Traditional Business Models Research Articles

Circular economy in belarus: vision and prospects (survey results)

The circular economy is considered as one of the most important priorities in the National Strategy for Sustainable Development of the Republic of Belarus until 2035. This opens new opportunities for increasing the competitiveness of traditional sectors of the economy and preserving a favorable environment as well as actualizing the issue of the readiness of the Belarusian business for circular transformation. The purpose of the study is to explore how Belarusian enterprises assess the possibilities of this transition, as well as to identify the barriers and drivers for the development of a circular economy in the Republic of Belarus. The information base of the study consists in theoretical and methodological scientific research by domestic and foreign scientists devoted to the circular economy, regulatory and information materials of ministries and departments, as well as information from official sites and other Internet sources. The article presents the results of a series of surveys of Belarusian business conducted in the 2019-2021 period. The first survey dealt with the issues of waste management in the industry, construction, and trade in Belarus (the first quarter of 2019). The second one was designed to determine the level of understanding of the circular economy concept by Belarusian business using diagnostic interviews processed in the software product rep: grid get things straight by Dr. Rosenberger (2020). The third survey studied the possibilities of circular transformation in Belarus (2020-2021). The results of the study show that the development of the circular economy concept has not become widespread in Belarus, but there are already promising examples of the implementation of circular business models in the country. Representatives of the traditional (linear) business model intend to involve secondary resources in the production process in separate production areas. Enterprises with the elements of a closed cycle are focused on the full and efficient use of resources and are aimed at increasing profits, including through the introduction of circular innovations in any production processes.

Transformation of the Activities of the Largest Russian Commercial Banks into Digital Ecosystems.

There is a rapid development of innovative technologies in the financial sector of the Russian economy. Innovative technologies influence both the development of individual segments of the financial sector of the economy, the formation and development of new products and services, and significantly affect the change and transformation of traditional business models of market participants. One of such changes can be called the transformation of the largest Russian commercial banks into digital banking ecosystems. The object of this article is the largest Russian commercial banks. The subject of the study is financial mechanisms, quantitative and qualitative indicators of the activities of the largest Russian commercial banks in the context of the formation of digital ecosystems in Russia. The purpose of the study is to analyze the conditions and methods of transformation of the largest Russian commercial banks into digital banking ecosystems. To achieve this goal, the works of Russian and foreign authors on the formation and development of digital ecosystems, the provision of financial services, and the digitalization of commercial banks were studied. Based on the statistical data of the Bank of Russia and the reports of commercial banks, the analysis of the current state of activity of the banks selected for analysis was carried out. The author's definition of the concept of digital banking ecosystem is given in the article. Four main areas in which a full-fledged digital banking ecosystem should meet the needs of its customers have been identified and studied. The main conclusion of this study is that the largest Russian commercial banks create digital banking ecosystems by buying companies from various sectors of the economy and developing their own structures. The main tasks of digital banking ecosystems are not only meeting the needs of customers in financial services, but also in such areas as entertainment, IT and daily needs. Thus, digital banking ecosystems are maximally aimed at attracting and further retaining customers within their services.

Impact of big data usage on product and process innovation: the role of data diagnosticity

PurposeIn today's business environment, big data is viewed as the “new oil,” which is rapidly changing the traditional business models and mode of operations. According to commentaries and scholarly work, big data and its applications have penetrated deeply into the very core of the products, services, and functional areas of many firms. What remains unclear is how using this “new oil” (big data) and “new technique” (data diagnosticity) can result in new “products and processes.” The purpose of this paper is to examine the effects of big data usage on product and process innovation, and the moderating role of data diagnosticity on said associations.Design/methodology/approachData were obtained from Turkish firms that utilize big data in their daily operations and analyzed with the partial least squares' structural equation modeling technique.FindingsThe findings revealed that big data usage is a predictor for higher product and process innovation. Diagnostic capabilities of the firms did not amplify the link between big data usage and product innovation, big data usage and process innovation.Originality/valueThis paper is among the first study to examine the association of big data usage, data diagnostic capabilities, product, and process innovations in the Turkish context. Implications for theory and practice are discussed.

