Traditional Business Models Research Articles

The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency

Fintech revolutionized the traditional banking business models in emerging countries. The effect of fintech on banks’ operating efficiency and risk-taking behavior is still inconclusive. The study is aimed at exploring the effect of fintech products on banks’ operating efficiency and risk-taking behavior. The study used a quantitative research approach by collecting secondary data from annual reports of 50 commercial banks from emerging countries, namely, China, India, Pakistan, and Bangladesh, for the period 2014 to 2021. The study used panel data for path analysis and structural equation modeling (SEM) to test the theoretical mediation model by using STATA. The results show that the fintech product reduces the bank’s risk-taking behavior by enhancing the bank’s operating efficiency. The path analysis results show that operating efficiency mediates the relationship between fintech products and bank risk-taking behavior in emerging countries. The paper offers useful recommendations for central bank and commercial bank policymakers. The study is also beneficial for commercial banks that use fintech solutions to increase operational effectiveness and reduce risk. The study is the first empirical investigation into the connection between the growth of fintech products, bank operational effectiveness, and risk-taking behavior in developing nations.

Restructuring of Indian Economy: Digital Transformation of Banking Sector

In the Indian economy, public sector banks are considered the backbone of the economy and now more than ever, private companies are entering the fray. This is great news for many customers, as customers are offered an expanded menu of savings and loan products and innovative services like online banking and easier transaction methods are being introduced. Banking system is an important aspect of every country's economy. Public Banks make transactions easy and efficient. The Indian banking sector has been experiencing a wave of change over the past decade. The growth in mobile banking and biometrics has affected the traditional business model of banks to some extent. However, most banks have shown tremendous resilience to these changes through adaptability and innovation. Advances in banking technology lead mobile banking to bring banking into the digital age: on the one hand, this duality between digitization and human factors is reflected in the banks' multichannel strategies. Accordingly, society's trust in the use of digital tools and processes in the economy has increased.

A Comprehensive Review of Artificial Intelligence (AI) Companies in the Power Sector

There is an ongoing, revolutionary transformation occurring across the globe. This transformation is altering established processes, disrupting traditional business models and changing how people live their lives. The power sector is no exception and is going through a radical transformation of its own. Renewable energy, distributed energy sources, electric vehicles, advanced metering and communication infrastructure, management algorithms, energy efficiency programs and new digital solutions drive change in the power sector. These changes are fundamentally altering energy supply chains, shifting geopolitical powers and revising energy landscapes. Underlying infrastructural components are expected to generate enormous amounts of data to support these applications. Facilitating a flow of information coming from the system′s components is a prerequisite for applying Artificial Intelligence (AI) solutions in the power sector. New components, data flows and AI techniques will play a key role in demand forecasting, system optimisation, fault detection, predictive maintenance and a whole string of other areas. In this context, digitalisation is becoming one of the most important factors in the power sector′s transformation process. Digital solutions possess significant potential in resolving multiple issues across the power supply chain. Considering the growing importance of AI, this paper explores the current status of the technology’s adoption rate in the power sector. The review is conducted by analysing academic literature but also by analysing several hundred companies around the world that are developing and implementing AI solutions on the grid’s edge.

Profitability Evaluation of Vehicle-to-Grid-Enabled Frequency Containment Reserve Services into the Business Models of the Core Participants of Electric Vehicle Charging Business Ecosystem

The current paper defines a framework for the introduction of frequency containment reserve (FCR) services, enabled by vehicle-to-grid (V2G) technology, into the business model of an entity owning and operating electric vehicle (EV) charging infrastructure. Moreover, the defined framework can also be extrapolated, with minor adjustments, to the business models of different core participants of the EV charging business ecosystem. This study also investigates the financial factors impacted by this introduction, eventually evaluating its financial profitability under given assumptions and comparing it to the profitability of the traditional business model of an entity owning and operating a unidirectional EV charging infrastructure. The current research shows that offering additional V2G-enabled FCR services can be potentially more profitable than the existing unidirectional approach if the V2G technology reaches its maturity phase with mass market adoption and economies of scale.

