Business models for product-oriented house-building companies – experience from two Swedish case studies

2015 ◽  
Vol 15 (4) ◽  
pp. 449-472 ◽  
Author(s):  
Jerker Lessing ◽  
Staffan Brege
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Holistic Approach ◽  
Structured Interviews ◽  
Content Type ◽  
Alternative Approach ◽  
Target Segment ◽  
Successful Approach ◽  
House Building

Purpose – The purpose of this study is to describe and analyse the business model of product-oriented house-building companies and, hence, bridging the gap of knowledge on this topic. Product-orientation implies an alternative approach to house-building, requiring new knowledge about business models and its characteristics. The balance and fit between the main business model dimensions is specifically focused on to emphasise the importance of a holistic approach. Design/methodology/approach – This study is based on a case study with two leading Swedish, product-oriented house-building companies. Semi-structured interviews with company executives, document studies, site and factory visits, along with seminars at the companies are the main data sources. Theories on business models and product orientation form the theoretical foundation for the study. Findings – The case studies describe two successful companies that used end-customer knowledge to identify a target segment, develop an offering and sequentially increase control over the production and supply chain, with limited investments. This indicates that a market-based outside-in perspective is a successful approach to establish viable house-building concepts with a balance between the business model’s dimensions. Practical implications – The knowledge brought forward in this study is beneficial for practitioners that can learn about product-oriented house-building and how this must be reflected in the company’s business model to be successfully applied. Social implications – The study brings forward knowledge about house-building business models that can contribute to increased house-building targeted on certain customer segments. This can be beneficial in terms of decreased costs and increased volumes of new-built, high-quality homes for a variety of customers on the market. Originality/value – Business models for product-oriented house-building companies are a scarcely covered topic in previous research, and hence, this study provides knowledge of interest for both researchers and practitioners. The case studies reveal unique information of how two companies developed their successful concepts.

Exploring the dynamism of complementarities in executives’ business modelling knowledge structures

2014 ◽  
Vol 7 (4) ◽  
pp. 398-421 ◽  
Author(s):  
Arash Najmaei ◽  
Jo Rhodes ◽  
Peter Lok
Keyword(s):  
Business Model ◽  
Business Models ◽  
Knowledge Structure ◽  
Technological Knowledge ◽  
Manufacturing Firms ◽  
Structured Interviews ◽  
Content Type ◽  
Dynamic Markets ◽  
Business Modelling ◽  
Interactive Nature

Purpose – The purpose of this paper is to explore and explain how market and technological knowledge gained by executives interact in a complementary fashion to form the knowledge structure of their business model which in turn enable them to make sense of underlying complexities surrounding management of strategic courses of action. Design/methodology/approach – Unitizing, categorizing, and classifying (UCC) in conjunction with pattern-matching (power and proof quotes) as qualitative methods were used to analyse a series of semi-structured interviews with eight executives from five small manufacturing firms in Australia. Findings – It was found that executives’ business modelling knowledge structure defined as the knowledge base that underpins their business models is developed from four interactions that exist between their market and technological knowledge. Particularly, executives can learn about technological aspects of their business model from market knowledge they acquire and also learn about marketing issues of their business model from technological knowledge they acquire. This interactive nature offers novel insights into versatility and fungibility of executives’ knowledge as a strategic resource that defines how business models evolve and shows how executives use knowledge as a non-rivalrous resource in different ways for developing different business models. Research limitations/implications – This study is limited in scope to: first, the context of executive of Australian small manufacturing firms and second, limited sources of data. Practical implications – This study offers important implications for business modelling and strategic formulation of practicing managers. It particularly contributes to a fuller understanding of how executives’ learning contributes to the cognitive formation of business models. It also helps executives gain new insights into the importance of various types of knowledge and the complementary nature of their interactions in the development of novel mental models as a key managerial competency in today’s dynamic markets. Originality/value – The conceptual framework developed and findings reported in this study have not been previously studied and offer novel insights into the literature on knowledge-based management, competitiveness, and business modelling.

