Key Business Model Research Articles

The circular business models of third-party loop operators: An activity-based view on performing activities internally or externally

Third-party loop operators play an important role in the circular economy (CE) by closing the resource loops for other firms. These third-party loop operators face a key business model decision: whether to perform CE activities in-house or externally. We adopt the activity-based view (ABV) as a theoretical lens to divide the CE into five activities: collection, sorting, pre-processing, transformation, and integration. By analysing 79 third-party loop operators using Qualitative Comparative Analysis (QCA), we found that these activities are performed in two bundles. When third-party loop operators perform the collection activity in-house, they are likely to perform the sorting activity in-house as well. The remaining activities (pre-processing, transformation, and integration) are also performed together, either in-house or externally. Furthermore, we identify some boundary conditions that affect why these activity bundles are performed in-house or externally. When supply concentration is high, third-party loop operators tend to perform collection and sorting in-house because access to highly concentrated sources can result in a competitive advantage. When the uncertainty about waste condition is low, third-party loop operators can develop efficient pre-processing, transformation, and integration activities in-house. Activity gaps emerge when no actor in the market can carry out the activity. In this case, third-party loop operators fill the gap by carrying out the activity internally.

Business Models on the Energy Market in the Era of a Low-Emission Economy

In the energy market, we observe a dynamic development of innovative business models that take into account various aspects related to the direction of zero-emission economic growth. Companies are intensifying their efforts in utilizing renewable energy sources, implementing significant photovoltaic projects, and advancing technologies related to wind and hydrodynamic energy. Within this trend, microgrids become a crucial element, enabling efficient management of local energy sources. Contemporary energy companies also focus on innovative digital technologies, harnessing the potential of the Internet of Things (IoT) and artificial intelligence (AI). These tools allow for precise monitoring and optimization of energy consumption, resulting in increased operational efficiency. The expansion of subscription-based energy services encompasses not only traditional energy deliveries but also new aspects, such as intelligent management of home energy installations or the provision of advisory services on energy conservation. This approach emphasizes the customer as a partner in sustainable energy usage. Hybrid energy models, integrating diverse energy sources, constitute a key element in the transformation of the sector. The combination of photovoltaic, wind, and traditional power plants allows for flexible adaptation to changing conditions and maintains stability in the energy supply. In the face of a changing energy landscape, companies consistently strive for sustainable practices, implementing strategies that not only reduce their carbon footprint but also contribute to improving efficiency, ecology, and the decentralization of the energy system. Adapting to these dynamic changes becomes not only a challenge but also an opportunity to create a more sustainable energy future. The objective of this research is to analyze key business models in the energy market and identify their impact on operational efficiency and market competitiveness. The main results indicate significant improvements in energy management and sustainability through the adoption of these models.

Digital marketing business models: Key stages, types and trends of development

The main goal of the article is to formalize the key business models of marketing of modern companies and substantiate the key stages, types and trends of development. The relevance and need to pay significant attention to the marketing digital business model when organizing a business is substantiated. Using structural and logical analysis and criticism of scientific research, the essence, advantages and disadvantages are determined, the main blocks, stages and key elements of the structure of business models of modern companies are argued. It has been proven that marketing digital business models serve as a logical and visual plan for organizing all business processes of companies from production, marketing, sales and logistics to building a hierarchy of profitability. The key development trends are substantiated and the most popular business models of business organization in modern conditions are structured on the basis of scientific generalization, structural and logical analysis and mathematical modeling. Practical significance is characterized by the fact that the marketing business models of world-class companies are generalized and structured, taking into account their specifics and characteristics. Practical recommendations and key stages of building a company’s business model and its implementation into reality have been formed to achieve strategic business goals.

Doing good while making profits: A typology of business models for social ventures

AbstractResearch SummaryBuilding on business model research and the social entrepreneurship literature, we conceptually develop a set of business model choices for social ventures. These choices specify the scope of venture beneficiaries, the extent that customers and beneficiaries overlap, and how social meaning is attached to the venture's value proposition. Concurrent configurations of these choices give rise to four types of social business models: (1) Social Stimulators, (2) Social Providers, (3) Social Producers, and (4) Social Intermediaries. We illustrate this typology using data from seven social ventures and formulate propositions about the implications these business model choices have for a venture's value creation and value capture potential. We then discuss contributions to the literature on social ventures and social entrepreneurship, and the literature on business models.Managerial SummaryIn this article, we propose a framework outlining key business model choices for social ventures. These choices include the scope of target beneficiaries of the venture, the degree of overlap between customers and beneficiaries, and how the venture communicates its social mission through its value proposition. By combining these choices in different ways, we identify four distinct types of social business models which we call Social Stimulators, Social Providers, Social Producers, and Social Intermediaries. To bring this framework to life, we have examined data from seven real‐world social ventures, offering concrete examples to illustrate each type. For each of these four types of social business models, we have also formulated propositions about how the business model choices impact a venture's value creation and value capture potential.

