scholarly journals Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry

2021 ◽  
Vol 14 (1) ◽  
pp. 366
Author(s):  
Henk Ruiter ◽  
Frank De Feijter ◽  
Koos Wagensveld
Keyword(s):  
Control Systems ◽  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Management Control ◽  
Research Approach ◽  
Interactive Control ◽  
Construction Companies ◽  
Governmental Organizations

This study explores how different forms of management control support and enable business model innovation in the context of the principles of the circular economy. Following a qualitative research approach, empirical data is collected from construction companies and governmental organizations in the Netherlands. Building on Simons’ four levers of control. This paper illustrates how to balance the intended and emergent strategies via the organization’s management control system. According to Simons, the four levers encompass the beliefs systems, the interactive control systems, the diagnostic control systems, and the boundary controls. The empirical findings uncover the beliefs systems and the interactive control systems to be the most relevant levers that enable and drive business model innovation striving for the effective use of materials. Rather than measuring the output with predefined performance indicators, business model innovation in this context is better served by diagnostic controls which evaluate how innovative business models contribute to the organization’s mission.

scholarly journals MANAGEMENT CONTROL SYSTEMS AND LODGING BUSINESS MODEL IN JAPANESE RYOKANS

2021 ◽  
Author(s):  
Tomohiro Kaminaka ◽  
◽  
Zubir Azhar ◽  
Dayana Jalaludin ◽  
◽  
...  
Keyword(s):  
Control Systems ◽  
Business Model ◽  
Business Models ◽  
Management Accounting ◽  
Accounting Information ◽  
Business Model Innovation ◽  
Management Control ◽  
Management Control Systems ◽  
Tourism Policy

The lodging sector in Japan has experienced a shrinking market size of traditional lodging providers (known as ryokans). Ryokans, which account for about 40% of Japanese lodging market, have operated their lodging businesses based on a unique business model that has been in existence for over 1,000 years. About 30% of ryokans are in a declining stage, where they are unable to break away from the traditional business models and are in a negative spiral of continuing deficits. The intent of this paper is to understand how ryokans innovate their business model while maintaining some of their traditional fundamental elements. This paper adopts a multiple-case study approach based on the two high-performing ryokans with long histories. Our findings add the ryokans’ commercial-cultural context to existing literature that describes the role of management control systems (MCS) in supporting business model innovation. Understanding the achievement of their business model innovation from a long-term perspective of about thirty years provides our paper with theoretical originality. We conclude that the weights of formal and informal controls in MCS are equal in the long term regardless of the direction of their business model innovation. In recent years, tourism policy has encouraged ryokans to use management accounting information to overcome their low-profit businesses. Our practical suggestions complement the tourism policy that presupposes the use of management accounting information alone, and support ryokan managers to use it as a part of MCS.

Integration of Sustainability and Management Control Systems

2018 ◽  
pp. 203-214
Author(s):  
Paola Vola
Keyword(s):  
Social Responsibility ◽  
Control Systems ◽  
Business Model ◽  
Business Models ◽  
Family Firms ◽  
Management Control ◽  
Management Control Systems ◽  
Sustainable Business ◽  
Research Issues ◽  
Family Smes

In order to support family SMEs in developing more responsible, innovative, and competitive business models, this chapter proposes to study the role and interaction between sustainability control systems (SCSs) and management control systems (MCSs). The chapter will examine management control and family business literature with the purpose of discussing the following research issues: What are the interactions between different forms of social responsibility in family SMESs? How can we transfer the family firms' attitude to social responsibility in a sustainable business model? What are main elements of a sustainable business model that can leverage on family firms business model? The conceptual framework will be defined through literature review: the main aim is to convey the meaning of sustainability and investigating the integration between SCSs and MCSs in family SMEs.