The Impact of COVID-19 on Bank Sector Traditional Business Model Sustainability in China: Bank Branch Versus Fintech

This paper aims to analyze the impact of COVID-19 on the sustainability of the banking sector and the fintech sector. In China, where banks’ revenue mainly comes from branches, we collect relevant data manually and use the OLS model for empirical analysis. The results show that as the COVID-19 infection rate increases, the number of bank branches decreases significantly, which threatens the banking sector’s sustainability. The fintech sector acts as a competitor to the banking sector. With the increase of COVID-19 infection rate, the public pays more attention to fintech, promoting the development of the fintech sector. Moreover, the impact of COVID-19 on these two sectors will diminish over time. In addition, this paper finds that COVID-19 further weakens the number of bank branches during the epidemic through the mediating effect of fintech. The findings of this paper help to assess the sustainability of the different financial sectors during the epidemic, which is essential for financial stability.

A digital business model: an illustrated framework from the cultural heritage business

PurposeThe paper offers a comprehensive understanding of how digital transformation affects business models and how firms operate and compete effectively and successfully in a digital economy.Design/methodology/approachThe research adopted an abductive approach (Dubois and Gadde, 2002) through constant movement between theory and empirical evidence. A systematic literature review led the first conceptual development and examples of practices from cultural heritage sectors were used in the theorizing process.FindingsThis paper depicts a digital model framework through a set of assumptions about how an organization creates and delivers value in an interconnected way by orchestrating new interactive processes, and providing experience propositions to customers, and about how value is framed in terms of economic, social and cultural outcomes.Originality/valueThe study contributes to the scientific debate by discussing the role of digital business models as enhancements more rather than replacements of traditional business models; it frames a digital business model as consisting of three main pillars: value orchestration, experience propositions and value sharing.

Lessons from mergers and acquisitions of regional banks in Japan: What does the stock market think?

Japanese regional banks are now facing an existential crisis. Their traditional business model has been devastated by the hollowing out of regional economies, technological change, declining populations and the rapid aging of Japan's non-urban areas. These banks must either go out of business or make significant changes. Reorganizations are a potential change that might solve the problem. Reorganizations include mergers and forming bank holding companies. This research examines regional bank reorganizations over the period from 2008 to 2019. It analyzes the stock market's response to announcements of bank reorganizations. A positive response is defined as stock price appreciation. It is a measure of the value that an efficient financial market attributes to the reorganization. This research finds that some kinds of reorganizations create more value than others. Specifically, mergers between banks within prefectures create more value. Yet, within prefecture mergers have the disadvantage that they might concentrate the provision of banking services in the hands of a few providers, leading to poorer services and higher fees. These reorganizations may violate competition law. Nevertheless, within-prefecture mergers may be a better overall solution to the regional bank crisis.

Competition and Innovation: The Rise of Startups and Its Effects Towards the Philippines Economy

The Philippines has a growing startup scene in Southeast Asia and is currently the prime target of many investors like Tencent Holdings, Voyager’s Innovation, and more. Despite this opportunity, in 2018, the Philippines made 31.8million dollars in deals, which is only a 10th of Indonesia’s deals and a 3rd of both Vietnam and Thailand. This study aims to empirically prove the economic benefits of startups to the Philippines economy and positively impact the country’s currency exchange rate. The data was collected from online and publicly accessible websites like the Worldbank and Openstat. Statistical tools used were Eviews 11 and Microsoft Excel. The result shows that the 3 independent variables have a moderate relationship with the dependent variable given the r2 value 77.0365%. Although the results showed that FDI does not affect the currency value of the Philippines and the growth of startups, mainly since the majority of the FDIs are invested in agriculture and income inequality efforts, also the factor that the Philippines is not famous for its tech industry. The results showed that Taxes on income, profits, and capital gains (%), considering the factors that the government is providing tax incentives to new businesses, can ease the burden off entrepreneurs in establishing startups, importing computers, communications, and other services (%). Additionally, since tech startups mostly rely on computers, communication goods and services to fully utilize their business, it shows that these two variables had a significant effect on the currency value of the Philippines. Start-ups are gaining traction in becoming one of the rising industries around the world. This industry challenges traditional business models with its complex utilization of technology. Moreover, the Philippines also has a growing startup scene, although it doesn't have a strong and established tech industry yet. For this reason, foreign investors can possibly be attracted, given the fact that they can take advantage of the lack of competition that exists within the startup scene.

