scholarly journals Business Model Innovation as a Tool to Establish Corporate Sustainability

2017 ◽  
Vol 6 (2) ◽  
pp. 50-58 ◽  
Author(s):  
Csaba Fogarassy ◽  
Balint Horvath ◽  
Robert Magda
Keyword(s):  
Business Model ◽  
Business Models ◽  
Corporate Sustainability ◽  
Business Environment ◽  
Business Model Innovation ◽  
Socially Responsible ◽  
Market Society ◽  
Economic Interpretation ◽  
Clear Explanation ◽  
Market Criteria

Abstract Considering the frequently changing business environment, staying competitive on the current markets takes more efforts from companies in the 21st century. Conducting only incremental product innovation does not meet the market criteria anymore. The successful entrepreneurs of the future must focus more on the design of their business models to gain superior economic performance. Besides the market, society has also raised a major requirement towards companies, which is being socially responsible. The word ‘sustainability’ regarding businesses might confuse a lot of people as several aspects of the term reach beyond its traditional economic interpretation. The present study provides a clear explanation and furthermore examines its application at a corporate level. This paper aims to present how business model innovation does not simply lead to economic success but its generated value can be extended to social and environmental aspects as well.

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

Sustainable Competitive Advantage Through Business Model Innovation

2020 ◽  
pp. 191-213
Author(s):  
Purna Prabhakar Nandamuri ◽  
K. S. Venu Gopala Rao ◽  
Mukesh Kumar Mishra
Keyword(s):  
Business Model ◽  
Business Models ◽  
New Technologies ◽  
Business Environment ◽  
Business Model Innovation ◽  
Sustainable Competitive Advantage ◽  
Term Survival ◽  
New Business ◽  
Indian Perspective

Conventionally, businesses focus on their offerings for growth. But the increasingly unpredictable business environment is making them irrelevant in the market. So, businesses should resort to a system of dynamic management by innovating on the business models rather than a single aspect of the business. Business model innovation demands neither new technologies nor creation of new markets, but cares about delivering the existing products produced by existing technologies to the existing markets, through a unique model. Hence, defining, innovating, and evolving new business models have become the new basis of competition. A differentiated, hard-to-imitate, effective, and efficient business model is more likely to ensure higher profits and long-term survival. In this context, the present chapter attempts to furnish multiple global evidences and discuss the Indian perspective of business model innovation.

scholarly journals Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective

2019 ◽  
Vol 11 (2) ◽  
pp. 344 ◽  
Author(s):  
Andreja Pucihar ◽  
Gregor Lenart ◽  
Mirjana Kljajić Borštnar ◽  
Doroteja Vidmar ◽  
Marjeta Marolt
Keyword(s):  
Business Model ◽  
Business Performance ◽  
Business Models ◽  
Positive Impact ◽  
Business Environment ◽  
Business Model Innovation ◽  
The Body ◽  
Path Modeling ◽  
Body Of Knowledge ◽  
Using Data

Business model innovation (BMI) is one of the key activities, which has to be continuously undertaken in every enterprise to sustain competitiveness in today’s digital economy. Although the interest in business models (BM) has risen significantly since the late 1990s, little is known about BMI practices in small- and medium-sized enterprises (SMEs), representing a majority of enterprises in the European market. Our study addresses this research gap and focuses on the investigation of drivers and outcomes of BMI in SMEs. A partial least squares path modeling (PLS-PM) method was used to empirically test the model using data collected in 2017 from 71 SMEs in Slovenia. Results have shown that the innovativeness of enterprises and their business environment has a positive impact on the level of BMI activities in the enterprises. However, this is not the case of fast developing and rapidly changing information technology. In addition, the results show that the level of BMI has a positive impact on BMI outcomes and further on overall business performance. The results contribute to the body of knowledge in the field of BMI activities in SMEs and offer useful insights to SMEs that intend to innovate their business model(s) and government to create a supportive environment.

scholarly journals A framework for business model with strategic innovation in ICT firms

2018 ◽  
Vol 31 (1) ◽  
pp. 16-41 ◽  
Author(s):  
Nezameddin Faghih ◽  
Banafsheh Dastourian ◽  
Seyyed Mojtaba Sajadi ◽  
Andres Henten ◽  
Pantea Foroudi
Keyword(s):  
Business Model ◽  
Business Models ◽  
Emerging Market ◽  
Business Environment ◽  
Business Model Innovation ◽  
Model Concept ◽  
Model Framework ◽  
Content Type ◽  
Strategic Innovation ◽  
Ict Industry