scholarly journals Effectuation logic in digital business model transformation

2019 ◽  
Vol 26 (6/7) ◽  
pp. 811-830 ◽  
Author(s):  
William W. Baber ◽  
Arto Ojala ◽  
Ricardo Martinez
Keyword(s):  
Business Model ◽  
Model Transformation ◽  
Business Models ◽  
High Tech ◽  
Structured Interviews ◽  
Content Type ◽  
Digital Platforms ◽  
Study Approach ◽  
Digital Business Models ◽  
Causal Logic

Purpose The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted with the key decision-makers from the case firms. Findings The findings show that through digital transformation, the case firms’ digital business models evolved by following effectuation logic as well as causal logic. All the firms employed causal logic when moving to new platforms, among other actions. The case firms used effectual logic with success for product development and adjustments to their network. Especially firms providing video games relied on effectuation for high impact products. Effectual logic did not play a role at all in changes to value delivery and had only little impact on revenue structures. Originality/value This research helps understand how digitalization of platforms and subsequent moves to newer digital platforms improve a firm by changing the business model elements through effectuation and causation logics. This research extends the understanding of digital business model transformation to a more granular level, business model elements.

scholarly journals The evolution of facility management business models in supplier-client relationships

2018 ◽  
Vol 16 (1) ◽  
pp. 38-53 ◽  
Author(s):  
Giulia Nardelli ◽  
Risto Rajala
Keyword(s):  
Business Model ◽  
Business Models ◽  
Innovation Process ◽  
Facility Management ◽  
Business Model Innovation ◽  
Structured Interviews ◽  
Content Type ◽  
Client Relationships ◽  
New Thinking ◽  
Over Time

Purpose The purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client relationships in facilities management (FM) services. Design/methodology/approach This study of FM services in Denmark consists of an explorative case study and three case studies of FM clients. Both phases, related and overlapping, involved collection and analysis of in-depth, semi-structured interviews and archive data. Findings Findings show that business model innovation entails interorganisational collaboration across different phases of the innovation process. The research demonstrates that external orientation within FM service ecosystems involves both a reaction to changes in the external environment and the proactive involvement of stakeholders throughout business model innovation. Research limitations/implications The selection of business model innovation processes was limited to the Danish context. The sample, although heterogeneous and representative, represented only a fraction of the total population, which may have excluded processes of business model innovation that contradict the research. Practical implications This paper suggests that by observing the business models of the value network over time, organisations could learn from the interdependencies between intra- and interorganisational stakeholders, thereby supporting the monitoring of risks and uncertainties as well as the anticipation of potential consequences of changes in the ecosystem. Originality/value This paper introduces new thinking on the subject of business model innovation to the context of FM. It presents the external orientation of FM business models as a way to combine planned and emergent business model innovation through interorganisational collaboration and value creation in FM ecosystems.

scholarly journals The Creative Business Model Canvas

2020 ◽  
Vol 16 (2) ◽  
pp. 141-158
Author(s):  
Michelle Carter ◽  
Chris Carter
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Environment ◽  
Social Enterprises ◽  
Value Proposition ◽  
Visual Artists ◽  
Structured Interviews ◽  
Content Type ◽  
Business Model Canvas ◽  
Symbolic Value

