Reshaping the Business Incubator Model: The Case of the Value Chain Model of Innovation Works in China

2019 ◽  
Vol 24 (3) ◽  
pp. 401-422 ◽  
Author(s):  
Mingfeng Tang ◽  
Cuiwen Li ◽  
Angathevar Baskaran ◽  
Yu Cheng ◽  
VGR Chandran
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Policy Implications ◽  
Primary Data ◽  
Traditional Model ◽  
Chain Model ◽  
Business Incubator ◽  
Value Capture ◽  
Critical Elements ◽  
Chain Business

Since the late 1980s, the business incubator model in China has been evolving—from the early traditional model that focused mainly on providing basic services, such as office space and one-stop administrative services, to an emerging value chain model (value position, value creation, value transfer and value capture), which efficiently combines the profits of an incubator with the success of its incubating tenant ventures. This article analyses the case of ‘Innovation Works’, which is one of the pioneers of the value chain model in China. It raises the following research questions: (a) how does the incubator business model evolve over time in China? (b) What differentiates the value chain business incubator model from the traditional model? (c) What are the critical elements that contribute to the success of a value chain business incubator model? Using primary data gathered through interviews, on-site visits and surveys, the study found that the incubator business model in China has been reshaping towards more complex value propositions and more efficient value chain models. The study also found that specialisation, flat organisational structure and professional management team are the critical elements that contribute to the success or efficient performance of the value chain business incubator model. This article makes significant contributions to the literature and draws policy implications for future business incubator development—both in China and in other emerging economies.

scholarly journals Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

2020 ◽  
pp. 000765032097345
Author(s):  
Krzysztof Dembek ◽  
Jodi York
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Single Case ◽  
Base Of The Pyramid ◽  
Sustainable Business ◽  
Value Capture ◽  
Promising Alternative ◽  
Sustainable Business Models ◽  
Multi Stakeholder

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

Understanding a Business Incubator as a Start-Up Factory: A Value Chain Model Perspective

2019 ◽  
Vol 16 (03) ◽  
pp. 1950025 ◽  
Author(s):  
Eric Christian Brun
Keyword(s):  
Value Chain ◽  
Qualitative Content Analysis ◽  
Chain Model ◽  
Venture Creation ◽  
Business Incubator ◽  
Business Incubation ◽  
Theoretical Understanding ◽  
A Value ◽  
Start Up ◽  
Development Processes

This study proposes a value chain model for business incubation. It describes both an incubated start-up’s development of its own product and business and the incubator’s development of the start-up from entrance to exit as a “product” of the incubator. The reported research is based on qualitative content analysis of 15 start-up cases in a Norwegian business incubator. The reported research enhances our theoretical understanding of start-up development processes within an incubator and provides a framework that will be useful for incubator management to guide incubatees through their venture creation process.

Lean Operation

2018 ◽  
pp. 203-246
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Market Competition ◽  
Value Capture ◽  
Strategic Resources ◽  
Operational Capabilities

When introduced a new solution, be it a product, a process, or a business model, the problem for the startup is the absence of a business foundation while for the established company it is precisely its existence. As discussed, market competition occurs at the level of the business formula, while company's value capture occurs through the unique arrangement of operational capabilities, strategic resources, and established relationships with key partners of the value chain; that's what we call business foundation. If the value created by the company must be captured and multiplied, it will be necessary to design a repeatable, scalable, and automatable system based on the adjustment of the business formula with the business foundation. This chapter explores lean operation.

scholarly journals Sustainable Production in a Circular Economy: A Business Model for Re-Distributed Manufacturing

2019 ◽  
Vol 11 (16) ◽  
pp. 4291 ◽  
Author(s):  
Chris Turner ◽  
Mariale Moreno ◽  
Luigi Mondini ◽  
Konstantinos Salonitis ◽  
Fiona Charnley ◽  
...  
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Manufacturing Industry ◽  
Business Models ◽  
New Technologies ◽  
Three Dimensional ◽  
Distributed Model ◽  
Chain Model ◽  
Distributed Manufacturing

The emergence of new technologies such as the Internet of Things, big data, and advanced robotics, together with risks such as climate change, rising labour costs, and a fluctuating economy, are challenging the current UK manufacturing model. In this paper, business models for re-distributed manufacture (RdM) are developed using anIDEF (Icam DEFinition for Function Modelling) description to serve as a guide for the implementation of the RdM concept in the consumer goods industry. This paper explores the viability of a re-distributed business model for manufacturers employing new manufacturing technologies such as additive manufacturing or three-dimensional (3D) printing, as part of a sustainable and circular production and consumption system. An As-Is value chain model is presented alongside the proposed new business model for a sustainable re-distributed manufacturing system. Both are illustrated via a case study drawn from the shoe manufacturing industry. The case study shows that there is a need for robust facilities in close proximity to the customer. These facilities are store fronts which can also manufacture, remanufacture, and provide services. The reduction in transportation and increase in customer involvement throughout the process are the main benefits that would accrue if a re-distributed model is implemented in the given industry.

