Shifting supply chains from linear to closed-loop models is an important step towards circular economy. This paper investigates business model innovation for circular supply chains, and proposes that ...product-service systems (PSS) business models can enhance the circularity of supply chains through value creation in inner circles, circling long and cascading use circles. It adopts an exploratory case study method of a large Chinese manufacturing firm operating a traditional product-based business model and three types of PSS business models (i.e. product-, use- and result-oriented PSSs). The supply chain operations of the four distinct business models are analysed and their associated circularities are discussed. The findings show that business models akin to result-oriented PSS, have tighter and more efficient cycles of supply chain operations; which means, the repair, reuse and remanufacturing system is faster and the rate is higher. This research contributes to a better understanding of the relationship between business model innovation and supply chain circularity.
Servitization and Industry 4.0 are considered two of the most recent trends transforming industrial companies. Servitization is mainly focused on adding value to the customer (demand-pull) while ...Industry 4.0 is frequently related to adding value to manufacturing process (technology-push). Although some scholars address them as complementary concepts, the literature lacks evidences about what are the interfaces and connection between the two trends. Thus, we aim to develop a conceptual framework that connects Servitization and Industry 4.0 concepts from a business model innovation (BMI) perspective. Our framework is based on three Servitization levels (i.e. smoothing, adapting and substituting) and three levels of digitization (i.e. low, moderate and high levels). We show that matching these levels results in nine possible configurations classified in manual, digital and industry 4.0-related services, which can focus on smoothing, adapting or substituting services. We use reported cases from the literature to support and illustrate these configurations. We also discuss different levels of complexity for the implementation of these configurations. The study hence provides a foundation for the growing research on the interface between Servitization and Industry 4.0.
•We explore the integration of servitization types and digitization levels.•The highest level of digitization considers the Industry 4.0-related technologies.•Servitization types can be offered in three levels: manual, digital and industry 4.0.•Industry 4.0-related services add value for customers and for internal processes.
Sustainable Business Models: A Review Nosratabadi, Saeed; Mosavi, Amir; Shamshirband, Shahaboddin ...
Sustainability,
03/2019, Volume:
11, Issue:
6
Journal Article
Peer reviewed
Open access
During the past two decades of e-commerce growth, the concept of a business model has become increasingly popular. More recently, the research on this realm has grown rapidly, with diverse research ...activity covering a wide range of application areas. Considering the sustainable development goals, the innovative business models have brought a competitive advantage to improve the sustainability performance of organizations. The concept of the sustainable business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts, in a sustainable way. The process of sustainable business model construction forms an innovative part of a business strategy. Different industries and businesses have utilized sustainable business models’ concept to satisfy their economic, environmental, and social goals simultaneously. However, the success, popularity, and progress of sustainable business models in different application domains are not clear. To explore this issue, this research provides a comprehensive review of sustainable business models literature in various application areas. Notable sustainable business models are identified and further classified in fourteen unique categories, and in every category, the progress -either failure or success- has been reviewed, and the research gaps are discussed. Taxonomy of the applications includes innovation, management and marketing, entrepreneurship, energy, fashion, healthcare, agri-food, supply chain management, circular economy, developing countries, engineering, construction and real estate, mobility and transportation, and hospitality. The key contribution of this study is that it provides an insight into the state of the art of sustainable business models in various application areas and future research directions. This paper concludes that popularity and the success rate of sustainable business models in all application domains have been increased along with the increasing use of advanced technologies.
Despite a voluminous literature, business model research continues to be plagued with problems. Those problems hinder theory development and make it difficult for managers to use research findings in ...their decision-making. In our article, we seek to make three contributions. First, we clarify the theoretical foundations of the business model concept and relate them to the five elements of a business model: customers, value propositions, product/service offerings, value creation mechanisms, and value appropriation mechanisms. A clear definition of a business model enables theory to develop systematically and provides coherent guidance to managers. Second, we suggest that value configuration is a contingency variable that should be included in future theorizing and model building. Each of the elements of a business model is affected by a firm's value configuration depending on whether the firm is a value chain, value shop, or value network. Third, we link business models to organization design. We show how organization design is affected by value configuration and how new collaborative organizational forms enable open and agile business models. We derive the implications of our analysis for future research and management practice.
PurposeThis study aims to identify the legitimacy issues raised during a sustainable business model innovation, deployed by an Italian company, which was analyzed through the lens of the legitimation ...theory and the business model innovation theory.Design/methodology/approachA single case study methodology is employed for empirical research. Semistructured interviews, with top and middle management, were conducted together with the analysis of several internal and external documents, to corroborate the case analysis.FindingsResults show how the potentiality of digital technologies allows the development of new sustainable business models, which, though, still need to gain legitimation to be accepted. The study findings allow drawing both on the business model innovation theory and on the legitimation theory, as they show how legitimation is a dynamic concept that involves internal as well as external stakeholders to support business model innovation.Originality/valueThe paper is novel, since it addresses the topic of sustainable business models development, showing how companies can get legitimation. The paper builds on existing theories and provides a practical example.
