scholarly journals Linking IT Assets and Competitive Advantage - IT Capabilities of Servitized Business Models

2021 ◽  
Author(s):  
Christoph Brosig ◽  
◽  
Markus Westner ◽  
Susanne Strahringer ◽  
◽  
...  
Keyword(s):  
Information Systems ◽  
Qualitative Analysis ◽  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Digital Technologies ◽  
Building Blocks ◽  
Business Model Innovation ◽  
Innovation Strategy ◽  
It Capabilities

This paper connects research from business model innovation and information systems by exploring critical IT capabilities for servitized business models. The adoption of servitized business models is a major business model innovation strategy. At the same time, digitalization drives the evolution of IT capabilities at these business models. Scholars argue that it remains unclear how IT capabilities enable servitized business models to build a competitive advantage by achieving cost advantages or differentiation. This paper explores IT capabilities that enable building a competitive advantage for servitized business models based on a qualitative analysis of multiple published case studies. The authors identify configurations of IT capabilities among servitized business models. The findings contribute to servitization research by exploring IT capabilities and how they are combined among servitized business models. The insights help practitioners deploy digital technologies and IT assets effectively as building blocks of IT capabilities to advance their servitized business model.

scholarly journals Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring

2018 ◽  
Vol 10 (11) ◽  
pp. 3970 ◽  
Author(s):  
Juhong Chen ◽  
Ruijun Zhang ◽  
Di Wu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Economic Benefits ◽  
Business Model Innovation ◽  
Equipment Maintenance ◽  
Sustainable Competitive Advantage ◽  
Structured Interviews ◽  
Profit Center ◽  
Manufacturing Enterprises

The equipment maintenance services have become a new profit center and an important way to gain sustainable competitive advantage for manufacturing enterprises. The business model is an important tool for manufacturing enterprises to derive economic benefits from sustainable competitive advantage in the context of digitalization technologies, such as IoT, big data, and cloud computing. At present, the concept of equipment maintenance business model innovation is still vague, and it is rare to report on the innovation behaviors and types of equipment maintenance business models adopted by manufacturing enterprises. Based on literature analysis of equipment maintenance services and business model innovation, following business model gestalt theory, the concept of equipment maintenance business model innovation is analyzed at the business-level, the types are divided into novel and efficient following value sources—“innovation and efficiency”. The initial scale is developed through literature investigation, semi-structured interviews and expert reviews, and tested by exploratory and confirmatory factor analysis by using the data of two independent large-sample questionnaires. The results indicate that the behavior and types of equipment maintenance business model innovation can be described by two types and 19 items.

Managing business model innovation: an innovative approach towards designing a digital ecosystem and multi-sided platform

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nino Bernd Hoch ◽  
Stelian Brad
Keyword(s):  
Business Model ◽  
Business Models ◽  
Design Science ◽  
Digital Technologies ◽  
Business Model Innovation ◽  
Added Value ◽  
Structured Interviews ◽  
Behavioural Science ◽  
Content Type ◽  
Digital Ecosystem

PurposeThis study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within business models has increased dramatically in recent years. Because of this, new knowledge on how to transform traditional business models into digital business models in a systematic way is needed. Digital technologies, embedded in previously non-digital goods, force companies to rethink their business models.Design/methodology/approachA design science research methodology was chosen for this study. A literature review and semi-structured interviews served as the theoretical foundation to integrate behavioural science into the design science process. From the design science perspective, an artefact is introduced to provide an architectural framework to manage business model innovation in a systematic way. The artefact's application is demonstrated through a case study conducted at a real company and evaluated afterwards by means of structured interviews with experts.FindingsThe authors propose a highly useable and valuable conceptual framework for systematic business model innovation. However, one limitation of the research is that it was conducted among construction professionals in Germany, and so the result might not hold true for other firms or industry branches.Research limitations/implicationsThe research was conducted among construction professionals in Germany, and this acts as a limitation, as the result might not hold true for other firms or industry branches.Originality/valueThe purpose of this study is to provide managers with a framework for business model innovation, helping them systematically integrate digital technologies to create customer-added value. The proposed framework presents an innovative conceptual analysis of systematic business model innovation, which has not been addressed in prior studies.

scholarly journals Business Model Innovation for Sustainable Performance in Retail and Hospitality Industries