Формирование цифровых экосистем бизнеса в условиях развития информационного общества: управленческий аспект

Introduction: digital business ecosystems formation is a natural and integral process in growing digital economy. Digital transformation, as a consequence of the technologies development and complexity of the environment, inevitably causes a change in management and business models used, as well as the tools and technologies involved. The logic of business models development in the context of digitalization can be traced in the following sequence: “analog economy – traditional business models”, “transitional economy – mixed business models”, “digital economy – innovative business models and digital ecosystems”. Objectives: concept justification of a process scheme for digital business ecosystems formation, which allows building a comprehensive vision of management system approaches and decisions in the transition to digital business models and ecosystems in the context of the information society development. Methods: comparative and system analysis, processes modeling and decomposition, as well as statistical comparison methods based on a comprehensive approach to the study of digital transformation of the economy and business processes. Results: the modern approaches to structuring transition process from analog (traditional) business models to digital (innovative) ones have been summarized; business models characteristics typical of the process have been identified as well as the instruments ensuring the efficient transition. Conclusions: economic systems and business models digital transformation contributes to changing consumer behavior, increasing the efficiency of economic entities, expanding the market, building competitive advantages, and developing innovation.

Transformation of business models in the digital economy

The feasibility of digital transformation of business models is proven in the article. It is determined that the process of digital transformation covers all spheres of life: from interaction between people to industrial production, everyone is a consumer of digital technologies - the state, business, citizens. The development of Ukraine’s digital economy involves the creation of market incentives, motivations, formation of demand and needs for the digital technologies use. Digital transformation of business models is considered as optimization of resources using digital technologies. The most popular digital business models, as well as the essence and main advantages of using the digital platform are discussed in the article. Digital platform is the basis of the sharing economy, which is designed mainly for small and medium-sized business and is defined as a combination of horizontal business links and IT platform, where users exchange assets without the participation of major players or corporations. In Ukraine, the sharing economy is represented in several sectors among which transportation, financial sector and the medicine are the main ones. Sharing platforms are essentially the basis for such business models as Access-Over-ownership and On-demand. Access-Over-ownership one is focused on sharing physical things (housing, cars, machinery, equipment). The On-demand model is focused on the consumption of digital content. The e-commerce model, which is one-sided, is highlighted separately. The main types of business models in electronic business are considered, such as: affiliate marketing (clear distribution of responsibilities between the parties for the creation of the product and its advertising); Affinity club (cooperation with associated members and interest groups); Blockchain-based business models (business models based on blockchain technologies); Brokerage (mediation in the implementation of sales operations) etc. The distinctive features of business ecosystems and the main ways of monetizing digital business models are discussed. It is determined that modern digital business models are rarely found in pure form, to improve efficiency and competitiveness companies mostly use combined and modified models. Factors contributing to optimization and transformation of existing and developing new business models ubder digital transformation are identified as well as fundamental differences between traditional business models and digital platforms.

TRANSFORMING CONSUMER BEHAVIOR TO NEW PARADIGMS THROUGH DEEP LEARNING APPLICATIONS

Direct-to-consumer (DTC) businesses are gaining popularity as a way to reach a larger number of customers and better suit their needs. Vertical brands are distinguished by their metamorphosis, in which they offer their products straight from the manufacturer to consumers without the use of distribution intermediaries, like in traditional business models. They're obliterating themselves on virtual platforms and undermining their old linear sales processes in the process. In the current scenario, the ability of connectionist models to explain consumer behavior, with a focus on the feed-forward neural network model, should be emphasized, and the possibility of expanding the implications of ANN (Artificial Neural Network) for predicting buying behavior for DTC (direct-to-consumer) brands should be explored. To forecast consumer loyalty as a critical feature of consumer behavior, a variety of neural network models of various complexity are constructed. When compared to the more standard logistic regression approach, neural networks outperform logistic regression in predicting customer loyalty. Utilitarian and Informational Reinforcement factors, both independently determined, are shown to contribute significantly to the explanation of consumer choice. The potential of connectionist models for predicting and explaining consumer behavior is discussed, and future research directions are proposed for investigating the predictive and explanatory capacity of connectionist models, such as neural network models, and their integration into consumer behavior analysis within the theoretical framework.