A review of circular economy models and success factors on public-private partnership infrastructure development

PurposeThe application of circular economy (CE) has received wide coverage in the built environment, including public-private partnership (PPP) infrastructure projects, in recent times. However, current studies and practical implementation of CE are largely associated with construction demolition, waste and recycling management. Few studies exist on circular models and success factors of public infrastructures developed within the PPP contracts. Thus, the main objective of this article is to identify the models and key success factors associated with CE implementation in PPP infrastructure projects.Design/methodology/approachA systematic review of the literature was undertaken in this study using forty-two (42) peer-reviewed journal articles from Scopus, Web of Science, Google Scholar and PubMed.FindingsThe results show that environmental factors, sustainable economic growth, effective stakeholder management, sufficient funding, utilization of low-carbon materials, effective supply chain and procurement strategies facilitate the implementation of CE in PPP infrastructure projects. Key CE business models are centered around the extension of project life cycle value, circular inputs and recycling and reuse of projects.Research limitations/implicationsAlthough the study presents relevant findings and gaps for further investigations, it has a limited sample size of 42 papers, which is expected to increase as CE gain more prominence in PPP infrastructure management in future.Practical implicationsThe findings are relevant for decision-making by PPP practitioners to attain the social, economic and environmental benefits of transitioning to circular infrastructure management.Originality/valueThis study contributes to articulating the key models and measures toward sustainable CE in public infrastructure development.

Enabling battery circularity: Unlocking circular business model archetypes and collaboration forms in the electric vehicle battery ecosystem

Achieving battery circularity is crucial for meeting the targets of net-zero emission vehicles by 2030 and enabling climate-neutral transportation by 2050. To facilitate this transition, firms operating in the electric vehicle (EV) battery ecosystem must reassess their value creation, capture, and delivery methods. Although EV battery second life presents a promising solution for circularity, many vehicle manufacturers and stakeholders in the battery ecosystem struggle to adapt their organizations internally and externally due to a lack of insights into suitable circular business models. The purpose of this study is to identify viable archetypes of circular business models for EV battery second life and examine their implications on company collaborations within the EV battery ecosystem. Three main archetypes of circular business models are identified (i.e., extending, sharing, and looping business models) and further divided into eight sub-archetypes. These models are elucidated in terms of key business model dimensions, including value proposition, value co-creation, value delivery, and value capture. The paper provides visual representations of the necessary interactions and collaborations among companies in the EV battery ecosystem to effectively implement the proposed business model archetypes. This research contributes to the theory of circular business models in general, with specific relevance to EV battery circularity.

Towards semantic operationalisation of the business model: a step forward

PropósitoEste artigo tem como objetivo desenvolver um framework para a operacionalização semântica do modelo de negócio, que possibilita a identificação automatizada de modelos de negócio por meio de análise de conteúdo.Design/metodologia/abordagemAbordamos a operacionalização do modelo de negócio realizando uma revisão da literatura organizacional e de gestão para derivar os principais elementos do modelo de negócio destacados nas pesquisas existentes, juntamente com suas palavras-chave associadas.ResultadosNosso estudo propôs um framework conceitual que especifica uma estrutura granular de elementos do modelo de negócio, assim como as palavras-chave que caracterizam cada elemento. Ao descer ao nível de palavras-chave distintas, chegamos a construtos mensuráveis para capturar a magnitude de cada elemento no modelo de negócio de uma empresa.OriginalidadeNosso estudo é o primeiro a oferecer uma operacionalização semântica do modelo de negócio, definindo o conjunto de palavras-chave que se referem a cada elemento do modelo de negócio. A operacionalização proposta do modelo de negócio pode auxiliar pesquisas empíricas futuras, servindo como uma ferramenta para a avaliação automatizada da magnitude de cada elemento no modelo de negócio de uma empresa por meio de análise de conteúdo.

