Government policy implications of intellectual capital: an Australian manufacturing case study

2015 ◽  
Vol 16 (2) ◽  
pp. 364-389 ◽  
Author(s):  
Göran Roos ◽  
Allan O'Connor
Keyword(s):  
Policy Implementation ◽  
Business Model ◽  
Intellectual Capital ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Potential Contribution ◽  
Manufacturing Firm ◽  
Content Type ◽  
Resource Deployment

Purpose – The purpose of this paper is to report on an industry policy implementation case involving around 30 manufacturing firms, where the intellectual capital (IC) lens, and especially the intellectual capital navigator (ICN) approach, was found to be very useful for evaluating alternative servitisation strategies. Servitisation is a form of business model innovation and as such involves restructuring the firm’s resource deployment system including its IC resources. Design/methodology/approach – The ICN was one of several methods and themes used by a sample of manufacturing firms during a 12 month period. Data capture were through video filming, observation, and formal interviewing during and after the interventions. Findings – The ICN is considered to be the third most valuable theme in a strategic and operational servitisation programme for manufacturing firms, primarily in the domain of effectiveness evaluation of alternative resource deployment strategies and as such should be one of the key dimensions in a business model template for manufacturing firms that aim to servitize. This research also illustrates the usefulness of the intellectual capital lens in the policy implementation process. Research limitations/implications – The findings of this study is limited to the servitization process of SME manufacturing firms in an Anglo-Saxon operating environment which very rapidly have gone from low to high cost. Originality/value – The development of service-oriented business models for manufacturing firms suffers due to traditional business model frameworks not having a high relevance for servitising manufacturing firm. Consequently it is important to understand the potential contribution that the IC lens through the ICN can make in the servitisation process.

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.

Introducing sharing-focused business models in the B2B context: comparing interaction and environmental sustainability for selling, renting and sharing on industrial markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa Melander ◽  
Ala Arvidsson
Keyword(s):  
Business Model ◽  
Environmental Sustainability ◽  
Business Models ◽  
High Technology ◽  
Manufacturing Firms ◽  
Interaction Patterns ◽  
Content Type ◽  
Business Context ◽  
Wide Range ◽  
Industrial Markets

Purpose The purpose of this study is to investigate the sales-, rental- and sharing-focused business models for industrial markets by analysing interactions and environmental sustainability efforts within them. Design/methodology/approach Case studies are conducted at two world-leading manufacturing firms of complex industrial products. The analysis compares how interaction takes place in sales-, rental- and sharing-focused business models in industrial markets for high-technology products in connection with environmental sustainability outcomes. Findings The findings show the need for different interaction patterns in sales-, rental- and sharing-focused business models at firm, relationship and network levels. The implementation of sharing-focussed business models requires new interactions with actors within firms, between firms and key collaborators and in networks. The firms in our study have made a wide range of efforts to improve the environmental sustainability of their products. Sharing-focused business models have the potential to be environmentally sustainable if products can be shared among customers. However, under-usage of products and the increased need to transport them may reduce environmental sustainability. Originality/value This study reveals that although manufacturing firms and customers are willing to implement sharing-focused business models, there are obstacles to achieving the expected environmental sustainability associated with this business model. These are due to the high-technology nature and level of customisation of the associated firms’ products and services, which make it difficult to share resources across firms without advanced adaptations to products such as re-programming. This study contributes to the sharing-focused business model literature for the business-to-business context, by pointing to the pivotal role partnerships with new actors and closer collaboration with existing actors in supply chains can play in enabling sharing-focused business models in the future.

The effect of green HRM practices on green competitive advantage of manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Kivinda Muisyo ◽  
Su Qin ◽  
Thu Hau Ho ◽  
Mercy Muthoni Julius
Keyword(s):  
Competitive Advantage ◽  
Performance Management ◽  
Human Resource ◽  
Business Models ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Potential Contribution ◽  
Green Innovation ◽  
Green Management ◽  
Content Type

