scholarly journals Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

2020 ◽  
Vol 37 (2) ◽  
pp. 158-183 ◽  
Author(s):  
David Sjödin ◽  
Vinit Parida ◽  
Marin Jovanovic ◽  
Ivanka Visnjic
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Business Model Innovation ◽  
Value Capture ◽  
Process View

scholarly journals Pushing the Limits using Business Model Innovation a Three Pronged Approach and Lessons Learned

2021 ◽  
Vol 2 (1) ◽  
pp. 24-35
Author(s):  
Ignitia Motjolopane
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Industrial Revolution ◽  
Business Environment ◽  
Business Model Innovation ◽  
Lessons Learned ◽  
Revenue Streams ◽  
Reducing Costs ◽  
Model Components

In a constantly changing business environment, with increasing digitisation and fourth industrial revolution blurring the traditional value creation boundaries, companies need to explore ways to push the limits to remain competitive. Business model innovation offers companies the dynamic capability to differentiate business models and find innovative revenue streams while reducing costs. As such, the question arises as to how company may use business model innovation to remain competitive as the world digitises. Based on a literature review and empirical research involving six case studies, a three pronged approach in support of business model innovation is proposed. Business model innovation has the potential to push the limits when company executives and academia focus on the interrelation between drivers, process and components. Moreover, both effective and ineffective practices based on the research are presented. In conclusion, for companies to use business model innovation in pushing the limits, there is need to respond to the business model innovation drivers, adopt a systematic process and change at least one or more business model components and taking into account the interactions between these three concepts. This article may contribute to existing theory in the field of business model innovation and lessons learned from executives that have pushed the limits using business model innovation. Doi: 10.28991/HEF-2021-02-01-03 Full Text: PDF

scholarly journals The effect of business model innovation on organization performance

2021 ◽  
pp. 1481-1488 ◽  
Author(s):  
Amineh A. Khaddam ◽  
Hani J. Irtaimeh ◽  
Ahmad Rajaa Salameh Al-Batayneh ◽  
Suliman Raja Salameh Al-Batayneh
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Model Innovation ◽  
Arab Countries ◽  
Organization Performance ◽  
Company Performance ◽  
Value Proposition ◽  
Value Capture ◽  
The Impact ◽  
Measures Of Performance

The aim of the study is to investigate the impact of business model innovation (BMI) on firm performance. The sample of the study consisted of 120 managers from Alban Al-youm Company in Jordan, a leading dairy company. Data were collected using a questionnaire administered to managers. Eighty-seven questionnaires were retrieved valid for the purpose of data analysis. BMI was measured using three components: value creation, value proposition and value capture innovations while company performance was assessed via self-rated questions about operational measures of performance. The results accepted the hypotheses that all dimensions of BMI had significant effects on company performance. That being so, the study contributed to the literature on BMI on company performance in the absence of such studies that use samples for Arab countries, particularly, from Jordan in one of the most vital industries, which is a dairy industry.

Business Model Innovation and Replication

2018 ◽  
pp. 358-386
Author(s):  
Roberto Garcia-Castro ◽  
Joan Enric Ricart ◽  
Marvin B. Lieberman ◽  
Natarajan Balasubramanian
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Airline Industry ◽  
Formal Model ◽  
Historical Analysis ◽  
Business Model Innovation ◽  
Firm Level ◽  
Value Capture ◽  
The Us ◽  
Productivity Gains

Productivity gains play a crucial role in value creation and distribution in firms. This chapter connects the strategy framework of value creation and value capture with the tools from the productivity literature in order to understand better how returns are distributed between different stakeholders in the business and how this distribution might evolve over time. The authors distinguish between business model innovation and replication as two genuine sources of value creation. The historical analysis of Southwest Airlines in the US airline industry illustrates the insights that can be gained using a formal model to measure productivity gains at the firm level.

Value creation mechanisms of business models

2018 ◽  
Vol 19 (3) ◽  
pp. 166-176 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Business Value ◽  
Value Proposition ◽  
Value Appropriation ◽  
Value Capture ◽  
Fine Grained ◽  
Case Vignettes ◽  
Current Article

Management scholars and practitioners generally agree that the primary functions of a business model are value creation and value capture. However, the meaning (conceptualization) of these terms, their measurement, and the factors and mechanisms affecting them remain contentious. In the current article, we provide answers to these questions by clarifying the consumers’ value creation and business value capture constructs. Then, we demonstrate how they are determined by four business model mechanisms: value proposition and value targeting (affecting consumers’ value through willingness to pay) and value appropriation and value delivery (affecting business value through price and cost). We demonstrate that a fine-grained analysis of a business model’s value creation cannot be adequately performed without reference to these four mechanisms. The developed conceptual framework is illustrated and corroborated by the mini-case vignettes. We finish by outlining an application of the proposed framework to two crucial real-world business model situations: escaping the Giver Trap and remaining the Winner.

scholarly journals Business model innovation and digitalization: Could ambidexterity be the solution to manage both? – A conceptual framework with propositions

