Outside-in thinking, value chain collaboration and business model innovation in manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liang Wu ◽  
Heng Liu ◽  
Yongchuan Bao
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Government Regulation ◽  
Market Competition ◽  
Manufacturing Firms ◽  
Business Model Innovation ◽  
Content Type ◽  
Market Opportunities ◽  
Key Driver ◽  
Technology Managers

Purpose This paper aims to explore how manufacturing firms pursue business model innovation (BMI) through their use of outside-in thinking. Design/methodology/approach Survey data were collected on 175 Chinese manufacturing firms. A regression model was used to verify the research results. Findings Manufacturing firms rely on outside-in thinking to develop BMI under different market and institutional environments. From a whole-value-chain perspective, interacting with customers and sharing information with suppliers are two key ways to develop BMI. Research limitations/implications Firms focus on customer needs, sense the dynamics of external markets and technology and seize market opportunities to measure outside-in thinking. Empirical results suggest using other measures of outside-in thinking. BMI itself can be multidimensional, so scholars could consider BMI’s diverse dimensions and measurements, which may demand different kinds of outside-in thinking. Practical implications Manufacturing firms can use outside-in thinking to overcome inertia and rigidity and increase their knowledge, information and technology. Managers should develop outside-in thinking to respond quickly to emerging economies. Managers should use value chain collaboration and improve the firm’s capacity to interact with customers and suppliers to apply the benefits of outside-in thinking to their BMI. Originality/value The study explores how outside-in thinking is a key driver of BMI. Applying the whole-value-chain view, it finds that interacting with customers and suppliers connects outside-in thinking with BMI. It also highlights the effects of intense market competition and volatile government regulation on BMI.

Business model innovation canvas: a visual business model innovation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuran Jin ◽  
Shoufeng Ji ◽  
Li Liu ◽  
Wei Wang
Keyword(s):  
3D Printing ◽  
Business Model ◽  
Innovation Process ◽  
Theory Model ◽  
Business Model Innovation ◽  
Mass Selection ◽  
Unified Framework ◽  
Content Type ◽  
Innovation Model ◽  
First Time

PurposeMore and more enterprises have realized the importance of business model innovation. However, the model tools for it are still scarce. There is a clear research gap in this academic field. Therefore, the aim of this study is to put forward a visual business model innovation model.Design/methodology/approachThe scientific literature clustering paradigm of grounded theory is used to design business model innovation theory model (BMITM). BMITM and the business model innovation options traced back from 870 labels in the grounded process are integrated into a unified framework to build the business model innovation canvas (BMIC).FindingsBMIC composed of three levels and seven modules is successfully developed. 145 business model innovation options are designed in BMIC. How to use BMIC is explained in detail. Through the analysis of innovation hotspots, the potential business model innovation directions can be found. A new business model of clothing enterprises using 3D printing is innovated with BMIC as an example.Research limitations/implicationsCompared with the previous tools, BMIC owns a clearer business model innovation framework and provides a problem-oriented business model innovation process and mechanism.Practical implicationsBMIC provides a systematic business model innovation solution set and roadmap for business model innovation practitioners.Originality/valueBMIC, a new tool for business model innovation is put forward for the first time. “Mass Selection Customization-Centralized Manufacturing” designed with BMIC for the clothing enterprises using 3D printing is put forward for the first time.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

scholarly journals The middle manager in search of business model innovation

2019 ◽  
Vol 40 (4) ◽  
pp. 3-10 ◽  
Author(s):  
Sergejs Groskovs ◽  
John P. Ulhøi
Keyword(s):  
Business Model ◽  
Continuous Process ◽  
Organisational Change ◽  
Business Model Innovation ◽  
Middle Manager ◽  
Content Type ◽  
Strategic Renewal ◽  
Model Search ◽  
Practical Guidelines ◽  
Major Transformation

