scholarly journals Bank business modeling and levels of non-performing loans:Perspectives of international risk factors in Ukraine

2019 ◽  
Vol 6 (2) ◽  
pp. 282-296 ◽  
Author(s):  
Olha Vovchak ◽  
Serhij Reverchuk ◽  
Viktoria Rudevska ◽  
Yaroslav Khlan
Keyword(s):  
Risk Factors ◽  
Business Model ◽  
Business Models ◽  
Banking Crisis ◽  
Econometric Models ◽  
Business Modeling ◽  
Banking Business

This article identifies five different banking business models using the k-means method and demonstrates how banks carried out the migration between defined clusters during the banking crisis. The article identifies and links the banks with the business model they are most exposed to in terms of risk of insolvency. The factors that influence the rate of non-performing loans are defined. Developed econometric models will allow banks with certain business models to improve their activity with non-performing loans. The article also analyzes how the amount of loans to related parties can be injected into the amount of non-performing loans.

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 The Effects of Business Model on Bank’s Stability

2021 ◽  
Vol 9 (3) ◽  
pp. 46
Author(s):  
Thuy Thu Nguyen ◽  
Hai Hong Ho ◽  
Duy Van Nguyen ◽  
Anh Cam Pham ◽  
Trang Thu Nguyen
Keyword(s):  
Business Model ◽  
Business Models ◽  
The Philippines ◽  
Policy Implications ◽  
Model Choice ◽  
Econometric Methods ◽  
Banking Business ◽  
Asean Countries ◽  
Negative Impacts ◽  
The Stability

The literature shows little evidence of the effects of business models upon the volatility of banks in developing and fast-growing economies. Hence, this study examines the effects of business model choice on the stability of banks in ASEAN countries. Using GMM and other robust econometric methods on the sample of 99 joint stock commercial banks, we find significant and negative impacts of a diversification model in which banks shift toward non-interest and fees-based activities. We also find that the impacts are different between two groups of countries. For Vietnam, Indonesia and the Philippines, the diversification entails negative impacts on stability while demonstrating positive impacts for Thailand and Malaysia. Based on these findings, we draw policy implications for more sustainable development in the ASEAN banking business.

scholarly journals PRACTICAL APPROACHES TO BUSINESS MODELING OF INNOVATION PROJECTS

2020 ◽  
Author(s):  
Maryna Kravchenko ◽  
◽  
Valeria Sydorchuk ◽  
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Plan ◽  
Project Planning ◽  
Business Modeling ◽  
Community Information ◽  
Innovation Project ◽  
Conducting Research ◽  
A Chain ◽  
Brokerage Service

The article considers the role and methods of business modeling in the context of the implementation of innovative projects. The value of the business model as an instrument for innovation project planning for the enterprise, as well as for startups is argued. Considering the peculiarities of the company's adaptation to the external environment, as well as the degree of influence of management on the formation of the operating environment of the organization, it was determined that there are no identical business models. The plane of correlation of the business model, strategy, and business plan of the enterprise is considered: the enterprise chooses an effective business model that corresponds to its strategy and promotes its implementation, and the chosen business model lays the foundation for the business plan of the project. It is determined that depending on the method of income business models are trade, brokerage, service, subscription, community, information and media, affiliate, advertising, brokerage, licensing; depending on pricing – those that aim to maximize the value of the proposed idea and those that focus on minimizing the cost of implementing the idea. After analyzing the recommendations of an international consulting company, we came to the conclusion that the development of an effective business model takes place in three stages: offering value to the consumer; formation of a chain of creation of this value; determining the value that the company receives in this process, as well as ways to protect against competitors. Based on the generalization, it was found that different scientists in developing the structure of the business model of an innovative project identified their own hierarchy of values of its components. The necessity of using the canvas to ensure the speed and clarity of the formation of the business model is substantiated. The structure of the canvas most widespread in foreign practice is considered, as well as its modifications proposed for different purposes. After conducting research on existing practical approaches, the most significant aspects of business modeling of innovative projects were systematized.

