Business Model Innovation Research Articles

Utjecaj korporativnog poduzetništva na inovacije poslovnog modela poduzeća u Bosni i Hercegovini nakon pandemije COVIDA-19

The study presented in this paper explored the relationship between corporate entrepreneurship and business model innovation of companies in Bosnia and Herzegovina (B&H) after the COVID-19 pandemic. In particular, the authors aimed to analyze how the individual dimensions of corporate entrepreneurship influence business model innovation by using the dynamic capabilities view. The study empirically analysed a sample of 100 companies using regression analysis. The findings revealed that each dimension of corporate entrepreneurship positively and significantly impacts business model innovation. Innovativeness, proactiveness, risk-taking, autonomy, and competitive aggressiveness positively affected the innovation of the business model. The results of this study confirm that entrepreneurial initiative is a good predictor of a company’s ability to innovate business models. The implication for management is to deepen the understanding of how corporate entrepreneurship promotes and shapes an innovative business model. This increases companies’ success and overall well-being in B&H after the COVID-19 pandemic.

The role of circular economy in EU entrepreneurship: A deep learning experiment

Fostering innovation is one of the key roles of the Circular Economy (CE) that applies also to European Union (EU) firms, because entrepreneurs are persistently seeking new ways and means to create values, contributing with significant market opportunities, and depicting large potential for EU sustainable growth. This study explores the effects of firms’ investments in using highly disruptive technologies in the energy sector on the Eurozone (EU-27) in the last two decades (1990–2019). An Artificial Neural Networks (ANNs) experiment through a Deep Learning (DL) approach is implemented to test this hypothesis. The empirical findings show that investments in highly disruptive technologies, especially by large digitally qualified companies, boost economic growth. They are also a crucial driver of digitalization not only because they enhance a wide strategic change implying a radical innovation in business models, but they completely transform markets, from energy to food production, water resources, pollution, connectivity, and plastic waste. These expected benefits represent a possible policy measure to offset the decline in global activity due to the impact of the Russia-Ukraine war on global energy markets. In addition, a positive association between trade and output is confirmed. Finally, promising policy actions are discussed.

Assessing the Role of HRM and HRD in Enhancing Sustainable Job Performance and Innovative Work Behaviors through Digital Transformation in ICT Companies

In the era of Industry 4.0, digital transformation has become a cornerstone for modern organizations, fundamentally altering how businesses operate and compete. This study delves into the impact of digital transformation on human resource management (HRM), human resource development (HRD), and employees’ innovative work behaviors and job performance in a rapidly evolving business environment. In conducting a survey among 391 employees from information and communication technology (ICT) companies in China, structural equation modeling was employed to analyze the data. The findings reveal a correlation between digital transformation and innovative work behaviors and job performance, with HRM and HRD playing partial mediating roles. Digital transformation not only optimizes work processes and enhances productivity but also fosters the innovation of business models and processes. Moreover, the research indicates the critical importance of implementing efficient digital systems and processes in promoting an organizational culture of innovation and enhancing employees’ innovative capabilities. Thus, digital transformation is seen as a pivotal strategic tool, altering not just the modus operandi of organizations but also influencing employee behavior and performance.

Integration of Smart City Technology and Business Model Innovation

At present, the progress of business model stages supported by a variety of technology categories may unclear, and the integration of technology application and business model innovation (BMI) is hard due to operational practices in various industries and research areas, which block the view of the integration of smart city technology (SCT) and BMI for further development. Thus, this paper aims to explore the current research on the integration of SCT and BMI and identify the current research status and hotspots, assisting in indicating the status of these technologies in the business model stages in order to determine future trends, and adopts a mixed research methodology including a macro-quantitative method based on bibliometrics and a micro-qualitative method using content analysis. The results reveal a 17-year (2007 to 2023) integration of SCT and BMI enhanced by cloud computing, big data, Internet of Things, and artificial intelligence in recent years, with the most current studies focusing on the ideation and design stages of the business model stages with an emphasis on using digital capabilities to refine, formulate, and design the corresponding business model while defining the strategy through internal and external factors. Interestingly, Industry 4.0 and digital servitization are currently the key trends.

AI-driven business model innovation: A systematic review and research agenda

Recent years have seen a surge in research on artificial intelligence (AI)-driven business model innovation (BMI), reflecting its profound impact across industries. However, the field’s current state remains fragmented due to varied conceptual lenses and units of analysis. Existing literature predominantly emphasizes the technological aspects of AI implementation in business models (BMs), treating BMI as a byproduct. Additionally, there is a lack of coherent understanding regarding the scope of BMI propelled by AI. To address these gaps, our study systematically reviews 180 articles, offering two key contributions: (1) a structured analysis of evolving research dimensions in AI-driven BMI, differentiating between static and dynamic views of BMI, and (2) a framework presenting distinct research perspectives on AI-driven BMI, each addressing specific managerial focuses. This synthesis facilitates a comprehensive understanding of the field, enabling the identification of research gaps and proposing future avenues for advancing knowledge on the management of AI-driven BMI.

