Open Business Research Articles

Transmission mechanisms of real stochastic shocks in a small open economy

We offer a qualitative evaluation of the transmission mechanisms of two real shocks, a productivity shock and a government expenditure shock in Walrasian business cycle models. The analysis is developed in a monetary small open economy business cycle model, a set-up general enough to study the effects of the two shocks on both real and nominal variables. Qualitative and graphical displays indicate properties of Real Business Cycles that are able to reproduce observed cyclical patterns, independently of the calibration used for different economies. These qualitative findings match the quantitative results found in the literature, and rationalize some disparity findings (such as the cyclicity pattern of prices) and failures (such as the Dunlop–Tarshis observation). We suggest that understanding the underlying qualitative intuitions of these models may be of great help in tackling new puzzles in this area.

Web-based Technologies Integration for Distributed Manufacturing Scheduling in a Virtual Enterprise

Today’s manufacturing enterprises face enormous competitive pressures stemming from the current dynamic and open business context. Global competition and market demand for customized products and services, delivered ‘just in time’, exert real stress on businesses. Recently, new production paradigms, such as the extended enterprise, as well as agile, virtual and networked manufacturing, have appeared in response to the increasingly dynamic conditions of the marketplace. These new concepts prompt geographically dispersed manufacturers to build alliances with their suppliers and customers in order to work more closely with them. They need to work to build manufacturing networks which bridge large sections of the supply chain. In this context distributed scheduling problems are challenging tasks to researchers and practitioners that have been gaining increasing popularity over the years. This is partly attributed to the fact that multi-site production and networked manufacturing environments are increasing as a consequence of globalization. In this paper a web based system for technologies integration for supporting distributed scheduling in a Virtual Enterprise, by combining a simulation-based approach, with the Hungarian algorithm, for solving job-shop scheduling problems is presented, in order to show how the authors can benefit from this technologies integration for supporting collaborative distributed manufacturing scheduling.

A Study of Open Innovation in Telecommunication Services: A Review of Literature & Trends

This paper examines the trends, the research and studies done globally on open innovation and open business models in the field of Telecommunication Services. These include value added services pertaining to communications, online, web and media, mobile, triple/quad play, etc. on both consumer and enterprise side. In the face of severe competition, and commoditization, the current traditional Telco business models and services like Voice and Broadband are losing value rapidly causing the ARPUs of Telcos to drop, leading to a crisis in the Telecom industry. New business models based on Open Innovation & Open Business Models can help the Telcos survive and thrive through transformation.

A solution procedure for integrated supply chain planning problem in open business environment using genetic algorithm

Enterprise applications are increasingly becoming capable of sharing information and coordinating decisions autonomously without any human intervention. This open business environment gives rise to several new supply chain planning problems that have to be solved by individual entities of a supply chain. This paper first mathematically formulates the supply chain planning problems emerging in the open business environment and second proposes a heuristic solution procedure based on the framework of genetic algorithm applicable to large-scale problems. The procedure has two stages as the original problem is decomposed into two sub-problems in an effort to reduce the overall problem complexity. The performance of the proposed algorithm is empirically proven to be effective in both solution quality and search time in various problem sizes.

Open Invention Network: A Defensive Patent Pool for Open Source Projects and Businesses

Open Invention Network: A Defensive Patent Pool for Open Source Projects and Businesses

Open Business Models for the Greater Good – A Case Study from the Higher Education Context

Die Unternehmung , Seite 299 - 317

Open business models and platform mediated networks: an application in the mobile industry

Under the Open Innovation paradigm, this paper analyzes emerging models of governance in platform-mediated networks subject to winner-takes-all competition regimes. Our research contends that modularity, an important attribute in technological systems, plays a relevant role in competition dynamics. The study is focused on the mobile networks industry, a highly dynamic and technology intensive sector, ideally suited to conduct research on competition under strong network effects. Based on a case study of an important firm in this sector, the paper finds that proprietary technological platforms require a large set of external contributors to ensure sustainable rates of development and innovation. Our results also suggest that, contrary to established theory, firms may opt for proprietary platforms rather than shared governance models and, nonetheless, they are able to successfully compete against the established ones.

Business Process Models for Integrated Supply Chain Planning in Open Business Environment

With advances of several enabling technologies such as web services, ontology, and semantic web, the business envi- ronments are shifting to an open business environment where business applications autonomously share information and coordinate decisions with each other without any human intervention. This open business environment provides supply chains with the opportunity to generate executable supply chain plans, mitigating the inefficiencies of traditional supply chains such as bullwhip effect that is caused by the lack of information sharing. This paper aims to develop business process models that reflect realistic business scenarios and enable integrated supply chain planning in the open business environment. For this purpose, we first classify business patterns based on the types of “request for quotation,” and then business process models are developed for the business patterns using BPMN V1.1.