2018 ◽  
Vol 10 (11) ◽  
pp. 3952 ◽  
Author(s):  
Sarah Cheah ◽  
Yuen-Ping Ho ◽  
Shiyu Li
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Business Model Innovation ◽  
Service Industries ◽  
Superior Performance ◽  
Sustainable Competitive Advantage ◽  
Food Services ◽  
Sustainable Performance

In the service sector, technological innovation is typically dominated by suppliers, and hence involves external knowledge that can be easily acquired and imitated by competitors. However, innovation that can sustain superior performance in retail and hospitality firms tends to be internal and non-technical, involving business models. Building on the perspectives of the resource-based view and dynamic capability, this study aims to understand how industry turbulence in retail and hospitality affects the sustainable competitive advantage of the firms operating in these service industries. Based on a quantitative study of 214 retail and food services companies, our study has empirically demonstrated that firms operating in an industry with high turbulence have a higher probability of achieving a sustainable competitive advantage. Second, our findings establish that a firm’s business model innovation (BMI) activities partially mediate this positive relationship. This suggests that BMI plays a role in enhancing the firm’s ability to address the challenges of the present, as well as prepare itself to adapt to the industry evolution and revolution of the future. BMI not only influences the acquisition and application of external innovations, it also affects the generation of internal innovations.

scholarly journals Sustainable Growth Variables by Industry Sectors and Their Influence on Changes in Business Models of SMEs in the Era of Digital Transformation

2021 ◽  
Vol 13 (13) ◽  
pp. 7114
Author(s):  
Seok-Soo KIM
Keyword(s):  
Business Model ◽  
Business Models ◽  
Group Analysis ◽  
Industrial Sector ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Sustainable Growth ◽  
Mediating Effect ◽  
Innovation Strategy ◽  
Least Squares Regression

SMEs around the world are constantly under threats to their survival and sustainable growth. This study evaluated the variables influencing the sustainable growth of SMEs in the technological evolution of digital transformation. I propose a business model innovation strategy for the sustainable growth of SMEs. Furthermore, I evaluated the variables influencing growth by industry sector and present strategies for innovation in the business model. Data were collected from 205 CEOs in six sector industries in Korea, and I investigated the effect of variables that affected the company’s sustainability when introducing digital transformation. A partial least-squares regression was used for the statistical analysis and was performed using a data group analysis. I found that the SME performance varied by industry and that technological competency had a mediating effect. The variables that most affected the SME performance were management, technology, and technical competence in marketing and innovation. This research went beyond the limitations of studying only the effects of each of the previous literature variables through causal studies linking these variables. The variables affecting the performance of the industries were found to be different. By comparing the variables that led to a difference in performance in the industrial sector, I developed a business model innovation strategy that can affect the sustainable performance of SMEs.

scholarly journals Business Model Innovation in Airlines

2017 ◽  
Vol 5 (2) ◽  
pp. 184-198 ◽  
Author(s):  
Bruno Alencar Pereira ◽  
Mauro Caetano
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Multiple Case Study ◽  
Business Model Innovation ◽  
Descriptive Research ◽  
Multiple Case ◽  
Organizational Innovations

The business models innovation in airlines can contribute to the creation of value, competitive advantage and profitability with new possibilities of action. The proposed paper aimed to identify the business models adopted by airlines and identify how the innovation occurs at these organizations. The methodology adopted is characterized as empirical, exploratory and descriptive research by multiple case study with three major Brazilian airlines. The results demonstrate that the search for paradigm breaks, related to the dichotomic traditional models of low-cost and full-service, toward hybrid business models occur linearly, as examples highlighted by companies, in which internal changes in business models are considered major organizational innovations.

Exploring business model innovation for competitive advantage: a lesson from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natasha Saqib ◽  
Mir Shahid Satar
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Customer Service ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Current Knowledge ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Content Type

Purpose Emerging markets are witnessing rapid changes in their economy owing to the ongoing liberalization and globalization. India, as one of the emerging markets in south Asia, is also experiencing a dramatic change in its business ecosystem. This poses huge opportunities to the companies, both start-ups and established ones. In this direction, the business model innovation offers a strategic renewal mechanism. The study aims to explore the practices of an online transport network company (OLA) creating a distinctive place for itself in Indian taxi service sector. Design/methodology/approach Methodologically, an exploratory case study of an India-based online transport company (OLA) business model innovation is reported. Findings This paper reveals that OLA has been able to gain competitive advantage in the Indian emerging market by developing an innovative business model with its distinctive features of personalised customer service, asset sharing, usage-based pricing, collaborative ecosystem, agile and adaptive organising and successful expansion strategies. Research limitations/implications This study adds to current knowledge concerning the theoretical foundations and antecedents of business model innovation as a competitive advantage. The paper is explorative in nature because the analysis is mostly based on literature review. Furthermore, in consideration of the analysis of business model of a single company, further research is required to generalize the results. Practical implications The understanding of the intricacies of business model innovation can be of great concern to existing and prospective managers and entrepreneurs of emerging markets. Originality/value The paper discusses the features of innovative business models and how firms can make their business models more relevant to the competitive markets. As such, the study is hopeful to aid practitioners engaged in the pursuit of beating the competition with innovation driven business models.

