Focusing on the role of efficiency and novelty design themes, this paper examines how (a) the initial business model of a start-up, (b) the subsequent changes in the design themes and (c) the ...combinative effect of efficiency and novelty (contextual ambidexterity) impact a start-up's growth performance. The study is based on a survey involving 267 new ventures from high-tech industries. The results highlight the importance of pursuing higher efficiency over the life cycle of a start-up, although not at the moment of its establishment. In relation to business model ambidexterity, the findings highlight the different effect that contextual ambidexterity can have on the growth performance of a start-up firm in different stages of its life cycle. While initial ambidexterity is found to have a negative effect on growth performance, successive increases in the level of ambidexterity have a positive influence on growth.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The circular economy has been heralded as a potential driver for sustainable development by business, academia, and policymakers. In a future circular economy, new business models are needed that ...slow, close and narrow resource loops to address key resource and climate challenges. After a phase of excitement and inspiration, an operationalization phase needs to start to ensure the best possible implementation and transition towards a circular economy. This operationalization phase will involve the development of products, processes and business models that significantly lower the negative impact on the environment, reduce waste and resource pressures and, rather, create a positive impact on society and environment. This paper focuses on the circular business model lens as a comprehensive way of addressing business innovation. Within this evolving circular economy operationalization phase, several tools, approaches and methods are emerging that could support circular business model innovation. This paper seeks to create a comprehensive tools overview through a literature and practice review. It provides structure to the emerging range of tools, methods and approaches, and, based on this, a guideline for future tool development. Finally, it gives an overview of opportunities and gaps as well as a future agenda for research and practice.
•This study develops a two-stage framework for the transition to digital business models.•Retailers collaborate with specialized service providers to implement a digital business model. – - Findings ...of a meta-ecosystem emergence.•Describing the interaction of the digital service providers, the product suppliers, and the customers.
As e-commerce has increasingly gained traction in the retail market, many traditional “brick-and-mortar” retailers are innovating their business models and making the transition towards digital business models. While scholars have started to examine the influence of digitalization on various business model elements, they have so far paid little attention to its implications on the external relationships in which firms engage for value creation. Building on a qualitative analysis of seventeen interviews, this study develops a two-stage framework for the transition to digital business models. In Stage 1, retailers collaborate with specialized service providers to implement a digital business model. As firms from the retail ecosystem collaborate with firms from the digital-service ecosystem to create a value proposition for end-customers, a meta-ecosystem emerges. In Stage 2, firms (retailers) seek to differentiate themselves from their competitors in the meta-ecosystem. Physical interactions with the digital service providers, the product suppliers, and the customers are a primary means towards this end. Thus, digitalization does not make physical interactions and close personal ties obsolete. Our study has substantial implications for the academic literature and management practice.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
A central and underexamined phenomenon in the growing literature on business models is: how firms pursuing platformization transform their open business models to create an ecosystem-based business ...model and ecosystem business model. While an open business model focuses mainly on searching and integrating external knowledge to address key aspects of a firm's value proposition and offerings, an ecosystem-based business model refers to how a firm adjusts the critical components of its business model according to its position, role, and links in the ecosystem. However, an ecosystem business model involves activities and offerings from ecosystem actors that should be aligned to materialize a general value proposition. This platformization requires a profound yet little understood view on how firms transform business models through cognitive and managerial processes. To address this research gap, we employ a multiple-case study approach in four large firms. This study identifies a new business model transformation process consisting of three phases: 1) broadening view, 2) integrating, and 3) orchestrating. Our findings contribute to the literature by demonstrating the unique cognitive and managerial processes related to shaping the emergence of the ecosystem business model while simultaneously transforming the firm's business model to operate in ecosystems.
•Platformization requires that firms transform their business model (BM) into an ecosystem business model (EBM)•This study examines the emergence of the EBM•We conducted rich inductive qualitative research on four focal firms engaged in platformization•We propose a new framework: the EBM emergence•We identify three distinct phases regarding the BM process transformation: broadening view, integrating, and orchestrating
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Sustainable business model innovation is about creating superior customer and firm value by addressing societal and environmental needs through the way business is done. Business models require ...intentional design if they are to deliver aspired sustainability impacts. Scant research has been done on ‘ecologies’ of different business models in order to understand and improve these and create positive impact on the environment, society, economy and other key stakeholders. Hence, in this paper a novel framework is presented to enable a systemic form of sustainable business model experimentation. The framework is based on the recognition of three key issues which have not yet been sufficiently incorporated in the literature on sustainable business models: construct clarity, boundary setting and uncertainty about outcomes. These concepts are discussed first. Building on earlier work, the resulting framework incorporates potential side-effects and boundary setting based on the concept of an ‘ecology of business models’. Second, an approach is proposed that could stimulate more profound forms of sustainable business model innovation: The Ecology of Business Models Experimentation map. Third, the approach is illustrated through two cases. The approach could help minimise symbiotic dependency on less sustainable business models; help destroy unsustainable business models by outcompeting them; and maximise contributions to favourable institutional infrastructures for more sustainable business models. This paper contributes to research on sustainable business model innovation, design and experimentation by providing a potential approach for ‘business model ecology redesign’.