Conceptualizing business model piloting: An experiential learning process for autonomous solutions

Business model innovation supports manufacturers in the pursuit of new opportunities. However, successfully innovating a new business model presents a significant learning challenge, especially for highly advanced offerings, such as autonomous solutions. Experiential learning approaches, such as business model piloting, are crucial for fine tuning and scaling new business models, yet the current literature fails to adequately examine business model innovation in the context of advanced industrial offerings. In endeavoring to advance current research, we apply a business model piloting lens to advance understanding of how manufacturers engage in business model piloting for autonomous solutions. Our research builds on a multiple case study of piloting initiatives at two manufacturers, involving 32 interviews with senior managers responsible for autonomous-solution business model pilots. This study proposes a business model piloting framework to support manufacturers in overcoming business model innovation challenges. The framework consists of three phases: business model design, business model validation, and business model institutionalization. Each phase includes key business model piloting activities. We also identify three principles that support experiential learning in business model piloting. We contribute to the business model innovation literature by highlighting the strategic and multi-dimensional nature of business model piloting. This process requires simultaneous configuration of novel technologies for value creation and the design of suitable value delivery and capture mechanisms.

The role of mobile network operators in next-generation public safety services

Field of researchThis research is in the field of public safety communications in mobile broadband 4G/5G networks. The focus is on mobile network operators and their business opportunities in the public safety market. PurposeThe purpose of this research is to provide a review of ongoing public safety mobile broadband projects in which mobile operators play a key role. In addition, a business model analysis is presented to determine the role of mobile operators in these projects. A comparison of the two key business models is also included to reveal their general characteristics. Methods and dataThe research used a qualitative method, an inductive case study. This method was used to draw general conclusions from a small number of case studies based on ongoing public safety mobile broadband projects. The Casadesus-Masanell and Ricart framework and the business model canvas were used to analyse and compare the two key business models discussed. Data were collected from a variety of sources, including company reports, press releases, international events and conferences, and selected interviews with managers in charge. FindingsThe results show that mobile operators have new business opportunities in the public safety market. Their existing mobile networks can be used for public safety services with certain enhancements. Within existing projects, mobile operators have different business models. The two analysed models were found to require different resources and offer different business opportunities for mobile operators. Procurement authorities responsible for selecting business models are encouraged to pay attention to the choice of model based on, for example, strategic objectives. ValueVery little research has been done on the business opportunities of mobile operators in the public safety market. In this area, this study lays the groundwork for new research. Procurement authorities can use the results when deciding on the business model. Mobile operators can benefit from these results by better understanding their own roles in public safety projects and when assessing the business opportunities of a particular project.

Stabilisation of the financial architecture in the banking system

The article is devoted to theoretical and methodological research financial architecture in the area of elaborating the directions of stabilisation of the banking system in the context of the development of digital transformation of the market environment. The developed procedures and algorithms for creating a stabilisation model include outlining the criteria related to the development of the financial system in general, working out the directions of digital adaptation of processes in the banking system in the interaction of participants in financial relations, and presenting the possibilities for the development of the banking system. Digitalisation of business models at this stage of development of market relations in certain sectors requires the creation of effective adaptation mechanisms that take into account institutional support, the impact of system components on the efficiency of functioning, and the role of each component on performance. Strategic management involves modelling the procedures for incorporating the latest digital tools into the functional load of the banking system. The scenario approach is the basic approach to management decision-making, with a focus on key business models for application. Modelling scenarios for stabilisation of the banking system in the context of digital transformation of the economy is based on analytical research, strategic management, attraction of digital technological innovations, ensuring the security of the digital and information space, monitoring and evaluation of the model's effectiveness.

