Framework For Business Model Innovation Research Articles

Towards a Circular Solar Power Sector: Experience with a Support Framework for Business Model Innovation

AbstractThe rapid expansion of the global solar photovoltaic (PV) market as part of the transition to a low-carbon energy future will increase both demand for raw materials used in PV product manufacturing as well as future PV panel waste volumes. There is an urgent need for solar industry businesses to adopt circular business models, and to support this process through targeted tools and methods that can facilitate the innovation process of such models. This paper employs an action-oriented case study methodology, drawing on insights garnered from five demonstrator cases that have applied and validated a Circular Business Model Innovation (CBMI) framework within the PV sector. Results show how this framework was applied in practice during the ideation, design, experimentation, and scaling phases of the innovation process. Specifically, results show how an experimental and iterative approach was found critical to assess viability, desirability, and feasibility of circular business strategies. The study’s empirical testing of tools with the context of a Circular Economy complements earlier theoretical conceptualizations of business model innovation processes. It illustrates how using multiple tools can provide firms with complementary insights in each stage of ideation, design, testing, and scaling of business models. It is recommended that policy makers and business leaders endorse such co-creative and experimental approaches to foster learning and business model innovation, thereby catalysing the transformation of an entire renewable energy industry sector towards Circular Economy.

Circular Economy Business Model in Integrated Waste Management to Encourage Self-reliance in Jongbiru Village

The circular economy has been expected to be an effort to build a competitive and sustainable society. This study aims to develop a circular economy-based business model for waste management in Jongbiru Village, Kediri Regency. The research method used is descriptive-qualitative by developing a sustainable business model innovation framework. The model used is a development of the Business Model Canvas (BMC) by involving business aspects of the environment. The research data were collected through observation and interviews at the location of the research object. The results showed that the waste disposal site (TPS) in Jongbiru Village had implemented a circular economy business with the 3R principle (reduce, reuse, and recycle), which was managed independently. However, there are shortcomings in long-term planning and efforts related to the role of the community. Moreover, the findings in the field also show the potential that needs to be optimized through supporting facilities and social capital. The implications of this research encourage the role of stakeholders in planning the long-term development of business projects with a community engagement approach.
 Keywords: village self-reliance, circular economy, social capital, business model canvas

A Systematic Review of Developing a Comprehensive and Strategic Framework for Business Model Innovation and Adaptation Amid Technology and Market-Driven Disruption for Incumbent Businesses

Purpose - This study aims to address a crucial gap in academic understanding regarding business-model innovation and adaptation, particularly within the dynamic landscape of technology and IT-based companies experiencing disruptive innovations. To meet the increased demand for a precise approach, timely execution, and relevant content in business-model evolution, this study strives to develop a comprehensive framework. Through synthesizing existing knowledge, the goal is to contribute valuable insights and offer a cohesive guide for businesses navigating the complexities of innovating and adapting their business models amidst technological disruptions.
 Design/Methodology/Approach - Through a systematic review of 29 research articles from reputable journals, we employ a structured, five-step approach to define research questions, conduct literature search, select relevant studies, rigorously extract and synthesize data, and report findings. Emphasizing methodological rigor, consistent with established practices, this approach provides a robust foundation for developing a strategic framework for business model evolution amid disruptions.
 Findings - This study contributes significantly by developing a comprehensive and integrated framework to help incumbent businesses navigate disrupter threats and implement business-model innovation. The synthesis of the relevant literature and practical guidance empowers incumbent businesses for long-term competitiveness.
 Research Implications - This study has substantial implications, offering academia a comprehensive and integrated strategic framework for navigating disrupter threats through business-model innovation. It provides practical guidance for incumbent businesses, aiding in strategic decision-making and competitiveness. The findings set the stage for future research to explore industry-specific contexts and advance methods for early disrupter detection in the evolving landscape of technology disruptions.