2020 ◽  
Vol 1 (2) ◽  
pp. 8-25 ◽  
Author(s):  
Patrick Ulrich ◽  
Alexandra Fibitz
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Resource Scarcity ◽  
Business Model Innovation ◽  
Technology And Innovation ◽  
Current Economic Situation ◽  
Digital Disruption ◽  
High Degree ◽  
The Relationship

The current economic situation is in constant flux. Progress in technology and especially the advancement of digital transformation have influenced business endeavors. In this realm, digitalization is closely linked to a high degree of digital disruption and the development of new products, services, and business models. In this paper, we aim to investigate how enterprises simultaneously handle digitalization and business model innovation. We employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution. Thus, a theoretical framing that includes the relationship between business model innovation and digitalization and propositions congruent with our general gestalt of the inquiry will be developed. The results indicate, despite some structural and processual commonalities that digitalization and business model innovation share, the mission to manage both phenomena remains challenging. In particular, some peculiarities inherent in the ambidexterity perspective need to be taken into account. Particularly under the constraints of a high degree of resource scarcity, it is important to strive for sustainable actions that lead to increased value creation and competitive advantage. Thus, this study implements an ambidexterity perspective on the two distinct areas of technology and innovation and provide groundings for further research avenues on ambidexterity and firm performance.

scholarly journals The essential benefits of an enterprise blockchain in business model innovation

2021 ◽  
Vol 24 (2) ◽  
pp. 189-210
Author(s):  
Ambara Purusottama ◽  
Yohanes Berenika Kadarusman
Keyword(s):  
Organizational Performance ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Abductive Reasoning ◽  
Value Proposition ◽  
Value Capture ◽  
Blockchain Technology ◽  
A Value ◽  
Multiple Case

Blockchain brings changes and disruptions to the existing business models and therefore deserves further analysis. Accordingly, this study aims to explain the phenomenon of blockchain technology in the business model innovation in the enterprise ecosystem. Empirically, numerous studies have shown that blockchain technology improves organizational performance. This study uses a value system framework to explain the enterprise blockchain phenomenon. Through abductive reasoning, this study uses a multiple-case study to answer the research questions. In sum, this study finds that blockchain technology delivers benefits to organizations in: (i) value capture through increased profitability; (ii) value creation through private partnership; (iii) value delivery through smart contracts; and (iv) value proposition that encourages improving the existing value proposition through operational improvements. Besides, the study also proposes the different types of enterprise blockchain ecosystems: private and consortium. The private ecosystem focuses on improving organizational performance through competition. In contrast, the consortium ecosystem focuses on  business value collaboration.

BUSINESS MODEL INNOVATION AND BUSINESS PERFORMANCE IN AN INNOVATIVE ENVIRONMENT

2020 ◽  
pp. 2150036
Author(s):  
MOEMA PEREIRA NUNES ◽  
RAFAEL DO VAL PEREIRA
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Consumer Satisfaction ◽  
Business Performance ◽  
General Assumption ◽  
Business Model Innovation ◽  
Value Capture ◽  
Positive Correlation ◽  
Innovative Environment ◽  
Reported Data

Business model innovation (BMI) is a subject that has been much investigated in recent decades. Despite this growing interest, and the general assumption that BMI contributes to business performance (BP), an absence of scale remains as a limitation, and more research is required regarding this correlation. We analysed the correlation of BMI, in terms of value creation, proposition and capture, and BP regarding consumer satisfaction, market effectiveness and current profitability. Our samples consist of 51 companies located in technological parks in Brazil and we used self-reported data to conduct the study. As a result, it was identified that there is a positive correlation regarding BMI and BP as main concepts. Value creation and proposition are also positively correlated, with BP as an aggregated variable and with customer satisfaction. Value capture, market effectiveness and current profitability do not present a positive correlation with the other variables.

Circular economy business model for smart tourism: the case of Ecobnb

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale del Vecchio ◽  
Caterina Malandugno ◽  
Giuseppina Passiante ◽  
Georgia Sakka
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Social Implications ◽  
Content Type ◽  
Tourism Management ◽  
Practical Implications ◽  
Smart Tourism

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

scholarly journals Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises

2019 ◽  
Vol 11 (2) ◽  
pp. 391 ◽  
Author(s):  
Vinit Parida ◽  
David Sjödin ◽  
Wiebke Reim
Keyword(s):  
Business Model ◽  
Data Exchange ◽  
Business Models ◽  
Predictive Analytics ◽  
Business Model Innovation ◽  
Research Field ◽  
Future Research ◽  
Special Issue ◽  
Value Capture ◽  
Industrial Companies

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.

scholarly journals The impact of digital logistics start-ups on incumbent firms: a business model perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmin Mikl ◽  
David M. Herold ◽  
Marek Ćwiklicki ◽  
Sebastian Kummer
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Primary Data ◽  
Value Proposition ◽  
Value Capture ◽  
Content Type ◽  
Main Factors ◽  
Start Ups ◽  
The Impact

PurposeDigital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents' companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies.Design/methodology/approachBased on the primary data gathered from eight interviews with experts from start-ups' and incumbents' logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components' value proposition, value creation, value delivery and value capture.FindingsThe results show that differences between DFFs and TFFs appear in all four business models' components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode.Originality/valueThis is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.

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