Purpose The purpose of this study is to help gain an accurate and distinct understanding of information-based business concepts and critical steps in designing an appropriate business model, by providing a framework for designing an innovative information-based business to help fledgling businesses development in the information and communication technology (ICT) industry of Iran. What is a business model framework with the strategic innovation approach in the small and medium enterprises (SMEs) of ICT industry? What are the components of this model and the relations between them? Business model is a logical response to how a business can create value. Changing business environment means that business models are rapidly growing; accordingly, innovation is no longer optional. However, innovation is important in general, but the kind of innovation that is widely and directly dependent on business model will be quite critical for all parts of the organization. In fact, business model innovation is an exquisite technic to create, deliver and earn value by changing one or more components of a typical business model. Business model innovation needs information and form business environment based on dynamic information system. Design/methodology/approach The present paper focuses upon SMEs in ICT. Grounded theory has been used for this purpose, with 15 interviews conducted. Findings An emerging market is one in which commercial exchanges of a particular industry between the countries are relatively new but possess great investment attractiveness and a high potential to grow (such as Iran).As the ICT industry of Iran is a leading industry, and the country itself is an emerging market, the main purpose of this study is to provide a framework for designing an innovative information-based business to help fledgling businesses development in the ICT industry of Iran. Originality/value The purpose of this paper is to help accurate and distinct understanding of the business model concept and critical steps in designing an appropriate business model. Studies conducted to simultaneously deal with the business model and strategic innovations are few, and by the time the proposal was written, there was no research observed from Persian sources.

Sustainable Competitive Advantage Through Business Model Innovation

2018 ◽  
pp. 217-246
Author(s):  
Purna Prabhakar Nandamuri ◽  
K. S. Venu Gopala Rao ◽  
Mukesh Kumar Mishra
Keyword(s):  
Business Model ◽  
Business Models ◽  
New Technologies ◽  
Business Environment ◽  
Business Model Innovation ◽  
Sustainable Competitive Advantage ◽  
Term Survival ◽  
New Business ◽  
Indian Perspective

Conventionally, businesses focus on their offerings for growth. But the increasingly unpredictable business environment is making them irrelevant in the market. So, businesses should resort to a system of dynamic management by innovating on the business models rather than a single aspect of the business. Business model innovation demands neither new technologies nor creation of new markets, but cares about delivering the existing products produced by existing technologies to the existing markets, through a unique model. Hence, defining, innovating, and evolving new business models have become the new basis of competition. A differentiated, hard-to-imitate, effective, and efficient business model is more likely to ensure higher profits and long-term survival. In this context, the present chapter attempts to furnish multiple global evidences and discuss the Indian perspective of business model innovation.

scholarly journals The Impact of Business Model Innovation on Sustainable Tourism

2020 ◽  
Vol 11 (1) ◽  
pp. 1-9
Author(s):  
Ruhet Genc
Keyword(s):  
Business Model ◽  
Business Models ◽  
Technological Development ◽  
Critical Evaluation ◽  
Business Environment ◽  
Business Model Innovation ◽  
Business Strategies ◽  
Mathematical Form ◽  
Tourism Sector ◽  
The Impact

In this study, the impact of business model innovation on the sustainability of tourism activities will be discussed in detail. The methodology of the paper will be literature review based on previous investigation in the domain of business model innovation and the critical evaluation of the findings. The manuscript will start with brief information regarding to previous findings in the existing literature, then the relationship between business model innovation and sustainability of tourism activities will be investigated with a specific focus on rapidly changing dynamics of world and therefore the transformative aspects of business strategies will be the main objective of the study. Next, the manuscript will suggest a model where the effect of business model innovation is modeled in a mathematical form, pertaining to several variables including technological development, total revenues, and the degree of environmental degradation. Finally, the manuscript will conclude that the innovation-based nature of tourism sector requires firms to constantly innovate their business models so that they can arrange themselves according to necessities of rapidly changing business environment, in order to preserve their competitiveness and maintain their business activities to keep making profit.

How to harnesses digital technologies for pursuing business model innovation: a longitudinal study in creative industries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anjar Priyono ◽  
Baziedy Darmawan ◽  
Gunawan Witjaksono
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Digital Technologies ◽  
Business Environment ◽  
Business Model Innovation ◽  
Creative Industries ◽  
Future Research ◽  
Developed Country ◽  
Content Type