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.

Using Ontology and Modelling Concepts for Enterprise Innovation and Transformation

2017 ◽  
Vol 5 (1) ◽  
pp. 70-104
Author(s):  
Paul Okpurughre ◽  
Mark von Rosing ◽  
Dennis Grube
Keyword(s):  
Best Practices ◽  
Business Model ◽  
Value Chain ◽  
Complex Environment ◽  
Operating Model ◽  
Cost Performance ◽  
Enterprise Innovation ◽  
Performance Drivers ◽  
And Performance ◽  
Chain Business

This case story covers the SAL Heavylift journey and how they tailored their strategy to address the opportunities within the market. The mapping and improvement of their value chain, business model and with it the service, revenue, value, cost, performance and operating model. Various details about this innovation and transformation journey will be shared, including, how BPM concepts are applied to understand and classify strategic considerations while enabling the business model decisions, redesign functions, and all the underlying activities (processes). This includes benchmarking maturity and develop a transformation roadmap. The case also discusses the issues faced by such complex environment; such as how value and performance drivers are incorporated into the existing operating model. In addition to that, the best practices, industry practices and leading practices applied are being discussed and the modelling disciplines used are specified.

scholarly journals A SUSTAINABLE PALM FRUIT VALUE CHAIN MODEL FOR SMALL-SCALE ACTORS IN NIGERIA

2020 ◽  
Vol 4 (1) ◽  
pp. 91-109
Author(s):  
Ehiremen Clement Osunde
Keyword(s):  
Value Chain ◽  
Structural Equation ◽  
Path Model ◽  
Primary Data ◽  
Equation Modeling ◽  
Confirmatory Test ◽  
Small Scale ◽  
Chain Model ◽  
Palm Fruit ◽  
Addition Chain

This theory’s model was driven by the need to empirically establish the possibility of smallholder’s in the Nigerian palm fruit value chain to compete with large-scale actors. Thereby, capturing a share of the consumer income which would promote sustainability. To achieve it, a theory submitted. Within this model, nineteen conceptual relationships were proposed to be contributors in the palm fruit value addition chain. A PLS-SEM technique was used to investigate the validity of these relationships. The primary data used for the investigation was surveyed from extension agents in Edo South agro-ecological zone of Edo State Nigeria. First, the article introduced the term Value Chain Theory. Next, it briefly familiarizes the readers with what structural equation modeling is all about, as well as its applications. Subsequently, the document preview literature on the pathways towards modeling a sustainable smallholder’s palm fruit’s value chain. Afterward, the researcher creates the path model for the drive of the investigation. Following that, the author ensured that the methodological approaches adopted in achieving the investigation were clearly specified. After which the results from the analysis ran were serially outlined and discussed. Last, but not least, the implications for the use of this model was highlighted and conclusion for the study was drawn. Thus, the author commended the robustness of the theory and, afterward, proposed a confirmatory test for the model. It was concluded that the tool exhibits prospects for promoting sustainability in the palm fruit value supply chain if properly adopted.

scholarly journals Mainstreaming an Unorganized Industry: The Case of Suguna Poultry

2010 ◽  
Vol 35 (2) ◽  
pp. 35-48 ◽  
Author(s):  
G Ramesh
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Tamil Nadu ◽  
Process Model ◽  
Business Processes ◽  
Risk Mitigation ◽  
Appropriate Technology ◽  
Chain Model ◽  
Growth Strategies ◽  
Core Business

