Strategic Business Model Research Articles

The greening of the European petroleum industry

This article analyses the European petroleum industry's climate engagement over the two first decades of this century. It studies strategic visions and business models, alongside revenue streams and investment patterns, in the five largest European petroleum companies. The analysis shows how the European petroleum majors, starting from ‘climate negligence’, gradually moved into ‘clean petroleum’ and ended up with visions of ‘net zero’ transition out of oil and gas, while revenue streams remained almost exclusively petroleum-based. It displays how the gap between economic realities and professed climate strategy responds to contradictory signals from politics and markets. While European politicians stepped up expectations for radical CO 2 reduction, markets supported petroleum. Companies therefore adjusted climate-strategic visions to political pressure for legitimacy, while adapting commercial practice to profits from oil & gas markets. Finally, our study demonstrates how policy and markets could be better realigned. For example, the EU's Green Deal, in tune with declining costs of renewables and rapidly increasing CO 2 prices, presents interesting paths towards profitable greening. Early moves from pioneering petroleum companies demonstrate that it can be done. However, greening European energy production is not enough. Climate effects will only come if consumption follows suit.

Improving the performance/competency of small and medium enterprises through intellectual capital

PurposeConventional economic contexts and value creation exert on the extensive use of intangible resources whose value is much greater than the tangible assets. In particular, intellectual capital (IC) is recognized as an important source of value creation for firms. However, the field of IC is majorly dominated by large firms, and little has been done in exploring IC in small and medium enterprises (SMEs). Within this context, the purpose of this article is to contribute to the body of literature on IC in the SMEs context by investigating the different dynamics of IC and understanding its impact on their organizational performance and processes.Design/methodology/approachThe study has contextualized an integrative review of literature collected from Web of Science (WoS) and further analyzed integrating the bibliometric and manual review in a systematic approach.FindingsThe paper summarizes the key findings highlighting how SMEs can grasp IC in their core competencies and operational processes to achieve sustainable business performance. The study provides theoretical propositions highlighting the conceptual underpinnings of the literature on IC in SMEs and proposed methods outlining the methodological issues arising out of the diverse empirical/quantitative approaches adopted in the previous literature. Furthermore, empirical findings from the literature show that IC management affects a broad range of financial performance metrics in SMEs, however, sometimes with unexpected and mixed results. Hence, more research to replicate prior studies and corroborate extant research in both similar and different contexts would be desirable.Research limitations/implicationsThe study adopts an integrative review to understand the context of IC in SMEs; however, it does not study the synergy between varied IC components individually and their role in SMEs performance. Furthermore, the review relates IC to SMEs and does not cover the role of IC in large corporations.Originality/valueThe originality of this paper lies in its contribution to the body of knowledge in the field of IC and SMEs by exploring IC's impact on SME performance, especially the market performance, knowledge management (KM), strategic business models, sustainability performance (corporate social responsibility [CSR]), innovation and their intercollaborations (varied stakeholders).

Strategic business models under open banking: A guideline for incumbent banks

Since their emergence, FinTechs have been rapidly propagating and capturing market share from incumbent banks. These newcomers are responsible for most of the industry’s recent innovations, besides being more agile and customer-centric in their delivery of innovative banking products to the market. With the advent of the open banking era, FinTechs now have the support and encouragement from regulators to compete for business on a level playing field alongside traditional banks. A partnership between banks and FinTechs can leverage each side’s strengths, thus maximising returns for both. This paper discusses, from an incumbent bank’s perspective, what role in a FinTech partnership it should take or, in other words, what kinds of strategic business models it should follow within an open banking framework. Towards this end, we have performed an evaluation considering both academic and practical resources in this discipline. Industry case studies of incumbent banks fulfilling various bank-FinTech partnership roles are presented in this paper. Our findings suggest that banks should consider open banking strategic business models based on their total internal resources and product offerings, as well as their appetite and readiness for participating in the application programming interface (API) economy.

