators. Our policy recommendation is to improve access to clean energy and electricity for developing countries, which has an impact on informal entrepreneurship.

The Effect of Informal Food Service Operators’ Capabilities on Their Performance in Nigeria

Technology has become crucial for businesses of all scales, enhancing operational efficiency, customer experience, and overall performance. While many formal businesses have embraced technology, small and informal businesses, particularly in rural areas, often struggle with adoption due to resource constraints. This study examines the impact of technological capability (TC) on the performance of informal food service operators (IFO) in southwestern Nigeria. This study employed a quantitative approach whereby a closed-ended questionnaire was administered to 180 IFOs across different LGAs in Oyo State to elicit information about the effect of their activities on performance indicators. The response rate was 93.8%. Data was analyzed using a binary logistic regression model. Findings revealed that the innovation capability (β—1.657; p—0.003*) and production capability (β—3.276; p—0.009*) of the IFOs significantly influenced their sales turnover and profit level is influenced by innovation capability (β—1.657; p—0.013*), investment capability (β—2.013; p—0.004*) and linkage capability (β—2.716; p—0.003*) within the study area. The study recommends that there should be strong linkages between the operators and technology-providing organisations to enhance their innovation capability.

Herbal Cigarette Sales Information System Case Study at Stockis Sin Sriwijaya

There is still space for improvement in the application and usage of technology and information in the sales business, as indicated by the significant percentage of clients who continue to make manual purchases. An example would be the present Sriwijaya Herbal Sin Cigarettes retailer. The Sin Cigarette Herbal Sriwijaya stockist shop employs a traditional sales system where consumers physically visit the shop to make purchases. This research aims to enhance consumer convenience by developing a sales information system for herbal cigarettes, enabling online access to sales. This study employs a descriptive research methodology and a waterfall system development approach. This approach involves sequential steps, including needs analysis, design, code production, testing, and support. Data collection from the users was followed by the design and development stage of the program, employing the PHP programming language for implementation. Subsequently, an evaluation was conducted on the functioning system. The outcome is a sales information system that is anticipated to possess the capability to process data into high-quality information efficiently, seamlessly integrate various components, and serve as a repository for data storage. With the existence of this sales information system for herbal cigarettes, the processing of sales data has been computerized automatically, enabling automated report generation. This study introduces an internet-based sales information system for the Sriwijaya Herbal Cigarette Stockist Shop. It replaces traditional sales procedures, expands market reach, streamlines report generation, provides comprehensive buyer information, and maximizes profitability. The innovation employs the waterfall system development methodology and the PHP programming language to enhance retail operations' effectiveness and efficiency. An inherent constraint of this study is the need for the online-based sales information system to address all challenges the Sriwijaya Herbal Cigarette Stockist Shop faces, including technological infrastructure and user proficiency issues. Reliable internet connectivity is crucial for the system's effectiveness, which may require improvements in certain regions. Additionally, employees and customers may require additional training to use the new systems proficiently, which should be considered in terms of time and resources for this research.

Assessing the Status and Challenges of Sole Proprietor Garment Businesses: Insights for Operational Enhancement

A sole proprietorship is without a doubt, the simplest form of business organization. Garment business on the other hand is considered as one of the most popular ventures among women entrepreneurs in the Philippines. This study aimed to determine the status, issues and concerns of sole garment business in Taguig City to serve as basis for a proposal towards enhanced operations. It also attempted to determine the issues and concerns encountered in women entrepreneurs and their employees in the course of running the business. The descriptive method of research was used and it involved twelve (12) proprietors and fifty (50) employees as respondents. The data were analyzed and interpreted using the frequency, percentage, weighted mean and t-test. Results revealed that the respondents strongly agree on objective of the sole garment business, personnel, capital investments, operations requirements, wages and benefits, and supply of raw materials as vital factors for enhanced operations of sole garment business. The null hypothesis that there is no significant difference between the perceptions of the proprietors and employees on the status of sole garment business was accepted when it came to personnel, capital investments, operations requirements and wages and benefits. However, such null hypothesis was rejected when it came to objectives, raw materials supply, and equipment. As to issues and concerns encountered in sole garment business, the need for technologically advanced equipment came first, management style was ranked second, keeping up with fast fashion trend came in third while supply of raw materials was ranked fourth and inadequacy of business capitals came in the fifth rank.