How does green entrepreneurial orientation improve enterprises' sustainable performance? Evidence from agricultural sector in China

AbstractSustainable development of enterprises has attracted the attention of scholars and practitioners. Green entrepreneurship, as an important way to provide eco‐friendly products and solve environmental problems, is a key way for the sustainable development of enterprises. However, due to the disadvantage faced by enterprises in pursuing costly sustainable actions, existing research on whether green entrepreneurial orientation (GEO) can bring about sustainable performance improvement has not yet reached a consensus, and the path and mechanism of transforming GEO into sustainable performance also need further exploration. Based on the Natural‐Resource‐Based View (NRBV), Entrepreneurial Orientation Theory and Dynamic Capability View (DCV), this study examines the impact of GEO on sustainable performance, the mediating role and chain mediating role of entrepreneurial opportunity recognition (EOR), and business model innovation (BMI). The results based on 207 agricultural enterprises reveal that: (a) GEO positively influences economic performance, environmental performance, and social performance; (b) EOR and BMI play mediating roles in the above relationships; (c) GEO can also indirectly affects sustainable performance through the chain mediating effect of EOR and BMI. The research results provide a new theoretical perspective for understanding the key antecedents of sustainable performance of enterprises, further open the “black box” of the mechanism between GEO and sustainable performance, expand the NRBV, Entrepreneurial Orientation Theory and DCV, and provide practical implications for green transformation in the agricultural sector and promoting its sustainable development.

Growth and Performance: Business Model Innovation in Family Firms

A business model, defined as the underlying logic of a company, is not permanent over time. Instead, companies need to introduce innovations in the business model to be competitive in the market. This is even more critical for family firms which are continuously looking for a way to obtain sustainable growth, together with satisfactory performance. The objective of this research is to analyze the impact that business model innovation activities have in the short/long-term growth and performance of family firms. This study was obtained from panel data made up of 112 valid responses from family firms involved in business model innovation. A composite model approach has been used for data analysis. The significant components of BMI that lead to greater growth and performance are identified, the distinction between long-term and short-term effects of BMI on those outcomes is made, and BMI is proven as an authoritative source of competitive advantage and growth in family firms. Those aspects are valuable insights for researchers and managers with regards to which innovation propositions help sustain growth and performance over time.

Tools and Frameworks for Sustainable Business Model Innovation for German Steel, Cement, and Chemical Industries

In the decarbonization of the steel, cement, and chemical industries in Germany, green hydrogen is expected to play a crucial role. The utilization of green hydrogen in the production processes of said industries requires organizations to modify their business model, requiring sustainable business model innovation (SBMI). Numerous tools and frameworks that support organizations in the process of SBMI have been proposed in the literature in recent years. However, the applicability of these tools and frameworks for steel, cement, and chemical companies that intend to utilize green hydrogen to produce their goods remains unexplored. This paper aims to assess the suitability of SBMI tools and frameworks for steel, cement, and chemical companies planning to use green hydrogen in their production. It conducts a systematic literature review on SBMI tools and frameworks, reviews current green hydrogen projects in these industries, and evaluates the identified tools and frameworks using an evaluation matrix. Based on the evaluation, the Cambridge Business Model Innovation Process (CBMIP) was identified as the most suitable SBMI framework.

Decarbonization Drivers and Their Impact on Business Models in the Energy-Intensive Manufacturing Industry (EIMI)

EIMIs face the challenge of adapting to the Paris Agreement and the European Green Deal to achieve carbon neutrality. Driven by consumer interest in low-carbon products, regulatory requirements, and investor priorities, companies are pressured to integrate sustainability beyond short-term financial gains. The growing awareness of the environmental impact of business models (BM) has fueled the development of Sustainable Business Models (SBMs). Although the importance of decarbonization of EIMIs has increased, there is a lack of industry-specific research examining the combination of decarbonization and business models, as well as their interrelationships and correlations. This study addresses the discussion on the role of SBMs in decarbonization, improving the understanding of how these drivers can be integrated to enable new BMs for EIMIs. Based on a structured literature review and semi-structured interviews within the EIMIs, the study identifies BM components influenced by these drivers requiring sustainable business model innovation (SBMI). Results show that decarbonization drivers significantly impact all BM components. Experts emphasize the importance of collaborative approaches and cooperation throughout the value chain. This research highlights the need for systematic analysis to understand how companies can manage decarbonization drivers effectively and suggests exploring potential SBM design options.