Direct and Configurational Paths of Strategic Orientation and Business Model Innovation to Successful Enterprise Performance

With the advent of the digital economy, Chinese enterprises are facing major strategic opportunities for business practice. At the same time, in-depth digitalization has greatly unlocked the potential for innovation. Business model innovation has become a key path for enterprises to gain competitive advantage. However, the innovative situation in the digital age poses new challenges to the enterprises’ strategic change decision-making. How do enterprises sharply capture and quickly adapt to the dynamic changes of the environment, and further use business model innovation to achieve the strategic goal of achieving excellent performance, which is not only an important issue of concern to the theoretical scholars, but also a "secret" that enterprises’ management decision-making practices are constantly exploring. This study investigates how enterprises can achieve high levels of enterprise performance under different configurations of strategic orientation and business model innovation, which introduces efficiency-centered and novelty-centered business model innovation as mediator, and a theoretical framework of "strategic orientation-business model innovation-enterprise performance" was established to explore the realization path of the strategic orientation’s effect mechanism on enterprise performance. It uses 245 data from Xi’an, Chengdu, Chongqing, and other high-level enterprise managers in Northwest China as samples, besides that partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) are used for empirical analysis of the data. The results provide support for the strategic orientation’s role for business model innovation and enterprise performance. Furthermore, different configurations of strategic orientation and business model innovation conditions lead to better enterprise performance.

An international survey of Death Doula training organizations: the views of those driving Death Doula training and role enactment.

Context:Death Doulas are working globally to provide non-medical end-of-life care. They have different training experiences and views on the role and whether it should be standardised.Objective:To seek the views of organisations responsible for training Death Doulas in order to determine what the drivers are behind this emerging role.Methods:We conducted an online survey with Death Doula training organisations in five countries utilising both a targeted and snowball approach. Qualitative analysis was undertaken with themes pre-determined (apriori) due to the nature of the survey categories.Results:In total, representatives from 13 organisations in Australia, New Zealand, Sweden, Canada, United Kingdom, and United States responded. The organisations had provided training for 0 to 20 years, with one just starting and another training birth doulas and now expanding. Owners and trainers hold an array of qualifications such as academic, medical, non-medical, and life experience. Curricula have usually been developed locally, and not always included pedagogical consideration, a strategic business model, nor mapping processes such as gap analysis. The organisations are run similarly, and curricula have several consistent topics but with distinctly different approaches. Trainers’ views are also mixed about the way to proceed with registration of the Death Doula role.Conclusion:The contrasting views of training organisations explain much of the ambiguity of Death Doulas themselves regarding standardisation of registration, education and role enactment. If heading towards the ultimate goal of professionalisation of the role then a challenging path lies ahead with little in the way of agreement in what this would require.

THEORETICAL AND METHODOLOGICAL BASIS FOR DETERMINING VECTORS OF THE DEVELOPMENT OF STRATEGIC MANAGEMENT OF BANKS AND THE FORMATION OF THEIR BUSINESS MODELS

In the work, the theoretical principles of determining trends and vectors of scientific research on issues of strategic management and the formation of the business model of banks are formed, which, unlike the existing ones, are based on the results of the structuring of the existing research work using the VOSviewer v toolkit. 1.6.10, Web of Science Results Analysis Tool, Scopus Citation Overview tool. The structuring of the scientific work on issues of strategic management and the business model of banks was carried out in the following sequence: 1) determination of the quantitative trend of articles; 2) identification the main subject areas; 3) determination of the most cited articles and journals; 4) clustering of articles in relation to the main directions of research in order to determine further analysis options. A dynamic analysis of the number of scientific publications on the issues of strategic management and business models of banks proved that during 1991–2004, the focus of scientific attention was on issues related to business models of banks, in the period 2005–2010, the issues of the formation of business models of banks were studied simultaneously with issues of strategic management, and since 2015, the focus of scientific research has been on the topic of strategic management of banks. The results of the bibliometric analysis proved the presence 5 clusters summarizing the context of research on strategic management of banks, as well as 7 clusters - on issues of business models of banks. The identified trends proved that the triangle "profitability - risk - reliability" and information technologies and regulation are becoming an important part of the banking business model, while financial technologies, information management are an important part of the strategic management of banking activities. At the same time, the development of a business strategy, business model, balancing the profitability-risk-stability triangle in the trend of strategic management of banking activities is becoming more and more important for the bank due to the growing demands of customers and shareholders. The conducted research made it possible to determine the phases of concentration of attention of scientists on the issues of strategic management and the business model of banks, to describe the vectors summarizing the meaningful context of research, as well as to substantiate the dominant tasks that arise during the formation and transformation of business strategies of banks at the current stage of the development of banking.