Purpose Creative and cultural producers, like social enterprises, operate in a complex business environment where the value proposition is difficult to define, and the organisational motivations are not always financially driven. In the case of Australian visual artists, low incomes and limited access to government funding magnify the importance of developing sustainable business models. This paper aims to present the Creative Business Model Canvas (CBMC), a reinterpretation of Osterwalder and Pigneur’s CBMC (2010), for the benefit of a visual artist’s business planning. Design/methodology/approach This qualitative study uses data from semi-structured interviews to analyse and evaluate the effectiveness of the Osterwalder and Pigneur’s BMC (2010) for use by creative artists to understand the value of their artwork beyond traditional profit-driven business models. A modified canvas is presented to capture a clearer snapshot of creative arts practice with a focus on value propositions that possess dimensions of symbolic value. Findings This study found that the symbolic value of an artist’s practice is difficult to capture using Osterwalder and Pigneur’s CBMC (2010). An artist value proposition is composed of the artifact, artistic services and the artist’s identity. The creative CBMC, as a modified CBMC, captures aspects of the artistic identity such as professional achievements, personal life and the artist’s authenticity. Originality/value This study builds on Osterwalder and Pigneur’s CBMC and reimagines it for use by visual artists and art-based social enterprise organisations where the notion of value can be challenging to articulate.

Managing business model innovation: an innovative approach towards designing a digital ecosystem and multi-sided platform

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nino Bernd Hoch ◽  
Stelian Brad
Keyword(s):  
Business Model ◽  
Business Models ◽  
Design Science ◽  
Digital Technologies ◽  
Business Model Innovation ◽  
Added Value ◽  
Structured Interviews ◽  
Behavioural Science ◽  
Content Type ◽  
Digital Ecosystem

PurposeThis study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within business models has increased dramatically in recent years. Because of this, new knowledge on how to transform traditional business models into digital business models in a systematic way is needed. Digital technologies, embedded in previously non-digital goods, force companies to rethink their business models.Design/methodology/approachA design science research methodology was chosen for this study. A literature review and semi-structured interviews served as the theoretical foundation to integrate behavioural science into the design science process. From the design science perspective, an artefact is introduced to provide an architectural framework to manage business model innovation in a systematic way. The artefact's application is demonstrated through a case study conducted at a real company and evaluated afterwards by means of structured interviews with experts.FindingsThe authors propose a highly useable and valuable conceptual framework for systematic business model innovation. However, one limitation of the research is that it was conducted among construction professionals in Germany, and so the result might not hold true for other firms or industry branches.Research limitations/implicationsThe research was conducted among construction professionals in Germany, and this acts as a limitation, as the result might not hold true for other firms or industry branches.Originality/valueThe purpose of this study is to provide managers with a framework for business model innovation, helping them systematically integrate digital technologies to create customer-added value. The proposed framework presents an innovative conceptual analysis of systematic business model innovation, which has not been addressed in prior studies.

Crowdfunding cultural projects and networking the value creation

2019 ◽  
Vol 9 (2) ◽  
pp. 235-254
Author(s):  
Caterina Foà
Keyword(s):  
Social Media ◽  
Community Engagement ◽  
Cultural Values ◽  
Business Model ◽  
Value Creation ◽  
Value Chain ◽  
Business Models ◽  
Structured Interviews ◽  
Content Type ◽  
Business Model Canvas