PurposeThe rising public concern for the natural environment is compelling business entities to revise their business models toward green management. Most manufacturing firms have realized that green innovation is a critical factor that drives their success. However, green human resource scholars have overlooked this research line despite the potential contribution it can advance in green management scholarship. This paper empirically models the extent to which green innovation culture (GIC) moderates the relationship between green human resource management (GHRM) and green competitive advantage (GCA). The paper has two-fold objectives. First, to investigate the effects of GHRM and GIC on the firm's GCA and second, to model the extent to which GIC moderates the link between GHRM practices and GCA of manufacturing firms in Zhejiang Province of China.Design/methodology/approachData were collected from 324 Chinese employees from the manufacturing sector. The authors captured data from all levels of the organization. The authors made three models equations: two direct and one interactive. The authors then applied structural equation modeling (SEM) using AMOS 24 to test the study models and hypothesis.FindingsThe findings suggest that GHRM practices, which include recruitment and selection, training and development (green abilities); performance management and reward and compensation (green motivation); and employee involvement and leadership (green opportunities) have a significant positive effect on the firms GCA. The findings also indicate that firms that GIC, which include green product innovation (GPDI) and green process innovation (GPRI), promotes the firm's GCA. The paper further reveals that firms that combine GHRM and GIC attain higher GIC than those which practice GHRM only.Originality/valueThis paper draws a roadmap on how the top management in manufacturing firms can drive the firm's operations toward a higher GCA. It's the pioneer paper to suggest the combination of GHRM and GCI for enhanced GCA.

The quest for business model innovation across multiple markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Business Model ◽  
Business Models ◽  
Service Providers ◽  
Business Model Innovation ◽  
Manufacturing Firm ◽  
Content Type ◽  
Internal Resources ◽  
Multiple Markets ◽  
Delivery Services ◽  
Technology Transformation

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on how business model innovation on multiple levels can be underpinned by digital technology transformation. As the phases of business model transformation progressed, the Indonesian manufacturing firm moved to a multi-layered business model across numerous markets, with widely scalable progress later being intensified through new partnerships with payment service providers and rapid delivery services. Managers are encouraged to proactively organize their external and internal resources to be readily deployable, so as to harness competitive advantages by shifting business models with optimal market timing. Originality/value The briefing saves busy executives and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The Role of Intellectual Capital in Business Model Innovation

2013 ◽  
pp. 76-121 ◽  
Author(s):  
Göran Roos
Keyword(s):  
Empirical Study ◽  
Business Model ◽  
Intellectual Capital ◽  
Business Models ◽  
Manufacturing Firms ◽  
Business Model Innovation ◽  
Model Framework ◽  
Medium Cost ◽  
Short Time

The Australian Manufacturing Environment has over a short time changed from being low or medium cost to becoming high cost. In the previous environment, success could be achieved through imitation and efficiency focus whereas in the new environment efficiency becomes a table stake where the basis for success becomes innovation. Innovation requires enablers, strategy, and management systems to deliver, and the innovative focus must be on both value creating innovations and value appropriating innovations. One of the key tools in appropriating value is business models. The effectiveness of business model innovations to manufacturing firms in this changed environment is investigated, and it is found that business model innovations are highly effective but that the dimensions expressed in the literature, which mainly focuses on ICT-based or dependent firms, are insufficient for manufacturing firms. Based on the literature and the empirical study, an improved business model framework is proposed.

Sustainable life cycle offers through cooperation

2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Service Providers ◽  
Construction Sector ◽  
Content Type ◽  
New Business ◽  
Societal Level

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.

Factors influencing the shaping of shared services business models

2014 ◽  
Vol 7 (1) ◽  
pp. 47-65 ◽  
Author(s):  
Anton Joha ◽  
Marijn Janssen
Keyword(s):  
Business Model ◽  
Business Models ◽  
Customer Orientation ◽  
Governance Structure ◽  
Single Type ◽  
Shared Services ◽  
Unified Framework ◽  
Content Type ◽  
Factors Influencing ◽  
Governance Processes

Purpose – Shared services are often viewed as a single type of business model but in reality, shared services can be organized in different ways. The goal of this research is to understand the factors influencing the shaping of shared services business models. Design/methodology/approach – Inductive case oriented research is conducted by investigating three different types of shared services arrangements using Al-Debei and Avison's unified framework for business models. Findings – A total of 12 different factors were identified that influence the shape of shared services business models including the path dependency, legal/regulatory driver, customer orientation, target segment, strategic importance, ICT/business orientation, IT governance structure, change strategy, degree of outsourcing, integration potential, economic rationale and the business value. Research limitations/implications – The level of customization and standardization can influence the potential benefits that can be gained from bundling services and it is important to understand the factors that influence this dimension. Practical implications – The appropriate configuration of these factors can be helpful to design shared services arrangements with a balanced degree of standardization and customization. The choices regarding the configuration of these factors could result in a more or less effective functioning business model and could influence the governance processes and mechanisms that need to be put in place. Originality/value – There is no prior research that addresses the shared services business model from a holistic perspective and this research provides a first conceptual model for shared services business models.

