Disruptive innovation, business model and sharing economy: the bike-sharing cases in China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Steven Si ◽  
Hui Chen ◽  
Wan Liu ◽  
Yushan Yan
Keyword(s):  
Business Model ◽  
Rapid Development ◽  
Underlying Mechanism ◽  
Sharing Economy ◽  
Disruptive Innovation ◽  
Strategic Decision ◽  
Content Type ◽  
The Sustainable Development ◽  
Bike Sharing ◽  
Underlying Mechanisms

PurposeThe purpose of this study is to connect disruptive innovation and sharing economy by exploring the underlying mechanisms of how a disruptive innovation–based business project creates, delivers and captures value in sharing economy through analyzing the case of bike sharing in China.Design/methodology/approachAn elaborate case study is used to unfold the process as well as the underlying mechanism and relationships among disruptive innovation, business model, bike-sharing business and value creation in sharing economy.FindingsBike sharing case fits well in disruptive innovation theory. Its low price and great convenience have led to rapid development in China. However, failures to improve their products and services and build an effective business model which can create, deliver and capture value have caused the failure of many bike-sharing companies. Other factors such as strategic decision-making, internal management problems, external conflicts as well as uncivilized consumer behaviors have also inhibited the sustainable development of bike-sharing companies.Originality/valueThe theoretical contributions of this study include the following: to explore how a disruptive innovation–based business creates, delivers and captures value successfully in sharing economy. This study contributes to both research and practice on disruptive innovation and sharing economy.

Dice manufacturing company: the acquisition decision

2021 ◽  
Vol 11 (1) ◽  
pp. 1-26
Author(s):  
Aliaa Bassiouny ◽  
Enjy Toma ◽  
Farida Dawood ◽  
Haneen Aljammali ◽  
Salim Seif El Nasr ◽  
...  
Keyword(s):  
Learning Outcomes ◽  
Business Model ◽  
Net Present Value ◽  
Capital Budgeting ◽  
Strategic Decision ◽  
Issues Management ◽  
Content Type ◽  
Project Valuation ◽  
Manufacturing Company ◽  
Evaluation Techniques

Learning outcomes The learning outcomes of this paper is as follows: understand the issues that faced private Egyptian textile producers following the January 2011 revolution and how that impacted their business model. Evaluate whether Dice’s inorganic expansion through acquiring Alex Clothing Company is a sound strategic decision given the economic uncertainty in Egypt. Analyze the acquisition decision through projection evaluation techniques, including net present value (NPV), internal rate of return (IRR) and modified IRR (MIRR), to measure whether the acquisition will add value to Dice. Discuss non-financial issues post-acquisition that are not captured by traditional capital budgeting and project evaluation techniques. Case overview/synopsis Dice Manufacturing Company, an established and successful textile manufacturing family business, is facing an important investment decision with regard to inorganic expansion through the acquisition of Alex Clothing Company and its subsidiary United Dyers. The case is intended to be discussed in an undergraduate corporate finance class. The case setting is inside Dice Manufacturing Company, where one of the founders, Nagy Toma and his CFO Victor ElMalek are analyzing the acquisition decision in January 2015. The protagonist is Victor ElMalek, who has to recommend a course of action for the company owners. The case allows students to apply capital budgeting and project valuation methods to make a decision on whether the acquisition brings value to Dice and to analyze issues management can face post-acquisition. The case follows through the history of Dice, presenting its business model and changes that accompanied the 2011 revolution. It then moves on to outline the acquisition opportunity and provides data for students to analyze through traditional project valuation techniques, including NPV, IRR and MIRR. Complexity academic level Undergraduate. Subject code CSS 1: Accounting and Finance. Supplementary materials Teaching notes are available for educators only.