Strategic Dualities and Business Model Innovation within SMEs

Applying a business model approach, this paper explores how SMEs perceive, understand and deal with the range of strategic dualities that they face and how this may impact their business model innovation. Qualitative research was conducted using a sample of eight SMEs with the results analysed using content analysis. The findings suggest that SMEs address strategic dualities along four dimensions: degree of globalization (local vs. global), type of offering (individual experience vs. mass product), time orientation (short-term survival vs. long-term orientation), and modernity orientation (tradition vs. modern). It appears to be that SMEs do not recognize these dualities directly but are continuously trying to cope with the tensions they create, and that the whole process is biased by a strong link of SMEs to the local environment (i.e. terroir) that prevents radical innovation of business models. These findings are significant as they cast new insights into the strategic duality faced by SMEs and start to untangle the complex relationships between elements of the business model and SMEs’ local environments.

Strategic Business Model Canvassing for Terracotta Pottery Entrepreneurs in India

Strategic Business Model Canvassing for Terracotta Pottery Entrepreneurs in India

Sustainable business models to create sustainable competitive advantages: strategic approach to overcoming COVID-19 crisis and improve financial performance

PurposeThe purpose of this study is to evaluate whether the implementation of sustainable business models contributes to improving a firm’s performance during a global crisis, such as the one caused by COVID-19. Based on the triple bottom line theory, the paper explores the relation between the creation of value through solid corporate social responsibility (CSR) strategies, United Nations (UN) Global Compact’s (GC) business model proposals and Global Reporting Initiative’s (GRI) reporting scheme.Design/methodology/approachThe present paper studies companies within the European Union, focusing specifically on the long-term impact of using the world’s most widely used standards for sustainability reporting – the GRI’s standards and/or the UNGC management models, as well as on the firm’s performance based on the financial results during COVID-19 crisis. To achieve this goal, the study analyses the share price of firms publicly listed in the FTSEMIB (benchmark index of Italy’s largest trading platform) out of those companies that are implementing the UN and GRI’s tools.FindingsFindings show how a commitment to sustainable business models and long-term CSR strategies can contribute to firm’s ability to overcome periods of economic crisis. Furthermore, implementing GRI standards and UNGC guidelines within the business model seems to have a positive impact in overcoming a hard context such as COVID-19. In addition, it contributes to a better understanding of stakeholders’ needs, consumer profiling and value creation.Originality/valueThis study evaluates firms’ business models, considering the effects of decisions made in the context of COVID-19. The role of UNGC and GRI is evaluated in terms of their contribution to firms’ financial performance and corporate reputation during a context of hardship. Consequently, this study contributes to academia and practice, adding value in areas related to strategic planning and business model design.

