Business Model Innovation Research Articles

Implementation of Digital Transformation and Government Enterprise Architecture in Improving the Performance of Integrated Social Services

This study addresses the subject matter of declining public confidence in local governments in Indonesia, primarily due to issues in public service delivery, highlighting the urgent need for improved integrated social services. The objective is to analyze the mediating effect of enterprise architecture orientation on the influence of environmental turbulence, flexibility strategy, business model innovation, and digital transformation on social service performance in West Java. Methods involved a survey explanatory approach with all 27 social service providers in West Java Province, employing whole population sampling. Data were analyzed using descriptive statistical analysis and hypothesis testing using Partial Least Square Structural Equation Modeling (PLS-SEM). Results indicate that environmental turbulence, flexibility strategy, business model innovation, and digital transformation significantly impact social service performance when mediated by enterprise architecture orientation. The conclusions suggest that a robust model emphasizing strategic architectural orientation and effective implementation of flexibility, innovation, and digital transformation can enhance social service performance amidst environmental challenges. This study contributes to understanding the complex dynamics of social service provision in local governments, advocating for strategic investments in enterprise architecture and adaptive strategies to improve public service delivery and restore public trust.

DIGITALIZATION, SERVITIZATION STRATEGY AND BUSINESS MODEL INNOVATION OF SMALL AND MEDIUM ENTERPRISES

DIGITALIZATION, SERVITIZATION STRATEGY AND BUSINESS MODEL INNOVATION OF SMALL AND MEDIUM ENTERPRISES

The evolution of Internet of Things (IoT) research in business management: a systematic review of the literature

PurposeThis paper systematically reviews the evolution of Internet of Things (IoT) research in business and management over the past decade and a half. It synthesizes current knowledge, identifies major themes, gaps, and future opportunities to guide scholars on potential research directions within this exponentially growing domain.Design/methodology/approachA structured systematic literature review methodology filtered IoT publications across business/management journals using Scopus database. Detailed thematic and bibliometric analyses chronologically mapped the progress of peer-reviewed articles from 2005–2023. Both quantitative metrics and qualitative coding inductively revealed historical trends, topics, applications and research implications.FindingsAnalysis uncovered six primary IoT research themes - business models, technology, data, customers, organizations, and sustainability. Dominant focuses were found on technological enablers, business model innovation and customer experience transformations. While technical aspects are well-documented, strategic technology integrations and organizational change management require greater emphasis.Research limitations/implicationsFocus restricted to academic articles published in management journals risks missing relevant papers published in other fields. Screening process involved some subjectivity. Lacks geographic analysis of research contexts. The rapidly evolving nature of technology domain risks findings’ generalizability.Practical implicationsKey enablers and success factors that we identified may support managerial decision making when it comes to IoT adoption.Social implicationsWe discuss advancing IoT innovation through ethics and sustainability lenses and these may help ensure responsible adoption.Originality/valueThis analysis weaves together the extant literature and offers an evidence-based research agenda for management scholars by chronicling the state, evolution, influential factors, and future opportunities within IoT literature. It highlights major thematic shifts and priority gaps to address.

Redefining General Public Segment In Kustomfest: A Research On Visitor Motives In Attending A Kustom Kulture Festival

The Indonesian creative economy has experienced significant growth, with creative tourism emerging as a prominent driver. This study centers on Kustomfest, the Indonesian Kustom Kulture Festival, recognized as one of the largest Kustom Kulture hubs in the country. Between 2019 and 2023, there was a notable shift in the festival's audience composition, with the general public now constituting the majority segment. The research aims to identify and analyze the key motives driving the general public to attend Kustomfest, segment the market based on these motives, and examine each segment's sociodemographic profiles and behavioral characteristics. Three distinct market segments were identified, each motivated by different factors. Insights from this study can assist organizers of similar Kustom Kulture-related events in expanding creative tourism in Indonesia. By understanding visitor motivations and behaviors, event organizers can tailor marketing strategies, enhance visitor experiences, and capitalize on revenue opportunities from the general public segment. Recommendations are provided to attract, retain, and expand each segment through business model innovation, thus contributing to the sustained growth of Indonesia's creative economy. The findings highlight the importance of understanding visitor motivations and behaviors to maximize the impact of cultural events on the broader creative economy. These insights enable event organizers to foster growth in Indonesia's creative sector, ensuring that cultural festivals like Kustomfest continue to evolve and appeal to a diverse audience.

