Business model performance: five key drivers

2017 ◽  
Vol 38 (2) ◽  
pp. 6-15 ◽  
Author(s):  
Meyer Haggège ◽  
Caroline Gauthier ◽  
Charles-Clemens Rüling
Keyword(s):  
Business Model ◽  
Dynamic Performance ◽  
Theoretical Perspective ◽  
Model Performance ◽  
Content Type ◽  
Dynamic View ◽  
Performance Drivers ◽  
Key Drivers ◽  
Firm’S Life Cycle ◽  
Model Components

Purpose The purpose of this paper is to help readers to better understand and manage the key drivers of business model performance. Design/methodology/approach This paper investigates research on business model performance to identify and illustrate five static and dynamic performance drivers. Findings While performance mechanisms linked to traditional business model components remain instrumental for business model success, the authors argue that managers need to adopt a more dynamic view, emphasizing how changing combinations of drivers matter over a firm’s life cycle. Originality/value The proposed approach combines insights from multiple theoretical perspective into an actionable framework for management practitioners.

Investigating microblogging addiction tendency through the lens of uses and gratifications theory

2018 ◽  
Vol 28 (5) ◽  
pp. 1228-1252 ◽  
Author(s):  
Qian Li ◽  
Xunhua Guo ◽  
Xue Bai ◽  
Wei Xu
Keyword(s):  
Causal Relationship ◽  
Uses And Gratifications ◽  
Theoretical Perspective ◽  
Research Model ◽  
Negative Consequences ◽  
Psychological Outcome ◽  
Content Type ◽  
Different Types ◽  
Key Drivers ◽  
Practical Implications

Purpose Considering the popularity and addictive attributes of microblogging, the purpose of this paper is to explore the key drivers of the microblogging addiction tendency, and to investigate the causal relationship between microblogging usage and addiction tendency through the lens of the uses and gratifications (U&G) theory. Design/methodology/approach By extending the U&G theory to accommodate the negative consequences of gratification, a research model that explains the relationships among microblogging use, gratification and addiction tendency was developed and empirically examined based on the data collected from 520 microblogging users in China. Findings The results showed that different types of microblogging use lead to different categories of gratification to different extents, while different categories of gratification play different roles in determining the level of addiction tendency. Specifically, the effect of content gratification on addiction is marginal, while social gratification has significant effects on all dimensions of addiction tendency. Originality/value The present study has both theoretical and practical implications. From a theoretical perspective, unlike many previous studies applied the U&G theory to explore the positive outcomes of media uses, this paper extends the U&G by including addiction tendency as a negative psychological outcome of U&G., resulting a research framework (use-gratification-addiction framework). Meanwhile, this paper contributes to the extending literature by examining the constructs of U&G at a granular level and investigated the causal relationship between “uses” and “gratifications.”

scholarly journals A passenger-centred model in assessing airport service performance

2019 ◽  
Vol 14 (2) ◽  
pp. 492-520 ◽  
Author(s):  
Dedy Wiredja ◽  
Vesna Popovic ◽  
Alethea Blackler
Keyword(s):  
Dynamic Performance ◽  
Service Performance ◽  
Content Type ◽  
Proposed Model ◽  
Service Areas ◽  
Airline Passengers ◽  
Design Requirements ◽  
Model Components ◽  
Service Factors ◽  
Passenger Terminals

Purpose Assessing airport service performance requires understanding of all passenger processing and discretionary activities at airport passenger terminals – a need that has not yet been addressed in the research to date. This paper aims to address this shortcoming in evaluating overall airport service based on passenger experience from departure to arrival. Design/methodology/approach Comparative analysis over 40 airport models, including their indicators and configuration of service measures, was undertaken in a previous work to identify key-design requirements in assessing airport service performance based on passenger experience (Wiredja et al., 2015). Based on these requirements, this paper constitutes the development of a passenger-centred model covering all service areas from departure to arrival terminals. The newly developed model is then examined using factor and regression analyses by involving 215 airline passengers from 22 world’s international airports. Findings Overall service performance is understood as a function of combined sub-performances of two groups of airport domains: processing domains and non-processing domains. The overall result demonstrated that the two sets of service factors and their relevant attributes had significant impact on overall service performance at processing and non-processing domains. Research limitations/implications The proposed model applies a set of dynamic performance measures that provide flexibility. These measures are adjustable depending on the needs. Adding or replacing measures defines the specificity of the domains and performances assessed. The model components can be modified in respective service attributes when passenger needs or priorities change. The only constant component is user-centred indicators (in this research, Passenger-centred indicators). Originality/value This research has generated new insights and knowledge that directly contribute to the assessment of airport service performance. The novelty of this research is the development of a passenger-centred approach in evaluating overall airport service based on passenger experience. This passenger-driven model provides a more integrated and robust approach in this field than previously available.