ОСОБЛИВОСТІ БІЗНЕС-МОДЕЛЕЙ БАНКІВ УКРАЇНИ

The article analyzes the business models of Ukrainian banks in the conditions of the military crisis. The key business models of the beginning of 2022 and the second half of 2023 are compared. Business models are evaluated based on bank balance sheet data published by the National Bank of Ukraine. Scientific and practical approaches to the definition of business models of banks are the subject of a debate reflected in the scientific literature. Our research uses indicators of the structure of bank assets, liabilities, income, expenses and other indicators of asset quality and performance. With the help of Kohonen's self-organizing maps (SOM), banks with close values of the selected indicator system are combined into homogeneous structural and functional groups of banks (SFGB). The structural and functional group of banks unites a homogeneous cluster of banks on the SOM with similar characteristics and patterns of response to external shocks. The method is useful for understanding the business models of specific banks at the macro level. Also, an important area of application of the SFGB method is the study of the general characteristics of the banking system at the macro level. The SFGB method makes it possible to assess the overall financial condition of the system, reveal hidden properties of homogeneous groups of banks, and model the trajectories of individual banks and analyze possible changes in their own business models. Banks sometimes migrate between business models, although the general trends persist. The SFGB's research for the period of 2003 confirms the existence of objective confirmation of the reasons for the migration of banks. The research was conducted at the macro level and in terms of changes in homogeneous groups with specific business models. Some business models have not changed between January 1, 2022 and September 1, 2023. Some models have completely changed. Most of the business model was transformed under the influence of external factors. The business model of domestic banks was significantly affected by the limitation of economic development, the reduction of classic credit operations, important measures of the state and the banking system to maintain a stable resource base, excess liquidity of banks, and the peculiarities of the design of the monetary policy of the National Bank of Ukraine during a full-scale war.

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

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

Strategy and business model evolution at Adobe: Competing in digital media software industry

The digital media software (DMS) industry is an important yet relatively underexplored industry in terms of dynamics, evolution, market potential and growth opportunities. Using Adobe as an exemplar, this case highlights the evolution of the DMS industry with a focus on Adobe’s key business segments, business model and business strategy – product diversification and inorganic expansion – specifically capturing Adobe’s response to changing market needs. Why Adobe made an important yet risky strategic decision to transition from the time-tested perpetual licence price model to a cloud and subscription-based pricing model is the primary focus of this case. We cover the contextual imperatives that caused this strategic shift and the repercussions of the strategic decision on Adobe’s overall performance and future growth trajectory. This case attempts to familiarize readers with the dynamics of the DMS industry and allow them to assess Adobe’s customer value proposition and business models by utilizing concepts and frameworks from the strategy, technological innovation and platform business domains.

Examining the Factors Contributing to Fintech Peer-to-peer Lending Adoption

Background: Peer-to-peer (P2P) lending platform is one of key disruptive business models in financial technology. It bridges lenders and borrowers directly. Researchers have studied the leverage mechanism behind the P2P lending platform.Objective: This research proposes an enhanced technology acceptance model (TAM) to investigate how consumers embrace P2P lending platforms using quality of service and perceived risk as drivers of trust.Methods: This research uses structural equation modeling (SEM) to test the hypothesised connections between the latent variables.Results: The findings show that users' trust, perceived usefulness, and perceived ease of use in P2P lending platforms significantly influence attitudes towards adoption. Meanwhile, consumers' perceived risk in using P2P lending platforms is unaffected by the quality of service.Conclusion: The estimated model is consistent with the results shown in previous studies. The findings of the current research are useful for fine-tuning platform marketing plans and putting strategic goals into actions. For future research, we suggest including more variables to better understand the adoption intention of P2P lending platforms.Keywords: Adoption intention, Peer-to-peer lending, Structural equation modeling, Technology acceptance model

Laboratory business models and practices: implications for availability and access to germline genetic testing

PurposeGermline testing laboratories have evolved over several decades. We describe laboratory business models and practices and explore their implications on germline testing availability and access. MethodsWe conducted semistructured interviews with key informants using purposive sampling. We interviewed 13 key informants representing 14 laboratories. We used triangulation and iterative data analysis to identify topics concerning laboratory business models and practices. ResultsWe characterized laboratories as full-service (FSL), for-profit germline (PGL), and not-for-profit germline (NGL). Relying on existing payer contracts is a key characteristic of the FSL business models. FSLs focus on high-volume germline tests with evidence of clinical utility that have reimbursable codes. In comparison, a key business model characteristic of PGLs is direct patient billing facilitated by commodity-based pricing made possible by investors and industry partnerships. Client billing is a key business model characteristic of NGLs. Because many NGLs exist within academic settings, they are challenged by their inability to optimize laboratory processes and billing practices. ConclusionContinued availability of, and access to germline testing will depend on the financial success of laboratories; organizational characteristics of laboratories and payers; cultural factors, particularly consumer interest and trust; and societal factors, such as regulation and laws surrounding pricing and reimbursement.