Embracing the metaverse: cultivating sustainable tourism growth on a global scale

ABSTRACT The tourism sector must integrate sustainability to mitigate environmental impacts, ensure destination profitability, and promote responsible travel. Emerging technologies, particularly the metaverse, have the potential to revolutionise environmental, economic, and social sustainability. Although recent research on metaverse-based sustainable development has expanded, studies on its application within tourism remain limited. This paper addresses this gap by exploring the metaverse’s potential to advance sustainable practices in tourism, aligning with sustainable development goals (SDGs).By integrating three behavioural theories – the Theory of Planned Behavior, Technology Acceptance Model, and Self-Determination Theory – this research provides a comprehensive framework to assess the impact of metaverse tourism on sustainability and identify the most relevant SDGs. Through a systematic meta-analysis, the study presents four key propositions: foundational technologies will redefine travel experiences through immersive engagements; metaverse tourists may develop more realistic expectations, altering travel dynamics; understanding the diverse identities of metaverse tourists is crucial; and metaverse tourism introduces an innovative business model aligned with the creative economy. This interdisciplinary approach offers insights into the transformative potential of metaverse tourism, bridging technology, tourism, and behavioural psychology. The research underscores the importance of exploring these intersections, contributing valuable insights to the evolving tourism landscape amidst changing consumer expectations and sustainability imperatives.

AdaptUI: A Framework for the development of Adaptive User Interfaces in Smart Product-Service Systems

AbstractSmart Product–Service Systems (S-PSS) represent an innovative business model that integrates intelligent products with advanced digital capabilities and corresponding e-services. The user experience (UX) within an S-PSS is heavily influenced by the customization of services and customer empowerment. However, conventional UX analysis primarily focuses on the design stage and may not adequately respond to the evolving user needs during the usage stage and how to exploit the data surrounding the use of S-PSS. To overcome these limitations, this article introduces a practical framework for developing Adaptive User Interfaces within S-PSS. This framework integrates ontologies and Context-aware recommendation systems, with user interactions serving as the primary data source, facilitating the development of adaptive user interfaces. One of the main contributions of this work lies on the integration of various components to achieve the creation of Adaptive User Interfaces for digital services. A case study of a smart device app is presented, to demonstrate the practical implementation of the framework, with a hands-on development approach, considering technological aspects and utilizing appropriate tools. The results of the evaluation of the recommendation engine show that using a context-aware approach improves the precision of recommendations. Furthermore, pragmatic aspects of UX, such as usefulness and system efficiency, are evaluated with participants with an overall positive impact on the use of the smart device.

Consumer data protection laws and their impact on business models in the tech industry

This study investigates the impact of consumer data protection laws on the business models of technology companies through a mixed methods research (MMR) approach. In an era where data privacy concerns are paramount and regulatory landscapes are rapidly evolving, understanding how businesses adapt their models for compliance while fostering innovation is crucial. This paper offers a detailed examination of the legislative requirements imposed by prominent global data protection laws, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), as well as frameworks from Asia and Africa, such as Singapore's Personal Data Protection Act (PDPA) and South Africa's Protection of Personal Information Act (POPIA). This inclusive perspective enhances our understanding of how technology businesses strategically adapt across various regulatory environments and explores the operational, financial, and strategic impacts of these laws on tech companies. Utilizing a dual-phase mixed methods research (MMR) design, the study initially analyzes quantitative data from surveys conducted with a wide range of technology firms, assessing the direct effects of data protection legislation on business operations and financial performance. This is complemented by qualitative insights drawn from in-depth interviews with business leaders and legal experts, shedding light on the strategic adaptations, challenges, and opportunities these laws present. The findings reveal a multifaceted impact, highlighting not only the compliance challenges but also the strategic opportunities for innovation and competitive differentiation that data protection laws offer. Integrated analysis of the quantitative and qualitative data provides a nuanced understanding of how tech companies navigate the complex interplay between legal compliance and business model innovation. This study contributes to the existing literature by offering empirical evidence and practical insights into the adaptation processes of tech companies in response to consumer data protection laws. It also provides valuable recommendations for both policymakers and business leaders, aiming to foster an environment where legal compliance coexists with technological innovation and business growth.