Business model innovation from the strategic posture perspective

2018 ◽  
Vol 30 (1) ◽  
pp. 38-65 ◽  
Author(s):  
Oussama Ammar ◽  
Philippe Chereau
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Dynamic Consistency ◽  
Strategic Choices ◽  
Content Type ◽  
Strategic Posture ◽  
Adaptive Cycle ◽  
Path Dependent ◽  
Model Components

Purpose This paper aims to identify the differentiated paths followed by firms to innovate in business models, among four different strategic postures and also to determine the innovation interactions between business model components, among strategic postures. The authors intend to highlight the differentiated patterns of business model innovation (BMI) in each strategic posture and provide guidance to small and medium enterprises (SMEs) managers regarding the suitable alignments of business model components when they innovate in their business model. Design/methodology/approach The research model developed and tested in this work uses a composite model that borrows from the logic of Miles and Snow’s cycle of adaptive strategic choices as well as Demil and Lecocq’s perspective of permanent change within and between components of a business model. The authors’ model is designed first to encompass the differentiated patterns characterizing the relationships between the strategic posture of defender, prospector and analyzer profiles and the related innovation attributes of their business model components. The study was conducted with independent French manufacturing SMEs ranging from 10 to 250 employees in size and having revenues below €50m (European Commission, 2007). The analysed sample includes 169 firms from 14 sectors representative of French manufacturing SMEs. Findings Results confirm the differentiated propensity to adopt specific BMI behaviours among strategic postures. The authors also highlight the differentiated interactions between and within BMI components. These results suggest that SMEs tend to leverage specific BMI components related to their entrepreneurial, engineering and administrative choices. Thus, firms tend to evolve in a posture-specific, path-dependent dynamic consistency in which BMI attributes interact towards a limited set of alternatives, thus anchoring the new business model into strategic choices. It has been shown that the predictability of strategy–BMI alignment is contingent on the level of fit between empirically derived strategic profile attributes and Miles and Snow’s ideal profile attributes. Research limitations/implications This paper investigates strategy–BMI alignments without addressing such alignments from the standpoint of firm performance. Still, performance from a BMI perspective lies in the ability of the firm to sustain the dynamic consistency of its business model components by identifying the effects of change in interactions between and within components on overall BM performance. Further studies should explore dynamic consistency as a means for firms to generate and maintain performance by innovating in their business model when facing specific contingencies. The conceptual framework designed for the present research seems appropriate for conducting such an investigation on the performance implications of strategy–BMI fit. Practical implications This research offers insights regarding manufacturing SMEs seeking guidance when changing business strategy. Indeed, by combining Miles and Snow’s configurational framework of strategic postures with Demil and Lecocq’s RCOV BM framework, the authors provide insights that can bridge the gap between intended strategy and realized strategy. The authors suggest that when realizing new strategic choices, SMEs should favour behaviours of BMI that are likely to fit the new intended strategic posture. Accordingly, the authors introduce a set of field-based BMI alignments specific to firms’ strategic posture to support the strategic management of innovation in SMEs. Originality/value By unravelling the alignments between strategic posture and business model innovation, this work contributes to enlightening the dynamics of Miles and Snow’s adaptive cycle. Indeed, viewing Miles and Snow’s typology from the configurational perspective of BMI provides a clearer picture of the adaptive cycle through which BMI reflects the path-dependent process of the formation of the firm’s strategic posture through the transformation of its business model.

Towards a strategic innovation framework to support supply chain performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Milton M. Herrera ◽  
Johanna Trujillo-Díaz
Keyword(s):  
Supply Chain ◽  
Performance Management ◽  
Policy Design ◽  
Dynamic Performance ◽  
Operation Performance ◽  
Content Type ◽  
Strategic Innovation ◽  
Systemic Intervention ◽  
Performance Drivers ◽  
The One

PurposeThis paper aims to determine how a strategic innovation framework that integrates the concepts of innovation function, dynamic performance management (DPM) and system-dynamics (SD) modelling can measure performance in a supply chain (SC).Design/methodology/approachThe paper provides a strategic innovation framework for an SC by considering three steps. First, a systemic intervention is presented based on the innovation functions that influence SC performance. Second, an analysis of the system's performance is proposed. Third, a model SD-based simulation is designed. The developed framework is explained by employing a case study of the Colombian pig sector SC.FindingsThe results reveal that identifying and synchronising the system's performance drivers associated with the innovation functions could improve the inventory in the SC.Practical implicationsOn the one hand, managers can use the proposed framework to evaluate the innovation investments and understand their impact on operation performance (e.g. on inventories). On the other hand, policymakers may support decision-making to improve policy design (e.g. through investment in R&D).Originality/valueFew studies discuss the impacts of innovation functions on SC performance. This paper aims to fill this theoretical gap and to contribute to the literature by suggesting a novel framework which includes innovation functions.