Guest editorial: Boundary pushing innovative business models and entrepreneurial small businesses

Guest editorial: Boundary pushing innovative business models and entrepreneurial small businesses

Design Options for Sustainable and Open Business Models: A Taxonomy-Based Analysis

The imperative for decarbonization forces businesses to transform their business models (BMs) and to adopt Sustainable Business Models which focus on creating value sustainably. In the context of Sustainable Business Model Innovation, maintaining close relationships within ecosystems is crucial to ensure a sustainable transformation while preserving competitiveness. As corporate boundaries become more transparent, the importance of external resources increases, leading to a shift from closed to open business models (OBM). In OBMs, stakeholders, including customers, actively co-create innovation and value creation. Our research investigates how integrating these approaches can shape BMs that effectively address decarbonization drivers and tackle the required business model innovation. We conducted a structured literature review to develop a taxonomy that outlines 64 design options across nine dimensions for sustainable, open BMs. In conclusion, this study provides sustainable and open design options, classified into detailed taxonomies. The practical applicability of this taxonomy was demonstrated through a use case classification, providing a foundation for companies and further research into designing and implementing these BMs in the context of decarbonization.

Business Model Innovation for Sustainable Multifunctional Land Management in Abandoned Rural Areas: A Case Study

The issue of the future of abandoned agricultural land has become a prominent topic of discussion in contemporary scientific research and political discourses, especially considering the unique contribution of new-generation entrepreneurs to innovations in rural areas. The research increasingly provides evidence of how they serve as founders and catalysts of unconventional and often audacious ideas that ultimately transform abandoned areas into successful sustainable innovative business models with restored multifunctional land use. The main aim of this article is to disclose the potential of innovative business models, developed by new-generation entrepreneurs, for sustainable multifunctional land management in abandoned rural places, through the example of the “Sun Circle Camping” initiative in Lithuania. A qualitative research methodology was applied to perform an in-depth case study of a successful business model innovation for sustainable multifunctional land management in an abandoned rural area of Lithuania. The research results demonstrate how the smartly restored multifunctional distribution of abandoned land might generate durable land management practices, fulfilling the environmental, socio-cultural, and economic pillars of sustainability.

From bits to emissions: how FinTech benefits climate resilience?

With financial technology (FinTech) emerging as a pivotal force driving business model innovation and reshaping market competitiveness, its potential contribution to sustainability has garnered widespread attention. Drawing on carbon emissions data at the county level from 2011 to 2017 in China, alongside information on the FinTech companies, this study reveals that FinTech significantly reduces regional carbon emissions intensity. This effect is particularly pronounced in developed regions and metropolitan cities. These findings withstand rigorous scrutiny, including the application of instrumental variable strategies, controlling for financial attributes, and robustness checks altering model specifications. Mechanism analysis indicates that FinTech fosters optimization and upgrading of industrial structure and promotes the development of the ICT industry, while simultaneously driving down the proportion of coal in electricity generation and per unit GDP energy consumption, and increasing the proportion of new energy generation, thereby enhancing overall energy efficiency. The evidence presented herein supports the role of FinTech in enhancing Nationally Determined Contributions and achieving the objectives of the Paris Agreement.

Future Challenges of Implementing Innovative Business Model in the Automotive Industry

Abstract The innovative business model is implemented today in all industries. In the automotive industry, this model appears as a valid source of guidance in smart manufacturing, but also in the sales process, throughout the functional lifetime of a car. Using digital business processes opens new opportunities for innovation, from simple automation implementations to a fully automated assembly of a production line or a digitized sales flow. Specific objectives of this paper are based on the research of specialized literature regarding the implementation of business processes and the preparation of the environment for Industrial Revolution 6.0, by integrating innovations with major implementation challenges in the business model. The purpose of this study is to identify if there is research on innovative business models or innovative processes in specialized literature. Research questions are related to the terms associated with innovation such as an innovative business model, industrial revolutions, digital ecosystems, smart factories, or digital business processes. The research was carried out with the help of bibliometric analysis of scientific articles in Web of Science. Articles were analyzed in the VOSviewer application by identifying several clusters on key concepts. Innovative business studies in the automotive industry is a model that led to the creation of links maps between articles on the same topic, keywords, authors, in the last five years. Connections between the concepts and processes used to implement the innovative business model, in different stages of the industrial revolution development are highlighted in this research.

The Impact of Cloud Systems on Enhancing Organizational Performance through Innovative Business Models in the Digitalization Era

Abstract Information technology has massively transformed the world of business over the past fifty years - first individual functional areas within companies (“first wave”), later increasingly also cross-divisional value-added processes and trade (“second wave”), advent of the internet and the World Wide Web marked a transformative shift in how information is accessed, shared, and distributed (“third wave”), mobile computing and smartphone (“fourth wave”) and cloud computing that has emerged as a paradigm for delivering computing resources and services over the internet on-demand, providing scalability, flexibility, and cost-effectiveness (“fifth wave”). This paper investigates the transformative impact of cloud systems on increasing organizational performance through innovative business models in the age of digitalization. By employing a mixed methods approach, the study integrates qualitative and quantitative techniques to provide a comprehensive understanding of the research phenomenon.