English

In the global IC industry, business models have evolved into design foundry models and manufacturing foundry service models over the past twenty years. The concept of system-on-a-chip (SoC) refers to integrating all components of a computer or other electronic system in a single integrated circuit (IC). Due to the increasing complexities of SoC devices, it is impossible for one IC design house to have the state-of-the-art expertise required to make all the hardware and software components required for an SoC. Based on SoC needs for intellectual property (IP) reuse and design reuse, this study analyzes a new open business model, called design foundry. Design houses must use a design foundry, an innovation intermediary, to combine their internally generated IPs with IPs acquired externally. This paper uses the SoC design foundry as a case to examine the evolution, SoC problems, and the core value of innovation intermediaries in the whole IC industry. Further, it demonstrates how design foundries create ecological benefits by teaming up with suppliers and customers in the IC industry. This research is the first known study to explore the emerging service gaps, value creation, and value capture processes created by an SoC design foundry.   Key words: Open business models, open innovation, design foundry, innovation intermediary, system-on-a-chip (SoC), integrated circuit (IC) Industry.

Innovation in the medical device sector: an open business model approach for high-tech small firms

Innovation in the medical device industry is progressing rapidly with many technologies heralded as major breakthroughs. The public are often well informed about these matters, which results in a patient pull for innovations that are years from market. HTSFs operating in this environment face huge challenges in terms of realising the latent economic potential from new innovations. Open innovation offers the prospect of lower costs for innovation, faster times to market, and the chance to share risks. By developing open business models medical device companies can capture the multifaceted ideas of scientists, engineers, clinicians and indeed patients; thus allowing beneficial technologies to reach the market more quickly in a way that is evidence focused. This study uses a qualitative approach to investigate the explicit and implicit business models within HTSFs in the health care sector and provides a useful contribution to understand the challenges and identify solutions in this multi-stakeholder environment.

SME competitive strategy: learning from Taiwan's ODM industry

PurposeFrom 2002 to 2005, Taiwan's ODMs concentrated on PCs and consumer electronics. Even though they lacked any well‐known brand names, they managed to develop an outstanding 34 percent compound annual growth. The purpose of this study is providing a viewpoint of SMEs competitive strategy from Taiwan's ODM industry.Design/methodology/approachIn this article, we first examine the SMEs Transition of ODMs in Taiwan, highlighting the challenges executive face between Taiwan and Mainland China for better competitive strategy. Next, we introduce some of the ODM strategies using the innovative division of labor from the SEM in Taiwan and describe how they can play a role in overcoming the challenge in the global market.FindingsIn the traditional closed business models, the operating efficiency of the ODM industry has been impacted by both the rise of innovative R&D costs and shortening of the revenue period. The new open business model (OBM) strategy can overcome the shortcomings of costly R&D in the traditional business models. The case study in this paper shows that there are four new profit sources in the OBM using the innovative division of labor.Originality/valueThe study is the first to shed light on the role of the OBM using the innovative division of labor for the SMEs. The findings may have noteworthy implications for the SMEs. From this article, managers may gain insights into the innovative division of labor for the SMEs ways to integrate these insights into their managing.

Dynamic service innovation capability, radical service innovation and open business models

While researchers agree that dynamic capabilities offer firms the skills and abilities to deploy and utilise various resources, the relationship between dynamic service innovation capability and radical service innovation remains unclear. With the influence of an open business model, the relationship becomes more complicated. The results analyses of data provided by 209 senior managers from their respective firms, indicates that dynamic service innovation capability has an inverted U-shaped relationship with radical service innovation. In addition, a substantially more open business model strengthens the positive effects of dynamic service innovation capability on radical service innovation.

Dynamic context-aware Business Process flexibility: an artefact-based approach using process mining

Nowadays, enterprises and their business processes are becoming more dynamic. Business Processes (BPs) need to be able to adapt to changes in open business systems environments. This paper presents a new approach for BP flexibility based on context environments and artefacts. This approach enables a better reusability and exibility of independent BP modules in a context-aware run-time environment. We present a context-aware process mining framework where contexts will be automatically captured from execution environments to maximise the exibility of BPs. Process mining techniques are used to extract information from BP run-time. The reasoning about those information using artefact is shown.

Innovative Business Models In The Media Industry

In the modern media industry, in addition to the traditional business model of proprietary products selling, there are a number of new business models that involve free distribution of whole products, or some parts of th e products. The advantage of the open business model is in the value creation by a large community of developers, whereas the proprietary business model means a simpler form of value captur e. However, open and closed business models can not exist in pure form: the proprietary model d oes not give enough space for innovation, while the open model gives insufficient opportunities for generating profit. An investigation of the problem of optimal business model choice at the mon opolistic market indicates that the fully closed business model is less efficient than the model wit h the closed core and open extensions; it is profitable for any firm to open all of those ideas and technologies that can not be used without the base module; the completely open business model is optimal if and only if a substantial part of the consumer value is determined by additional services or innovative activity of the users.