Business Model Innovation: Strategic Expansion of German Small and Medium Wineries into Hospitality and Tourism

This article provides insights into the modalities of business-model change and innovation. On the basis of an analysis of empirical data of small and medium enterprises, a transition from wine production centrism to its expanded use in hospitality and tourism is explored. Previous research on wine tourism and hospitality predominantly focuses on a destination perspective, neglecting the organizational winery perspective. The article deploys a mixed methods approach, combining netnography and a content analysis for data collection with grounded research and clustering for theory building. The sample size included 885 German wineries. Data stemmed from two distinct sources (websites and a secondary publication in form of a wine guide) and has been analyzed through a two-step clustering algorithm as well as a Principal Component Analysis (PCA). The two-step clustering algorithm resulted in nine different business models while the PCA analysis grouped the variables into the following two categories: basic winery business model (BM) and BM extension into hospitality and tourism, thereby validating the difference between the two constructs. The results point to the diverse nature of business model extensions of wineries in tourism and hospitality, depending on their organizational type and size. This study offers a classification of small and medium sized enterprise’s strategic business model expansion, and explores the expansion of the wine industry through wine hospitality and tourism services, starting with the winery organizational perspective, which has not been done before.

The innovation ecosystem in rural tourism and hospitality – a systematic review of innovation in rural tourism

PurposeInnovation in rural tourism and hospitality (RT) is a complex process that involves the exchange of knowledge and resources between many actors and the interrelationships between those actors in the business environment. The purpose of this paper is to provide structure to this “knowledge and resource ecosystem” through a thorough systematic review of the extant literature.Design/methodology/approachThe current study uses a time-tested and reproducible systematic literature review process to identify and analyse 79 research papers that have discussed innovation in RT.FindingsThrough content analyses, this review identifies critical stakeholders in the innovation ecosystem, as well as the enabling and hindering roles these stakeholders play in innovation. The thematic analysis uncovers three key research foci: stakeholders and their roles, outcomes of innovation and business model innovation. The review also identifies types of innovation and critically analyses the bibliographical research profile. The authors summarise the findings in an RT innovation ecosystem model, which includes the various actors and their knowledge and resource sharing roles within the business environment.Originality/valueThis is one of the first systematic reviews to concentrate on RT innovation and, within that focus, on knowledge and resource networks in particular rather than on innovation in tourism in general, which was the focus of prior reviews. The authors encourage cross-pollination of ideas by introducing theories from the strategic management, innovation, knowledge management and business model innovation literature wherever appropriate. To consolidate and present the findings on the innovation process’s antecedents and outcomes, the authors present an ecosystem of innovation within the RT framework.

Updating strategic business models of high-tech companies in the context of global digital cooperation

Updating strategic business models of high-tech companies in the context of global digital cooperation

The Role of Entrepreneurial Agility in Digital Entrepreneurship and Creating Value in Response to Digital Disruption in the Newspaper Industry

Recently, digitization has fundamentally changed and disrupted the dynamics of the economy, society, and markets. This study integrates existing strategic entrepreneurship and business model concepts and constructs with a digital platform-related perspective by focusing on the cognitive aspects of strategic entrepreneurship decision-making and clarifying the conceptual foundation of entrepreneurial agility and its dimensions. It investigates how entrepreneurial agility can combine or integrate opportunity- and advantage-seeking behaviors for product and business model innovation to pursue digital entrepreneurship, to foster sustainable processes and practices, and to create value in response to digital disruption. It finds that entrepreneurial agility directly impacts building digital platform capabilities for product and business model innovation and that building digital platform capabilities indirectly influence creating value through business model innovation adoption. This study discusses the theoretical and managerial implications for digital entrepreneurship research in detail by identifying and testing the relationships among these constructs.

Materiality Matrix Use in Aligning and Determining a Firm’s Sustainable Business Model Archetype and Triple Bottom Line Impact on Stakeholders

The materiality matrix is a tool that helps companies understand how the stakeholders’ view of material issues in environmental, social, and economic/governance dimensions influences their value creation process, and creates triple bottom line impacts through shaping their strategic business model elements. Building on the multidimensional definition of materiality, we propose to use the materiality matrix as a tool to aid the transformation of a company’s existing traditional business model into a more sustainable one (inside-out approach), and to enable the identification of the most appropriate business model archetype to incorporate innovation into its sustainable business model (outside-in approach). This paper presents the materiality matrix as a new tool to enhance and transpose a company’s business model towards sustainability—as illustrated through the analysis of the Viña Concha y Toro business model case. This new tool contributes to sustainable business model literature and stakeholder theory by incorporating the materiality matrix as a gateway to business model innovation, and as a tool to explain the dynamics in the sustainable value creation process and concomitant impact on stakeholders.