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 Blessing or curse: Does digitalization foster business model innovation? Evidence from a quantitative empirical study

2020 ◽  
Vol 1 (2) ◽  
pp. 44-65
Author(s):  
Patrick Ulrich ◽  
Alexandra Fibitz
Keyword(s):  
Empirical Study ◽  
Business Model ◽  
Quantitative Study ◽  
Business Models ◽  
Digital Technologies ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Business World ◽  
Digital Strategy ◽  
The Relationship

This study analyses whether and how digital transformation affects business models. Digitalization influences businesses regardless of size, industry, and structure. Thus, companies are often forced to rethink their value architecture in order to remain competitive and not vanish from the business world. Therefore, deepening the understanding of the relationship between digitalization and business models is of utmost importance for both practice and academia. We examine the interdependencies of the utilization of digital technologies and the execution of a digital strategy on business model innovation, and the extent to which the digitalization level is influencing this relation. Furthermore, we depict the results from a quantitative study among a sample of 166 German companies. The results indicate that business model innovation is positively influenced by a higher pursuit of digital technologies and the adoption of certain digital strategies. The digitalization cluster further stresses the importance of digital actions for the companies’ sustainability.

scholarly journals Reconfiguration of Business Models of Industrial Enterprises: Vectors of Increasing Sustainability in the New Realities

2021 ◽  
pp. 110-120
Author(s):  
Anastasia Nikitaeva ◽  
Natalia Kiseleva
Keyword(s):  
Business Model ◽  
Business Models ◽  
Digital Technologies ◽  
Ecosystem Approach ◽  
Business Model Innovation ◽  
Manufacturing Companies ◽  
Structural Components ◽  
Industrial Enterprises ◽  
Industrial Companies ◽  
Literary Sources

The purpose of the article is to study the priority areas of reconfiguration of business models of industrial enterprises to solve the problem of increasing their stability in an unstable economic situation. The paper reveals the essence and structural components of business models. It is proved based on the analysis of literary sources that the business model with the help of narratives, figures, and graphic models describes how the organization creates, delivers, and captures value in the existing context. With this in mind, the key vectors of business model innovation of industrial companies using the potential of Industry 4.0 technologies are identified. First, the possibilities of transforming business models based on the introduction of digital technologies as drivers of transformation (blockchain, Internet of Things, Artificial intelligence, etc.) are justified, and the feasibility of complex application of digital technologies for business model innovation is established. Secondly, the content of the reconfiguration of business models in line with the ecosystem approach and the creation of open digital ecosystems of economic entities in the industrial sphere is revealed. Third, the importance of creating circular business models of industrial companies that reflect the transition from the classical linear model of production to the closed-cycle model is justified. It is determined that together these vectors of reconfiguration of business models of industrial enterprises will ensure the growth of the sustainability of manufacturing companies as a result of the growth of the connectivity of the environment, resource efficiency, and data-driven “smart” management.

Business Innovation

2014 ◽  
pp. 209-240
Author(s):  
Don Scott-Kemmis
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Business Success ◽  
Business Innovation ◽  
Operating Environments ◽  
Survival And Growth ◽  
Novel Products

This chapter presents the case for a wider understanding of innovation beyond technology and beyond novel products and processes. It examines the dynamics of Business Model Innovation, which refers to fundamental changes to the total formula for business success. New approaches to value creation and appropriation through business model innovation are particularly vital in times of turbulence and realignment faced by firms in high cost operating environments. Business model innovation can create new and sustainable sources of competitive advantage for firms, securing their survival and growth. The chapter discusses the evidence for the role of business model innovation in the growth of leading firms and in the restructuring of markets. It provides an overview of the frameworks for characterising and analysing business models. The options for different types of business models likely to be successful in high cost environments are described.

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