Business Model Innovation Perspective Research Articles

Value capture from low embodied emissions of buildings - a business model innovation perspective

The transition to a society with low emissions has led to several intensives for decreasing operational energy and the environmental impact of buildings. The embodied impacts from manufacturing materials have been shown to increase in relative importance as the operational energy efficiency has increased. Several case studies have shown various technical solutions which can reduce embodied carbon emissions. But is this reduction good for business? There are several building projects that have achieved low embodied emissions, but these are often in segments of premium private clients or green public procurement where additional motivation such as reputation and long-term viability is in place. However, with the transition to a low emission society, there is a need to include all types of building markets. This study aims to find business model innovation opportunities with reduced embodied emissions in building projects where the clients have low motivation beyond reducing costs. The approach is through action research with a Norwegian contractor seeking new opportunities while keeping the main competitive advantage. The research starts with a case that could reduce overall greenhouse gas emissions, and includes the potential savings from green loans to find potentials to capture value from reducing emissions. The results show that criteria exist for green loans based on reducing operational and embodied emissions. Future studies are however need to make an integrated assessment on the potential value captured from these green loans.

Articulating business model innovation, digital transformation and managed services: case of digital transformation as a service

Business model innovation, digital transformation and challenges in service business model settings are very highly debated, yet the linkages between these contexts are not well articulated by the current literature. This study is a qualitative investigation of academic and industry insights as an attempt to articulate the relations between these three contexts. Based on comprehensive literature review and qualitative arguments, we deduce five propositions as an overlay of business model canvas components. Extending these propositions, digital transformation as a service is examined as an opportunity for managed services providers. We further argue with the support of publicly available industry reports from select communication services provider in Middle East region that are actively pursuing digital transformation as a service. Contribution of this study is twofold - first, it is an articulated perspective of business model innovation, digital transformation and managed service as a whole and it is first of its kind. This holistic viewpoint shall serve as a tactical tool to understand and manage critical business innovation and digital transformation challenges. Secondly, this study reaffirms the fact how digital services required for digital transformation can be made as revenue generating value proposition, especially by communication services and digital services providers.

A PROCESS-BASED FRAMEWORK AROUND “LIGHTHOUSE PROJECTS” FOR BUSINESS MODEL INNOVATION

Despite the extant literature studies on business model innovation in response to a single (rather than multiple) strategic goal, entrepreneurs mostly approach the business model innovation process as a portfolio of parallel initiatives and solutions to the problems that are to be implemented. In the VUCA (i.e., volatile, uncertain, complex, ambiguous) context, a problem-solving roadmap for business model innovation is particularly relevant. However, the process is far from being easy, and most research focusses on the organisational level of analysis. By building on the cognitive perspective of business model innovation, this study implements an action research methodology to develop a framework that aims to help entrepreneurs structure a business model innovation roadmap that entails the exploitation and exploration activities. The framework has three steps. The first step attempts to build consistency in the problems, strategic goals, and initiatives. The second clusters the initiatives around “Lighthouse Projects”. The last step establishes a timeline and an action plan.

Inside the black box: How business model innovation contributes to digital start-up performance

Business model innovation is critical to firm survival and success. Digital revolution has reshaped value-creation methods in recent years, spawning various novel business models. However, we still have limited understanding of how a start-up's business model innovation efforts translate into superior performance in the digital economy. Drawing on insights from the demand-side perspective, this study disassembles the business model innovation architecture into three elements—value proposition, value creation, and value capture innovation—and investigates how business model innovation contributes to digital start-up performance. Based on a survey of Chinese digital start-ups, we find that value proposition innovation is positively related to digital start-up performance. Moreover, this relationship is mediated by value creation and value capture innovation. This study contributes to business model research by examining the impact mechanism of business model innovation on firm performance and providing new insights into the demand-side perspective of business model innovation.

The Impact of Cross-Border R&D Sourcing on the Innovation Quality of MNCs, from the Perspective of Business Model Innovation

In the literature on business model innovation (BMI) in multinational corporations (MNCs), the influence of cross-border R&D (Research and development) sourcing on innovation performance has been widely discussed; however, from a BMI perspective, apart from innovation performance, the innovation quality is also important. In addition, absorptive capacity and institutional distance are important indicators of MNCs’ innovation quality, although there have been few studies of the moderating effects on the relationship between R&D sourcing and innovation quality. Based on this research gap, starting from the perspective of BMI and by constructing a research framework that includes R&D intensity, R&D diversity, and innovation quality, this paper takes China’s high-tech MNCs as the research object to obtain a sustainable innovative business model. Further, absorptive capacity and institutional distance serve as moderating variables to study the moderating role of the relationship between R&D sourcing and the innovation quality of MNCs. This paper presents the following research findings. During the process of cross-border BMI, R&D intensity has a significant, inverted U-shaped relationship with innovation quality; R&D diversity has a significant negative linear relationship with innovation quality; and absorptive capacity and institutional distance each have a moderating effect on the above relationships.