Purpose It does not always take a heroic CEO to initiate a major transformation such as business model innovation. A middle manager with a personal drive and a sense of need for change may well jump-start this process. This paper aims to offer a simple framework and a set of practical guidelines for engaging the broader organisation in business model search and change activities. Design/methodology/approach This paper draws on research in entrepreneurship, organisational change and strategic renewal; develops a set of managerial guidelines; and illustrates those with practical examples. Findings Business model innovation is an iterative, dynamic and continuous process of search and change activities. Key practical guidelines to manage this process include understanding the environment, ensuring resources and funding, engaging entrepreneurial individuals, committing senior management, firm orchestration of the change process and involvement of middle management and employees. Practical implications The framework allows for structuring a business model innovation and offers key guidelines for the journey, thus enabling an entrepreneurial middle manager to lead the effort. Originality/value Despite that business model innovation is normally considered the domain of the CEO, this paper shows that middle managers can also play a key role in the process. The value of the paper lies in the simplicity and practicality of the framework.

Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

2019 ◽  
Vol 13 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Suqin Liao ◽  
Zhiying Liu ◽  
Lihua Fu ◽  
Peichi Ye
Keyword(s):  
Business Model ◽  
Distributed Leadership ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
High Tech ◽  
Strategic Flexibility ◽  
Environmental Dynamism ◽  
Content Type

PurposeThe purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.Design/methodology/approachA survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.FindingsThe analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.Originality/valueThis paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

Business model innovation: past research, current debates, and future directions

2017 ◽  
Vol 10 (3) ◽  
pp. 342-359 ◽  
Author(s):  
Mokter Hossain
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Current Knowledge ◽  
Past Research ◽  
Business Model Innovation ◽  
The Body ◽  
Future Research ◽  
Content Type ◽  
Body Of Knowledge

Purpose The purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research. Design/methodology/approach A systematic literature review approach was adopted with thematic analysis being conducted on 92 articles. Findings The body of knowledge for this concept is in its infancy and is highly fragmented. This study therefore attempts to consolidate this fragmented knowledge. It reveals dominant themes, establishes coherence, and identifies conflicting arguments in the current literature. It also points out gaps in the research and highlights new directions for research. Research limitations/implications This study analyzed articles that were found based on a systematic literature review approach. Practical implications This study identifies some fundamental issues that managers need to understand regarding BMI. Originality/value The main value of this study lies in its synthesis of the current knowledge of BMI.

IBM's global CEO report 2006: business model innovation matters

2006 ◽  
Vol 34 (5) ◽  
pp. 34-40 ◽  
Author(s):  
George Pohle ◽  
Marc Chapman
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Content Type ◽  
Revenue Growth ◽  
Business Executives ◽  
Operating Margin ◽  
Operational Innovation ◽  
Study Participants

PurposeTo ascertain whether the choices CEOs were making about particular types of innovation and key enablers had any correlation with financial performance, IBM looked at a subset of our sample where publicly reported financial information was available.Design/methodology/approachThe findings in this report are based on in‐depth, consultative interviews on the topic of innovation with 765 CEOs, business executives and public sector leaders from around the world.FindingsFor a subset, the authors compared their financial performance to that of an industry‐accepted list of their nearest competitors (up to ten companies with similar revenue and publicly available information). Some of their competitors were CEO study participants, but most were not. By taking a five‐year view, the researchers were able to identify which companies outperformed and under‐performed the average revenue growth, operating margin growth and historical operating margins of their closest competitors.Research limitations/implicationsThroughout the analysis, IBM used these top‐half and bottom‐half groupings to look for notable financial correlations. In this report, the term outperformers refers to the study participants that are in the top 50 percent based on this competitive comparison, and under‐performers are those that fall in the bottom 50 percent.Practical implicationsThe authors report on how business leaders are seeking and finding new ways to adapt their business models to remain competitive in their current industry – or to seek growth by entering new industries.Originality/valueCompanies focusing on business model innovation have enjoyed significant operating margin growth, while those using products/services/markets and operational innovation have sustained their margins over time.