ПОСЕРЕДНИЦЬКІ МЕХАНІЗМИ РЕКОНФІГУРАЦІЇ МОЖЛИВОСТЕЙ ЦИФРОВИХ ПЛАТФОРМ ДЛЯ СТВОРЕННЯ ІННОВАЦІЙНИХ БІЗНЕС-МОДЕЛЕЙ МСП

In the digital era, many small and medium-sized enterprises (SMEs) face the challenge of relying on digital platforms to enhance their innovative business models. This article examines the impact of digital platforms on the creation of innovative business models for SMEs. The aim is to identify intermediary mechanisms for reconfiguring the capabilities of digital platforms to foster innovative SME business models. The paper provides an analysis of various definitions of "digital platform" and argues that these platforms are based on algorithmic mechanisms, mutual benefit among stakeholders, a unified information environment, and the effect of reducing transaction costs. It interprets a digital platform for entrepreneurship as an information and communication system aimed at supporting entrepreneurial activities and providing diverse tools, services, and opportunities for entrepreneurs to facilitate the launch, management, and development of their businesses. The article explores the peculiarities of traditional business models (such as direct product sales, franchising, advertising-based models, etc.) and their potential transformation into modern business models (digital platforms, subscription economy model, content subscription model, etc.). The key characteristics of a digital platform for entrepreneurship are identified, including e-commerce, marketplaces, analytics and management tools, community and network utilization, and integration with other services. The study investigates intermediary mechanisms for reconfiguring SME business models, defining these processes as ways for digital platforms to coordinate interactions among various economic participants. It establishes that digital platforms can offer SMEs a range of intermediary mechanisms, including marketing, operational, financial, and informational mechanisms. Furthermore, the paper substantiates the possibilities of reconfiguring traditional SME business models and transforming them into contemporary ones through the reconfiguration of capabilities, value chain innovations, access to new markets, and process digitization.

Understanding Business Models for the Adoption of Electric Vehicles and Charging Stations: Challenges and Opportunities in Brazil

Although electric vehicle (EV) sales have been increasing over the years, worldwide EV adoption is still low. In Brazil, the key factors influencing this are the EV high acquisition cost and the reduced charging infrastructure. Therefore, traditional business models may not be adequate for Brazil and stagnate EV diffusion. Thus, designing innovative business models can be crucial to accelerate the transition to electric mobility in the region. In this way, this article aims to critically review business models for EV adoption and charging stations worldwide and discuss its application in Brazil. Then, the challenges and opportunities for some business model options are highlighted through the SWOT matrix. One can conclude that EV sharing is a promising business model for Brazil, given the series of advantages such as access to cutting-edge technology at an affordable price, reduction of vehicles on the streets, and given convenience for users (no concern with charging, EV degradation, and parking). However, public policies, subsidies, and coordination between different agents are crucial for the proliferation of this model. On the other hand, for the proposed CS models, the more traditional option is the less risky for investors in Brazil until the number of EVs increase.

TRANSFORMING CONSUMER BEHAVIOR TO NEW PARADIGMS THROUGH DEEP LEARNING APPLICATIONS

Direct-to-consumer (DTC) businesses are gaining popularity as a way to reach a larger number of customers and better suit their needs. Vertical brands are distinguished by their metamorphosis, in which they offer their products straight from the manufacturer to consumers without the use of distribution intermediaries, like in traditional business models. They're obliterating themselves on virtual platforms and undermining their old linear sales processes in the process. In the current scenario, the ability of connectionist models to explain consumer behavior, with a focus on the feed-forward neural network model, should be emphasized, and the possibility of expanding the implications of ANN (Artificial Neural Network) for predicting buying behavior for DTC (direct-to-consumer) brands should be explored. To forecast consumer loyalty as a critical feature of consumer behavior, a variety of neural network models of various complexity are constructed. When compared to the more standard logistic regression approach, neural networks outperform logistic regression in predicting customer loyalty. Utilitarian and Informational Reinforcement factors, both independently determined, are shown to contribute significantly to the explanation of consumer choice. The potential of connectionist models for predicting and explaining consumer behavior is discussed, and future research directions are proposed for investigating the predictive and explanatory capacity of connectionist models, such as neural network models, and their integration into consumer behavior analysis within the theoretical framework.