Servitization of Industry: New Evidence

2021 ◽  
Vol 65 (8) ◽  
pp. 22-30
Author(s):  
V. Kondrat’ev ◽  
G. Kedrova ◽  
V. Popov
Keyword(s):  
Economic Policy ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
New Economic Policy ◽  
Firm Level ◽  
Policy Regime ◽  
Goods And Services ◽  
New Business ◽  
Use Of Services

A significant increase in the use of services is observed for some industries in GVCs (Global Value Chains). The paper has shed light on important dimension of the servitization which is the sale and export of services by manufacturing firms, often bundled together with goods. Firm-level data confirm that many firms are involved both in the production of goods and services and that there are complementarities between these activities. Not only manufacturing firms are involved in the distribution, transport and logistics services needed for their international operations in GVCs but also, they provide installation, maintenance, repair services as well as a variety of other business support and complementary services that increase value for their customers. The servitization has important policy implications, particularly when taking into account the fact that trade in services is generally more restricted than trade in goods. As the lines between goods and services are blurred, economic policy today might be more challenging than in the past, particularly for companies moving to new business models that imply more interactions with customers and a more intensive use of digital technologies. Services themselves are split into different modes of supply for which there are different levels of economic policy. A closer look at the mechanisms of value creation in the case of services suggests that there are still the needs of new economic policy addressed at business models described as value networks or value shops. As technologies become more disruptive and more companies move to ‘servicified’ GVCs, the need for a more consistent international economic policy regime, particularly at the multilateral level, will become more urgent.

“Enabling circular business models in the fashion industry: the role of digital innovation”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phuc Hong Huynh
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Theory And Practice ◽  
Chain Model ◽  
Fashion Industry ◽  
Digital Innovation ◽  
Content Type ◽  
Radical Innovations

PurposeDigital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.Design/methodology/approachAn inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.FindingsThe paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.Practical implicationsThe study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.Social implicationsAppropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.Originality/valueThe pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

Lessons learned in intellectual capital management in Germany between 2000 and 2020 – History, applications, outlook

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manfred Bornemann ◽  
Kay Alwert ◽  
Markus Will
Keyword(s):  
Development Strategy ◽  
Intellectual Capital ◽  
Business Models ◽  
Business Processes ◽  
Lessons Learned ◽  
Strategy Development ◽  
Management Approach ◽  
Content Type ◽  
Over Time ◽  
Made In

PurposeThis article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany and some international developments. It calls for an integrated management approach for IC and offers case study evidence on how to accomplish this quest.Design/methodology/approachReport on the German initiative “Intellectual Capital Statement made in Germany” (ICS m.i.G.). A brief review of the literature describes the background and theoretical foundation of the German IC method. A short description of the method is followed by four detailed case studies to illustrate long-term impact of IC management in very different organizations. A discussion of Lessons Learned from more than 200 implementations and an outlook on current and future developments finalizes the article.FindingsIC Statements made in Germany (ICS m.i.G.) was successful in providing a framework to systematically identify IC, evaluate the status quo of IC relative to the strategic requirements, visualize interdependencies of IC, business processes and business results as well as to connect IC reporting with internal management routines and external communication. However, ICS is not an insulated method but delivers the maximum benefit when integrated with strategy development, strategy implementation, business process optimization accompanied by change management routines. Strong ties to human resource management, information technology departments, quality management, research and development teams as well as business operations as the core of an organization help to yield the most for ICS m.i.G. Over time, the focus of managing IC changes and maturity leads to deutero learning.Practical implicationsICS m.i.G. proved easy to apply, cost efficient for SMEs, larger corporations and networks. It helps to better accomplish their objectives and to adjust their business models. The guidelines in German and English as well as a software application released were downloaded more than 100,000 times. A certification process based on a three-tier training module is available and was successfully completed by more than 400 practitioners. ICS m.i.G. is supporting current standards of knowledge management, such as ISO 9001, ISO 30401 or DIN SPEC PAS 91443 and therefore will most likely have a continuing impact on knowledge-based value creation.Originality/valueThis paper reports lessons learned from the country-wide IC initiative in Germany over the last 20 years initiated and supported by the authors. Several elements of the method have been published over time, but so far no comprehensive view on Lessons Learned had been published.

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