Purpose This study aims to investigate how manufacturing firms in the creative industries harness digital technologies to undertake business model innovation. Design/methodology/approach This study used in-depth case studies to examine the complex interplay between digital technologies and business model innovation. A longitudinal approach was selected to capture major events both within the firm and in the business environment. Building on the firm’s archival data, interviews and secondary data that was available to the public, the authors carefully analyzed impactful digital technology events and the firm’s responses to the technological changes that occurred over the period of 2004–2020. Findings The findings suggest that digital technologies alone are not sufficient for business model innovation to be successful; support from sociotechnical factors is also required. Additionally, firms should reinvent a new business model when the existing ones seem to start to diminish. Research limitations/implications In this study one firm was examined as the subject, using a qualitative method. This method allowed us to observe complex interplays among the resources required in business models. Future research can combine qualitative methods with computational case studies, which utilize a large volume of quantitative big data. Practical implications The results of this study suggest that managers must ensure that the resources within and outside organizations are loosely connected and are readily available to be mobilized for supporting business model innovation. To enable this, managers must prepare the required resources in advance. Originality/value The current findings add to a growing body of literature on business model innovation and digital technologies. In particular, this study describes the process of how a traditional firm from a least developed country pursues business model innovation with the support of digital technologies.

scholarly journals Establishing a Graduate Agropreneur Business Model for Food Security: A Case Study of the Melon Manis Terengganu (MMT) Fertigation Project

2021 ◽  
Vol 2 (1) ◽  
pp. 30-37
Author(s):  
Fakhrul Anwar Zainol ◽  
Norhayati Ngah ◽  
Wan Norhayate Wan Daud ◽  
Chua Kim Aik
Keyword(s):  
Food Security ◽  
Business Model ◽  
Business Models ◽  
Business Environment ◽  
Business Model Innovation ◽  
Security Issues ◽  
Structural Problems ◽  
Technological Advances ◽  
New Business ◽  
The Government

Revitalizing Malaysia’s agriculture, to cater to food security issues, has become a priority, given the current economic conditions faced by the government, due to the worldwide COVID19 pandemic.  There are, however, a set of complex issues, which involve human capital development, trade agreements, domestic structural problems, and the appropriateness of techniques that must be tackled. Graduate agropreneurs, though, seem to be the future of the nation; while they, continue to struggle with profitability in these difficult economic times. The agricultural industry, however, supports the view that through business model innovation, farms can increase their competitive advantage. This paper identifies and describes some of the elements needed for these graduate agropreneurs when they consider business model innovation. A qualitative approach was used in this study to interview successful graduate agropreneurs involved in Melon Manis Terengganu (MMT) fertigation farming. The paper concludes that the relevance of a business model, in agriculture, relies on the fact that global competition and technological advances urge agropreneurs to look for new business structures and new ways to interact within the business environment. On the other hand, the agropreneur projects should take into consideration the viability of the agriculture projects to encourage a new generation of farmers; the young, energetic, and knowledgeable agropreneurs, to venture into high technology farming which also has substantial income potential. All factors, however, merit attention when graduate agropreneurs develop new business models for their farms.

scholarly journals Entrepreneurial lean thinking for sustainable business modeling: a workshop design for incumbent firms

2021 ◽  
Author(s):  
E. J. Schwarz ◽  
P. Gregori ◽  
I. Krajger ◽  
M. A. Wdowiak
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Opportunity Identification ◽  
Sustainable Business ◽  
Lean Thinking ◽  
Business Modeling ◽  
Innovation Research ◽  
Political Debates ◽  
Negative Environmental Impact

AbstractIn times of increasing concerns and extensive political debates about social and environmental problems, incumbent firms are obliged to reduce their negative environmental impact by implementing sustainable business model innovation. Yet, realizing more sustainable business model variants entails several complexities and associated challenges that need to be overcome. To support this task, this article takes an entrepreneurship perspective on sustainable business model innovation and combines literature of business models and entrepreneurial lean thinking (ELT). In doing so, it derives a workshop design grounded in contemporary theory with state-of-the-art tools and methods. The workshop is framed as a stage-gate process facilitating the notions of ELT with iterative cycles of ‘create, test, and improve’ and spans the phases of opportunity identification, opportunity evaluation, opportunity development through sustainable business model design, and decision of opportunity exploitation. The article shows that ELT is an appropriate yet underutilized approach for sustainable business modeling. Further, it discusses how the workshop supports opportunities and mitigate pitfalls of ELT for sustainable business modeling. As such, the findings have theoretical implications for the intersection of sustainability and lean approaches in innovation research as well as implications for practitioners by providing a comprehensive framework to support sustainable business model innovation.

scholarly journals Secondary Business Model Innovation in Emerging Economies

2021 ◽  
pp. 1-30
Author(s):  
Sonia Mehrotra ◽  
S. Ramakrishna Velamuri
Keyword(s):  
Organizational Learning ◽  
Business Model ◽  
Emerging Economies ◽  
Business Models ◽  
Business Model Innovation ◽  
Street Vendors ◽  
China And India ◽  
Successful Business ◽  
Quick Service

ABSTRACT We study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.

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