Resilience and Sustainability of the Water Sector during the COVID-19 Pandemic

The COVID-19 pandemic brought unprecedented socio-economic changes, ushering in a “new (ab)normal” way of living and human interaction. The water sector was not spared from the effects of the pandemic, a period in which the sector had to adapt rapidly and continue providing innovative water and sanitation solutions. This study unpacks and interrogates approaches, products, and services adopted by the water sector in response to the unprecedented lockdowns, heralding novel terrains, and fundamental paradigm shifts, both at the community and the workplace. The study highlights the wider societal perspective regarding the water and sanitation challenges that grappled society before, during, after, and beyond the pandemic. The premise is to provide plausible transitional pathways towards a new (ab)normal in adopting new models, as evidenced by the dismantling of the normal way of conducting business at the workplace and human interaction in an era inundated with social media, virtual communication, and disruptive technologies, which have transitioned absolutely everything into a virtual way of life. As such, the novel approaches have fast-tracked a transition into the 4th Industrial Revolution (4IR), with significant trade-offs to traditional business models and human interactions.

Digital transformation: Platform ecosystems as a tool for High-tech Business management.

As a part of digital transformation, high-tech businesses are increasingly using platform ecosystems as a management model. Today ecosystem companies displace traditional corporations from leadership positions, which predetermined the scientifc interest in understanding their key properties and patterns of development. The purpose of the paper is to study the management features that determine the competitive advantages of platform ecosystems. The methodological basis of the study has become a benchmarking that is a traditional economic analysis of the companies’ bond with partners and customers, and the methodological toolkit was benchmarking, a comparative analysis of the successful organizational and management practices of high-tech corporations (which have formed ecosystems around themselves). The analysis of the platform ecosystems activity made it possible to select the management features that distinguish the ecosystem management model from traditional approaches. The research highlights, in particular, such positions as the nature of intercompany coordination, modularity of operations and versatility of relations. The scientifc result of the study is the identifcation of three groups of management decisions that allow platform ecosystems to implement accelerated innovative development and provide them with competitive advantages over traditional business models. These include: relations with customers (the formation of an individually oriented value offer); creation of an innovationoriented organizational structure and corporate culture; leadership in the system (organization of management focused on creativity rather than adherence to standards). The results were verifed by analyzing their application by companies using various management technologies. The conclusion is that the implementation of the mentioned management decisions makes it possible to adapt a high-tech business to the requirements of the digital economy.

Blockchain Technology and the Contemporary Business Models; Connecting Nano Energy Storage Devices with Trade for Investors

The rapid rate of growth in nanotechnologies and their application in almost every field of life is not only set to improve the living standards of the general public around the globe but also serves as a great opportunity for business as well. In this regard, a sound business model is required, as the product and services based upon this technology may not conform to traditional business models. In this research, we have reviewed the general business models for Nanotechnology-based products and services. In this respect one of the potential opportunities in the field of Nano energy storage devices and their practical application. We have conceptualized the potential use of “Blockchain” technology in the trading aspect of energy storage contracts and the potential opportunities this presents to the investors as well as the general public who form the wider sphere of stakeholders.

Transition to Digital Entrepreneurship with a Quest of Sustainability: Development of a New Conceptual Framework

Recent results of the Digital Economy and Society Index (52, 45%) and the European Index of Digital Entrepreneurship Systems (EIDES) (48%) illustrate an improved level of the digital performance in European Union countries and a significant progress towards unlocking the productivity of digital value co-creation and collaborative networks. It is also agreed that the rapid digitalization of the economy and the digital entrepreneurship approach fosters a transition of traditional business models to networked and integrated digital platform business models. Despite the well-recognized benefits of the digital entrepreneurship and the digital business ecosystem, application of emerging technologies and modern business models also brings inevitable sustainable management challenges. The main negative outcomes are in the disruption or exposure of vulnerabilities within collaborative organizational and social networks, the additional socio-technical pressure for both network supervisors and incumbents, and the asymmetry of digital information and resources, etc. Therefore, the present research provides a critical review on the scientific literature, a reconceptualization within the multi-level side effects, and an overview of the influence of the digital entrepreneurship within the sustainability and digital business ecosystem domains. The present paper delineates the sustainable digital entrepreneurship term and the combined conceptual framework of the digital sustainable value cycle.