Development of Modular Mission Packages Providing Focused Warfighting Capability for the Littoral Combat Ship

The US Navy has been involved in the development of a new class of combatant ship called the Littoral Combat Ship (LCS). The LCS is designed to operate more effectively in the littoral environment by providing enhanced maneuverability through the seaframe's inherent ability to operate at high speeds and in shallow waters. Additionally, to counter the high threat environment of the littorals and to enhance the mission commander's options at reasonable cost, the LCS is designed to augment its core self-defense capability with modular mission packages (MPs) that provide focused warfighting capabilities. The LCS MPs are classified as systems-of-systems (SoSs) as they are made up of: mission systems, support equipment, software, mission crew detachments, and aviation systems; and then integrated into a larger SoS to deliver unique capability. To support the accelerated development schedule, PMS 420 is using an evolutionary acquisition process to provide continuous improvements in warfighting capability over time. The initial MP increments are specifically designed to augment the warfighting areas of Anti-Submarine Warfare (ASW), Mine Countermeasures (MCM), and Surface Warfare (SUW). Modularity, an open business model, and open system architectures are key enablers supporting the future insertion of new technologies into the MP baseline. The paper will provide a brief overview of the LCS seaframe designs as they impact MP development, but will focus on the development and maturation of the MPs as SoSs. A definition of what composes an MP will be presented along with the perceived benefits and challenges of developing focused warfighting capability separate from the seaframe design. The present status of the SUW, ASW, and MCM MPs will be reviewed as well as their respective incremental development plans. The joint developmental relationship between PMS 420 and PMS 501 will be discussed with respect to the definition and management of seaframe-MP interfaces. The techniques and methodologies used by PMS 420 in controlling SoS development and evaluating the technical and programmatic performance of the three MPs will be presented. The extensive use of the government laboratories to fulfill the lead system integration role will be presented and the methodology used by PMS 420 in transitioning technologies developed by PMS 420 and/or other program offices for incorporation into MPs will be reviewed.

The Banking Crisis as Dynamic Stochastic General Equilibrium

Crises are triggered by the inherent uncertainty of the capitalist system. We represent this uncertainty in an open economy real business cycle model of the UK by including non-stationary productivity shocks. A random sequence of good or bad shocks will accumulate, producing euphorias and crises; banking crises will be superimposed when banks have been sucked in by a euphoria. Existing macro models can also help to understand the macro effects of a banking crisis and to calibrate the necessary policy responses, even if they cannot explain the crisis shock itself; we illustrate this from DSGE models of the EU and the US. In designing new regulative systems we need to avoid throwing the capitalist baby out with the risky bathwater.

Toward an Open Network Business Approach

The aim of this paper is to propose a dynamic integrated approach, based on modularity concept and on the business ecosystem approach, that exploit different eBusiness services for SMEs under an open business network platform. The adoption of this approach enables firms to collaborate locally for delivering the best product/service to the customers as well as globally by accessing international markets, interrelate directly with the customers, create relationships and collaborate with worldwide actors. The paper will be structured as following: We will start by offering an overview of the state of the art of eBusiness platforms among SME of food and tourism firms and then we discuss the main drawbacks that characterize them. The digital business ecosystem approach and the modularity concept will be described as the theoretical ground in which our proposed integrated model is rooted. Finally, the proposed model along with a discussion of the main value creation potentialities it might create for SMEs will be presented.

Cooperatives as Innovators in the Argentinean Information Industry

This paper explores the role of cooperatives as innovators and promoters of the information and communications industries in Argentina. We used the open business model literature to help us understand their motivation to innovate and the modus operandi of these organizations in a less developed country. We relied on five case studies from various communities in Argentina. In-depth interviews were conducted with directors of these organizations. We found that cooperatives operate in a similar manner as open businesses, and this has allowed them to respond effectively to their circumstances and engage in innovation inspired by the difficulties they face. Their innovation is driven by their interest in fulfilling the needs of their communities and the regulatory environment, which sometimes has protected them and sometimes challenged them. We recommend cooperatives be given similar rights to resources as those in the private sectors; that they be provided access to the universal services fund, and that they address the concerns about their “anticompetitive behavior” by using the Argentinean anticompetitive law. We think cooperatives should be given credit and support for driving innovation and for having a decisive socio-economic impact in their communities.

Trust and Distrust in Adaptive Inter-enterprise Collaboration Management

The success and competitive edge of enterprises has become increasingly dependent on the enterprises' agility to become members in business networks that support their own business strategies. Therefore, integration solutions with their well-weathered strategic networks are no longer sufficient. Instead, there is need for more open business service ecosystems where previously unknown services and partnerships can be utilized. The ecosystem is to be supported with infrastructure services to solve the evident problems of semantic and pragmatic interoperability and collaboration-governing contract management. Furthermore, the ecosystem must support the creation of trust relationships with previously unknown partners, and reacting to encountered breaches of trust within collaborations. This paper proposes a trust management system where autonomous enterprises make automated, private trust decisions about their membership in each collaboration separately, while taking advantage of globally shared reputation of business peers in earlier collaborations. The trust decisions are adjustable to different and changing business situations.

License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico

This paper estimates the economic effects of a recent reform that simplified business entry regulation in Mexico. The reform was introduced in different municipalities at different points in time. Using microlevel data, I find that the reform increased the number of registered businesses by 5%. This increase was due to former wage earners' opening businesses. Former unregistered business owners were not more likely to register their business after the reform. The reform also increased wage employment by 2.2%. Finally, the results imply that the competition from new entrants decreased the income of incumbent businesses by 3%.