Circular economy business model for smart tourism: the case of Ecobnb

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale del Vecchio ◽  
Caterina Malandugno ◽  
Giuseppina Passiante ◽  
Georgia Sakka
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Social Implications ◽  
Content Type ◽  
Tourism Management ◽  
Practical Implications ◽  
Smart Tourism

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

Integration of Sustainability and Management Control Systems

2019 ◽  
pp. 1780-1791
Author(s):  
Paola Vola
Keyword(s):  
Social Responsibility ◽  
Control Systems ◽  
Business Model ◽  
Business Models ◽  
Family Firms ◽  
Management Control ◽  
Management Control Systems ◽  
Sustainable Business ◽  
Research Issues ◽  
Family Smes

In order to support family SMEs in developing more responsible, innovative, and competitive business models, this chapter proposes to study the role and interaction between sustainability control systems (SCSs) and management control systems (MCSs). The chapter will examine management control and family business literature with the purpose of discussing the following research issues: What are the interactions between different forms of social responsibility in family SMESs? How can we transfer the family firms' attitude to social responsibility in a sustainable business model? What are main elements of a sustainable business model that can leverage on family firms business model? The conceptual framework will be defined through literature review: the main aim is to convey the meaning of sustainability and investigating the integration between SCSs and MCSs in family SMEs.

scholarly journals Consideration of the circular economy principles in the formation of enterprise business model

2021 ◽  
Vol 69 (2) ◽  
pp. 62-68
Author(s):  
S. Strapchuk
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Closed Loop ◽  
National Level ◽  
Political Support ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Fresh Perspective ◽  
Gradual Introduction

The role of conceptual business model of an enterprise and its adaptability to the principles of the circular economy are investigated in this paper. It is determined that the idea of closed-loop economy is not new, but lately it has become popular due to political support of individual countries and international non-governmental organizations. In particular, in Germany, China and Japan the guidelines concerning circular economy are being developed at the national level. The main principles of the circular economy, which include the processes of recovery, sharing, optimization, cyclicality, virtualization and exchange, are investigated. It is clarified that, despite the growing interest of scientists and experts in the concept of circular economy, there are no standardized methods of its quantitative and qualitative measurement with the possibility of application at the enterprise level. Thus, comprehensive research on business models designing is required in order to stimulate and foster the circular economy implementation. The scientific papers on framework approaches to the circular economy resulting in the fresh perspective – the separation of economic growth from environmental wastes are analyzed. The stages of gradual introduction of circular economy paradigm implementation into practical activity, including processes of monitoring, estimation, actions at different levels of implementation are outlined. It is established that in the recent scientific works concerning closed-loop economy the framework for further circular economy implementation is reduced to the processes, materials and strategies, particularly to the consumer role. It is found out that any model can be both linear and circular describing the ability of the company to optimize its processes, virtualize products or delivery channels. The possibilities of applying the principles of circular economy to the Canvas business model by means of attracting additional blocks related to future availability of reverse logistics and the need for systematic approach for matching value proposition and customer segments, cost structure and revenue sources are summarized.

scholarly journals BUSINESS MODEL INNOVATION FOR CIRCULAR ECONOMY: INTEGRATING LITERATURE AND PRACTICE INTO A PROCESS MODEL

2020 ◽  
Vol 1 ◽  
pp. 2119-2128
Author(s):  
M. P. P. Pieroni ◽  
T. C. McAloone ◽  
D. C. A. Pigosso
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Process Model ◽  
Business Models ◽  
Design Research ◽  
Business Model Innovation ◽  
New Business ◽  
Design Research Methodology ◽  
Practical Demonstration ◽  
New Business Models

AbstractTo implement circular economy, manufacturers will need to develop new business models. Available approaches are granular, generic, infrequently focusing on advice or implementation, and lacking practical demonstration. This article presents how a tool was proposed to cover these gaps. Based on design research methodology, twenty-two conceptual and practical requirements were identified and translated in functions for the development of the Circular Economy Business Model Configurator, a tool that supports manufacturers in strengthening proposals of business models for circular economy.

scholarly journals A Review and Evaluation of Circular Business Model Innovation Tools

2019 ◽  
Vol 11 (8) ◽  
pp. 2210 ◽  
Author(s):  
Nancy Bocken ◽  
Lars Strupeit ◽  
Katherine Whalen ◽  
Julia Nußholz
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Negative Impact ◽  
Positive Impact ◽  
Business Model Innovation ◽  
Business Innovation ◽  
New Business ◽  
Practice Review ◽  
New Business Models