The interplay between brand and business model architectures:a conceptual grid

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Logman
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Content Type ◽  
Cyclical Process ◽  
Conceptual Paper ◽  
Management School ◽  
Theory Generation ◽  
Research Domains

PurposeThis conceptual paper studies how brand and business model architectures interact.Design/methodology/approachConfronting the literature on brand and business model architectures, a “problematizing review” perspective is taken in this article. To develop the conceptual framework, a cyclical process of theory generation based on a literature review and empirical evidence is used. Various interaction options between a brand and business model architecture are discussed in detail and illustrated with practical examples.FindingsThe conceptual grid allows positioning each brand and business model architectural move in a coherent way, emphasizing the alignment challenges of each positioning option. This study also sheds another light on “dynamic capabilities,” as companies not only need to mix, remix and orchestrate business model architecture decisions, but at the same time align these decisions with brand architecture decisions.Originality/valueBy confronting and integrating two research domains, a novel higher-order theoretical perspective is obtained. In this sense it contributes to a management school of thought that is more integrative and deals better with today's more complex and dynamic reality, in which business model and brand decisions cannot be taken independently.

The role of moral transaction mode for sustainability of banking business

2017 ◽  
Vol 44 (12) ◽  
pp. 2238-2256 ◽  
Author(s):  
Sirajo Aliyu ◽  
Rosylin Mohd Yusof ◽  
Nasri Naiimi
Keyword(s):  
Business Model ◽  
Well Being ◽  
Sustainable Business ◽  
Term Survival ◽  
Content Type ◽  
Proposed Model ◽  
Banking Business ◽  
Model Components ◽  
The Impact

Purpose The purpose of this paper is to propose the use of Islamic moral transaction mode as a moderator in sustainable Islamic microfinance banks (IMFBs) business model. Design/methodology/approach The paper highlighted the major issues of microfinance banks in Nigeria and presented an integrated model that will suffice the long-term survival of the institution. Moreover, regression analysis is also employed to examine the impacts of financial outreach on the Nigerian economic growth. Findings The authors find that Islamic moral transaction mode will moderate the sustainable Islamic banking business which can influence the sustenance of IMFBs and the well-being of the society through financial outreach. Research limitations/implications The paper has empirically tested the impact of financial outreach on growth, and suggested future studies to investigate the existing relationships among the proposed model components. Therefore, further studies have the opportunity to develop measurements that will guide in testing the model, as well as strengthening its components. Practical implications Implementing this model will enhance the sustainability of IMFBs and socio-economic well-being of the society through financial outreach. Consequently, this study also suggests other policy measures that will improve the sustenance of IMFBs and the society as a whole. Originality/value The paper contributes to the existing literature of microfinance banks by linking the components of the sustainable business model to primary evidence of Sharia coupled with an in-depth link to generosity.

A business model analysis of Kmart’s downfall

2019 ◽  
Vol 47 (2) ◽  
pp. 111-128
Author(s):  
Humberto A. Brea-Solís ◽  
Emili Grifell-Tatjé
Keyword(s):  
Business Model ◽  
Model Performance ◽  
Index Number ◽  
Dominant Position ◽  
Content Type ◽  
Frontier Analysis ◽  
Index Number Theory ◽  
The Empirical Analysis ◽  
Practical Implications ◽  
Correct Implementation

Purpose The purpose of this paper is to understand how a major retailer like Kmart lost its dominant position in the American retail industry. Design/methodology/approach This paper contains a decomposition of profit change into meaningful economic drivers using a methodology that combines frontier analysis with index number theory. The empirical analysis is complemented with a description of Kmart’s business model produced from corporate documents and other sources. Findings A quantification of Kmart’s business model performance expressed in monetary terms. This assessment is presented by CEO tenures showing the contribution of different economic drivers to the evolution of profits. Practical implications The study’s empirical results highlight the importance of the correct implementation of all aspects of the business model in order to achieve success. Originality/value This paper presents a new empirical framework to assess business model performance. Despite Kmart’s important role in American discount retailing history there have been very few studies that have analyzed its downfall. This paper contributes by filling that gap.