Deal of the day at Cherry.ee

2011 ◽  
Vol 1 (3) ◽  
pp. 1-13
Author(s):  
Katri Kerem ◽  
Dietmar Sternad
Keyword(s):  
Social Media ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Business Model ◽  
Strategic Decision ◽  
First Year ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Start Up ◽  
Deal Of The Day

Subject area Marketing, branding, strategic management, online retailing, and entrepreneurship. Study level/applicability Postgraduate courses in: strategic management; marketing management (branding); and entrepreneurship. Case overview The case describes the founding and the first year of an Estonian internet start-up, the “deal-of-the-day” web site Cherry.ee. The focal topic of the case is the analysis of alternative scenarios for the further development of the company after the first year in business: selling the company, entering into a merger with similar businesses, or continuing to develop the brand independently. The case gives an example of creating a new market, introducing a new business model and launching a brand with substantial use of social media marketing. The successful business model was quickly copied by a lot of followers creating a fierce competitive environment and raising a question of sustainability of the competitive advantage. The case provides an opportunity to discuss how to strategically handle the development of a growing start-up company in an increasingly competitive market environment. Expected learning outcomes Understanding the critical success factors and potential pitfalls for an internet start-up; developing skills to critically analyze the concept of sustainable competitive advantage; comprehension of the main factors influencing the strategic decision on whether to follow a growth, cooperation, or exit strategy; and awareness of the relative advantages of online and offline marketing and understanding how social media strategies can be used to build a brand. Supplementary materials Teaching note.

scholarly journals Market-oriented business model for SMEs' disruptive innovations internationalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agneta Sundström ◽  
Akmal S. Hyder ◽  
Ehsanul Huda Chowdhury
Keyword(s):  
Market Orientation ◽  
Business Model ◽  
Disruptive Innovation ◽  
External Support ◽  
High Tech ◽  
Content Type ◽  
Market Intelligence ◽  
Disruptive Innovations ◽  
New Thinking ◽  
Internal Barriers

PurposeThe aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.Design/methodology/approachBased on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.FindingsThe results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.Practical implicationsThe methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.Originality/valueThis article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.

scholarly journals INFLUENCE OF INNOVATIVE ENTREPRENEURSHIP ON THE DEVELOPMENT OF REGIONAL COOPERATION

2021 ◽  
Vol 9 (3) ◽  
pp. 56-60
Author(s):  
Ol'ga Repushevskaya
Keyword(s):  
Marketing Strategy ◽  
Business Model ◽  
Russian Federation ◽  
New Technologies ◽  
Regional Cooperation ◽  
Rapid Development ◽  
Sharing Economy ◽  
Management Model ◽  
The Russian Federation ◽  
The Right

Relevance and novelty of the work. The article is devoted to the implementation of innovative entrepreneurship for the development of regional cooperation and the rapid development of the sharing economy in the Russian Federation. The relevance of this article is due to the need to digitize cooperatives in order to develop, expand the markets for their products. The article examines situations that show how innovative entrepreneurship affects the development of the cooperative sector of the economy. The cooperative management model will be successful when it combines the functions of entrepreneurship, socialization and marketing. The struggle for a buyer in the absence of a marketing strategy in a cooperative is reduced to zero. Therefore, cooperative organizations need to choose the right marketing strategy that will allow them to effectively run their business. A separate place in the article is devoted to the analysis of market dynamics within the framework of the sharing economy. Based on the analysis, the importance of the sharing economy is shown. The basis of the digital economy is the predominance of the share of knowledge and innovation over the sphere of production. For this reason, building a business model is essential. It is necessary to introduce new technologies, at the same time, studying the needs of customers and optimizing activities in all indicators.

Culture vs strategy: which to precede, which to align?

2019 ◽  
Vol 12 (1) ◽  
pp. 116-136 ◽  
Author(s):  
Amarjeev Kaul
Keyword(s):  
Organizational Culture ◽  
Business Model ◽  
Cultural Context ◽  
Strategic Decision ◽  
General Strategy ◽  
Content Type ◽  
Military Organization ◽  
Sustained Competitive Advantage ◽  
Start Up ◽  
Strategic Goals