Purpose The purpose of this paper is to investigate how online crowdfunding is strategically applied to artistic productions featuring strong social and cultural values, exploring potential and risks of networking value creation and community engagement. Mission-driven initiatives and their crowdfunding campaigns are analyzed through platform society framework (van Dijk, 2019), considering the business models and marketing strategies that support the scope and intentions of a variety of agents involved within the online networks. Design/methodology/approach A qualitative multiple case-study approach is adopted to sample and analyze in depth significant examples from the most representative crowdsponsoring platforms in Portugal. Agents’ perspectives and practices are collected through semi-structured interviews with campaign creators and platform managers, and complemented by the design of specific business model canvas (Osterwalder and Pigneur, 2010) adapted to crowdfunding projects. Communication strategies and social media marketing are considered, metering agent’s profile and comparing performance and online engagement through profile and official pages observation. Findings Main findings point out that a crowdfunding campaign requires to set up a specific business model and marketing strategy articulation that go beyond the traditional cultural enterprises differentiation criteria, hybridizing them through experience-led marketing logic, extended product conceptualization and a critical cultural entrepreneurship approach. Community engagement operations need to be structured and integrated through online and offline social networks activities, and the value creation is build through shared meaning construction and interpretation between creators and backers, with the support of others agents involved within crowdfunding value network. It also states that the conceptualization of crowdfunding phenomenon as a service ecosystem (Quero and Ventura, 2019) could be extended, to comprehend other actors and power position within intermediation processes, namely, social network and social media platforms corporations, online payments services, online users, legacy media entities and others stakeholders as matchfunding organizations and partners for products’ development and distribution. Research limitations/implications The research design could be improved by adding more quantitative and social analytics data or an international cases comparison to complete these preliminary results. Practical implications The findings could assist arts and media managers as well as cultural agents to adapt their strategies to emergent business and marketing models, strongly influenced by dominant barging positions in the value chain held by new digital intermediaries, and to better explore product levels to strengthen interactions and engagement with communities of interest and supporters for the creation of value. Social implications This paper contributes to elaborate a more accurate scientific knowledge and critical perspective about crowfunding system evolution, concerning both individual and collective agencies, and their implication for different types of agents and networked individuals between institutions (Dutton, 2009). Originality/value This study is unique, as it adopts a multidisciplinary approach and a comprehensive analysis of Portuguese crowdsponsoring phenomenon, and it offers a valid contribution to the analysis of crowdfunding as value-creation network.

scholarly journals Angel investors’ predictive and control funding criteria

2018 ◽  
Vol 20 (1) ◽  
pp. 34-56 ◽  
Author(s):  
James M. Crick ◽  
Dave Crick
Keyword(s):  
Decision Making ◽  
Business Model ◽  
Business Models ◽  
Management Teams ◽  
Specific Reference ◽  
Structured Interviews ◽  
Content Type ◽  
And Control ◽  
Start Ups ◽  
Angel Investors

PurposeThis study aims to investigate the question involving what factors affect angel investors’ decision-making in funding new start-ups with specific reference to their evolving business models. Without funding and access to networks and experience, certain entrepreneurs will not get their business model through the start-up phase.Design/methodology/approachData arise from 20 semi-structured interviews with angel investors in New Zealand plus supplementary interviews with business incubator managers and textual data.FindingsThe findings suggest a degree of causation-based decision-making, in that certain linear thinking was evident. The implication is that, without the ability of the entrepreneurs to convince the investors about key criteria in their decision-making, investment is unlikely. Nevertheless, a degree of effectuation-based decision-making was also evident, the implication being investors having to balance risk/reward decisions in the context of their own perceptions of affordable losses against an evolving business model. However, angel investors may take on co-investment, including from overseas, that takes decision-making away from management teams.Originality/valueThe study draws attention to the need to consider entrepreneurial ecosystems in angel investor’s decision-making and especially those with a small domestic market that may require management teams to look for scalability internationally. Furthermore, an effectuation lens contributes to knowledge in respect of predictive and control criteria, in particular, assessing risks and rewards against affordable losses involving an evolving business model.

How to harnesses digital technologies for pursuing business model innovation: a longitudinal study in creative industries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anjar Priyono ◽  
Baziedy Darmawan ◽  
Gunawan Witjaksono
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Digital Technologies ◽  
Business Environment ◽  
Business Model Innovation ◽  
Creative Industries ◽  
Future Research ◽  
Developed Country ◽  
Content Type

Purpose This study aims to investigate how manufacturing firms in the creative industries harness digital technologies to undertake business model innovation. Design/methodology/approach This study used in-depth case studies to examine the complex interplay between digital technologies and business model innovation. A longitudinal approach was selected to capture major events both within the firm and in the business environment. Building on the firm’s archival data, interviews and secondary data that was available to the public, the authors carefully analyzed impactful digital technology events and the firm’s responses to the technological changes that occurred over the period of 2004–2020. Findings The findings suggest that digital technologies alone are not sufficient for business model innovation to be successful; support from sociotechnical factors is also required. Additionally, firms should reinvent a new business model when the existing ones seem to start to diminish. Research limitations/implications In this study one firm was examined as the subject, using a qualitative method. This method allowed us to observe complex interplays among the resources required in business models. Future research can combine qualitative methods with computational case studies, which utilize a large volume of quantitative big data. Practical implications The results of this study suggest that managers must ensure that the resources within and outside organizations are loosely connected and are readily available to be mobilized for supporting business model innovation. To enable this, managers must prepare the required resources in advance. Originality/value The current findings add to a growing body of literature on business model innovation and digital technologies. In particular, this study describes the process of how a traditional firm from a least developed country pursues business model innovation with the support of digital technologies.