Editorial: Insights

Welcome to the December issue of the Technology Innovation Management Review. This issue consists of a mixture of “Insights”.The first paper is Sara Moqaddamerad’s “Visioning Business Model Innovation for Emerging 5G Mobile Communications Networks”. Her paper targets the intersection between strategic foresight and business model innovation, using 5G networks as a case study.

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.

Resilience building in service firms during and post COVID-19

ABSTRACT The COVID-19 pandemic has affected millions of service firms worldwide; therefore, they must be resilient during these uncertain economic times. This paper develops a new conceptual framework of resilience-building strategies for the service industry. This framework encompasses five major practical strategies and several sub-strategies that can help service firms to survive and thrive amid and post COVID-19 pandemic. The proposed strategies include market orientation, supply chain optimization, strategic corporate reorganization, innovation, and business model transformation. The successful implementation of each strategy depends on various factors, which are discussed in the study. In addition, four major resources, including financial, human, social, and technological capital, are reviewed as prerequisites for adopting the resilience-building strategies. This new framework contributes to the organizational resilience literature and provides practical implications for service firms to become resilient during and post COVID-19.

Motivating sustainable entrepreneurship: the deployment of a visual navigation tool

Small businesses are in search for business models that balance the three pillars of sustainability (economy, environment, society) to successfully compete in increasingly driving-out markets. A bottom-up process via structured interviews with German wine producers delivered the spectrum of relevant sustainability indicators. Responding to the need for measuring, benchmarking, and transparency, the study subsequently created a visualisation tool measuring across 17 sustainability criteria. The framework enables wineries to strategically assess their business models in regards to sustainability. Tool application fosters transparency and nurtures innovation to increase sustainability. This research broadens the perspective of strategic sustainability and business model transformation of entrepreneurial SMEs.

Managing the Value Appropriation Dilemma in Business Model Innovation

Managers and designers of innovative business models that are enabled by emerging technologies need to build legitimacy with ecosystem participants. Yet increasing legitimacy within the ecosystem raises competitors’ incentives to imitate the business model innovators, thereby adversely affecting the innovators’ ability to appropriate value. We refer to this trade-off as the appropriation dilemma. We draw on institutional and resource-based perspectives to develop propositions about mitigating the appropriation dilemma and provide illustrations with a range of cases. Our theory development contributes to the technology management and business model innovation literatures by delineating how business model innovators can create value for all stakeholders and at the same time appropriate value through strategic business model design, a task that is particularly salient in the context of emerging technologies. We also strengthen the theoretical foundations of business model innovation research by grounding propositions about the strategic design of business models in resource-based theory and institutional theory.

Solving Post-acquisition Integration Failure from the Outside-in

In this article, we argue that post-acquisition performance can be improved by adding an outside-in business-level strategy to synergy-driven corporate-level strategy. Multinational companies (MNCs) frequently opt to accelerate new business development through the acquisition of innovative companies. We present an in-depth case study of an integration failure after a multi-million-dollar acquisition and also explore how the integration was eventually turned into a success. Initially, the synergies between the MNC legacy business and the acquired company do not play out as expected. As new business development stalls and important growth markets are missed, corporate value destruction occurs. As often happens, consultants are hired to fix the problem, but cannot turn the tide. Eventually, the MNC empowers key people inside the company and finds a way to solve the problem. The essence of the solution lies in deep, genuine, outside-in strategizing at the business level. In hindsight, the MNC suffered from corporate strategy myopia relying on high-level analyses and net-present value (NPV) calculations of potential synergies as a starting point for post-acquisition integration, instead of a clear, outside-in view of the strategic business model required to create value.