An empirical study of the relationship between inclusive leadership and business model innovation

2021 ◽  
Vol 42 (3) ◽  
pp. 480-494
Author(s):  
Yangchun Fang ◽  
Xinxing Dai ◽  
Xudong Zhang
Keyword(s):  
Employee Engagement ◽  
Business Model ◽  
Primary Source ◽  
Boundary Spanning ◽  
Business Model Innovation ◽  
Zhejiang Province ◽  
Inclusive Leadership ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

PurposeTo better understand factors that lead to business model innovation (BMI) in organizations, this study argues that inclusive leadership is the primary source that motivates employee engagement in boundary-spanning activities, which fosters BMI by generating and integrating employee knowledge through boundary-spanning exploration.Design/methodology/approachThis paper analyzes the relationships between inclusive leadership, boundary-spanning exploration and BMI to discover how they influence each other. This is achieved by a survey of more than 30 enterprises in Zhejiang Province, China. The survey data are analyzed using SPSS.FindingsInclusive leaders who display characteristics of openness, accessibility and availability have a positive effect on BMI and boundary-spanning exploration; openness and accessibility have more significant positive effect on BMI and boundary-spanning exploration.Research limitations/implicationsBecause this study covers only in Zhejiang Province, in China, the findings may not be easily generalizable to other contexts. Other factors, such as organizational structure and contextual characteristics, could also be added as antecedents in a future investigation. Moreover, the scales could be revised more suitable for China in the future.Practical implicationsThe empirical findings can be used as guidelines for firms seeking to take advantage of inclusive leadership and to help firms motivate their employees to engage in boundary-spanning exploration to acquire, generate and integrate knowledge from diverse sources to promote BMI.Originality/valueThis study provides insights that will be of value by adding to the theoretical foundation of our understanding of the antecedents to firms' BMI. This study argues that employees' boundary-spanning exploration is important to BMI as well. Inclusive leadership is crucial to stimulate boundary-spanning exploration by employees. Therefore, how to encourage inclusive leadership in firms is well worth examining.

The innovation ecosystem in rural tourism and hospitality – a systematic review of innovation in rural tourism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arun Madanaguli ◽  
Puneet Kaur ◽  
Alberto Mazzoleni ◽  
Amandeep Dhir
Keyword(s):  
Systematic Review ◽  
Business Model ◽  
Resource Sharing ◽  
Business Environment ◽  
Business Model Innovation ◽  
Rural Tourism ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Research Profile ◽  
Tourism And Hospitality

Purpose Innovation in rural tourism and hospitality (RT) is a complex process that involves the exchange of knowledge and resources between many actors and the interrelationships between those actors in the business environment. The purpose of this paper is to provide structure to this “knowledge and resource ecosystem” through a thorough systematic review of the extant literature. Design/methodology/approach The current study uses a time-tested and reproducible systematic literature review process to identify and analyse 79 research papers that have discussed innovation in RT. Findings Through content analyses, this review identifies critical stakeholders in the innovation ecosystem, as well as the enabling and hindering roles these stakeholders play in innovation. The thematic analysis uncovers three key research foci: stakeholders and their roles, outcomes of innovation and business model innovation. The review also identifies types of innovation and critically analyses the bibliographical research profile. The authors summarise the findings in an RT innovation ecosystem model, which includes the various actors and their knowledge and resource sharing roles within the business environment. Originality/value This is one of the first systematic reviews to concentrate on RT innovation and, within that focus, on knowledge and resource networks in particular rather than on innovation in tourism in general, which was the focus of prior reviews. The authors encourage cross-pollination of ideas by introducing theories from the strategic management, innovation, knowledge management and business model innovation literature wherever appropriate. To consolidate and present the findings on the innovation process’s antecedents and outcomes, the authors present an ecosystem of innovation within the RT framework.

Cultural Tourism O2O Business Model Innovation

2020 ◽  
pp. 406-423
Author(s):  
Chao Lu ◽  
Sijing Liu
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Business Model Innovation ◽  
Utilization Efficiency ◽  
The Internet ◽  
Enterprise Value ◽  
Model Research ◽  
The Social ◽  
Tourism Enterprises

It is absolutely not an accidental phenomenon that the development of Internet overlaps with boom of business model research. The emergence of the Internet has greatly promoted the development and study of business models. This paper focuses on exploration of O2O business model innovation by analyzing the main types, evolution and driving factors of Chinese Internet business model, taking Ctrip as the example. From the social prospective, O2O business model improves value and feeling of the customer experience as well as the operational efficiency of the enterprise value chain and utilization efficiency of social resources. This paper has also put forward what Ctrip can enlighten the development of tourism enterprises.

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