E-Business Modeling

2003 ◽  
pp. 113-138 ◽  
Author(s):  
Tomaso Forzi ◽  
Peter Laing
Keyword(s):  
Business Model ◽  
Manufacturing Industry ◽  
Business Models ◽  
New Technology ◽  
Information Service ◽  
Collaboration Network ◽  
Web Based ◽  
Business Modeling ◽  
Manufacturing Networks ◽  
New Business

This chapter introduces a meta-method for e-business modeling. As a matter of fact, the Internet and Web-based e-business solutions nowadays play a crucial enabling role for the design and implementation of new business models. This implies high chances, but also remarkable risks for enterprises that choose to pursue a new business model striving to exploit new technology potentials. In fact, the implementation of a strategically not appropriate business model would critically undermine the long-term success of a company. Hence there is a clear need for action in the field of methodical business modeling. We present a new approach for a customer-oriented e-business modeling, with specific attention on inter-organizational cooperative networks and re-intermediation, as well as on information management within distributed manufacturing networks. The approach has been validated in the case of the information service intermediary of a collaboration network in the German manufacturing industry.

scholarly journals From Business Modelling to the Leadership and Innovation in Business: Bibliometric Analysis (Banking as a Case)

2020 ◽  
Vol 4 (1) ◽  
pp. 113-125
Author(s):  
Tetiana Goncharenko
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Strategic Management ◽  
Information Management ◽  
Bibliometric Analysis ◽  
Business Model ◽  
Business Models ◽  
Business Modelling ◽  
Banking Business ◽  
Management Issues

The analysis of approaches to defining the banking business model showed that digital financial technologies, e-commerce, information management are important factors that form the model of leadership and innovation in business. The development of risk management, risk assessment, profitability-risk-stability triangle balancing, which create relevant trends in the formation of business leadership models, has increasing importance for managers, clients and shareholders. The article identifies the dominant tendencies in the development of scientific thought (based on 6377 articles from 1991-2019 in journals indexed by Scopus and Web of Science) regarding the transformation of business models in banks and the future research directions with the help of bibliometric analysis (VOSviewer). The conducted analysis showed that in 2012-2017 the number of scientific articles about the transformation of banks’ business models began to increase. It proves the relevance of business modelling for leadership and innovation in business. At the same time, the focus of research has shifted from general strategic management issues to risk management issues. In 2017, the number of articles studying the banking business model increased by 148% compared to 2012. Therefore, these articles in the subject area observe such areas as business, management, economics, econometrics, finance, social and computer sciences. Among the scientists who studied the banks’ business models, most are scientists from the US, UK and India. In 2018, there was a significant increase in the number of articles on banking strategic management published in high impact journals, such as the Journal of Banking and Finance, the International Journal of Bank Marketing and Economic Modeling. The use of the VOSviewer has identified 8 research clusters exploring the issue from different perspectives. The first (largest) cluster consists of studies that examine banks’ business models through decision-making and information management technologies, risk assessment and minimization mechanisms, the relationship between banking sales dynamics and the information databases etc. The second-largest cluster brought together researchers examining banks’ business models in terms of the financial crisis effects, regulatory changes, business efficiency and stability (z-score), etc. The third-largest cluster is the study of business models through the dynamics of transformations in the financial market, in lending behaviour and business cycles. These three largest clusters confirm that the key to leadership and innovation in banking is the balance between the profitability-risk-stability triangle and information technology. Keywords: Bank, Banking, Business Model, Leadership and Innovations in Business.

scholarly journals THEORETIAL BASIS AND CLASSIFICATION OF BANK BUSINESS MODELS

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
I. Shkolnyk ◽  
D. Akopyan
Keyword(s):  
Information Technology ◽  
Business Model ◽  
Business Models ◽  
Negative Impact ◽  
Investment Model ◽  
Capital Adequacy ◽  
Theoretical Approaches ◽  
Bank Business Models ◽  
Banking Business

This article devoted to the issue of banking business models. The negative impact of financial crises on the banking system leads to the search for new tools for risk assessment and risk management. Today banking supervision in Ukraine is based on the methodology of the Supervisory Review and Evaluation Process. In addition to assessing capital adequacy and liquidity and corporate governance, this methodology involves also assessing the business models of banks, which determines the relevance of the research of this term. Therefore, the purpose of the study is determination the theoretical foundations of the concept of business model of the bank, as well as analysis of approaches to their classification. The study investigates the main theoretical approaches of defying the essence of the term «business model of the enterprise» and «bank business model». The author proposed its own definition of the term «banking business model», which can be represented as a system of bank management elements, including business processes, resources, technologies, their relationships with each other and with the external environment. The study summarizes the approaches to classification of bank business models by both as foreign and domestic scientists. The classification of bank business models on the different criterions is offered by the author. Of most practical relevance is the classification of business models of banks by their activities (depending on the source of resources and areas of their placement) and provides for the following types: traditional model, universal model, corporate model, retail model and investment model. The change of existing business models occurs with the active introduction of information technology in banking. The article offered the classification of business models according to the level of digitalization. The traditional business model (does not involve the use of information technology), online banks (operate mainly through software interfaces), mixed business model (combines the two previous ones). The results of the study can be the basis for the development of indicators for the analysis of business models of banks, as well as the identification of business models of banks in Ukraine and identify the risks specific to each of them.

