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 How digitalization affects insurance companies: overview and use cases of digital technologies

2020 ◽  
Author(s):  
Christian Eckert ◽  
Katrin Osterrieder
Keyword(s):  
Business Models ◽  
Insurance Industry ◽  
Digital Technologies ◽  
Digital Transformation ◽  
Use Cases ◽  
Insurance Companies ◽  
Comprehensive Overview ◽  
Industry Studies ◽  
Digital Strategy ◽  
It Departments

Abstract The digital transformation is of increasing relevance for insurance companies’ business models. It leads to opportunities as well as challenges, especially for IT departments as core enablers or preventers. Against this background, the aim of this paper is to provide a comprehensive overview of digital technologies (e.g., artificial intelligence, cloud computing) and the resulting use cases for the insurance industry. To this end, we conduct a review of academic articles, industry studies and publications of the supervisory authorities. We point to the resulting requirements for an insurer’s IT and find many interdependencies between the digital technologies. Our results therefore emphasize the importance of a holistic digital strategy.

scholarly journals Business model innovation and digitalization: Could ambidexterity be the solution to manage both? – A conceptual framework with propositions

2020 ◽  
Vol 1 (2) ◽  
pp. 8-25 ◽  
Author(s):  
Patrick Ulrich ◽  
Alexandra Fibitz
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Resource Scarcity ◽  
Business Model Innovation ◽  
Technology And Innovation ◽  
Current Economic Situation ◽  
Digital Disruption ◽  
High Degree ◽  
The Relationship

The current economic situation is in constant flux. Progress in technology and especially the advancement of digital transformation have influenced business endeavors. In this realm, digitalization is closely linked to a high degree of digital disruption and the development of new products, services, and business models. In this paper, we aim to investigate how enterprises simultaneously handle digitalization and business model innovation. We employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution. Thus, a theoretical framing that includes the relationship between business model innovation and digitalization and propositions congruent with our general gestalt of the inquiry will be developed. The results indicate, despite some structural and processual commonalities that digitalization and business model innovation share, the mission to manage both phenomena remains challenging. In particular, some peculiarities inherent in the ambidexterity perspective need to be taken into account. Particularly under the constraints of a high degree of resource scarcity, it is important to strive for sustainable actions that lead to increased value creation and competitive advantage. Thus, this study implements an ambidexterity perspective on the two distinct areas of technology and innovation and provide groundings for further research avenues on ambidexterity and firm performance.

Examining the effects of governmental networking with environmental turbulence on the geographic searching of business model innovation generations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haixu Bao ◽  
Chunhsien Wang ◽  
Ronggen Tao
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Environmental Turbulence ◽  
High Tech ◽  
Content Type ◽  
External Resources ◽  
The Relationship

Purpose This study aims to explore the relationship between geographic search and business model innovation and proposed a contingent framework to focus on how governmental networking and environment turbulence are interdependent moderate the relationship between geographic search and business model innovation. Design/methodology/approach A large-scale questionnaire survey was carried out among the firms in three high-tech parks of the Pearl River Delta, with a total of 287 firms as empirical samples. Hypotheses are tested using ordinary least squares analyzes on hierarchical multiple regression to find out how geographic search can drive business model innovation generations. Findings The empirical results showed that the more frequent geographic search is, the more favorable it is for firms to generate innovative business models, and firms may be more effective in geographic searching and business model innovation with better governmental networking. However, the above relationship may be weakened if the environment turbulence in emerging markets is further considered. It was argued that firms must take into account both the positive effects of governmental networking and the negative effects of environmental turbulence in conducting a geographic search for external knowledge resources to generate innovative business models. The study results showed how and why governmental networking can be a key catalyst for firms to generate innovative business models. Research limitations/implications This study contributes to the business model innovation literature by documenting the large-scale survey evidence that confirms the practicality of geographic search in the business model innovation generations. The findings advance previous studies in the business model innovation by identifying the moderating roles of governmental network and environment turbulence that predict business model innovation behaviors in the emerging market. Practical implications The results indicate that the geographic search can be easily operationalized for external resources acquisitions by managers in generating business model innovation. This has applications for external resource acquisitions on the basis of business model innovation in the emerging China market. In addition, to facilitate the business model innovation generations, the focus should be on critical contingency factors; on the one hand, to promote the continued use of external resources, the focus should be on enhancing benefits such as governmental networking. Originality/value The findings extend existing theory in three ways as the original value. First, the results show that geographic search is an important driver of business model innovation generations in an emerging market context. Second, this study is the first to take organizational learning and open innovation perspective to examine geographic search as a boundary-spanning search of external resources in business model innovation generations. Third, this study also explores the moderator role of governmental network and environmental turbulence on how to strengthen or impair the geographic search and business model innovation generations.