A review of scientific papers on business model innovation, multi-level business model hypothesis

The author presents a detailed analysis of current views on the issue of business model innovation in foreign and Russian scientific sources. The main ideas and theses in this area are reflected, and an attempt is made to find general trends. Current scientific works of authors from different countries have been studied — mainly over the past 10 years. Most of the publications analyzed in the article were made in Scopus, Web Of Science (English-language) and VAK (Russian-language) journals. Both well-known popular sources with a high citation rate, as well as completely new publications, which, however, presented original ideas, were analyzed. An attempt was made not only to reflect the points of view of different authors, but also to show how scientific thought in the field of business model innovation is developing in different regions of the world. Based on the results of the study, the author put forward a hypothesis about the multi-level nature of the business model. It is proposed to consider at least 3 levels of the business model: the holding (parent) company level (level 1), the level of an individual organization/business unit (level 2), and the product-market level (level 3). The directions for future research arising from this hypothesis are outlined: defining the levels in the business model, clarifying the content of this concept at each level, establishing clear boundaries between the business model and the organization's strategy. The study was carried out as part of the work on the development of the Russian scientific school of business modeling and strategic management, which is carried out at the scientific institute «Eurasian Management and Administration School» (EMAS Business School).

Investigating the impact of digital transformation on manufacturers’ Business model: Insights from Swedish industry

Digital transformation (DT) triggers a fundamental technological shift in industry enabling the creation of smart and connected factories. DT is not only a technology-driven innovation approach: it also requires changes of the Business Model (BM). Despite this, there is a lack of comprehensive studies that examine how aspects of manufacturing digitalisation align with the Business Model Innovation (BMI) process. To address this gap, this paper analyses the DT journey of several Swedish medium and large firms through semi-structured interviews with staff involved in such process. The empirical findings reveal that the BM elements addressing value creation and strategy aspects are the most affected by DT. Additionally, this study identifies the links among such elements. The findings are compiled in a holistic framework that can serve as a blueprint for practitioners seeking to adopt digital technologies in their production environments. This holistic approach aims at supporting practitioners to understand the BMI process triggered by DT and consequently aligning their manufacturing strategy with the BM’s components.

Business model innovation in circular start-ups: Overcoming barriers in the circular plastics economy

Circular start-ups (CSUs) are crucial for implementing a circular economy; yet, little research has been undertaken on the specific barriers they face. Through a case study of CSUs in the Dutch plastics industry, we identify several key barriers encompassing technology dependence, poor credibility, constrained resources, collaboration challenges, lack of knowledge and inadequate institutional support. Additionally, we highlight four success factors (SFs) that enable CSUs to compete in circular plastics: circular value proposition design, market sensitivity, networking prowess and circular ambidexterity. Our study shows that CSUs can enact these SFs as strategies-in-use to overcome barriers. Yet still, CSUs in plastics continue focusing on recycling-centric business models, limiting their potential to drive the transition more radically along the waste hierarchy. This calls for support from various entities such as entrepreneurial ecosystems as well as a multi-stakeholder perspective that considers their business models as interdependent with other actors in the plastics value chain.

Impact of Digital Transformation on Business Model Innovation in Manufacturing Companies in Ghana: Mediating Role of Risk Management

Impact of Digital Transformation on Business Model Innovation in Manufacturing Companies in Ghana: Mediating Role of Risk Management

Biofuel supply chain planning and circular business model innovation at wastewater treatment plants: The case of biomethane production

Advanced biofuels, such as biomethane, could contribute to environmental sustainability in increasingly interrelated sectors, such as energy and waste management. Accordingly, innovative biomethane production technologies are argued to be the enablers of circular and waste-to-energy concepts, for example, at wastewater treatment plants (WWTPs). Nevertheless, their integration into biofuel supply chain (BSC) research is overlooked from a circular business model innovation (BMI) perspective. This study aims to address this research gap by focusing on an innovative biomethane production approach (power-to-gas, P2G) and related circular business model innovation opportunities in the context of WWTPs. We carried out lab-scale research and a case study at a mid-sized European WWTP to establish an empirical basis for large-scale techno-economic calculations. Despite the explored technological opportunity to increase advanced biofuel supply and decrease carbon dioxide emissions at WWTPs, current market risk levels challenge the economic prospects of the system concept. These empirical results demonstrate the necessity of policy interventions in different combinations (e.g., investment support, favourable taxation, feed-in tariffs). This study is one of the first to combine technological and business modelling aspects to support BSC planning, and supplement optimization-focused BSC research with explorative techno-economic analyses based on empirical data.