scholarly journals NEW APPROACHES TO BANKING BUSINESS MODELS IN THE DIGITAL ECONOMY

2019 ◽  
pp. 89-94
Author(s):  
I. D’yakonova ◽  
O. Pakhnenko ◽  
L. Shevchenko
Keyword(s):  
Information Technology ◽  
Business Model ◽  
Business Models ◽  
Business Environment ◽  
Digital Economy ◽  
Model Assessment ◽  
New Approaches ◽  
Banking Business ◽  
The Impact

The factors of the post-crisis development of the world banking system, the strengthening of the role of information technology in all industries, the increasing role of innovative Fintech intermediaries in the banking market encourage the management of banks to revise traditional business models and to form new approaches to managing the modern bank. In the article the authors aimed to investigate the impact of digitization on the choice of banking business model and the development of algorithm for estimating a bank’s business model. Traditionally banks choose one of five business models: lending, high leverage, investment, fee, margin. Most operating banks opt for traditional models because the business environment requires it. However, maintaining the bank’s competitiveness, enhancing its efficiency and resilience to financial imbalances is possible by building an innovative business model that takes into account the modern diffusion of information technology and the functioning of FinTech companies as an alternative to traditional banking business. Although nobody knows yet what will replace the current business model, there are currently three approaches to assimilating FinTech in banking: the Financial Control Center, Banking-as-a-Service, the Niche Bank. The choice of the banking business model and its transformation should be accompanied by an assessment of the bank’s business model. Thus, an important component of banking management in an unstable environment is the analysis of the business model of the bank and its transformation in order to minimize the impact of possible negative effects of financial crises on the performance of the bank. The proposed algorithm for estimating a bank’s business model includes 6 stages: preliminary assessment of the main components of the bank’s business model; assessment of the business environment of the bank; stress testing of the viability of the bank’s business model; evaluation of the bank’s strategy; identification of key vulnerabilities to which the bank’s business model is prone or likely to be vulnerable; and justification of the results and formation of effective conclusions. Keywords: banks, banking business model, banking management, digital economy, business model innovation.

Business Model Literature Overview

2014 ◽  
pp. 79-130 ◽  
Author(s):  
Ales Novak
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Business Models ◽  
Potential Role ◽  
Financial Instruments ◽  
Business Logic ◽  
Literature Overview ◽  
Ifrs 9 ◽  
Definition Of

The term ?business model' has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model'. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model' has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author's opinion, the term ‘strategy' is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model' is a more static notion, reflecting the conceptualisation of the company's underlying core business logic. The conclusion contains the author's thoughts on the role of the business model in financial reporting.

Economic and Legal Bases of Using Car-Sharing Business Models in Ukraine

2020 ◽  
pp. 75-85
Author(s):  
Oleksandr M. Matsenko ◽  
Tetiana М. Malanchuk ◽  
Vladyslav S. Popov ◽  
Vladyslav S. Piven ◽  
Evhenyi O. Skrypka
Keyword(s):  
Business Model ◽  
Business Models ◽  
Swot Analysis ◽  
Road Traffic ◽  
Economic Benefits ◽  
Car Sharing ◽  
Bibliographic Analysis ◽  
Economic Method ◽  
Logical Sequence ◽  
Study Results

This article summarizes the concept of sharing, bibliographic analysis of publications in the field of car-sharing based on the Scopus database. The primary purpose of the study is to study the economic and legal basis for the development of car-sharing business models in Ukraine. Systematization of literature sources and approaches devoted to the economic efficiency of the implementation of car-sharing business models has shown that in Ukraine, this issue is almost not paid attention to in the economic, scientific sphere, and legal, scientific areas. The urgency of solving this scientific problem lies in the need and ability to relieve road traffic from traffic jams, reducing the average downtime of vehicles, as well as economic benefits for entities (vehicle owners and passengers) involved in sharing business models. The research has the following logical sequence: the types of car-sharing business models were analyzed, and their comparative characteristics were carried out; the economic and legal preconditions of car-sharing business development in Ukraine are investigated. The research identifies legislative obstacles to the establishment of a car-sharing company in Ukraine. A SWOT analysis of the conditions for implementing a car-sharing business model in Ukraine was performed. It analyses the costs and efficiency of creating a business based on a car-sharing business model in Ukraine on a conditional example. We propose to use system-structural and comparative analysis to analyze the problems of modern transport, methods of formal-logical analysis for determining the directions of development of car-sharing business models, and economic method for assessing the effect and a payback period of the proposed project car-sharing business model. The study results can be useful for the development of the car-sharing business in Ukraine, for entrepreneurs, scientists, and vehicle owners. Keywords: car-sharing, car-sharing business model, car-sharing business, motor transport, hire, expenses, analysis.

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