Innovative Business Models for Design Service Providers: Enhancing MSME Digital Transformation

Micro, Small, and Medium Enterprises (MSMEs) are supported by the Indonesian government to grow through digital transformation as one of the biggest players in the Indonesian economy. Unfortunately, many MSMEs struggle to grow optimally due to the uneven distribution of information and education on business and digital transformation. Design service providers aim to help MSMEs maximize their potential through effective branding and digital marketing. However, even a design service provider encounters challenges, including inefficiencies in the business model and a lack of customer acquisition and retention. This research aims to provide insights and recommendations for business model innovation by evaluating the current business model of a design service provider and developing strategies aligned with current industry conditions. Using the Business Model Framework by Chu and Ten Types of Innovation by Doblin, the study identifies areas that should be evaluated, improved, and innovated. The methodology includes (1) a focus group discussion with the internal team of a design service provider to uncover issues from an internal perspective and (2) interviews with the customer persona of the design service provider, which includes ten potential and past customers, to understand external perspectives. The data is analyzed using thematic analysis, open coding, and pattern coding, followed by triangulation to ensure validity. The findings suggest that existing business models may not meet customer needs and desires. Additionally, MSMEs' varying levels of technology understanding influence their purchasing decisions for design services. Therefore, continuous evaluation and improvement of business models are essential to meet the target market's needs. Design service providers will also need to understand the diverse types of MSMEs to tailor their offerings effectively.

Strategic Evolution and Competitive Analysis of Apple Inc.: Embracing Business Model Innovation and Technological Advancements in the AI and VR Era

Strategic Evolution and Competitive Analysis of Apple Inc.: Embracing Business Model Innovation and Technological Advancements in the AI and VR Era

Digital Transformation and Business Model Innovation: Moderating Role of Digital Leadership

Purpose: The manufacturing sector in Ghana has become increasingly important to the country's economic growth, driven by digital transformation and innovation. This research aims to explore the complexities of digital transformation within Ghanaian manufacturing companies, with a specific focus on the moderating role of digital leadership. Design/Methodology/Approach: This conceptual paper presents a framework that integrates socio-technical systems theory and the upper echelon theory. This framework offers a detailed understanding of how digital transformation, digital leadership, organizational adaptation, and business model innovation interact within the Ghanaian manufacturing sector. Findings: The Ghanaian manufacturing sector, a significant contributor to the country's GDP, has seen substantial growth, largely due to small and medium-sized enterprises (SMEs). However, many industries within the sector face challenges in embracing the digital age, including inadequate technological infrastructure and limited access to funding. The Ghanaian government has responded with policies to enhance digital capabilities and innovation, positioning the country for digital readiness. Originality: This paper contributes to the field by providing practical strategies for leadership development and decision-making within manufacturing organizations. It also advances theoretical perspectives and offers empirical insights specific to the Ghanaian context. Overall, this paper serves as a valuable resource for manufacturing leaders, policymakers, and researchers navigating digital transformation, innovation, and leadership in Ghana's manufacturing sector, with broader implications for emerging economies globally.

The Impact of Big Data Capability on Business Model Transformation：Mediated by Knowledge Renewal and moderated by Resource Slack

The traditional enterprises have been significantly impacted by the digital economy and the COVID-19 pandemic, leading to a more dynamic and complex business environment. Business model innovation has become essential for enterprises to adapt effectively to this complexity. This study aims to examine the impact of big data capabilities on business model transformation. Enterprises from four regions in Jiangxi Province—Shangrao, Pingxiang, Nanchang, and Ganzhou—were selected as the research subjects, covering various industries such as technology and information technology, financial services, healthcare, manufacturing, retail, and energy. Data from 800 enterprises were collected using stratified random sampling and questionnaires, and analyzed empirically using structural equation modeling. The results demonstrate that big data capabilities significantly positively influence business model transformation, with knowledge renewal acting as a mediator between big data capabilities and business model transformation. These findings integrate the utilization of big data capabilities, knowledge renewal, and resource slack, facilitating business model transformation and enabling enterprises to achieve value growth through efficient resource sharing and management.