scholarly journals Business model innovation drivers as antecedents of performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salvatore Ammirato ◽  
Roberto Linzalone ◽  
Alberto Michele Felicetti
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Design Methodology ◽  
Business Model Innovation ◽  
Point Of View ◽  
Innovation Performance ◽  
Theoretical Point ◽  
Content Type ◽  
Strategic Process ◽  
Performance Drivers

Purpose The innovation of business model (BM) is a strategic process for many firms, from which depends competitiveness and sustainability. Despite its theoretical relevance in management sciences, research on business model innovation is in its infancy and lacks of research consistency and theoretical connections to the theme of “performance”. With the aim to contribute in bridging this gap, this paper aims to identify and analyse drivers of business model innovation performance. Design/methodology/approach This research is based on an integrative literature review methodology. Findings BMI performance drivers are conditions related to various dimensions (i.e. processes, resources, market, BM structure, etc). that, when fulfilled, allow the BMI to have higher performance. BMI performance drivers are antecedents of BMI performance, and their identification is of both theoretical and practical value. The authors find and report a set of 35 BMI performance drivers. Originality/value The value of this research is both theoretical and practical. From a theoretical point of view, the identified “Business Model Innovation performance drivers” define and identify a variable of BMI performance, from a practical perspective, and they provide a comprehensive set of key conditions whose attainment should be planned, pursued and monitored by managers.

Business model innovation as a turnaround strategy

2020 ◽  
Vol 13 (2) ◽  
pp. 241-253
Author(s):  
Masoumeh Hosseinzadeh Shahri ◽  
Maryam Nematollahi Sarvestani
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Model Innovation ◽  
Point Of View ◽  
Content Type ◽  
Semistructured Interviews ◽  
Turnaround Strategies ◽  
Business Practitioners ◽  
Model Components ◽  
Practical Implications

PurposeThe purpose of this research is to determine the firms, innovations in the cases that have successfully overcome a decline and also to assess whether these innovations can be considered as business model innovations.Design/methodology/approachIn this paper, the data was collected from analyzing four case studies in different businesses through semistructured interviews with relevant internal experts.FindingsThe findings revealed that the innovation that had been taken was related to the constructs of their existing business model. Therefore, the business model innovation functions as a critical practice of turnaround strategy in the decline period.Research limitations/implicationsThe article provides the most important business model constructs in each business through which the related firm could overcome a decline in their life cycle. Since this paper has been studied in different unrelated businesses and due to the qualitative research nature, generalization cannot be ensured.Practical implicationsFrom the practical and managerial point of view, this article is useful as it defines the most important business model components in each industry and based on it, the similar companies can do innovation in their business model. It also helps the related companies in the same industry to develop and design their specific turnaround strategies.Originality/valueSo far, rare research has seen business model innovation as a turnaround strategy, and it can be claimed that till now, no research has been conducted in Iran in this context. Therefore, the business practitioners can employ innovation on the components of their existing business model to overcome a decline.

Transforming SNCF’s business model through the evolution of participative innovation routine

2016 ◽  
Vol 28 (4) ◽  
pp. 467-485 ◽  
Author(s):  
Carine Deslée ◽  
Oussama Ammar
Keyword(s):  
Business Model ◽  
Business Models ◽  
Evolutionary Dynamics ◽  
Organizational Routines ◽  
Model Concept ◽  
Content Type ◽  
Railway Company ◽  
Contextual Elements ◽  
Model Components ◽  
Over Time

Purpose Many barriers prevent firms from changing their business models. Inertia, as it accumulates over time, transforms into organizational routines that doom change; however, it can also be a source of organizational flexibility. How does a business model evolve in interaction with organizational routines? This paper aims to study the interactions between forms of participative innovation (PI) and existing business models. Design/methodology/approach The exploratory approach includes interviews, participant and non-participant observations and archive analysis. It adapts an existing framework, based on the notion of scripts, to the evolutionary dynamic of organizational routines at the French railway company SNCF. The analysis of a set of contextual elements clarifies events over time and interactions between PI and the company’s business model. Findings The empirical insights indicate how existing routines can help reinvent business models. Business model components evolve along the transformation phases of PI. The case reveals co-evolutionary dynamics: evolution of the organizational routine from bureaucratic suggestion, to structured innovation, to PI leads to the transformation of the business model from functionalist, to customer-centric, to open business model. Practical implications Firm managers can think more proactively about how to reinvent established business models by innovating their existing routines, according to the position and role of routines, shifting from sources of rigidity and inertia to levers for innovation and change. Originality/value The business model concept serves as a prism of analysis for organizational routines. Organizational routines are sources of flexibility, strategic renewal and business model reinvention.

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