Purpose Appreciation of the utility of strategy and the vitality of the culture in an organization can realize the development of a new culture-centric strategic business model (SBM). Culture beats, eats or trumps strategy is a legitimate and powerful argument often thrown to the air. The purpose of this paper is to un-code the relevance of this argument and to decode its significance. Design/methodology/approach This is a conceptual paper and builds on prior conceptual and empirical management research related to strategy and organizational culture. The approach is unbiased toward either strategy or culture. Findings The conclusion arrived at is that, in general, strategy must precede culture and culture must be aligned. In specific instances of governance, inner workings of a military organization, cross-cultural context of negotiations, creative advertising and management of change culture may predominate in tactics. Furthermore, with a strategy gone astray, or in the instance of a floundering business or start-up venture, culture must shift to first gear, lead the requisite goal and path development, and strategy must be aligned in the transition. A strategy–culture fit supports a sustained competitive advantage by virtue of a firm’s unique culture proposition (UCP). Research limitations/implications The development of a culture-centric SBM will need to be tested by empirical research. The UCP will also need to be researched further. Practical implications The conclusion that strategy should generally precede culture will guide firms from not letting their organizational culture from undermining the success of major shifts in strategic goals and business model positioning. Originality/value The conceptual arguments will help leaders and managers from marginalizing the value of strategy. However, managers will also be directed toward paying attention to the damaging consequences of ignoring culture. Furthermore, managers will be able to appreciate that culture must not drive strategy, except in specific strategic decision-making contexts.

scholarly journals A Fuzzy Association Rules Mining Analysis of the Influencing Factors on the Failure of oBike in Taiwan

Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1908
Author(s):  
Shianghau Wu
Keyword(s):  
Association Rules ◽  
Mainland China ◽  
Sharing Economy ◽  
Association Rules Mining ◽  
The Sustainable Development ◽  
Research Results ◽  
Fuzzy Association Rules ◽  
Low Energy Consumption ◽  
The World ◽  
Bike Sharing

The sharing economy has become an important issue in recent years. Many researchers have paid attention to its application around the world. The sharing of bikes, as one of the major applications of the sharing economy, has shown its advantage in the realm of environmental protection and low energy consumption. However, bike-sharing system has encountered problems in certain regions. This arouses the concern about the sustainable development of the bike-sharing system. This research focused on the failure case of oBike in Taiwan. This research used text mining and fuzzy association rules mining methods to evaluate Taiwan’s public opinion about the oBike in order to verify the reasons for oBike’s failure in Taiwan. This study also made a comparison between the bike-sharing system in Mainland China and Taiwan. The research results explored the factors of oBike’s failure in Taiwan and showcased the problems of bike-sharing systems in different regions. The research results also offer useful information for bike-sharing companies and the authorities concerned in order to develop a sustainable bike-sharing system.

scholarly journals Improving productivity of a financial firm: business model evolution in the Caribbean

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David W. Parker ◽  
William W. Lawrence
Keyword(s):  
Business Model ◽  
Multinational Enterprise ◽  
Disruptive Innovation ◽  
Small Island ◽  
Model Evolution ◽  
Content Type ◽  
Uppsala Model ◽  
State Variable ◽  
Cross Border ◽  
Financial Firm

PurposeThis study explores the role of business model as a state variable during transformation of a financial institution to become a multinational enterprise. Prior studies of the Uppsala model overlooked business model evolution for cross-border productivity and performance.Design/methodology/approachThe research design employs the resource-based view for an in-depth case study of JMMB, a family-managed Jamaica-based financial firm, using data from primary and secondary sources, covering the period 1992 to 2014.FindingsJMMB's business model was the channel through which resources and capabilities gave rise to an innovative product for successful positioning in an international network. This was augmented by strong family orientation toward customer service, a distinctive asset that shaped the nature and trajectory of the business model. Cross-border alliancing and risk management were crucial dynamic capabilities for replicating the business model in foreign markets.Research limitations/implicationsWhile the observations are not generalizable to other firms, they indicate that a business model is a key unit of analysis for understanding how the firm makes the transition to become a multinational enterprise.Practical implicationsFinancial institutions may internationalize in a small island, developing stages through a strategy of focused product differentiation based on disruptive innovation with cross-border partnerships for ease of market entry and experiential learning.Social implicationsThe research has identified opportunities for effective and efficient work methods in pursuit of productivity gains.Originality/valueThe study is the first to illustrate business model as a state variable in the Uppsala model of multinational enterprise evolution for a financial firm.