Development of a Platform Business Model for Co-creation Ecosystems for Sustainable Furniture

Existing design platforms with multi-dimensional value chains currently have deficits in terms of their business models, resulting in insufficient attention to sustainability goals and individual requirements for products of these platforms. Co-creation approaches, such as the Do-It-Together (DIT) approach for furniture, involve customers and manufacturers as equal partners in the design and production process. This allows customers to have more influence on the sustainability and individualization of products. The existing literature addresses sustainability-oriented design principles for platform business models, but concrete platform business models for multidimensional DIT co-creation of furniture are still missing. Therefore, the objective of this paper is to develop a business model for a DIT co-creation platform for the furniture industry based on a four-step business model innovation framework. This method will then be applied to a specific project scenario to derive a project-specific DIT co-creation business model. This generates knowledge about the collaborative manufacture of sustainable and customized furniture and contributes to the cross-sectoral transfer of platform business models for the development of sustainable products.JEL Codes: L23, O31

The Effect of Learning Orientation and Business Model Innovation on Entrepreneurial Performance: Focused on South Korean Start-Up Companies

The purpose of this study is to empirically confirm the importance of learning orientation in the operation of start-up companies. In the literature, it is well known that this learning orientation plays a big role in improving the performance of start-ups by cultivating organizational members’ capabilities in detail, encouraging active learning, and creating new knowledge. To this end, a business model innovation framework for start-ups was established by empirically validating the theoretical research model. For the analysis, 139 questionnaires from start-ups with less than 7 years of business history in the incubation center were used. For the novelty of this work, it investigates the causal relationship between the learning orientation of start-ups, business model innovation, and start-up performance (technology acquisition and market expansion). Our research has contributed to the literature on entrepreneurship, innovation and strategy as follows. First, it contributed to the literature on entrepreneurship by redefining the performance of start-up companies as technology acquisition and market expansion through a review of previous studies and providing insight into the importance of learning orientation for start-ups through empirical studies. Second, it contributed to the innovation literature by confirming the importance of business model innovation for start-ups to achieve start-up performance through empirical research. Third, it contributed to the strategic literature by presenting and empirically confirming business model innovation through learning-orientation improvement as a way to achieve the performance of start-up companies.

Innovation Ecosystem for Sustainable Business Model Development: Practical Insights

The capability to rapidly and successfully move into new business models is an important source of sustainable competitive advantage and a key leverage to improve the sustainability performance place-based innovations of organizations. However, the performed research suggests that many business model innovations fail. Despite the importance of the topic, the reasons for failure are relatively unexplored, and there is no comprehensive review of the successful sustainable business model innovation framework. This paper provides a review of drivers and barriers for sustainable business innovations in the context of ecosystem and its services.

Business model innovation canvas: a visual business model innovation model

PurposeMore and more enterprises have realized the importance of business model innovation. However, the model tools for it are still scarce. There is a clear research gap in this academic field. Therefore, the aim of this study is to put forward a visual business model innovation model.Design/methodology/approachThe scientific literature clustering paradigm of grounded theory is used to design business model innovation theory model (BMITM). BMITM and the business model innovation options traced back from 870 labels in the grounded process are integrated into a unified framework to build the business model innovation canvas (BMIC).FindingsBMIC composed of three levels and seven modules is successfully developed. 145 business model innovation options are designed in BMIC. How to use BMIC is explained in detail. Through the analysis of innovation hotspots, the potential business model innovation directions can be found. A new business model of clothing enterprises using 3D printing is innovated with BMIC as an example.Research limitations/implicationsCompared with the previous tools, BMIC owns a clearer business model innovation framework and provides a problem-oriented business model innovation process and mechanism.Practical implicationsBMIC provides a systematic business model innovation solution set and roadmap for business model innovation practitioners.Originality/valueBMIC, a new tool for business model innovation is put forward for the first time. “Mass Selection Customization-Centralized Manufacturing” designed with BMIC for the clothing enterprises using 3D printing is put forward for the first time.