Assessing the need for the adoption of digitalization in Indian small and medium enterprises

Abstract Manufacturing has experienced an immense transformation since the emergence of Industry 4.0. Digitalization has substantially improved production efficiency and product quality, and innovative business models have emerged. The backbone of emerging countries like India comprises small and medium enterprises (SMEs) that provide jobs for millions of families. Small and medium-sized businesses (SMBs) account for around 31% of the nation’s GDP and 43% of 2021–2022 exports, both significant contributors to economic growth when there is a substantial labour pool. Therefore, they are often known as India’s growth engine. Unfortunately, in today’s highly competitive digital market, they fail to keep pace with technological innovations and keep their employees up to date. This article discusses the significance of digitalization for India’s SMEs, addressing the hurdles and the methods to remove them. New consumer markets have been established due to government programs like Make in India, Digital India, and E-Government.

Business model innovations in high-velocity environments

High-velocity environments trigger Schumpeterian changes in industry structure, consumer preferences, and technological paths. The ensuing uncertainties lower entry barriers and diminish the efficacy of technological innovations in sustaining the competitive advantage. Further, lower entry barriers encourage forays by new entrants that may use existing technologies with business model innovations (BMI), posing a significant challenge for incumbents. Against this backdrop, our paper investigates the relatively unexplored role of BMI in high-velocity environments by studying three innovating firms from the global consumer devices industry. We propose that high-velocity environments not only necessitate but also facilitate BMI by enabling new and unexplored possibilities for value creation and appropriation. Our results underscore the role of BMI as a critical response strategy, particularly in high-velocity environments.

Digital Transformation Driving SME Business Model Innovation

The purpose of this paper is to propose a research model to investigate the relationships between dynamic capabilities, business model innovation, and business performance. The moderating role of digital transformation in the research model is also examined. A total of 262 managers in Chinese small and medium-sized enterprises (SMEs) were enrolled via an online questionnaire. Data is scrutinized by partial least square structural equation modeling (PLS-SEM) using SmartPLS 3.0. The findings of this study reveal that dynamic capabilities can positively affect business model innovation and business performance. Furthermore, business model innovation partially mediates the relationship between dynamic capabilities and business performance. Meanwhile, digital transformation has a positive moderating role in the aforementioned relationships. These findings bridge the research gaps in extant literature and contribute to theoretical and practical implications for SMEs.

Destination resilience and transformations in the tourism sector: new tendencies in destination development and management

The world is increasingly changing, with climate change, pandemics, and wars becoming key factors. The recent pandemic devastated the tourism industry, leading to a sudden collapse of the global tourism economy. Historically disastrous situations are well known for their impact on innovations and technological advances. Therefore, in light of the idea that disasters can act as catalyst for innovation and transformation, the researchers attempted to conceptualise new strategies in destination development and management from a perspective of tourism destination resilience. The findings contribute to research and policy-making and culminate in identifying six dimensions, namely technology and digitalisation, business model innovation, partnerships and coordination, tourist behaviour, domestic tourism, and sustainability, that illuminate innovative and transformative tendencies in tourism resilience. The study's outcomes offer comprehensive knowledge for policymakers, business planners, and students describing the use of innovative ideas and resilience strategies to adapt to and counter sudden disasters and adopt transformational shifts in business.