Is the sense of awe an effective emotion to promote product sharing: based on the type of awe and tie strength

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huawei Zhu ◽  
Xiaoling Duan ◽  
Yu Su
Keyword(s):  
Negative Emotion ◽  
Underlying Mechanism ◽  
Sharing Economy ◽  
Control Group ◽  
Tie Strength ◽  
Weak Ties ◽  
Self Awareness ◽  
Mechanism Study ◽  
Content Type ◽  
Different Types

PurposeAs a complex social emotion, awe includes both positive emotion and negative emotion. But few studies have explored the downstream effects and psychological mechanisms of two different types of awe. As a self-transcendence emotion, awe will arouse the small self, that is, reduce self-awareness. In the era of the sharing economy, the obstacle to sharing is the strong self-awareness that consumers have built about their belongings. Therefore, this paper aims to explore how two different types of awe can affect consumers' sharing, especially with different relationships.Design/methodology/approachThis study conducted two experiments to test the effect of awe on consumer sharing of their own products. Study 1 aimed to examine the main effect of different awe on consumer sharing of their product as well as the underlying mechanism. Study 2 aimed to examine the interacting role of tie strength in the effect of awe on consumer product sharing.FindingsThrough two empirical tests, the authors have found that, relative to the control group, the sense of awe arouses the feeling of small self and significantly increases the consumers' willingness of sharing. Also, the authors have found that threat-based awe which leads to self-diminishment is more conducive to promoting the sharing of weak ties; on the contrary, the nonthreat-based awe which leads to a feeling of vastness is more conducive to promoting the sharing of strong ties.Originality/valueThis research expands the literature in the field of sharing. While the mainstream sharing a focus on information sharing, this research extends it to product sharing. What is more important is, this research explores how to encourage sharing to weak ties, which contributes to sharing economy.

Reorienting the sharing economy for social benefit: the nonprofit digital platform business model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rubén Mancha ◽  
David Nersessian ◽  
John Marthinsen
Keyword(s):  
Business Model ◽  
Free Market ◽  
Sharing Economy ◽  
Social Value ◽  
Market Forces ◽  
Negative Externalities ◽  
Content Type ◽  
Digital Platforms ◽  
Digital Platform ◽  
For Profit

Purpose Digital platforms enable the sharing economy and have become dominant business models in many industries. Despite their many benefits, negative externalities associated with the growth of for-profit digital platforms, such as Uber and Google, have ignited concerns among market participants, policymakers and society as a whole, without corrective market forces in sight. One way to address this problem is through a combination of government regulation, criminal enforcement actions and private antitrust litigation. This study aims to analyze an alternative approach, called the nonprofit digital platform (NDP), which is an emerging business model capable of unleashing free-market forces and enhancing the sharing economy’s social benefits. Design/methodology/approach This study documents the negative externalities (actual and potential) of for-profit digital platforms, uses the product attributes model to explain the market position and strategy of NDPs with respect to for-profit digital platforms and provides recommendations for the successful launch and management of NDPs. Findings An NDP is a market-based alternative to antitrust, regulation and litigation that enhances the social value created by the sharing economy, but its success requires startup-like management that attracts and retains talent, capital, effective advertising and positive network externalities. Social implications NDPs can force free-market adjustments in the industries they enter, reduce the negative spillovers of for-profit digital platforms and increase social value by incrementally raising the level of competition. Originality/value This study conceptually explores the value that nonprofits could bring to the sharing economy in fulfilling its promise and provides strategic recommendations for social-digital entrepreneurs and nonprofits.

Harnessing platform-based business models to power disruptive innovation

2016 ◽  
Vol 44 (5) ◽  
pp. 6-14 ◽  
Author(s):  
Haydn Shaughnessy
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Business Environment ◽  
Disruptive Innovation ◽  
Senior Managers ◽  
Content Type ◽  
Continuous Innovation ◽  
New Business ◽  
Unique Customer

Purpose Adopting and implementing a platform-based business model is fraught with problems and complications, many of which are poorly understood even by industry insiders. As they try to sort through the best practices for operating in this new business environment, senior managers need to carefully analyze the strengths of the business model of some of most successful companies before trying to imitate them. . Design/methodology/approach For a team to execute such a strategy quickly and seamlessly it must first thoroughly understand the components of such a business model and how they interact to produce unique customer value and formidable competitive advantage Findings The platform is a new way to organize wealth-creating activity. Practical implications The author details the components of a successful platform-based business model. Originality/value Platform-based business models seek to leverage the assets of third parties and in the process extend the value of economic activity to customers in ways that engage and benefit them. Senior leaders and operations managers alike need to understand that continuous innovation of customer value and policies that attract asset-rich partners and skillful developers is essential to the growth of the network.

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