The role of product design in circular business models: An analysis of challenges and opportunities for electric vehicles and white goods

Pursuing sustainability implies setting a multitude of open-ended goals to address environmental and socioeconomic issues today as well as those for future generations. The circular economy (CE) paradigm appears more focused regarding goals and agency to address environmental issues by using the economic system. However, companies and governments aiming to operationalize CE in practice, it has been claimed, will face six key challenges limiting the CE “net sustainability impact” potential. This work focuses on the challenges for manufacturers to adopt and operationalize CE for their business. The two key levers for manufacturers to navigate on their path from the linear (take-make-dispose) to a sustainable CE are innovating and designing of the business model and of their products. To date, however, understanding the role of product design in developing circular business models has received little attention in research. This review article builds upon the CE literature foundation, including definitions, challenges, and business modeling frameworks needed to better understand the role of product design. Building on the work of several highly cited CE-centric literature reviews and voices in research and industry, we selected and merged complementing frameworks: Slowing-Closing-Narrowing, Circular Design, and the Circular Business Model Innovation framework. To understand how to put these frameworks into practice, we analyzed CE's links with electric vehicle and white goods research and industry perspectives respectively and collectively. The review and analysis of CE and selected industries’ research was supported by a co-occurrence keyword analysis of 5,960 most cited papers in CE as well as the two product categories, electric vehicles and white goods. The analysis indicated limited maturity and linkage of circular business models and role of product design toward a CE in the research literature for the product categories. This result corroborated the knowledge gap and guided our focus in searching for further research and industry clues. We structured the clues of interest that were specific to or common across product categories and industries, using the integrated framework to visualize our Design for X conclusion. The merged framework visualizes how paths toward CE by design and logic of value creation, delivery, and capturing may differ. To conclude, the authors’ own experience and literature examples from relevant industry-leading and start-up companies are used to apply the framework and reveal strengths, weaknesses, opportunities, and threats. Future research and industry experiments focused on the circular business models based on product service systems and design for CE strategies identified, will be needed to test and extend the framework to other product categories and industry sectors.

Additive manufacturing in community pharmacies: a framework for business model innovation

BackgroundAdditive manufacturing offers new opportunities in that it brings the preindustrial production back into community pharmacies.MethodsThis study was based on the qualitative research methodology of action research. The 55 domains...

Managing business model innovation: an innovative approach towards designing a digital ecosystem and multi-sided platform

PurposeThis study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within business models has increased dramatically in recent years. Because of this, new knowledge on how to transform traditional business models into digital business models in a systematic way is needed. Digital technologies, embedded in previously non-digital goods, force companies to rethink their business models.Design/methodology/approachA design science research methodology was chosen for this study. A literature review and semi-structured interviews served as the theoretical foundation to integrate behavioural science into the design science process. From the design science perspective, an artefact is introduced to provide an architectural framework to manage business model innovation in a systematic way. The artefact's application is demonstrated through a case study conducted at a real company and evaluated afterwards by means of structured interviews with experts.FindingsThe authors propose a highly useable and valuable conceptual framework for systematic business model innovation. However, one limitation of the research is that it was conducted among construction professionals in Germany, and so the result might not hold true for other firms or industry branches.Research limitations/implicationsThe research was conducted among construction professionals in Germany, and this acts as a limitation, as the result might not hold true for other firms or industry branches.Originality/valueThe purpose of this study is to provide managers with a framework for business model innovation, helping them systematically integrate digital technologies to create customer-added value. The proposed framework presents an innovative conceptual analysis of systematic business model innovation, which has not been addressed in prior studies.

How do Dynamic Capabilities and Market Orientation Drive Ambidextrous Business Models?

Despite both business models and market orientation being relevant to value creation and firm performance, little research has investigated their relationship. Importantly, designing a business model often requires adjustments, which rests on the deployment of dynamic capabilities. Yet, we know little about the role of dynamic capabilities in fostering business model innovation. Thus, in this study we aim to understand the particular processes through which firms in general, and SMEs in particular, produce innovations to their business model in line with their market orientation. We develop process framework of business model innovation of an SME from start-up to scale-up, enabled by dynamic capabilities. More specifically, the paper clarifies the kind of dynamic capability deployment that is necessary for transforming a business model from market-driving to market-driven, and ultimately to one that reflects an ambidextrous market-orientation. Drawing on an in-depth longitudinal case study, this paper outlines that SMEs deploy dynamic capabilities that align with the SME’s type of market orientation to innovate the design and architecture of their business models.