Editorial: Exploring market participants’ behaviour in disruptive global environment

Over the last decade economic conditions, market dynamics, traditional business models and individual behavioral patterns underwent significant and rapid changes due to major natural disasters, global crises, technological advancements, pandemics, war and other global disruptive events (Liu et al., 2021). It shook the equilibrium, stability of and trust in existing systems and industries (Brychko et al., 2021; Ibn-Mohammed et al., 2021), while uncertainty and volatility became a new market reality, forcing individuals, companies, and institutions participants to adapt and modify their behaviors (Aldao et al., 2021; Fiszeder & Małecka, 2022) Understanding market participants’ behavior in the times of disruptive global events becomes crucial for individuals, corporations, and institutions operating in such an environment.

EXPECTED IMPACT OF DECENTRALIZATION USING BLOCKCHAIN BASED TECHNOLOGIES

The anticipated impact of decentralization through blockchain-based technologies is poised to bring transformative changes across various domains. By leveraging the inherent features of blockchain, such as transparency, security, and decentralization, the financial landscape is expected to witness increased inclusivity. Blockchain's ability to facilitate peer-to-peer transactions globally, without the need for traditional banking intermediaries, holds the promise of reducing transaction costs and enhancing financial accessibility, particularly for the unbanked and underbanked populations. The implementation of smart contracts, self-executing agreements governed by code, is expected to automate and streamline complex financial processes, reducing the reliance on centralized authorities. Furthermore, decentralized autonomous organizations (DAOs) could revolutionize governance structures, allowing for more democratic decision-making processes. Global access to capital is likely to expand through decentralized fundraising mechanisms, democratizing investment opportunities and fostering innovation on a global scale. The focus on privacy and data ownership in blockchain-based systems is expected to empower individuals with greater control over their personal information, challenging the conventional model of centralized data control. Additionally, the resilience and immutability of blockchain contribute to the integrity and reliability of financial records. As decentralized technologies continue to evolve, their impact is not limited to the financial sector but extends to various industries, promoting economic empowerment and reshaping traditional business models. While the potential benefits are substantial, addressing regulatory challenges and ensuring user education will be critical for the successful integration of decentralized technologies into mainstream practices.

ESTABLISHMENT AND DEVELOPMENT OF THE NETWORK PLATFORM MODEL IN CHINA AND ITS IMPACT ON THE FORMATION OF THE DIGITAL ECONOMY

Formulation of the problem. The digital economy is developing rapidly, and the digital technologies represented by the platform economy have not only become a new engine for promoting social and economic development, but also create new challenges for traditional resource allocation and market supervision. The purpose of the article is the theoretical and practical aspects of the formation and development of the model of network platforms in China and their impact on the formation of the digital economy. Research methodology – using the method of systemic analysis and synthesis, axiological, compartist, general philosophical – generalization, comparison, historical and logical, general civilizational, humanistic, a comparative and holistic analysis of the phenomenon of China’s digital economy, which is formed on the basis of its platform type, was carried out. Research on the platform economy first began in the 1970s, but in recent years, due to the deep integration of digital technology and the real economic society, the rise of the Internet economy, and the development of trading platforms and social platforms, the platform has transformed into a business. The novelty of the article is that the new phenomenon of the platform economy is investigated as a new type and model of China’s digital economy. At the end of 2020, China released the draft Measures for the Supervision and Administration of Online Transactions and Anti-Monopoly Guidelines in the Platform Economy, followed by the introduction of Data Security. Platform enterprises have the characteristics of a natural monopoly. Research result. The economy of the platform as a new economic model is analyzed. The directions of the development of big data as the basis of the new platform economy have been identified. The phenomenon of rapid expansion of the platform as an expansion of opportunities and risks and challenges is clarified. The development of large digital enterprises as an important innovative force of advanced digital technologies is shown. The directions of development of large platform companies in China were studied as a factor in the improvement of constant innovations and business models. The development of the digital economy as a national strategy of China is substantiated. Conclusions. Compared with the previous traditional business model, the platform economy digitizes real assets, making transactions more convenient and increasing transaction volume. The digital economy, represented by the platform economy, plays an obvious role in promoting the development of the digital economy as a new type of economy.