Analysis of Millennial Entrepreneur Business Strategy Based on Digital Technology in Sidenreng Rappang Regency

This study examines the business strategies applied by millennial entrepreneurial students in Sidenreng Rappang Regency, South Sulawesi. These students are engaged in various business sectors such as food and beverages, fashion, cosmetics, services, art and design, and digital business. The primary purpose of the study is to analyze the strategies used in responding to business opportunities, competitive advantages, contributions to entrepreneurship learning in higher education, and obstacles and solutions faced by students. With a qualitative phenomenological approach, this study explores the experiences of young entrepreneurs in taking advantage of market opportunities that other entrepreneurs often ignore. Students utilize business model innovation theory by considering factors such as understanding consumer behavior, product differentiation, service quality, and location and network. Entrepreneurship learning in higher education makes an essential contribution to equipping students with an understanding of business strategies and their application in actual practice. Of the ten respondents, five have participated in entrepreneurship seminars and training, while the other five are self-taught and through campus activities. These two methods are considered influential in shaping entrepreneurial skills and mindsets. The challenges faced by millennial entrepreneurs, as well as the solutions they implement, show relevance to modern management theory. This research provides insight into how entrepreneurship education and training can support student business development.

Business model redesign through effectual action in times of crisis

ABSTRACT This paper explores why and how some small firms rapidly redesign their business models, while others wait for environmental turbulence to subside. Using multiple case studies, we analyzed changes made to 28 business models by 26 Australian firms, two months after the first COVID lockdown. We discover effectual action patterns utilized as firms redesigned their business models. Three key findings shed light on how effectuation drive entrepreneurial action, first we uncover how framing and entrepreneurial reframing plays a critical role in the contingency effectuation principle. Second our findings show that resources at hand is a necessary, but not sufficient condition for business model redesign. Third partnering, experimentation and affordable loss in combination is most strongly related to small firm business model innovation. Our proposed effectual action framework contributes to the effectuation literature, addressing calls to examine the underlying mechanisms and dynamics that explain effectual action and business model redesign.

The role of dynamic capabilities for business model innovation in organizations from relatively stable markets

The present paper aims to explain how dynamic capabilities contribute to business model innovation in established organizations. It draws on a qualitative research design based on a single case study of an established multinational company operating in the construction materials industry (production and sale), which developed a service solution in lightweight façades. In addition to explaining how the sub-dimensions of dynamic capabilities contributed to the success/failure of the new business model, from its idealization and structuring to its execution, the paper shows which dynamic capabilities were present at the beginning and which ones were developed during the innovation. The study uncovers four important findings: 1) dynamic capabilities should be present in top leadership for the development of business model innovation; 2) the occurrence of dynamic capabilities takes place in a non-sequential and non-linear fashion; 3) dynamic capabilities contribute to the creation of competitive advantages in relatively stable environments; and 4) existing resources are important catalysts of results for business model innovation in established organization. The paper hence highlights the role of top leadership in business model innovation, as well as identifies the contribution of dynamic capabilities in relatively stable markets, alongside the catalyzing role of available resources in established organizations.

Integrating Sustainability and Digitalization in Business Model Innovation. A Bibliometric Study

Abstract The aim of the study is to get a comprehensive understanding of the research landscape at the nexus between business model innovation, sustainability and/or digitalization, in order to determine key research patterns and trends. Accordingly, the following objectives have guided the development of the paper: (a) to examine the dynamics and structure of the research output (articles and citations) on the topic; (b) to explore the network of the most impactful articles; (c) to trace the origins of the research on the topic; (d) to decipher current developments in the research on the topic; and (e) to search for emerging trends in the research on the topic. An advanced search of the SCOPUS database was conducted to identify the relevant literature available; 1195 articles (published between 2014 and 2023) were selected and exported in VOSviewer for bibliometric analysis. The results suggest the emergence of a niche research area in the broad strategic management field, bringing together four related (sub)topics: (1) circular economy and sustainable business models; (2) tools, frameworks and processes for sustainable business model innovation; (3) digitalization and business model transformation; (4) business models for societal and sustainability transitions. For this research area to crystallize, the identified emerging research trends – on digital innovation and technology; strategic management and analytical methods; supply chain and manufacturing; policy, governance and sustainability – need to be further explored, both individually (in search of refinement and clarity) and collectively (in search of consistency and synergy).

A Dynamic Model of Digital Industrial Innovation – Process, Product and Business Model Innovation

A Dynamic Model of Digital Industrial Innovation – Process, Product and Business Model Innovation