Education for flourishing: an illustration of boundary object use, peer feedback and distance learning

PurposeTeaching sustainable development at the higher education level requires that existing curricula are supplemented with multi-disciplinary (and sometimes multi-national) collaboration and integrated thinking. The purpose of this paper is to increase the understanding of a particular framework for business model innovation for sustainability-as-flourishing that is used as a boundary object in the context of interdisciplinary, peer-assessed distance learning. This study is positioned in the broader picture of enlarging curricular content so as to reflect the systemic and interconnected nature of socio-technical and economic developments. The motivation behind this study is the authors’ wish to achieve a deeper understanding of how students engage with the complex concept of sustainable business modelling, while using the flourishing business canvas (FBC).Design/methodology/approachAn experiment was conducted on the use of the FBC as a boundary object among 52 engineering students at two universities. Data were provided by the following: iterations of the FBC; oral and written peer feedback; and an online survey.FindingsBased on an evaluation of the experiment, this study shows that the FBC supports the use of multi-disciplinary, multi-national peer and distance learning in sustainability education.Research limitations/implicationsThis study used one test condition of multi-disciplinary, multi-national collaboration for peer and distance learning at one point in time. Additional tests, using the tools and approaches of this study, are needed.Originality/valueVarious tools and methods for use in education have been developed that support a new view of sustainability –sustainability-as-flourishing. Extant research focusses primarily on the development of tools and methods in this area. Not enough attention has been paid to the analysis of their implementation and use in higher education. This paper seeks to fill that research gap.

Logistics and the networked society: A conceptual framework for smart network business models using electric autonomous vehicles (EAVs)

The full adoption of electric autonomous vehicles (EAVs) will revolutionise the global transport system in general and road freight transport in particular. Traditional business models based on manufacturers selling trucks to operators could conceivably disappear. As with passenger transport, the rapid obsolescence of the technology and the cost will drive a non-ownership model and an evolution from products to services. Therefore it is expected that a new network operator will emerge to run this service, which in the future will likely develop into a fully smart network. As the value of the truck technology is reduced and the software component becomes the core source of value creation, it opens up the possibility of new entrants to the market who do not need to purchase physical assets at all and may instead rent them from a competitive pool of asset providers.Despite the recent growth in research on Mobility as a Service (MaaS) in passenger transport, these issues have been neglected in freight transport. The goal of this paper is to establish the features of this new smart network and derive a range of potential business models incorporating the changing roles of each actor, which are then evaluated against an analytical framework of business model innovation. The research concludes by proposing an update to the well-known OECD transportation model to include the network operator concept.

Business model innovation: a review and research agenda

Purpose The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their existing business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, the review synthesises these approaches and provides a clear guidance as to the ways through which business model innovation can be undertaken.

Customer experience driven business model innovation

Business model innovation (BMI) is critical to a firm's ability to achieve growth and long-term viability. It helps improve the value of products or services and/or delivery of these offerings to customers. Much of the academic literature to date however lacks customer-driven business model innovation frameworks. As such, the aim of this investigation is to propose a customer experience driven (CX) business model innovation framework that aligns customer values and the firm's strategic needs. This paper contributes to the literature by (a) conceptualizing the way in which business model innovation and customer experience are related (b) providing managers with a concrete framework to guide business model innovation that supports customer experience-driven new services and (c) highlighting opportunities for future research to advance business model innovation research and practice.

Educating engineers to develop new business models: Exploiting entrepreneurial opportunities in technology-based firms

This study examines educational frameworks and practices useful in teaching engineers to develop new business models (BM) that exploit entrepreneurial opportunities in technology-based firms. We compare three existing frameworks (Blue Ocean, the Business Model Canvas, and the Business Model Innovation Framework) used to teach how to develop new business models. We then report findings from two studies: (1) five years of teaching engineers at a business school; and (2) a two-year intervention carried out at an aerospace engineering firm engaged in new business model development. In both studies, the challenges of business-model-related education involve the limits to creativity imposed by existing frameworks and the difficulty in prototyping new business models. The opportunities of business-model-related education include the transformation of the educator into a coach by effectively combining explanation- and experience-based learning approaches into a virtuous learning cycle. Systematic thinking about business model design, enabled by the business model frameworks, is of crucial importance to generate viable business models for new technologies.