РОЛЬ БІЗНЕСУ ЯК КАТАЛІЗАТОРА РОЗВИТКУ СОЦІАЛЬНОГО ПІДПРИЄМНИЦТВА В ПРОЦЕСІ РЕІНТЕГРАЦІЇ ВІЙСЬКОВОСЛУЖБОВЦІВ, ВЕТЕРАНІВ ТА ЧЛЕНІВ ЇХ СІМЕЙ

The process of reintegration of servicemen, veterans and their family members is a special challenge in the conditions of a full-scale war in Ukraine. In the context of tasks of reintegration of military personnel, veterans and members of their families, the relevance of the development of social entrepreneurship is increasing. With the growth of social problems in Ukraine, new challenges arise for enterprises that work according to traditional business models aimed at maximizing revenues. In times of crisis there is a tendency to increase the number of market entities that implement social responsibility in their activities. Today, community residents, internally displaced persons, veterans and military families are ready to initiate business projects with social impact aimed at solving community problems. An effective model of such interaction is the establishment of social enterprises. The article defines the role of business as a stakeholder that accelerates the development of social entrepreneurship for the reintegration of military personnel, veterans and their family members. Еhe model of cooperation between business and social entrepreneurship as a reintegration tool is substantiated. One of the ways of effective development of social enterprises is establishing partnerships with traditional businesses. In modern conditions, market entities increasingly use socially responsible approaches in conducting business, paying special attention to corporate social responsibility and integration of the Sustainable Development Goals into business processes. In the search for partners, large companies will prefer reliable social enterprises to simultaneously improve their image and brand awareness. Therefore, cooperation between traditional business and social entrepreneurship could be seen as mutually beneficial partnership.

КОНЦЕПТУАЛЬНІ ОСНОВИ ЦИФРОВІЗАЦІЇ МЕНЕДЖМЕНТУ ПЕРСОНАЛУ

Digitalization is more than just a trend in HR management. All labor related processes are changing, putting forward new demands and expectations for modern personnel management. Digitalization transforms the traditional business model. Organizations implement a digital approach, develop and implement innovations in personnel management to remain competitive in business. Modern conditions encourage organizations to develop employee-oriented HR practices with the support of digital technologies to achieve the best results and maintain competitiveness in the market. The purpose of the article is to analyze the theoretical aspects of digitalization, its impact on personnel management processes, and to determine the most effective HRM system on the domestic market. The theoretical foundations of the digitalization for personnel management processes were analyzed and their influence was determined. Advantages and disadvantages of implementing software as a digitalization tool are considered. Among the advantages are: the search and selection of personnel, monitoring of performance, management of salaries and bonuses, as well as personnel training. The criteria for the review of HRM systems were: data security, interface convenience, cost, Self and Performance management, adaptability on different devices, availability of analytics, OKR and recruiting module, polls in the system. The popular domestic HRM systems were analyzed: BambooHR, Zoho People, Personio, Hurma System, Sage HR. It was concluded that the Ukrainian Hurma System is the most effective, because if it is evaluated according to the criteria mentioned above, it has OKR, unified HR and recruiting, also it lets create a survey in the system. Therefore, when implementing digitalization, the company receives the following advantages: flexibility, economy and efficiency; cost reduction; improved security; accuracy in data analysis; reduction of paper work; better communication; improved quality of work. Among the disadvantages are: lack of trust in digital data; lack of knowledge about how to effectively use technology; in some cases, loss of subjectivity.

Digital Transformation: Examining the Role of Digital Technologies in Transforming Traditional Business Models and Exploring the Benefits and Challenges of Digital Transformation.

Digital transformation has become an increasingly important topic in the realm of business management. This paper seeks to examine the role of digital technologies in transforming traditional business models, and to explore the benefits and challenges associated with this transformation. By conducting a thorough review of the relevant literature, the paper will identify key drivers of digital transformation, as well as common strategies and approaches for implementing digital technologies in a business context. Additionally, the paper will explore the potential benefits of digital transformation, such as increased efficiency, improved customer experience, and enhanced competitive advantage, as well as the challenges that can arise during the transformation process, such as resistance to change and the need for new skill sets. Ultimately, the paper aims to provide insights into how businesses can effectively navigate the digital transformation journey and realize the full potential of digital technologies.