•3 issues in sustainable business model design are identified:•Construct clarity, boundary setting and uncertainty about outcomes.•A framework to enable systemic business model experimentation is presented:•The Ecology of Business Models Experimentation (EBME) map.•The cases of THANKS and HOMIE are used to illustrate the EBME map.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
When presented with the latest statistics on global warming, it becomes evident that ecological sustainability will be equally important as economic sustainability for companies. A new wave of ...start‐ups shows that ecological sustainability can be integral to a business model (BM) without compromising economic success. Like start‐ups that designed their BMs to be ecologically and economically sustainable, incumbents also need to undergo two fundamental transformations in parallel: digital and sustainable BM transformation. While each transformation alone is considered demanding, we examined 31 start‐ups to develop a taxonomy of digital sustainable BMs to understand how companies can master these complementary challenges and provide guidelines on achieving ecological and economic sustainability by implementing digital BMs. We use this taxonomy to derive four distinct archetypes of how sustainability can be an integral part of the BM: Sustainable Software Solutions, Sustainable Product‐Service Systems, Sustainability Intelligence, and Digital Sustainable Platforms. For each archetype, we reveal the role of digital technology in creating ecological BMs and how these BMs create sustainable value from an ecological, economic, and technological perspective. Therefore, we go beyond using digital technology to optimise production or logistics or enable remote work and implement sustainability as an integral part of the core logic of the organisation and its identity. For practice, our strategy guidelines contribute to creating a sustainable reality based on digital technology implemented in the BMs.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
Purpose
– Although business models that deliver sustainability are increasingly popular in the literature, few tools that assist in sustainable business modelling have been identified. This paper ...investigates how businesses might create balanced social, environmental and economic value through integrating sustainability more fully into the core of their business. A value mapping tool is developed to help firms create value propositions better suited for sustainability.
Design/methodology/approach
– In addition to a literature review, six sustainable companies were interviewed to understand their approaches to business modelling, using a case study approach. Building on the literature and practice, a tool was developed which was pilot tested through use in a workshop. The resulting improved tool and process was subsequently refined through use in 13 workshops.
Findings
– A novel value mapping tool was developed to support sustainable business modelling, which introduces three forms of value (value captured, missed/destroyed or wasted, and opportunity) and four major stakeholder groups (environment, society, customer, and network actors).
Practical implications
– This tool intends to support business modelling for sustainability by assisting firms in better understanding their overall value proposition, both positive and negative, for all relevant stakeholders in the value network.
Originality/value
– The tool adopts a multiple stakeholder view of value, a network rather than firm centric perspective, and introduces a novel way of conceptualising value that specifically introduces value destroyed or wasted/ missed, in addition to the current value proposition and new opportunities for value creation.
Purpose
The purpose of this paper is to analyse how different strategic goals of (micro-, small- and medium-sized firms=SMEs) relate to the business model innovation (BMI) paths that SMEs take when ...improving their business.
Design/methodology/approach
The authors conducted 11 in-depth case studies involving SMEs innovating their business models (BMs).
Findings
The authors found evidence that strategic goals of SMEs (start new business, growth and profitability) lead them to alternative innovation path in terms of BM components affected. Growth seekers start from the right-hand side of a BM Canvas, while profitability seekers start from the back end, the left side of a Canvas; and new businesses adopt a cyclical approach considering BM components in turn, while at the same time redesigning and testing the BM. The findings of this study also indicate that all three paths gradually lead to improvement in several BM components.
Research limitations/implications
Findings indicate that a strategic management view in which strategic goals define BMI also applies to SMEs. The distinctive BMI paths that the authors identified provide evidence to suggest that, although the SMEs may not have an explicitly formulated strategy, their strategic goals determine the type of improvements they make to their BM. All three SME groups started their improvements from different BM components and changed several elements in their BMs in a specific order, forming distinctive BMI paths. Finally, to understand the BMI in SMEs better, more research is needed into BMI processes and into the way BMI is managed in SMEs.
Practical implications
The findings of this study help SMEs to anticipate the next steps in their path towards an improved BM. By mirroring their approach to the BMI paths, they can better manage their BM makeover process and focus on their innovation activities. For providers of BMI tools and methods, the study indicates which SME innovation tasks could be supported by tools and how the tools should be aligned with the BMI paths.
Originality/value
BMI is attracting growing attention in both research and practice. However, knowledge concerning BMI in SMEs is limited. The authors contributed to BMI research by focussing on the BMI paths of SMEs, i.e. the often sequential, non-linear and iterative steps taken to improve the business by making changes to specific BM components.
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