Business model innovation: a review and research agenda

Purpose This paper aims to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model, or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously, and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, this review synthesises these approaches and provide a clear guidance as to the ways through which business model innovation can be undertaken.

L’innovazione dei modelli di business nella sharing economy: il caso italiano del car sharing

Purpose of the paper: This paper investigates the phenomenon of the sharing economy, exploring how business model innovation can be used in the car sharing industry. Methodology: The research was conducted as a multiple case study, with semistructured interviews. Results: The research contributes to management studies by introducing a theoretical framework for business model innovation in the sharing economy industry. Research limitations: being an explorative research, the limitations relate to the lack of generalizability of the cases. Practical implications: The authors propose a framework that can be adopted by sharing economy startups and companies that want to operate in this industry. Originality of the study: This paper contributes to the debate on the sharing economy and business model innovation by providing a model for companies operating in the sharing economy and specifically in the car sharing industry.

An Empirical Study on the Factors Influencing the Innovation of Internet Business Model

On the mode of integration of the relevant literature and interviews in the enterprise, Internet background from the practice of value creation from the perspective of the construction of driving factors identification framework of business model innovation, using exploratory factor analysis to extract the common factor of Internet business model innovation factors. After factor analysis, the common factor is named. Conclusion: from the practice of value creation of 4 common factors were extracted from the perspective of industry chain integration driven subject, degree, Value flow degree and outside the enterprise resource integration mode and profit mode. Enterprises should strengthen the complementarity and stability of cooperative networks and expand the channel resources of partners from the angle of industry chain and driving agent. Strengthen the knowledge absorption ability of the staff and the innovation ability of the product orientation of the enterprise, and control the replicability of the enterprise value-added service on the basis of ensuring the data security of the enterprise. Enterprises should pay attention to marginal users, strengthen the win-win of enterprise cooperation network and innovation of revenue channels. From the perspective of internal resource integration and external resource integration, enterprises should strengthen communication with users and suppliers, improve customer satisfaction, and explore the depth of value.

Business model configurations: a five-V framework to map out potential innovation routes

Purpose Despite the common understanding that business model (BM) innovation is of vital importance for securing competitive positioning in the market place, managers still seem to lack appropriate frameworks and tools which can support them in renewing and rejuvenating their company’s existing BM. The purpose of this paper is to develop a structural and comprehensive toolbox of available BM configurations, from which companies can choose, to innovate their BM upon, and to design an appropriate BM innovation framework which can facilitate them in re-designing, selecting, and implementing new BM configuration possibilities. Design/methodology/approach A structured literature review is conducted to identify all the relevant BM configurations. Then, a value driver analysis is performed to group these BM configurations into appropriate categories. Finally, an ontological classification scheme and a structural and workable process, i.e. a BM innovation framework, are inductively developed. Findings The paper systematically develops a list of 71 BM configurations and groups them into an ontological classification scheme according to five groups: Value Proposition, Value Segment, Value Configuration, Value Network, and Value Capture. The paper illustrates how the BM innovation framework, enabled by this ontological classification scheme, provides a platform for identifying BM innovation routes for companies, allowing managers to envisage radical, disruptive, and new-to-the-world BM configuration ideas, or apply existing configurations from other industrial settings in what may be deemed new-to-the-industry innovation. Originality/value The paper enriches the amount of potential BM configurations available for managers to choose from when innovating their BMs, and extends the analysis to five core BM configuration categories. Moreover, the BM innovation framework suggested highlights the strong relationships among the value drivers, thus presenting the opportunity for managers to assess potential conflicts or synergies between various value drivers, and to align the BM management process as a whole.