Evaluating the effects of social media influencers on consumer behavior in Sweden

The study investigates the effects of social media influencers on consumer behavior in Sweden. The country is characterized by high internet usage and extensive social media engagement which makes it appropriate for this research. A qualitative study was used to examine how influencers impact consumer decision-making, product discovery, and brand loyalty. Influencers would also put more emphasis on authenticity, trust, and demographic factors. The research applies established theories which include the Theory of Reasoned Action and Social Cognitive Theory. These theories explore the dynamics of influencer-consumer relationships and their effects on purchasing intentions. Key findings reveal that Swedish consumers prioritize authenticity and ethical values in influencer endorsements. Consumers usually favor influencers who are perceived as genuine and responsive to advocating for sustainability. Demographic differences influence consumer receptivity to influencer content, with younger consumers showing more engagement compared to older consumers. The research study shows the need for brands to adapt their influencer marketing strategies to align with Sweden’s ethical and sustainable consumer preferences. Some of the study limitations include sample size and geographic focus, suggesting further research across different cultural settings to deepen understanding of influencers' global impact. The research study provided valuable information for businesses and consumers to effectively capitalize on influencer marketing as a business strategy.

Role of Artificial Intelligence in Data Protection for Digital Asset Systems: A Review of Recent Development

AI integration in digital assets and data protection is revolutionizing asset management. Proper AI applications can enhance security, but regulation must balance innovation and misuse, requiring a thorough understanding of technology. Data protection safeguards sensitive data from loss, alteration, or corruption, ensuring compliance with legal and regulatory obligations. It involves business information procedures and data protection mechanisms, particularly in the financial industry. Restricting access to digital asset data is crucial. This paper systematically reviews the recent role of AI in data protection for digital asset systems. Recent studies have reported enhanced algorithms for data protection in digital assets, focusing on transactions, markets, surveillance, and infrastructure assets. Robust algorithms in the digital asset market improve data protection and address issues with traditional crowdfunding. Token financing is a new strategy aimed at solving these issues. However, startups often lack knowledge about risk when choosing new token financing options. In the future, AI may be able to predict potential threats or vulnerabilities to digital assets through data protection trends and patterns. This would allow proactive data protection measures rather than just reactive ones. It will enhance digital asset systems' functionality and accuracy.

Cultural Origins of Business Formation in the Context of Kinship and Trust

This paper presents a conceptual framework connecting historical kinship structures and generalized trust into modern business formation. Kinship intensity, defined as the degree of strength in family ties, is shaping the social and economic outlook of societies. Building upon the existing literature, I argue that societies with strong kinship ties often exhibit collectivist characteristics, leading to less trust towards outsiders. This hinders market efficiency and collaborative partnerships, resulting in business formation being largely confined to family-owned enterprises. Conversely, societies with loose kinship structures exhibits higher level of generalized trust that enable to promote engagements beyond family networks. This promotes establishing larger firms with strangers, more efficient markets, and greater cooperation with foreign firms. The paper suggests that kinship and trust behavior are deeply-rooted in culture and influence social and economic development. It is important for policymakers to support initiatives that foster trust beyond family ties in order to promote collaboration among diverse market participants.

Modelling of the Ukrainian labor market: system dynamics approach

The purpose of the article is to develop a System Dynamics model of the functioning and development of the Ukrainian labor market, which can subsequently be used to simulate various government decisions and policies. The Stella Architect software is used to construct the model, allowing to provide insights into the current state of the labor market and forecasts future trends, helping identify potential improvements.The explanatory System Dynamics Model effectively demonstrates the complex interrelationships that influence the dynamics of the Ukrainian labor market. The identified balancing loops highlight key factors such as retirement, business closures, production levels, and the formation of new businesses, all of which shape labor supply and demand. Each loop illustrates how changes in one economic aspect can impact others, underscoring the interconnectedness of labor dynamics, economic growth, and business development. Furthermore, the developed causal loop diagrams emphasize the cyclical nature of these interactions, where increases in labor supply can result in higher wages and GDP, leading to further investment and business creation. This model offers valuable insights into the feedback mechanisms that may stabilize or destabilize the labor market, particularly in response to external shocks or policy interventions. In the future, the developed model can be used to test various policies for major elements of the model and to simulate its behavior.

Innovation of listed firms and new business formation: evidence from China

ABSTRACT Using data from Chinese prefecture-level cities between 2006 and 2020, this study presents new causal evidence to the knowledge spillover theory of entrepreneurship, showing that research and development expenditures of listed firms significantly promote new business formation in the same city. We address endogeneity issues, account for alternative mechanisms, and consider knowledge spillover from mature firms to entrepreneurs as a plausible explanation. Consistent with this explanation, the effect is more pronounced in innovation-driven entrepreneurship and knowledge-intensive industries, and diminishes with distance. Furthermore, cities with a favourable business environment, particularly with increased government services for enterprises, exhibit more prominent effects.