Revenue management: the ever changing landscape and the need to innovate

2016 ◽  
Vol 8 (4) ◽  
pp. 461-468
Author(s):  
Prasenjit Guha Thakurta
Keyword(s):  
Revenue Management ◽  
Supply And Demand ◽  
Optimal Solution ◽  
Holistic Approach ◽  
Structured Interviews ◽  
Content Type ◽  
Service Excellence ◽  
Alternative Approach ◽  
Time Requirements ◽  
The Impact

Purpose The purpose of this study is to explore the relationship between the real time requirements of guests and efforts made by hoteliers to optimize revenue and guest service excellence. Design/methodology/approach Prior studies have demonstrated the impact of room rates on profitability. The majority of these studies assumed an algebraic relationship between room rates and room demand to obtain the optimal solution by applying calculus to the revenue or profit function. This study adopts an alternative approach by seeking to better understanding the ever changing needs of hotel guests and how their behavior patterns have evolved over time together with innovative approaches that revenue managers need to adopt to optimize revenue. In today’s environment, revenue management has evolved into a more holistic approach and the study assimilates information from senior professionals from a range of hotels in India based on semi-structured interviews. Findings Revenue management is no longer about forecasting supply and demand based on historical data. This paper yields insights on emerging areas of importance for revenue management and advocates a systematic approach that hoteliers can adopt and apply to every department to secure a bigger impact on revenue management. Practical implications The findings can be used by hoteliers to fine-tune the room rates determined by conventional methods to arrive at a realistic and definitive value for optimal room rates. Originality/value This study highlights the issues that arise from viewing revenue management in isolation and it also considers innovative, customer-focused ways to optimize revenues.

Gaining competitive advantage through the right business model: analysis based on case studies

2016 ◽  
Vol 9 (2) ◽  
pp. 138-155 ◽  
Author(s):  
Anish Purkayastha ◽  
Sunil Sharma
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Research Question ◽  
Service Innovation ◽  
Research Approach ◽  
Strategic Decisions ◽  
Content Type ◽  
Inductive Research

Purpose – The purpose of this paper is to report on an inductive research that analyzes the unique decisions of three firms that shape their business model and, consequently, provide a competitive advantage. Design/methodology/approach – Given the paucity of prior research on the effect that a firm’s business model has on its competitive advantage, addressing the research question warrants an in-depth qualitative study. The study requires explicitly capturing decisions from a firm’s chosen business model and how these decisions are linked to its competitive advantage. The authors take on an inductive research approach to study three longitudinal case studies of organizations that have either successfully implemented their adopted business model or are implementing unique business models. Findings – First, the authors identify nine different theoretically grounded propositions based on decisions taken by the firms the authors studied, which shape their business model and give them a competitive advantage. Second, the authors look at these decisions in an integrated manner and categorize these into structural decisions and strategic decisions. Third, the authors extend an existing line of thought that predominantly views the business model as complementary to a firm’s product or service innovation. The authors emphasize on the criticality of the business model as a higher level construct formed from multiple structural and strategic decisions that, eventually, become a source of competitive advantage. Originality/value – The findings help to identify a possible theoretical explanation of newer forms of organization, evolving from product, process or service innovation, combined with their unique business model. They help in guiding practitioners to identify sources of competitive advantage through the innovative business models.

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