Africa and Industry 5.0: Challenges and Opportunities in the Future of Manufacturing

Cloud manufacturing (CM) is a service-oriented business model which is being adopted for industry 4.0 (i4.0). African-based small-to-medium manufacturing enterprises (SMMEs) are yet to adopt the collaborative business manufacturing model, due to challenges associated with vagueness to new manufacturing technologies adoption. However, technological advancements have led to industry 5.0 (i5.0), which present multiple favorable opportunities for manufacturing organizations in Africa. Technology adoption was identified as a key accelerator towards sustainable manufacturing and successful implementation of sustainable development goals (SDGs). This paper aims to conscientise on the future of the manufacturing industry for an African digital economy. Adoption of new manufacturing technologies is disrupting traditional business models and creating new business models which are collaborative, and technology centered. A system of systems methodology was used to address multiple challenges affecting advancing technologies in the transport manufacturing industry in Africa. The result is a strategic system mapping for developing a cognitive manufacturing system for the transport manufacturing system.

The impact of digital transformation on business models: the case of innovation finance consultancies

In France, public aid for financing research and innovation has notably increased since the beginning of the 2000s. With the advent of the " research tax credit", an innovation financing consulting industry has gradually developed. To date, this niche in the business consulting sector has been seldom studied, meaning that the effects of digital transformation on the traditional business model of firms in the sector remain largely unknown. This article aims to fill the existing gap based on a qualitative exploratory study of 16 players in the sector in France. Our results highlight three ways in which the business models of innovation financing consultancies have changed as a result of digitalisation. Finally, we discuss the similarities and differences with the results of similar studies conducted in the generalist consulting industry.

THE IMPACT OF DIGITALIZATION ON THE ACCOUNTING PROFESSION IN ROMANIA - A QUANTITATIVE RESEARCH

The intensification of business globalisation, the large-scale extension of digitalisation in the business sphere, and the acceleration of technological progress as a result of research-development-innovation, are strongly influencing and impacting on the strategic and competitive objectives of companies, and implicitly on business models, leading to a redesign of management strategy towards the market, and towards traditional business models that are progressively replaced by other business models, in a new optic based on maximising competitive advantages. The aim of this research is to provide a comprehensive perspective on the impact that the digitisation process is having on business and implicitly on the accounting profession from the perspective of accounting professionals. The methodology of the study was based on the use of a quantitative research using a questionnaire as a research tool, in order to collect the data necessary to achieve the purpose and which was addressed to accounting professionals in Romania, namely in the north-east of the country. The results of the research highlighted the primary role of accounting professionals in the context of paradigm shifts from traditional to digitized accounting, to ensure a high level of service to management, with notable effects on business sustainability. The study is highly useful for the state and regulatory bodies that can adapt their future policies and strategies in the field of accounting and taxation, the academic world that must urgently adapt its university curriculum to the new realities imposed by the expansion of the phenomenon of digitization in accounting practices, as well as the management of entities that must identify the real opportunities of the use of digitization in the entity with medium and long-term effects on the creation of added value for it.

Aligning sustainable development goals with Industry 4.0 for the design of business model for printing and packaging companies

AbstractGrowing concern for Industry 4.0 (I4.0) motivates to examine I4.0 technologies under the lens of sustainable development goals (SDGs) in the context of digital technologies. The goal of the paper is to align SDGs with selected I4.0 technologies to conceptualize a digital business model for printing and packaging companies. In this perspective, a comprehensive literature review, quantitative survey and qualitative individual in‐depth interviews were conducted as a research approach. Findings revealed that printing and packaging companies achieved SDGs (8, 9 and 12) mostly through their value proposition by supporting I4.0 components (cybersecurity, system integration, cloud computing, big data and Internet of things [IoT]). The business model affirms a digital‐oriented transition towards sustainability, fostering further development of I4.0. It also highlights the importance of redesigning traditional business models to embrace digitalization. Despite the study limitations, the business model can be adapted to other companies of various sectors, improving their ‘profit centres’.