Making sense of the sharing economy: a business model innovation perspective

ABSTRACT The emergence of a sharing revolution is leading to a new societal system of collaboration enabled by digital technologies. Although sharing-based initiatives are re-shaping established organisational practices and innovating traditional business models (BMs), existing research fails in grasping the phenomenon's multiple facets. This study aims at making sense of the Sharing Economy (SE) by shedding light on how startups embed the social trend of sharing and leverage digital technologies to develop innovative BMs. We attempt to solve the current theory-practice misalignment by proposing an original framework, definition, and classification of SE startups. The study presents a cluster analysis on 196 SE startups. We argue that SE startups group into five clusters: (i) pseudo-sharing; (ii) gig economy; (iii) crowd-based economy; (iv) pooling economy; and (v) P2P rental. This study contributes to positioning the SE from both a conceptual and an empirical perspective, interpreting the SE phenomenon from the theoretical lenses of BM Innovation, and classifying it through the unit of analysis of startups, intended as empirical vehicles and manifestation of the phenomenon.

Business model design and performance in nascent markets

Purpose The purpose of this paper is to investigate the nascent market settings from a business model innovation perspective with the research questions: How do incumbents and start-ups make sense of an emerging technology through business model design in a nascent market setting, and how does business model choice influence firm performance? Design/methodology/approach The authors have tracked the development of four case companies in the nascent electric vehicle market from 2009 to 2018 and have conducted interviews and analyzed the archival data. Findings The authors propose a typology of business model choices and performance where the four types of business models distinguish themselves by how the companies innovate or imitate the value proposition of the current industry as well as how they innovate or imitate the business model archetype. In accordance with these different business model choices, the actors express different logics behind their new to the product market space business model choice. These logics represent different understandings of technology potential, customer needs as well as potential for value capture and contribute to and limit the translation of emerging technologies into dominant designs in diverse ways. Originality/value The business model is conceived as a focusing device that can be used to identify market applications for emerging technologies. As new disruptive technologies often require a new to the product market space business model, literature has in recent years put a premium on business model innovation. However, the linkages between emergent technologies and the choice of a novel business model are under investigated especially in relation to how business model choice affects business performance in nascent market settings. This paper aims at filling this gap.

Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective

Servitization and Industry 4.0 are considered two of the most recent trends transforming industrial companies. Servitization is mainly focused on adding value to the customer (demand-pull) while Industry 4.0 is frequently related to adding value to manufacturing process (technology-push). Although some scholars address them as complementary concepts, the literature lacks evidences about what are the interfaces and connection between the two trends. Thus, we aim to develop a conceptual framework that connects Servitization and Industry 4.0 concepts from a business model innovation (BMI) perspective. Our framework is based on three Servitization levels (i.e. smoothing, adapting and substituting) and three levels of digitization (i.e. low, moderate and high levels). We show that matching these levels results in nine possible configurations classified in manual, digital and industry 4.0-related services, which can focus on smoothing, adapting or substituting services. We use reported cases from the literature to support and illustrate these configurations. We also discuss different levels of complexity for the implementation of these configurations. The study hence provides a foundation for the growing research on the interface between Servitization and Industry 4.0.

From the Perspective of Business Model Innovation ‐ Current Situation and Expectation of Deep Learning and IoT

From the Perspective of Business Model Innovation ‐ Current Situation and Expectation of Deep Learning and IoT

The Rise of the Platforms: Business Model Innovation Perspectives

Platforms are increasingly playing a more important role in companies’ activities. Even if companies are not developing their platforms, they need to cope with the opportunities brought by the companies. Platforms phenome is gaining more and more attention as companies such as Google, Amazon, Apple, Microsoft, and others are successfully utilizing platforms for business development. Platform phenomenon is considered a new one and various researchers outline the need for more deep studies of platform role and impact on companies, industries, value systems, and economies. This paper explores platform and business model innovation concepts to understand how the platform can contribute to companies’ business models innovations. The paper analyses shift from technical to managerial of platform interpretation, characteristics of the platform, business model and business model concepts and platform business model. The platform business models are analysed through business model innovation perspective – what kind of new users are involved in platforms, how platforms can contribute to value proposal development, what benefits platforms brings to companies and how platforms impact companies business model financial aspects. Finally, the reasons why companies fail implement platforms business model are presented as well. DOI: http://dx.doi.org/10.5755/j01.ee.28.5.19579

Hybrid Business Models for Sustainability: A Business Model Innovation Perspective

In addition to purely economic goals, hybrid businesses pursue social or ecological ones. They often entail a distinct focus on innovative approaches and implement new business models to achieve th...

Creating Shared Value in the Hybrid Venture Arena: A Business Model Innovation Perspective

In this paper we develop a strategy process model for hybrid ventures centered on business model innovation for shared value creation. We then validate the framework with an empirical focus on L3Cs, a new breed of hybrid ventures that occupy the middle ground between nonprofits and for-profits. With this research we contribute to business model innovation research, we extend established theoretical perspectives to the social entrepreneurship domain, and contribute to the understanding and diffusion of best practices when the strategic intent is the simultaneous creation of public and private wealth.

Capability perspective of business model innovation: analysis in the software industry

Prior research suggests that competitive advantages in environmental flux rely on a firm's capacity for innovation and adaptation. Specialisation in core competencies has increased the importance of developing business model-specific capabilities in technology-intensive industries like the software business. In addition to developing required capabilities internally, capabilities increasingly are being obtained beyond company boundaries from a network of business partners. In this study, we analyse capabilities in conjunction with four basic types of business model, using two dimensions drawn from the prior literature. These two dimensions are (1) degree of involvement in customer relationships and (2) level of homogeneity in offerings. Our findings indicate that different types of business model vary significantly in their emphasis on internally-developed versus externally-obtained capabilities. These findings pinpoint the essential capability profiles for business model innovation.