A systematic literature review on circular economy practices: challenges, opportunities and future trends

PurposeThe circular economy (CE) is an evolving subject transitioning from conceptualization to empirical testing. Over the past decade, researchers have done an exhaustive study to understand the concept of CE and its realized values both financially and environmentally on organizations that have traditional business models based on linear consumption. For understanding the transitional phenomena completely, the paper aims to review the current and emerging research trends in CE to ascertain future direction.Design/methodology/approachThe research was conducted on 91 articles published in the study area during the past decade (2016–2021) in renowned peer-reviewed journals. The criteria set to review literature are based on the following assortment: CE drivers, CE barriers, definitions by different authors, yearly distribution of the publication, research publisher and journals, google citation and methodology used in the selected research articles.FindingsThe study suggests that researchers from the selected years are keen to understand the transition and its critical factors by bringing forward frameworks and incorporating CE with digital technologies. The digital technology implied are Industrial Technology (IR) 4.0, Big Data, Internet of Things (IoT), Artificial Intelligence, Blockchain and Data Analytics to increase organizational and environmental performance. CE researchers need to use empirical testing in different sectors to understand and bring forward more improvised business models and practices according to the dynamics of the industry.Originality/valueThe literature review suggests gaps exist to integrate the micro, meso and macro levels to get CE implementation's system-wide benefits. The study has also identified that many CE frameworks available in the literature for implementation must be empirically tested to yield performance results.

A threat to journalism? How journalists and advertising sales managers in news organizations perceive and cope with native advertising

In the course of digitization, the traditional business model of news organizations has been substantially challenged, making innovative formats necessary to master the business of online news. Native advertising (i.e., sponsored articles) is considered an escape from this dilemma. In adapting to journalistic content, this advertising format is distinct from conventional online advertising and allows advertisers to convey persuasive messages in an unobtrusive manner. However, despite its financial benefits, there are ethical concerns about native advertising, which is inherently and intentionally deceptive to its audience. Moreover, native advertising perforates the normative wall separating journalistic responsibilities from advertisers’ interests. In news organizations, this is reflected in the relationship between journalists and advertising sales managers. The present study therefore explored how individuals in these two roles differ in their perceptions of risks and opportunities related to native advertising and in how they cope with ethical concerns. Exploring the power relations between journalists and sales managers in collaborations on native advertising, this study also sheds light on potential restrictions of journalistic autonomy caused by native advertising.

Using bibliometric analysis to map innovative business models for vertical farm entrepreneurs

PurposeThis paper aims to explore the literature on vertical farming to define key elements to outline a business model for entrepreneurs. The research aims to stimulate entrepreneurship for vertical farming in a smart cities' context, recognising urban agriculture as technology to satisfy increasing food needs.Design/methodology/approachThe research conducts a structured literature review on 186 articles on vertical farming extracted from the Scopus. Moreover, the bibliometric analysis revealed the descriptive statistics on this field and the main themes through the authors' keywords.FindingsDifferent perspectives showed the multidisciplinary nature of the topic and how the intersection of different skills is necessary to understand the subject entirely. The keywords analysis allowed for identifying the topics covered by the authors and the business model's elements.Research limitations/implicationsThe research explores a topic in the embryonic stage to define key strands of literature. It provides business model insights extending George and Bock's (2011) research to stimulate entrepreneurship in vertical farming. Limitations arise from the sources used to develop our analysis and how the topic appears as a frontier innovation.Originality/valueOriginality is the integration of literature strands related to vertical farming, highlighting its multidisciplinary nature to provide a holistic understanding of the themes. In smart cities' context, innovations allow traditional business models to be interpreted in a novel perspective and revealed the elements for transforming vertical farming from innovative technology to an effective source of food sustenance. Finally, the paper suggests a new methodology application for the analysis of word clusters by integrating correspondence analysis and multidimensional scaling analysis.

Transformation of the business model in the process of digitalization of the Ukrainian economy

The article is devoted to the study of digitalization processes in the economic system of enterprises and the process of transforming business models in modern economic conditions. The main elements of digitalization in the economic system of enterprises are considered. The digital business models of enterprises are analyzed, the main elements of the digital business model are identified. At the same time, the differences between the traditional business model and the digital platform are considered. The nature of the influence of digital technologies on the transformation of the main elements of the business model of the enterprise is determined. The main ways of identifying the problems of the enterprise and the possibilities of their solution with the aim of further digitalization of existing business processes and the choice of a business model based on digital technologies and platforms are proposed.

