scholarly journals Translational mechanisms in business model design: introducing the continuous validation framework

2020 ◽  
Vol 58 (9) ◽  
pp. 2011-2026
Author(s):  
Leonardo Corbo ◽  
Shadi Mahassel ◽  
Alberto Ferraris
Keyword(s):  
Knowledge Translation ◽  
Business Model ◽  
Business Models ◽  
New Venture ◽  
Model Design ◽  
Content Type ◽  
Validation Framework ◽  
Start Up ◽  
Business Model Design ◽  
Translational Mechanisms

PurposeThis paper aims at proposing knowledge translation as an element of business model design that can support entrepreneurs in achieving alignment and collaboration between entrepreneurial teams and external stakeholders.Design/methodology/approachThe conceptual model presented in the paper is developed from the literature review and draws mainly on two streams of work as follows: first, the contributions related to the lean start-up methodology initially developed by Blank and Ries and second, the work of Osterwalder and Pigneur on business models and its subsequent developments. In addition, we draw on key insights from the entrepreneurship and organizational learning literature, such as discovery-driven planning and disciplined entrepreneurship.FindingsThe continuous validation framework (CVF) is introduced, posing the attention on underlining knowledge-translation mechanisms to decode complex concepts related to new venture creation.Originality/valueThe authors propose a new framework (the CVF) as an effective translational tool because it is a visual diagram that allows entrepreneurs to translate complex and technical ideas into a format that is more understandable for external audiences. Additionally, for each step of the CVF, specific translational mechanisms are defined and discussed, as each stage of the CVF presents specific translational challenges that result in outcomes that differ from stage to stage.

Does entrepreneurial experience always promote novelty-centered business model design in new venture?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lingling Wang ◽  
Wenhong Zhao ◽  
Zelong Wei ◽  
Changbao Zhou
Keyword(s):  
Business Model ◽  
New Ventures ◽  
New Venture ◽  
Hierarchical Regression ◽  
Model Design ◽  
Competitive Intensity ◽  
Content Type ◽  
Entrepreneurial Experience ◽  
Negative Effect ◽  
Business Model Design

Purpose This paper aims to explore how intra-industry entrepreneurial experience and failure entrepreneurial experience affect novelty-centered business model design in a new venture. Moreover, the authors also consider whether the contingent value of entrepreneurial experience may differ according to competitive intensity. Design/methodology/approach A survey via questionnaire was conducted with 290 entrepreneurs and top managers from Chinese new ventures that provided the research data. Hierarchical regression analysis was used to test the proposed theoretical hypotheses. Findings The empirical results indicate that intra-industry entrepreneurial experience has an inverted U-shaped effect on novelty-centered business model design, whereas failure entrepreneurial experience has a negative effect on novelty-centered business model design. Furthermore, the authors also find that competitive intensity weakens the inverted U-shaped effect of intra-industry entrepreneurial experience on novelty-centered business model design. Originality/value This study offers new insights into the effects of intra-industry entrepreneurial experience and failure entrepreneurial experience on novelty-centered business model design and provides useful suggestions for new ventures to promote business model design.

Social business model design and implementation in developing countries

2017 ◽  
Vol 36 (1) ◽  
pp. 48-57 ◽  
Author(s):  
Valerie Sabatier ◽  
Ignace Medah ◽  
Peter Augsdorfer ◽  
Anthony Maduekwe
Keyword(s):  
Developing Countries ◽  
Business Model ◽  
Business Models ◽  
Model Design ◽  
Social Business ◽  
Value Capture ◽  
Content Type ◽  
Design And Implementation ◽  
The Social ◽  
Business Model Design

Purpose The purpose of this paper is to contribute to the emergent research on social business models by revealing challenges encountered by the design and implementation of such business models. Design/methodology/approach Case study of the development of FACA, an affordable medicine used to treat sickle cell disease, from traditional medicine to market in Burkina Faso. Findings Social business models present important challenges in terms of value capture for all stakeholders. The social profit equation and the profit equation suggested by Yunus et al. are difficult to apply in practice, and therefore, social business model design should consider the social and profit equations jointly. Originality/value Developing countries are seeking different approaches to innovation and healthcare. Social business models appear as one of the potential solutions to bring value to society, organizations, and individuals. The identification of challenges raised by social business models can help policymakers and executives in the design and implementation of these social business models.

Strategy and business models: why winning companies need both

2019 ◽  
Vol 40 (5) ◽  
pp. 39-45 ◽  
Author(s):  
Michael Braun ◽  
Scott Latham ◽  
Benedetto Cannatelli
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Academic Research ◽  
Model Design ◽  
Content Type ◽  
Managerial Attention ◽  
Business Model Design ◽  
A Company

Purpose This paper aims to highlight the importance of addressing both competitive strategy and business model for the long-term success of a company. The paper builds a prescriptive framework to help managers assess their companies’ positions based on the extent to which they attend to their strategies and business models simultaneously. In doing so, the paper offers four possible outcomes – idling, faceoff, breakdown and traction – providing examples to capture each scenario and managerial prescription. Design/methodology/approach The framework of this study is based on academic research in strategy and business model design, the authors’ scholarly work on innovation and their combined experiences and observations in the industry. The framework uses examples of well-known companies to make the case for why managers need to pay heed to both business models and strategies simultaneously to achieve long-term competitive profitability. Findings This study’s framework suggests that the delicate balance between strategy and business model design determines the long-term competitive advantage and profitability of a company. Focusing on strategy without paying heed to the business model can cause companies to lose sight of changing customer behaviors. Alternatively, managerial attention to business models at the exclusion of its strategy leaves the company vulnerable to competition. The framework points at the delicate strategy–business model balance required to manage winning companies. Originality/value Business models and strategies represent two separate yet inextricably linked domains under the purview of management. However, companies can be weakened because of an overemphasis on one at the expense of the other. This paper’s framework offers a simple yet effective guide to assist managers in assessing their organizations’ current positions while also providing direction toward addressing any shortcomings.

