Grassroots Resistance to Digital Platforms and Relational Business Model Design to Overcome It: A Conceptual Framework

2020 ◽  
Vol 5 (3) ◽  
pp. 271-291 ◽  
Author(s):  
Joan Enric Ricart ◽  
Yuliya Snihur ◽  
Carlos Carrasco-Farré ◽  
Pascual Berrone
Keyword(s):  
Collective Action ◽  
Conceptual Framework ◽  
Business Model ◽  
Business Models ◽  
Stakeholder Management ◽  
Model Design ◽  
Digital Platforms ◽  
Digital Platform ◽  
Business Model Design ◽  
Precarious Labor

Although extant research has studied incumbent resistance to digital platforms, it provides little understanding about when grassroots collective action by other ecosystem stakeholders against the digital platform is likely. In this paper, we identify the scope conditions detailing when local stakeholders can initiate grassroots collective action against the digital platform, a unique context characterized by fast growth, distributed innovation, role flexibility, and direct local connectivity, and propose viable solutions. Our conceptual framework suggests that grassroots collective action against the digital platform is most likely when the digital platform operates with localized scarce assets or localized precarious labor and when actors express their grievances through formalized channels. We combine business model design and stakeholder management perspectives to develop design-based solutions that involve a multisided business model structure, an inclusive stakeholder value proposition, and an ecosystem-centered governance. We call the combination of such design efforts relational business model design. To the incipient theory of digital platforms, we contribute a stakeholder-centered view of platform business models operating within local ecosystems, bridging research on collective action and stakeholder management with strategic management of platforms.

INNOVATIVE BORN GLOBALS: INVESTIGATING THE INFLUENCE OF THEIR BUSINESS MODELS ON INTERNATIONAL PERFORMANCE

2017 ◽  
Vol 21 (01) ◽  
pp. 1750005 ◽  
Author(s):  
SASCHA KRAUS ◽  
ALEXANDER BREM ◽  
MIRIAM SCHUESSLER ◽  
FELIX SCHUESSLER ◽  
THOMAS NIEMAND
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Business Models ◽  
Innovation Management ◽  
Model Design ◽  
Born Globals ◽  
International Firm ◽  
Multiple Case ◽  
Business Model Design

Internationalization is a hot topic in innovation management, whereby the phenomenon of “Born Globals” is still limited to research in the domains of Entrepreneurship and International Management. As business model design plays a key role for Born Globals, we link these two concepts. For this, we propose hypotheses about the influence of efficiency-centered and novelty-centered business model design on international firm performance. To test these hypotheses, we performed a quantitative survey with 252 founders of international companies in Germany, Switzerland and Liechtenstein. Additionally, we gained further insights through a case study analysis of 11 Born Globals. The results show that business model design matters to international firm performance and the business model design of Born Globals tends to be more efficiency-centered. Based on a multiple case study, we analyzed business models in a more sophisticated way and derived propositions that yielded in an archetype of a Born Global’s business model.

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.

scholarly journals Business Model Design for Latecomers in Biopharmaceutical Industry: The Case of Korean Firms

2019 ◽  
Vol 11 (18) ◽  
pp. 4881 ◽  
Author(s):  
Changhyeon Song ◽  
Kwangsoo Shin
Keyword(s):  
Empirical Study ◽  
Business Model ◽  
Sustainable Management ◽  
Business Models ◽  
Biopharmaceutical Industry ◽  
Model Design ◽  
Market Expansion ◽  
Different Types ◽  
The Face ◽  
Business Model Design

Given high business risks and interdependency with various organizations in biopharmaceutical industry, business model has become a key element for firms that aim to be more sustainable and profitable. Despite its growing importance, research on the business model design in biopharmaceutical industry is limited. In particular, there is a lack of research dealing with business models or strategies for latecomers. In the face of drastic changes such as market expansion and patent expiration, there has been growing interest in latecomer’s business model in the biopharmaceutical industry. This study identifies different types of business model designs using hierarchical clustering. Based on an empirical study of 313 biopharmaceutical firms in Korea, we find three types of business models: business diversified research firm, non-diversified research firm, and mature firm. We then compare the general characteristics and performances of each cluster. The findings indicate that business diversification of biopharmaceutical firms is beneficial in terms of profit. This implies that the biopharmaceutical firms in latecomer countries such as Korea are recommended to consider business diversification for sustainable management.

Smart platform experiment cycle (SPEC): a process to design, analyze, and validate digital platforms

2021 ◽  
Vol 35 (2) ◽  
pp. 209-225
Author(s):  
Patrick Brecht ◽  
Manuel Niever ◽  
Roman Kerres ◽  
Anja Ströbele ◽  
Carsten H. Hahn
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Processes ◽  
Design Science ◽  
Science Research ◽  
Digital Platforms ◽  
Digital Platform ◽  
Design Science Research Methodology ◽  
Customer Development ◽  
Early Market

AbstractDigital platform business models are disrupting traditional business processes and reveal a new way of creating value. Current validation processes for business models are designed to assess pipeline business models. They cannot grasp the logic of digital platforms, which increasingly integrate Artificial Intelligence (AI) to ensure success. This study developed a new validation process for early market validation of digital platform business models by following the Design Science Research methodology. The designed process, the Smart Platform Experiment Cycle (SPEC), is created by combining the Four-Step Iterative Cycle of business experiments, the Customer Development Process, and the Build-Measure-Learn feedback loop of the Lean Startup approach and enriching it with the knowledge of digital platforms. It consists of five iterative steps showing the startup how to design their platform business model and corresponding experiments and how to run, measure, analyze, and learn from the outcomes and results. To assess its efficacy, applicability, and validity, SPEC was applied in the German startup GassiAlarm, a service marketplace business model. The application of SPEC revealed shortcomings in the pricing strategy and highlighted to what extent their current business model would be successful. SPEC reduces the risk of building a product or service the market deems redundant and gives insights into its success rate. More applications of the SPEC are needed to validate its robustness further and to extend it to other types of digital platform business models for improved generalization.

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.

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