In Search of Crowdfunding Business Models

2020 ◽  
pp. 63-95
Author(s):  
Djamchid Assadi

Crowdfunding platforms have substantially increased since 2005 and have supported entrepreneurial projects in response to the low propensity of banking institutions to finance either startups, or poor or young entrepreneurs. However, the theory of strategies and management of crowdfunding is far behind the dynamism of its growth. This shortcoming most likely causes costs and failures, in particular during the current state of increasing competitive pressure in the sector. This paper seeks to construct a general theoretical definition for the concept of a business model and apply it to the P2P social lending on the Internet. Extensive literature is reviewed to construct an archetype business model. The validity of the model will be tested through crowdfunding platforms.

Author(s):  
Djamchid Assadi

Crowdfunding platforms have substantially increased since 2005 and have supported entrepreneurial projects in response to the low propensity of banking institutions to finance either startups, or poor or young entrepreneurs. However, the theory of strategies and management of crowdfunding is far behind the dynamism of its growth. This shortcoming most likely causes costs and failures, in particular during the current state of increasing competitive pressure in the sector. This paper seeks to construct a general theoretical definition for the concept of a business model and apply it to the P2P social lending on the Internet. Extensive literature is reviewed to construct an archetype business model. The validity of the model will be tested through crowdfunding platforms.


2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.


2020 ◽  
Vol 31 (5) ◽  
pp. 1329-1349
Author(s):  
Deepak Sangroya ◽  
Gaurav Kabra ◽  
Yatish Joshi ◽  
Mohit Yadav

PurposeThis study examines various aspects of green energy management operations in India and reports the current state, potential avenues and barriers for green energy management.Design/methodology/approachThis study performs an extensive literature review and covers the several aspects of green energy management operations.FindingsThe findings report the current state of various aspects of green energy management operations such as: procurement, manufacturing and distribution and provides the viable business models. It further explains the various facilitators and barriers of green energy management and reports the opportunities and challenges that exist in developing and managing green energy supply chain.Originality/valueThe study is pioneer in providing a comprehensive view of developing and managing green energy operations in India. The study is useful to various organisations on drafting strategies to effectively adopt and manage green energy. The study is also useful in policy formulation for promoting green energy use. This article also set as a base for future researchers working in the area of green energy.


2018 ◽  
Vol 46 (4) ◽  
pp. 21-27 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy

Purpose Defines clear steps for growth planning that support answers to the crucial question: How and where are you planning to scale up the business and what talent do you need to implement this? Design/methodology/approach As the “Business model value matrix” shows, having ‘happy customers’ is only one determinant of a business model’s success. The other essential block of diagnostic questions deals with the current state and prospects of the firm’s growth. Findings We found that companies that have found ways to keep their business models in a winner’s state can provide clear, evidence-based answers to questions about growth opportunities and risks, while their less successful peers have difficulty addressing the issues. Continuous collecting and analyzing of this information allows successful companies to embrace the strategy-as-learning model of development, built around active learning and proactive adjustment to evolving environment. Practical implications To develop a strategy for moving to and sustaining the Winner state, managers must clearly articulate and test a set of hypotheses about the mechanisms of their company’s growth. The first step on this path is related to obtaining a clear view on the factors that underpin the current financial performance. Originality/value High-performance cultures make sure that each manager has the clear answers to the questions of value, growth and digitization in order to learn, experiment and implement the company business model agenda. The unproductive cultures, on the other hand, are sustained by managerial teams that usually do not have the answers to these crucial questions, but are very good at political games.


2020 ◽  
pp. 406-423
Author(s):  
Chao Lu ◽  
Sijing Liu

It is absolutely not an accidental phenomenon that the development of Internet overlaps with boom of business model research. The emergence of the Internet has greatly promoted the development and study of business models. This paper focuses on exploration of O2O business model innovation by analyzing the main types, evolution and driving factors of Chinese Internet business model, taking Ctrip as the example. From the social prospective, O2O business model improves value and feeling of the customer experience as well as the operational efficiency of the enterprise value chain and utilization efficiency of social resources. This paper has also put forward what Ctrip can enlighten the development of tourism enterprises.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gabriella Arcese ◽  
Marco Valeri ◽  
Stefano Poponi ◽  
Grazia Chiara Elmo