Business model design and performance in nascent markets

2019 ◽  
Vol 58 (5) ◽  
pp. 927-947 ◽  
Author(s):  
Morten Rask ◽  
Franziska Günzel-Jensen
Keyword(s):  
Business Model ◽  
Business Models ◽  
Emerging Technologies ◽  
Product Market ◽  
Business Model Innovation ◽  
Model Design ◽  
Model Choice ◽  
Content Type ◽  
Business Model Design ◽  
And Performance

Purpose The purpose of this paper is to investigate the nascent market settings from a business model innovation perspective with the research questions: How do incumbents and start-ups make sense of an emerging technology through business model design in a nascent market setting, and how does business model choice influence firm performance? Design/methodology/approach The authors have tracked the development of four case companies in the nascent electric vehicle market from 2009 to 2018 and have conducted interviews and analyzed the archival data. Findings The authors propose a typology of business model choices and performance where the four types of business models distinguish themselves by how the companies innovate or imitate the value proposition of the current industry as well as how they innovate or imitate the business model archetype. In accordance with these different business model choices, the actors express different logics behind their new to the product market space business model choice. These logics represent different understandings of technology potential, customer needs as well as potential for value capture and contribute to and limit the translation of emerging technologies into dominant designs in diverse ways. Originality/value The business model is conceived as a focusing device that can be used to identify market applications for emerging technologies. As new disruptive technologies often require a new to the product market space business model, literature has in recent years put a premium on business model innovation. However, the linkages between emergent technologies and the choice of a novel business model are under investigated especially in relation to how business model choice affects business performance in nascent market settings. This paper aims at filling this gap.

The dark side of business models: the risks of strategizing through business models alone

2014 ◽  
Vol 30 (6) ◽  
pp. 1-4 ◽  
Author(s):  
Antonio Ghezzi
Keyword(s):  
Strategic Planning ◽  
Business Model ◽  
Business Models ◽  
Idea Generation ◽  
Dark Side ◽  
Model Design ◽  
Strategy Analysis ◽  
Holistic View ◽  
Content Type ◽  
Business Model Design

Purpose – This paper aims at exposing the risks entrepreneurs and managers run whenever they focus on business model design alone, while disregarding other strategy analysis tools; disclosing what a business model is and is not; and proposing a checklist to frame business models within – rather than without – the process of strategic planning. The business model has recently gained popularity in the broad community of strategists, thanks to its apparent simplicity and straightforward applicability. Yet, business models have a dark side too, residing in their fuzzy relationship with strategy and little theoretical foundations. Design/methodology/approach – This paper is based on a survey on 105 C-level managers involved in strategy formulation and business model design. Findings – The business model is often misinterpreted by strategists, who show a tendency to employ it as a substitute – not a complement – for traditional strategy analysis frameworks; however, such approach has significant downsides, as it fails to provide a holistic view on strategy. To exploit business models’ value, strategists should use them as instruments for business idea generation, strategy execution and innovation. Practical implications – Entrepreneurs and managers are faced with the pros and cons related to the use of business models, and are provided with action points to include the model in the overall business strategic planning. Originality/value – By questioning the current use of business models, the paper sheds light on its actual value and role in relation to strategy.

scholarly journals How to use analogies for creative business modelling

2017 ◽  
Vol 38 (2) ◽  
pp. 76-82 ◽  
Author(s):  
Ryan Rumble ◽  
Niall Anthony Minto
Keyword(s):  
Business Model ◽  
Business Models ◽  
Model Design ◽  
Content Type ◽  
Cognitive Frames ◽  
Business Modelling ◽  
New Business ◽  
Business Model Design ◽  
Practical Recommendations

Purpose This paper aims to present a method for interpreting and reinterpreting business models as analogies to support the creation of new business model ideas. Design/methodology/approach The authors use the literature on cognitive frames and attention to demonstrate the often-overlooked potential of analogies. From this, the authors derive practical recommendations for the use of analogies in creative business model design. Findings Managers can design creative business models by seeking multiple interpretations of the way other businesses create and capture value. Originality/value Business model frameworks are commonplace, but there is little discussion on how to use them effectively. Furthermore, while analogies are helpful in inspiring novel ideas, their creative potential is limited if the questions asked of and insights found in the case study are not reimagined. The authors provide a practical solution to increase creativity in business model design by recursively reflecting upon issues and solutions.

Does holistic cognition frame always promote business model design?

2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
New Ventures ◽  
Model Design ◽  
Content Type ◽  
Business Model Design ◽  
Established Firms ◽  
The Relationship ◽  
Positive Effect ◽  
Holistic Cognition

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.

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