Farmcrowdy: digital business model innovation for farming in Nigeria

2019 ◽  
Vol 9 (2) ◽  
pp. 1-22
Author(s):  
Kwaku Atuahene-Gima ◽  
Joshua Amuzu
Keyword(s):  
Climate Change ◽  
Business Model ◽  
Return On Investment ◽  
Business Models ◽  
Business Model Innovation ◽  
Background Information ◽  
African Countries ◽  
Business World ◽  
Content Type ◽  
The Impact

Learning outcomes The Farmcrowdy case pursues the following aims: familiarizing students with the concept of business models for agricultural businesses and explaining the key decisions and activities within a business model; recognizing different opportunities for business model innovation by farmers and stakeholders in the agricultural sector; identifying concepts and tools from the business world that can be used in farming and other agribusiness-related ventures; highlighting opportunities for agribusiness firms to engage in business model innovation; and developing a business model canvas that highlights key components of a business model. Case overview/synopsis Agriculture stands as the leading driver of economies in most African countries. Most people depend on this sector directly or indirectly for their livelihoods on a daily basis. However, due to challenges like climate change and its variability, high initial startups capital, poor pricing, pest attacks, among other factors, people are gradually opting out of this sector. This has implications for employment, food and human security issues for farmers, their families and the society at large. Individual farmers that opt to remain in this sector are often met with challenges accessing technology in adapting to the challenges aforementioned. This decreases their resilience to the impact of climate change and its variability, pest and disease attack, securing loans to expand farming operations, among others. This raises the risks associated with investment in this sector as one cannot be assured of a fixed return on investment at the end of each crop cycle. Investors who opted to manage this risk associated with investment in the agriculture sector had challenges getting an official database of farmers to invest in as well as knowing whether individual farmers are experienced enough and committed to fixed agreements. It is against this backdrop that Onyeka Akumah founded Farmcrowdy in Nigeria with the aim of empowering farmers and connecting investors to right farmers with an assured return on investment at the end of every crop growing or animal-rearing season using online technological packages. The Farmcrowdy business model allowed Nigerians to venture into farming and other agricultural ventures at the touch of a button while empowering local farmers and boosting food production, creating employment for all stakeholders in the agricultural value chain. With ensuing challenges and competitors in the agro-technological industry, Farmcrowdy aims at extending their business model to other West African countries like Ghana. A few suggestions are made to help improve Farmcrowdy business model. First, they can add novel activities to the business model. Second, they can change one or more parties that perform business model activities. Finally, they can link business model activities in new ways like the development of model farms as a training ground for new farmers and the development of a go-back-to nature campaign to end-users of the products from farms. This case can be used by different audiences. The case can be used for teaching students at the graduate level, especially in the development of executive courses on innovation and entrepreneurship, strategy, agricultural technology and innovation. A wealth of supporting materials is available to the Professor, including videos and background information. Complexity academic level PhD, Doctor of Business Administration, Executive MBA Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship

Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities

2021 ◽  
pp. 104225872199894
Author(s):  
Jonas Soluk ◽  
Ivan Miroshnychenko ◽  
Nadine Kammerlander ◽  
Alfredo De Massis
Keyword(s):  
Business Model ◽  
Dynamic Capabilities ◽  
Positive Relationship ◽  
Business Models ◽  
Family Firms ◽  
Business Model Innovation ◽  
Family Influence ◽  
Environmental Dynamism ◽  
The Relationship

New digital technologies have prompted many firms, including family firms, to innovate their business models. We study the role of dynamic capabilities as mediator in the relationship between family influence and digital business model innovation (BMI), and the moderating role of environmental dynamism. Based on unique survey data from 1,444 German firms with and without family influence, we reveal that knowledge exploitation, risk management, and marketing capabilities mediate the positive relationship between family influence and digital BMI. Surprisingly, and contrary to our assumption, we find that the positive relationship between family influence and dynamic capabilities is weakened rather than strengthened by environmental dynamism. Our findings hold important implications for family business innovation and digital BMI research, offering valuable insights into the role of dynamic capabilities and environmental dynamism in the digital economy.

