Understanding Of Business Models Research Articles

Facilitating business model transformation: Theory, operators, and patterns

Understanding Business Models (BMs) has become an essential capability for organizations seeking to drive growth, revitalize a lagging core or defend against industry disruption. However, this concept still has multiple interpretations, as it is often intertwined with others, like business strategy (BS), making it difficult for stakeholders to understand and re-design their own BMs. In fact, current tools including taxonomies, have encountered difficulties in providing mechanisms to guide this process. Seeking to contribute with the strengthening of the theoretical basis and with tools to transform BMs, in this work, we follow a Design Science Research (DSR) approach to provide a theoretical foundation for the concepts of BM, Business Model Patterns (BMPs), and BS under a formal conceptual representation. In doing so, we propose a language to describe a BM and we introduce a set of mechanisms to transform BMs. Finally, we provide a collection of BMPs that serve as the foundation for the application of these mechanisms. Thus, we aim to contribute to the development of a solid knowledge base to be used as a source of inspiration when restructuring, specializing, or creating new BMs.

The impact of exogenous shocks on business models and business relationships: An empirical analysis of the Italian music industry

Purpose Scholars have been increasingly interested in understanding business models. However, little attention has been paid to how business models change in reaction to exogenous circumstances and how business relationships alter as a result of business model changes. This paper investigates how the business model paradigm of the Italian music industry altered in response to two major exogenous influences that impacted the sector: the digital revolution and the COVID-19 pandemic.
 Design/methodology/approach As the purpose of this study is to investigate phenomena in a real-world setting, qualitative research methodology has been selected as the most appropriate one. We decided to conduct sixteen semi-structured interviews with professionals active in the Italian music business that have been selected by a combination of snowball and convenience sampling
 Findings Our empirical findings indicate that the digital revolution and COVID-19 pushed Italian music companies to revise their business models by either reducing the number of linkages to the existing ones or adding new linkages to the existing ones. This was done in order for the companies to remain competitive in an environment that is constantly changing and to outcompete competitors.
 Originality/value Few studies have evaluated how business relationships alter in response to the many business models emerging in the music industry due to external causes. Our research is one of the first to examine music companies' reactions to exogenous events such as crises or disruptive advances that affect the competitive landscape.

Business models for sustainable food systems: a typology based on a literature review

The current state of the agri-food systems calls for more attention to sustainability. This article explores how diverse business models can contribute to sustainability in food systems, and develops a new business model typology in this domain in which the wider business ecosystem is taken into account. A systematic literature review is done and 37 articles are analyzed according to the business model types, their various sustainability dimensions and roles within the food system. Nine different business model types for sustainable food systems are identified: circular business models, place-based social food networks, new logistics or online food distribution business models, disruptive, sufficiency, inclusive, and family business models, the focal company, and regional food hubs. Collaborative approaches, clear sustainability visions, companies' values and continuous innovation are important factors for agri-food business models striving for sustainability. More in-depth single-country but also cross-country comparative and cross-disciplinary research is needed for understanding business models and their transitions toward sustainable outcomes within diverse and complex food systems.

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.

Understanding business model development through the lens of complexity theory: Enablers and barriers

A winning business model is the key to business success in today’s fragmented market environment. However, businesses need to develop their business models overtime to meet the requirements of environmental uncertainties and shifts surrounding the business. Drawing on complexity theory and its related concept of hierarchy, this study advances a systematic approach to theoretically investigate the factors that favourably or adversely affect business model development (BMD), in a hierarchical order. In particular, multiple fuzzy multi-criteria decision making techniques were applied to develop the list of enablers of and barriers to BMD, to determine the priorities among enablers, and to determine the significance of barriers with respect to the main enablers of BMD. The results reveal that organizational form is the most salient enablers of BMD, while type II barriers are the most significant barriers, challenging the development of business models. Implications and future research directions are also provided.

Understanding business models in the context of Irish credit union transformation

Credit unions in the Republic of Ireland (Ireland) are important community institutions. Over the last decade, however, Irish regulators and government have commented on a strategically critical financial problem for the sector and called for a change to the ‘business model’, but there is no statement of what this business model means. This paper understands a business model as the way an organisation creates and delivers value for its customers and itself, so whether articulated or not, it is plainly vital to organisational success. This paper reviews credit union financial performance, engages with the literature on business models, conceptually and as applied to banking, co-operatives and credit unions. It then considers how it could support the transformation needed for the sector’s successful development. The paper connects the credit unions’ enduring financial performance problem with the problem of value creation for their members, concluding that there are business model frameworks that could help credit unions restate their proposition, while incorporating their social purpose. However, there is no consensus among academics or practitioners about what the Irish credit union business model is and therefore what should change. A further knowledge gap is identified in relation to credit unions’ own perspectives on the relevance of business models and change.

Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative.

The survival of any entrepreneurial initiative depends on a working business model that could create value for the customers and, simultaneously, allow the firm to capture value from what has been created. Despite increased attention to business model research, the understanding of business models’ impact on entrepreneurial development is quite constrained. In particular, the question of how an entrepreneurial firm’s business model is influenced by its organizational members’ managerial cognition remains under-explored. To tackle this research question, we drew a linkage between the business model literature and a managerial cognition perspective to build the theoretical foundation. We used this theoretical lens to investigate the failure of Better Place, an Israeli entrepreneurial company that focused on its proprietary battery-swap electric vehicles. In our findings, we argued that organizational members’ managerial-cognition-based conceptual framework is critical to the business model decision-making of an entrepreneurial firm. The discrepant and strongly held conceptual framework may result in misjudgment of environmental changes, especially when emerging-market numbers in an industry are high, and consensus regarding technology innovation in an industry is still lacking. The improper conceptual framework can generate mistaken business models, which further bring about an organizational decline. It is crucial for entrepreneurial firms to learn and improve existing conceptual frameworks and consequent business models by business interaction in the initiative stage if they are to avoid failure. The research outcome paves the way for future empirical studies to contribute to machine learning in the field of cognitive automation, artificial-intelligence-driven smart manufacturing, and sustainable industrial value creation in the era of digital transformation.

A dynamic business model for Turkish techno parks: looking through the lenses of service perspective and stakeholder theory

PurposeThe purpose of this paper is to analyze the business model of techno parks (TPs) in Turkey and shed light on the value co-creation in TPs in the light of the service perspective and stakeholder theory.Design/methodology/approachIn this conceptual paper, a generic business model canvas for Turkish TPs has been elicited based on an in-depth review of the literature. Then, the functioning of the model and the nature of value co-creation have been viewed through the lenses of service perspective and stakeholder theory, and then the relationships and flows between the components of the business model have been visualized with a dynamic model.FindingsThe institutional environment leads Turkish TPs to have similar business models with functional differences. The value is co-created by stakeholders in TPs and value co-creation depends on the skills, competencies and cooperative efforts of all actors involved in the functioning of the business model.Practical implicationsThis paper provides insight for TP management companies to improve their business models, for policymakers to refine institutional framework to enable effective functioning of TPs and for stakeholders to understand their role in value co-creation.Originality/valueThis paper provides a dynamic framework and a model for understanding business models of TPs and the value co-creation process, which is an understudied area, especially in a developing country context. It also extends the business model and value co-creation literature in the context of TPs by integrating multiple theoretical perspectives.

根来 龍之・富樫 佳織・足代 訓史(2020)『この一冊で全部わかる ビジネスモデル 基本・成功パターン・作り方が一気に学べる』

根来 龍之・富樫 佳織・足代 訓史(2020)『この一冊で全部わかる ビジネスモデル 基本・成功パターン・作り方が一気に学べる』

The Business Model Innovation and Lean Startup Process Supporting Startup Sustainability

Abstract In order to support entrepreneurs facing Business Model Innovation, the Lean Startup methodology is considered to be a powerful tool. However, the theoretical and practical evidences that relate both methodologies to startup sustainability is still to be investigated. The aim of this paper is to develop a unified theoretical perspective for understanding Business Model Innovation and Lean Startup processes and their contribution to a better organizational, economic, environmental and social performance of startup business.