DEVELOPING THE MATERIAL-SERVICE SYSTEM CONCEPT: A CASE STUDY OF STEEL INDUSTRIAL DRUMS

AbstractWithin the circular economy, the Product-Service System (PSS) is a key business model to slow down and dematerialise resource consumption between manufacturers or service providers and customers. Material-Service Systems (MSSs) have been proposed as a business model to develop the performance economy focusing on the relationship between material suppliers and manufacturers. The aim of this research is to introduce and develop the MSS concept and to apply it to a real-world case study. The research involved two stages. First, a modelling method is proposed to represent the flow, transformation and ownership of resources by the stakeholders in a supply chain. Second, the method is tested using steel industrial drums as a case. The results indicate that the MSS has the potential to radically transform the steel drums industry and it could work effectively with a PSS within a reuse system to recondition and reintroduce obsolete drums into the market.

Циркулярна економіка як частина корпоративної стратегії організації

In today’s environment, organizations need new corporate strategies and models to protect profitability and competitiveness, as well as the heritage of natural resources. A circular economy is a model of production and consumption in which all resources and products are reused in the economic cycle, which can significantly reduce waste generation and create additional economic benefits for business. This is especially important in the context of the recovery from the economic crisis caused by the COVID-19 pandemic. Implemented quarantine restrictions have revealed how sensitive to global risks and inflexible the linear economic system is. The purpose of this study is to identify and analyze ways to implement circular economy models in the corporate strategy of the organization. The objectives of the article are to study the latest publications on the definition of circular economy, corporate strategy and their relationship, description of the strategic planning process taking into account the models of circular economy, identification of basic business models of circular economy, analysis of examples of implementation of circular models conclusions. To achieve the goal of the study, the authors’ different approaches to the interpretation of the concept of “corporate strategy” and its formation within the circular economy were analyzed, the process of strategic planning was highlighted and the main types of values created by the circular economy were identified. The key circular business models and their relationship with the corporate strategy of the organization are highlighted. The main part of the article analyzes examples of implementation of the concept of circular economy in the corporate strategies of four selected Italian companies in various industries. A comparative description of the roles of the circular economy in the corporate strategy of each company and the benefits gained in the process of its implementation was carried out. Conclusions were drawn on the importance of implementing the ideas of the circular economy at the stage of forming the strategy of the enterprise to achieve economic, environmental and social benefits.

When bike sharing business models go bad: Incorporating responsibility into business model innovation

Innovations to business models are particularly promising for tackling societal challenges. However, innovation outcomes can be unpredictable. To minimise negative impacts and enhance the success of business model innovation processes, we argue that socio-ethical issues must be incorporated and managed. Research on responsible innovation, which seeks socially desirable and ethically acceptable innovations via the incorporation of socio-ethical issues, is well developed but has often used a technocentric lens. Consequently, it is unclear how socio-ethical issues interact with business model innovation. We explore how business model innovation interacts with socio-ethical issues and aim to understand the ways responsible innovation can help inform business model innovation processes and outcomes. We do this by exploring platform enabled bike sharing business models in the Netherlands. We construct a theoretical framework considering purpose, process and product dimensions of business model innovation. Our results illustrate how socio-ethical factors can play a key role in the success or failure of business model innovation. We argue that without including socio-ethical factors explicitly within analytical lenses, that key elements may be missed, resulting in an incomplete picture of key business model innovation dynamics.

From traditional to professional Air Navigation Service Provider: A typology of European ANSP business models

This paper proposes a business model typology based on factor analysis of mixed data sourced from the 2016 Air Traffic Management Cost Effectiveness (ACE) benchmarking report, European air navigation service provider (ANSP) websites and annual reports. It provides ANSP management insight into the key strategic business model decisions to be made, their resulting models as well as how these business model decisions contribute to ATM/CNS profits. The findings suggest that ANSPs can benefit from increasing both their level of corporatisation as level of outsourcing. The paper can be used by ANSP managers to position themselves within the European air navigation services (ANS) landscape and as a discussion starter for future business model developments; or by ANS customers to better understand the strategic objectives of the ANSPs.

The impact of digital logistics start-ups on incumbent firms: a business model perspective

PurposeDigital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents' companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies.Design/methodology/approachBased on the primary data gathered from eight interviews with experts from start-ups' and incumbents' logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components' value proposition, value creation, value delivery and value capture.FindingsThe results show that differences between DFFs and TFFs appear in all four business models' components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode.Originality/valueThis is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.