The circular economy has been heralded as a potential driver for sustainable development by business, academia, and policymakers. In a future circular economy, new business models are needed that slow, close and narrow resource loops to address key resource and climate challenges. After a phase of excitement and inspiration, an operationalization phase needs to start to ensure the best possible implementation and transition towards a circular economy. This operationalization phase will involve the development of products, processes and business models that significantly lower the negative impact on the environment, reduce waste and resource pressures and, rather, create a positive impact on society and environment. This paper focuses on the circular business model lens as a comprehensive way of addressing business innovation. Within this evolving circular economy operationalization phase, several tools, approaches and methods are emerging that could support circular business model innovation. This paper seeks to create a comprehensive tools overview through a literature and practice review. It provides structure to the emerging range of tools, methods and approaches, and, based on this, a guideline for future tool development. Finally, it gives an overview of opportunities and gaps as well as a future agenda for research and practice.

Converging and diverging business model innovation in regional intersectoral cooperation–exploring wine industry 4.0

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Dressler ◽  
Ivan Paunovic
Keyword(s):  
Qualitative Research ◽  
Business Model ◽  
Industry 4.0 ◽  
Business Models ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Wine Industry ◽  
Research Approach ◽  
Content Type ◽  
Intersectoral Cooperation

PurposeIndustry 4.0, the integrated digital process world in production, is an under researched area. Especially for the wine industry, 4.0 theoretical base up to date is weak, impeding further digital transformation of the wine industry. Some basic-level digital capabilities exist in most of the researched business models, which is why further digital transformation requires strategic redefining of business models in order to further transform the whole industry.Design/methodology/approachA qualitative research approach based on the concept of business model innovation (BMI) has been deployed in order to identify business models and consensus building between industry´s stakeholders. Semistructured interviews delivered primary data.FindingsThe diversity of existing business models in the wine industry as well regarding BMI is confirmed, where each one occupies a specific place in the innovation ecosystem for Industry 4.0.Research limitations/implicationsThis qualitative research is exploratory and directed toward theory building. The findings confirm the importance of environmental scanning and market sensing for convergent technologies as well as the need to develop core value proposition.Practical implicationsThis study has important implications for companies and their capabilities inside wine industry 4.0, while its main practical value being a systematical organization of weak signals to support small entrepreneurs’ transition to digitalization and Industry 4.0Originality/valueThe paper nourishes the theory on innovation trajectories for Industry 4.0 by including previously unidentified BMIs and a convergence–divergence continuum on the example of wine Industry 4.0.

scholarly journals Business Model Innovation for Circular Economy in Fashion Industry: A Startups' Perspective

2021 ◽  
Vol 2 ◽  
Author(s):  
Cristina M. Ostermann ◽  
Leandro da Silva Nascimento ◽  
Aurora Carneiro Zen
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Early Stage ◽  
Business Model Innovation ◽  
Business Practices ◽  
Fashion Industry ◽  
Bottom Line ◽  
Investigation Area ◽  
Product Reuse

Circular Economy (CE) has emerged as a potential strategy for developing business practices based on sustainability concerns, especially in the fashion industry, which presents high environmental and social impacts. Startups are responsible for introducing innovations in business conduction toward CE. As a current theme, research on Business Model Innovation for Circular Economy (BMI4CE) has increased. However, empirical research in the fashion industry and startups is still scarce. This paper aimed to identify the key elements of startups' BMI4CEs, using the fashion industry as the context of the study. We conducted an exploratory and descriptive multiple case study composed of ten early-stage fashion startups from Europe, North America, and Asia. The findings suggest that environmental and economic sustainability dimensions receive priority in the analyzed BMI4CEs. On business type, we found differences between product-based and service-based Business Models (BMs). The Business Models Innovations (BMIs) were based mainly on CE principles of closed-loop and reducing material use and consumption. BMs focus on CE strategies of product reuse and extend resource time by lowering consumption and material use. Findings also demonstrate the role of emerging and digital technologies (e.g., blockchain and artificial intelligence) for BMI4CEs effectiveness. We developed five propositions and a theoretical framework from a triple bottom line perspective. This research highlights new theoretical perspectives under an investigation area still little explored in the literature. Results enable fashion startup managers to understand better the functioning of BMI4CEs and the critical elements needed for their effectiveness.

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.

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