Business model innovation: a systematic review and future research directions

Purpose The purpose of this paper is to systematically analyze the literature on business model innovation by identifying its triggers, enablers, barriers, dimensions, outcomes and highlight avenues for future research. Design/methodology/approach A systematic literature review of papers on business model innovation was conducted based on the recommendations of Tranfield et al. (2003) from 2000–2019. A total of 70 conceptual and empirical studies on business model innovation research spanning from 2000 to 2019 were analyzed based on different classification schemes. Findings The systematic review approach of this paper offers a new perspective in understanding business model innovation, bridges the gap in the extant literature by providing consolidation regarding the triggers, enablers, barriers, dimensions and outcomes of business model innovation and indicating avenues for future research. Research limitations/implications A review of literature on business model innovation carried out in this paper is expected to open up new horizons for future researchers to develop and empirically test frameworks related to business model innovation. The five themes identified to shed light on important aspects of business model innovation. These themes are expected to not only strengthen the theoretical foundations of business model innovation but also help practitioners develop and implement business model innovations in their organizations. In particular, the themes related to the enablers, barriers, triggers and outcomes of business model innovation can provide useful insights for practitioners. Originality/value This study is the first of its kind that has provided consolidation regarding the triggers, enablers, barriers, dimensions and outcomes of business model innovation.

The Business Model of ""Enough

As green consumption and eco-modernism so far have failed to significantly reduce the ecological impact of consumption, new approaches are needed to meet sustainability criteria. Next to technology-focused efficiency (relative reduction of energy and material use) and consistency (cradle-to-cradle design) approaches, sufficiency is a specific kind of behavior-based sustainability strategy that addresses how to make do with less. In this contribution, we explore a novel business model framework in order to address sufficiency-based consumer practices. Applying social practice theory reveals levers in terms of materials, competences, and meanings to support sufficiency-based lifestyles. Key challenges are including consumers in the value creation process and adapting value capture processes accordingly. By reconstructing the classical business model – value proposition, creation, and capture – from such a social practice theory perspective, this contribution shows that a sufficiency orientation critically changes our understanding of business models. In developing sufficiency-based alternatives to consumer practices, businesses become extensions of their customers’ practices. Value co-creation means not only that consumers increasingly act as prosumers but that businesses participate in consumer practices. Such an extended value creation implies an increasing inclusion of environmental and societal aspects beyond the boundaries of a business and may hint at a new understanding of a firm’s boundaries as a fluid network of collaborative practices.

Opportunity complementarity in data-driven business models

Business model literature has been focused on value co-creation and co-capture logic in understanding business models in the ecosystem. To understand the “Ex Ante” source of ecosystem-based value creation/capture, this paper proposes opportunity complementarity as a key antecedent and construct for the ecosystem-based value creation and capture in data-driven business ecosystems.

Business Model Analysis from the Activity System Perspective: A Design Science Research

Abstract Understanding a business model is at the core of organizational strategy, competitiveness, and business sustainability. Descriptive approaches to understand business models are often based on the analysis of their components by looking at organizational assets, resources, plans, and competencies. Although there are numerous contributions in the literature, few guidelines are offered regarding an Activity System perspective, in a prescriptive rather than a descriptive way. In this study, we propose a pragmatic solution to help cover this literature gap and to extend on previous studies. A Design Science Research approach was adopted including a multicase study of four business companies we examined in order to create a method for business model analysis from an Activity System perspective. The resulting artefact of the study is illustrated with data from the empirical cases. Three analytical movements are described as well as prescribed: dimensions analysis (i.e., business definition, customer segment, value proposition, profit logic, critical factors of value proposition, and Activity System); visual representation including illustrations of its Activity System; and competitive analysis including prospection for changes and innovations. Finally, the artefact is discussed in relation to its quality, utility, and usability.

Business Model: A Literature Review and Real Life Case

The importance of business model has already been identified. However, the understanding of business model in academic area is stilly overlooked. This study clarifies the definition and business model at the macroscope level with the “role + purpose” regulation, and points out four elements of business model at microscope level. The real-life case in term of the Apple Company’s “hardware + software + service” business model demonstrate the four elements of a successful business model to obtain sustainable performance for firms. Keywords: Business model, literature review, macroscopic/microscopic perspective, Apple inc, DOI : 10.7176/EJBM/11-32-03 Publication date: November 30 th 2019

The Hextol Foundation: Building a sustainable social enterprise business model

This case focuses on how social entrepreneurs use business model thinking to create successful business models for sustainable social enterprise. It explores how the Hextol Foundation, an independent charitable company whose aim is to improve the quality of life of young people who are learning disabled, or who have mental ill health, uses business model thinking as part of a decision-making process to develop a sustainable social enterprise business model. The case provides a detailed account of the unique challenges presented to entrepreneurs who are driven by social purpose rather than solely by the need to generate a profit. The case is also useful in highlighting how business model thinking is used by entrepreneurs to identify, evaluate and pursue a range of strategic options. It advances our understanding of business model thinking and business model innovation in the context of a social enterprise.