The Corporate Social Responsibility (CSR) framework is quite rich with its concepts like sustainability, mainstreaming, stakeholders and their inclusiveness, citizenship, etc. The debate in CSR is increasingly about making it a part of core business process rather than treating it as a compliance function. In this context, the business model of Suguna Poultry was studied and it was observed that it can help in understanding the deeper meanings of these concepts in a concrete way. Suguna Poultry was started by two brothers, Soundararajan and Sundararajan with 200 birds 25 years back in Udumalpet, a small town in Tamil Nadu. After a lot of struggle and persistence, it scaled to reach a turnover of Rs.30,180 million in 2009, with presence in 11 states. The case is about how it managed to mesh its Business Model and Revenue Model with a Sustainable Development Model. The CSR theme is closely linked to their growth strategies and the entrepreneurs� basic philosophy towards business and stakeholders. The contribution of Suguna in the context of mainstreaming poultry industry, which belonged to unorganized sector in India are: It converted a commodity market into a product market It converted a neighbourhood market into a national market It pioneered several process innovations which changed the character of the industry itself. The business model is based on contract farming. It contributed mainly through (i) risk mitigation for the farmers which is their major bane and (ii) by providing integrated service which reduced the stages of intermediation and cost of transaction. Their process model emerges as a combination of (a) choice of appropriate technology, (b) extended organizational processes, and (c) value creating processes. The CSR aspects that emerge from the Suguna case are: Its Sustainable business model, which works for the benefit of the immediate as well as stakeholders at large. They achieved this through their entire value chain over a vast area. Achieving CSR within a ‘for profit’ objective and a ‘commercial orientation’ rather than through �charitable orientation. It offered a market relationship to farmers and not a benign or charitable relationship. This made the debt-ridden farmers self-confident entrepreneurs. Embedding CSR concerns in their core business processes and in the value system of management. The promoters as well as managers closely identify themselves with the contract farmers. Ensuring inclusive value chain model wherein all its stakeholders like growers, retailers, and customers are benefitted, and so one segment gains at the cost of another.

A systemic logic for platform business models

2018 ◽  
Vol 29 (4) ◽  
pp. 546-568 ◽  
Author(s):  
Julia A. Fehrer ◽  
Herbert Woratschek ◽  
Roderick J. Brodie
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Future Research ◽  
Value Capture ◽  
Content Type ◽  
Open Networks ◽  
Business Environments ◽  
New Business ◽  
Dynamic Perspective

PurposeThe purpose of this paper is to introduce a new business model logic, highlighting value processes in and properties of platform business models to inform business model thinking from a systemic and dynamic perspective. It challenges the idea of firms managing, influencing and controlling entire activity systems.Design/methodology/approachThe study traces the evolution of different approaches to business models and assesses theories that explain value cocreation and systemic value capture to develop a new business model logic.FindingsBusiness model thinking has evolved away from Porter’s value chain to a new logic based on open networks and platforms. This study develops a framework for understanding platform business models from a systemic perspective. Derived from service-dominant logic, this new business model logic responds to phenomena in contemporary business environments characterized by increasing connectivity and sociality among actors.Research limitations/implicationsThe framework, developed from an extensive body of business model literature, has yet to be subjected to empirical investigation. Future research may involve the exploration of business model design processes and business model innovation from a systemic perspective.Practical implicationsManagers who aim to design their business models based on the logic of platform businesses require an understanding of their organization’s collaboration potential, technological interfaces and potential to leverage network relationships. This research guides start-ups and incumbents to evaluate their platform potential.Originality/valueThis study systematically emancipates the business model logic from a firm-centered, inside-out perspective, focuses on network relationships beyond the customer–firm dyad, explains value processes beyond organizational borders and rethinks value capture from a systemic perspective.

THE VALUE CHAIN OF COMPETENCY MODEL FOR VIETNAMESE EDUCATIONAL MANAGERS IN THE INDUSTRY 4.0 REVOLUTION ERA

2018 ◽  
Author(s):  
Le Thi My Hanh ◽  
Luis Alfaro ◽  
Tran Phuong Thao
Keyword(s):  
Value Chain ◽  
Industry 4.0 ◽  
Global Economy ◽  
Value Added ◽  
Chain Model ◽  
Individual Level ◽  
The Social ◽  
Comprehensive Development ◽  
Model Of Competency ◽  
Personal Competencies

This world is constantly changing and rapidly moving,-particular in the Industry 4.0 revolution, people must change to follow and keeping with this new trend. Education is the human foundation toward the “Truth - Good - Beautiful”, and comprehensive development of personal competencies as knowledge, skills and behaviors. A nation, such as Vietnam, if they want to integrate into global economy and affirming their position, they will need the “Talented - Virtuous” human resource who could meet the high demand of society. The purpose of this study was to propose a model of competency value chain at individual level for the educational managers, analyzing some factors of this value chain model and how to apply to Vietnamese education system in the fourth Industry era. The authors wanted to focus on the social value added that the educational managers’competency could bring as the result of this research.

Sign in / Sign up

Export Citation Format

Share Document