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 The role of high-performance people management practices in Industry 4.0: the case of medium-sized Spanish firms

2020 ◽  
Vol 15 (3) ◽  
pp. 190 ◽  
Author(s):  
Daniel Llinas ◽  
Jesus Abad
Keyword(s):  
Business Model ◽  
Industry 4.0 ◽  
High Performance ◽  
Management Practices ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Strongly Correlated ◽  
Radar Screen ◽  
The Relationship

Purpose: This paper wants to build the case for the key role of high-performance people management practices in the development of I4.0 in SMEs. The research upon which this paper is based wants to prove that the consolidation of those practices should be a priority for any company willing to embark in this journey. The paper deals specifically with medium-sized Spanish firms which, on top, are already having significant issues with digitization.Design/methodology/approach: The paper starts by digging into the literature to see how past technologies have impacted productivity, followed by a review of the material available on digitization and Industry 4.0. It moves on to explore the relationship between people management practices, productivity and innovation. Finally, the focus is placed on Spanish medium-sized companies, understanding their current levels of consolidation of high-performance people management practices as well as digitization. With all this information, several propositions are posited for validation using the Delphi methodology.Findings: I4.0 is, at its core, about productivity improvements through business process and business model innovation. People management practices are found to be strongly correlated with both productivity and innovation. It has also been found that Spanish medium-sized firms already have a significant initial gap compared to those of other OECD countries not only in productivity, but also people management practices and digitization. The experts seem to agree on the key role of people management practices and that they should be a high priority for any firm seriously thinking about industry 4.0.  This is not to say that strategy or leadership will not play a paramount role in any digital transformation, but to emphasize the fact that the normally-forgotten people management practices will be important enablers in this process.Originality/value: It is believed that  this is a topic that has been mostly neglected in the I4.0 literature. In that sense, the findings of this paper could be relevant for small and medium-sized businesses embarking on the industry 4.0 journey. This will entail a significant investment of time and money and, if the key role of people management practices is not on the radar screen, it may have significant implications for the success of those ventures.

scholarly journals Implementing a Digital Strategy: Learning from the Experience of Three Digital Transformation Projects

2020 ◽  
Vol 62 (4) ◽  
pp. 37-56 ◽  
Author(s):  
Alessia Correani ◽  
Alfredo De Massis ◽  
Federico Frattini ◽  
Antonio Messeni Petruzzelli ◽  
Angelo Natalicchio
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Rapid Growth ◽  
Digital Technologies ◽  
Strategy Implementation ◽  
Digital Transformation ◽  
Strategy Formulation ◽  
Business Architecture ◽  
Digital Strategy ◽  
Transformation Strategy

The rapid growth of digital technologies and the extraordinary amount of data that devices and applications collect each day are increasingly driving companies to radically transform the business architecture through which they create and appropriate value. However, companies may fail to extract value from digital transformation due to the disconnection between strategy formulation and strategy implementation. Through the analysis of three case studies of firms that digitally transformed their business—namely ABB, CNH Industrial, and Vodafone—this article presents a framework than can help companies implement their digital transformation strategy and thereby renovate their business model.

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 A framework for digital transformation and business model innovation

2020 ◽  
Vol 25 (2) ◽  
pp. 111-132
Author(s):  
Chanté van Tonder ◽  
Chris Schachtebeck ◽  
Cecile Nieuwenhuizen ◽  
Bart Bossink
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Business Models ◽  
Industrial Revolution ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Bibliographic Databases ◽  
The Third ◽  
Fourth Industrial Revolution ◽  
Customer Centricity

With the advent of the Fourth Industrial Revolution, businesses are adapting to the use of digitalisation which requires the digital transformation of their existing business models. However, there is limited empirical research on this phenomenon. The purpose of this study is twofold: (i) to develop a framework for businesses to digitally transform their business models and (ii) to examine literature in order to identify and analyse the constructs underlying the three concepts of Digitalisation, Digital Transformation and Business Model Innovation. The study is qualitative in nature and is based on a narrative review. Relevant articles were identified by using international bibliographic databases and scrutinised using thematic analysis. The findings reveal that the first two constructs require digital capabilities and a digital strategy. The third construct requires digital transformation in the realm of customer-centricity, resources, processes and profit. A set of propositions was formulated and the commonalities were mapped. Based upon this map, a conceptual framework was developed. The findings will assist in the development of future instruments that can guide businesses to digitally transform existing business model elements. This study aims to fill the gap on how business model innovation should be pursued through digital transformation by developing a conceptual framework.

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