Business Models and Transactions in C2C Social Commerce: Practices of Selected Social Commerce Practitioners in Thailand

There has been an increase in the popularity of using social media for commercial purposes, and this is commonly known as consumer-to-consumer (C2C) social commerce (s-commerce). Thailand is among one of the world’s largest C2C s-commerce markets; however, its C2C s-commerce has different characteristics from traditional e-commerce. This study investigated the patterns of various C2C s-commerce business models and purchasing processes being used in Thailand, based on data collection from interviews and direct observations. The findings revealed the patterns of the transaction process, including advertising, searching, negotiation and ordering, payment, and delivery. It also been found that there are six business models in C2C s-commerce: S-retailing, S-specific market, S-preorder, S-auction, S-reverse auction, and S-portal. The activities in C2C s-commerce were presented by using the logical process diagram to show differences in user interaction patterns and business arrangements. A solid understanding of business models and purchasing processes will help sellers to improve process effectiveness, as well as helping buyers reduce the risk when making purchases using C2C s-commerce in Thailand.

A Research Framework for Business Models: What Is Common Among Fast Fashion, E-Tailing, and Ride Sharing?

Every firm has a business model, which is the collection of strategic decisions that determine how the firm generates a sustainable enterprise through the creation of enough value (its supply model) and the extraction of a sufficient portion of that value (its revenue model). Innovative business models—for example, fast fashion (e.g., Zara), e-tailing (e.g., Amazon), and ride-sharing (e.g., Uber)—are capable of offering new products and services that generate considerable consumer utility and transform industries. This paper develops a research framework for understanding business models and how business models have evolved over time. Links are made to the existing literature (primarily in pricing and operations), and simple models are developed to unify and clarify existing research findings. Through this framework, it is possible (i) to identify the few design decisions that explain the success of these diverse firms with otherwise seemingly disparate models, and (ii) to speculate on potential future business-model innovations. This paper was accepted by Teck Ho, operations management.

JD.com: leveraging the edge of e-business

Subject area E-Business; Corporate Strategy; Strategic Management; Operation Management. Study level/applicability Senior undergraduate; MBA; EMBA. Case overview After development for 10 years, JD was now China’s second largest business-to-customer (B2C) e-retailer and the largest in self-operated sector. It was September 2015 when Liu Qiangdong was deciding whether to persist with JD’s self-operated model and the heavy investment in the self-built logistics system. JD’s business model had been functioning well. However, as JD grew bigger and bigger, it became too expensive to expand its logistics system. JD had not made a profit since it raised funds from investors. Liu had to come up with a good proposal before the next monthly meeting to convince them that JD would finally overtake its biggest rival, Alibaba which ran on a different business model. In addition, JD was exploiting the rural and the global markets, as well as a new business in internet finance. Facing challenges and dilemmas, should JD persist with its model? How could Liu align short-term profitability with long-run development? How could JD overcome attacks from Alibaba and other competitors? Expected learning outcomes This case is appropriate for courses in e-business and strategy, particularly those with a strong focus on doing e-business in emerging markets (e.g. China). After studying the case, students should be able to: understand the e-commerce market in China; understand business models and key strategies of e-retailers; identify and analyse the pros and cons of the self-operated business model and self-built logistics system in e-commerce; learn how to evaluate performance, strategies and business models of e-commerce companies; and extract key trends in the market and compare different strategies. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code: CSS 11: Strategy.

A Research Framework for Business Models: What Is Common Among Fast Fashion, E-Tailing, and Ride Sharing?

Abstract Every firm has a business model, which is the collection of strategic decisions that determine how the firm generates a sustainable enterprise through the creation of enough value (its supply model) and the extraction of a sufficient portion of that value (its revenue model). Innovative business models, for example fast-fashion (e.g., Zara), e-tailing (e.g., Amazon), and ride-sharing (e.g., Uber), are capable of offering new products and services that generate considerable consumer utility and transform industries. This paper develops a research framework for understanding business models and how business models have evolved over time. Links are made to the existing literature (primarily in pricing and operations) and simple models are developed to unify and clarify existing research findings. Through this framework it is possible (i) to identify the few design decisions that explain the success of these diverse firms with otherwise seemingly disparate models, and (ii) to speculate on potential future business model innovations.