Transformation of the business model in the process of digitalization of the ukrainian economy

The article is devoted to the study of digitalization processes in the economic system of enterprises and the process of transforming business models in modern economic conditions. The main elements of digitalization in the economic system of enterprises are considered. The digital business models of enterprises are analyzed, the main elements of the digital business model are identified. At the same time, the differences between the traditional business model and the digital platform are considered. The nature of the influence of digital technologies on the transformation of the main elements of the business model of the enterprise is determined. The main ways of identifying the problems of the enterprise and the possibilities of their solution with the aim of further digitalization of existing business processes and the choice of a business model based on digital technologies and platforms are proposed.

ЭВОЛЮЦИОННЫЕ ЭТАПЫ РАЗВИТИЯ И СТАНОВЛЕНИЯ IT-ЭКОНОМИКИ

The article presents the history of the formation and development of the information economy. Three stages of digitalization of the economy are described in detail. Particular attention is paid to the study of the levels of the IT economy, such as the environment in which conditions are created for the development of high-performance technologies, technologies and platforms, as well as economic sectors and markets where service providers and consumers interact directly. It describes the relationship between the development of the IT economy and federal programs, the main end-to-end technologies. It is also considered how, under the influence of the development of the IT economy, traditional business models are changing on the example of the largest digital economies of the six countries of Southeast Asia.

Exploring reluctance to circular business models – the case of light as a service

Selling light as a service is one example of a service-based business model that could enable a more circular economy. However, despite a growing interest to become more circular, there is still hesitation among customers to change the way they meet their need for light. In an ongoing project, we explore this reluctance and seek to identify obstacles and driving forces for large customer organizations to buy light as a service. As a first step, an interview study and a workshop were made to identify current perceptions in a broad range of stakeholders including lighting manufacturers, suppliers of light as a service, light designers and architects, private and public customers, collaborative bodies, and sector organizations. The focus was on large customers (municipalities and property companies) and on indoor lighting in offices and schools in Sweden. Barriers and driving forces could be found in 5 categories: environmental impact, economic consequences, social effects, competence, and roles and responsibilities. The analysis points to the importance of increasing knowledge, reducing uncertainties, and creating trust between actors in the business ecosystem to decrease barriers to change. It also appears extending the value proposition and increasing emphasis on social and user benefits are key for light as a service to become competitive with traditional business models.

Investment codes of the protected areas: A new look at benefits

The aim of this paper is to examine the role of the protected areas (PAs) as investment codes, and their position in the investment landscape of the region as well as in the context of a balanced and eco-oriented post-war market. The authors conducted a quantitative literature review to investigate the market and investment flows, and they used a comparative method to identify the main vectors for renovating the post-war eco- -oriented market, attracting investment flows and adapting these tools to the Ukrainian economy. The study reveals that investment coding can be a digital tool for attracting potential investors to cooperate by providing access to important information such as economic, ecological, and statistical data. The introduction of investment coding can increase the amount of investments in the field of protected areas, allowing for faster turnover and more efficient use, and enabling national and foreign investors to enter a renewed eco-oriented area of the national economy, increase profits, and diversify risks. The paper suggests a bilateral business system for the PAs, consisting of both traditional and digital business models. The authors argue that private legal investment tools can stimulate the development of new vectors of entrepreneurial activity, including inclusive eco-business. Overall, this paper highlights the potential benefits of investment coding and private legal investment tools for the development of protected areas and eco-business in the region, and offers insights for policymakers and investors looking to promote sustainable economic growth. Keywords: protected areas, renovation economy, investment code, post-war period, local communities, investment puzzle of a region. JEL Classification: Q28, Q29, Q38, Q39

A creativity-driven Case-Based Reasoning Approach for the systematic Engineering of Sustainable Business Models

While traditional business models pursue mainly monetary interests, sustainable business models make a contribution to face the ecological and social challenges of our time in an economic way. Companies - especially SMEs - are often faced with the challenge of developing sustainable business models. Typically, new business models often represent a recombination of already known business model patterns. In this paper we introduce a creativity-driven case-based reasoning approach to support companies in innovating business models towards sustainability in a systematic and creative way. Therefore, we combine different methods of business model engineering as well as innovation and exemplarily apply the resulting methodology.