Pure self-management model, pure aggregation business model and Self-support + aggregation model are three commonly used business modes on ride-hailing platforms. We use an analytical model to study ...these three business models and give the optimal business model decision of the platform. The research shows that the heterogeneity ratio of drivers, the cost of the platform under the Self-support model, the franchise fee received by the platform under the aggregation model and the dissatisfaction of the original users on the platform play a key role in the selection of the platform's business model. When the difference between the franchise fee under the aggregation mode and the platform cost under the Self-support mode fails to generate positive feedback on the platform profit, the platform should choose the pure Self-support mode. When riders are more sensitive to the heterogeneity of service quality of the platform and user stickiness can be ensured, the platform should choose the pure aggregation business model. When user stickiness can be guaranteed and the cost of the platform under the self-run model is controllable, the platform should choose the Self-support + aggregation business model.
Pioneering digital firms are often built on novel business models that differentiate them from their competition. Striving for the right business model is a challenge for entrepreneurs. In their ...digital endeavors, firms often experiment with multiple business models before converging on to a specific, focused model that they choose to pursue. An intriguing question in this domain is how do digital market pioneers gain strategic knowledge for the transformation of their business models? We develop an integrative framework that identifies strategic learning and its impact on the digital model adopted by the firm, as a core driver for business model transformation. We examine this framework through a case study of Wishberry, a crowdfunding startup in India that was the pioneer in this domain in India. Its active scanning of the business environment led to strategic learnings that helped transform its business model which was at the core of its sustained market advantages. The insights for this study, which are primarily focused on digital entrepreneurship, extend the theoretical frameworks of strategic learning to the context of market pioneers. The learnings from this study will help entrepreneurs design agile business models that are reactive to market needs.
•Pioneering digital ventures often experiment with multiple business models before converging on to a specific model.•They seek new opportunities while continuously auditing its intrinsic digital capabilities from its digital infrastructures.•Strategic learning from the business environment helps them transform its business model.•Digital infrastructures curtail the costs and risks associated with business model transformation.•Successful transformation of their core business model leads to market dominance.
In the contemporary complex and fast-changing markets, there is persistent pressure for Small-and-Medium Enterprises (SMEs) to engage in business model innovation to promptly meet customer ...expectations and successfully compete for survival. In the last decade, multiple approaches to business model development and innovation have been explored. However, they have been primarily designed for large-sized companies, while SMEs display distinctive organizational attributes. Thus, SMEs require a tailored approach to design, experiment and innovate their business models, in order to frame the specific complexity of their value creation processes. This paper aims to explore how a Dynamic Business Modelling approach complies with inherent SME characteristics and serves as a lean strategy design tool for innovating associated business models. A case-study of a real SME currently involved in innovating its business model illustrates and discusses the empirical evidence emerging from the use of this approach.
Following the operational paradigms proposed by Industry 4.0, the last years have been characterized by the rapid growth of technology-based firms increasingly adopting sustainable business models. ...In particular, an increasing number of Fintech enterprises have started to launch new services in order to avoid the organizational barriers that impact negatively on the voluntary adoption of sustainable business models by SMEs. However, research is still scarce in systematizing the efforts and identifying the facilitating factors for such a transition. Drawing on a diverse set of companies, case studies linking Fintech application and circular economy (CE) in diverse industries and contexts are analyzed and discussed. The findings of the qualitative analysis suggest that Fintech, an example of sectors developed under the influence of Industry 4.0, can play a relevant role in the transition of SMEs toward a more sustainable business model leading to better integration of circular economy practices. A conceptual framework using the ReSOLVE model is then presented with relevant implications for both research and practice.
This paper investigates the role of Fintech as a facilitator to the transition toward sustainable business models for small and medium enterprises (SMEs) through the lens of the sustainable business model canvas. Drawing on a diverse set of companies, case studies linking Fintech application and circular economy in diverse industries and contexts are analyzed and discussed. The paper suggests that Fintech, an example of sectors developed under the influence of Industry 4.0, can play a relevant role in the transition of SMEs toward a more sustainable business model. The results of the study are used to develop a sustainable business model canvas that takes into account the role of Fintech in the circular economy. Display omitted
•The paper discusses the enabling role covered by Fintech on sustainable development.•A sustainable business model canvas for small and medium enterprises was developed.•Case studies linking Fintech and the circular economy were analyzed and discussed.•A critical reflection on how Fintech can advance the realization of a circular economy was presented.
•Rigorously identifies the major researchers, topics, and journals housing research in Innovation in Retail Business Model.•Identifies the digitization enabled retail business model innovation ...characteristics.•Revises dimensions of retail digital business model.•Directs avenues for future research.
Increased digitalization enabled innovation and practical examples from the retail industry have captured the attention of marketing scholars, with rapid development in the academic field. The pace of change has significantly accelerated during the Covid-19 crisis. In seeking to (1) investigate the unique characteristics of digitalization enabled retail business model innovation, (2) understand how does digitalization influences changes to the retail business model innovation dimensions, and (3) identify the areas for future research related to retail business model innovation, this study systematically reviews the literature. Employing four databases, a sample of 170 articles were chosen. Based on bibliometric and network analysis and visualization, the major researchers, articles, and topics were rigorously identified. Finally, the results revealed the unaddressed issues in this research area. The study ends with theoretical and managerial implications.
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