PurposeThe aim of this paper is to verify whether, in the tourism sector, the “family business model” is an important development opportunity and, in particular, if it is an innovation driver for this industry development. In the literature, there is no conclusive evidence of this for the tourism sector. In this context, the authors investigate personal and family needs and preferences alongside the relationship between family business model, growth and profit maximization and the development of tourism businesses through innovation drivers.Design/methodology/approachTo develop this topic, the authors conducted an extensive literature review considering the scientific papers published and contained mainly in database in the last 10 years (2010–2020) and focused the attention on the last five years. The authors ran content and structural analysis on the collected sources by main scientific databases (EBSCO, Scopus, Thomson Reuter, etc.). Based on a systematic literature review, the analysis was conducted using statistical criteria and bibliometric indicators. In detail, the authors used systematic literature review, bibliometric analysis and automatic text analysis (ATA) tools for identified lexicon analysis and strategic keywords and used statistical correlation to classify the different approaches in the literature and to outline the orientations of the various research groups.FindingsFrom this analysis, the correlation between tourism, hospitality, entrepreneurship, life cycle and innovation dynamics was analysed. Important research gaps are identified, and future research priorities are suggested. Implications for both family business and tourism theory are discussed.Originality/valueWhile the intersection between tourism management and family business model has been established in the literature, the number of related publications is still limited. Against this background, a literature review as a total analysis was an adequate and practicable research methodology. This paper proposes a comprehensive literature review and a reflection on the potential developments and applications for family business in the tourism sector. Authors also suggest several research directions that have not been adequately investigated yet. In particular, scholars do not seem to have caught all the implications of innovation adoption, especially for SMEs and family ownerships in tourism.


Author(s):  
E. Loukis

Public-private partnerships (PPPs) provide an alternative model for producing and delivering public services, both the traditional public services and the electronic ones (i.e., the ones delivered through electronic channels, such as the Internet or other fixed or mobile network infrastructures; Aichholzer, 2004; Andersen, 2003; Broadbend & Laughlin, 2003; Jamali, 2004; Lutz & Moukabary, 2004; McHenry & Borisov, 2005; Nijkamp, Van der Burch, & Vidigni, 2002; Spackman, 2002; Wettenhall, 2003). The basic concept of the PPP model is that the public and the private sectors have different resources and strengths, so in many cases, by combining them, public services can be produced and delivered more economically and at higher quality. In this direction, a PPP is a medium to a long-term relationship between public organizations and private-sector companies, involving the utilization of resources, skills, expertise, and finance from both the public and the private sectors, and also the sharing of risks and rewards in order to produce some services, infrastructure, or other desired useful outcomes for the citizens and/or the businesses. Information and communication technologies, and in particular the Internet and WWW (World Wide Web) technologies, have opened a new window of opportunity for a new generation of PPPs for offering new electronic public services in various domains, for example, for developing and operating public information portals (Andersen, 2003), electronic transactions services (Lutz & Moukabary, 2004), electronic payment services (McHenry & Borisov, 2005), value-added services based on public-sector information assets (Aichholzer, 2004), and so forth. However, before such a new service is developed, it is of critical importance to design systematically and rationally its business model, which, according to Magretta (2002), incorporates the underlying economic logic that explains how value is delivered to customers at an appropriate cost and how revenues are generated. Vickers (2000) argues that most of the failures of e-ventures (also referred to as dot-coms) are due to the lack of a sound business model or due to a flawed business model. However, most of the research that has been conducted in the area of e-business models is dealing mainly with the description and abstraction of new emerging e-business models, the development of e-business-models classification schemes, and the clarification of the definition and the components of the business model concept, as described in more detail in the next section. On the contrary, quite limited is the research on e-business-models design methods despite its apparent usefulness and significance; moreover, this limited research is focused on private-sector e-business models. No research has been conducted on the design of PPP business models for offering electronic services. In the next section of this article, the background concerning PPPs and e-business-models research is briefly reviewed. Then a new framework for the design of e-business models is presented, which has been customized for the design of PPP business models for offering electronic services. Next, the above framework is applied for the design of a PPP business model for the electronic provision of cultural-heritage education for the project E-Learning Resource Management Service for the Interoperability Network in the European Cultural Heritage Domain (ERMIONE) of the eTEN Programme of the European Union (Grant Agreement C517357/2005). Finally, the future trends and the conclusions are outlined.


2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Paola Pisano ◽  
Marco Pironti ◽  
Alison Rieple

AbstractSocioeconomic trends (such as makers, crowdsourcing, sharing economy, gamification) as well as technological trends (such as cloud computing, 3D printing technology, application, big data, TV on demand and the Internet of things) are changing the scenario and creating new opportunities, new businesses and, as a result, new players. The high level of uncertainty caused by the fast speed of innovation technology along with an enormous amount of information difficult to analyse and exploit are characterizing the current framework. On the other hand, businesses such as Netflix – with its 44,000 users and a long tail business model – show a new service based on TV on demand where innovation starts from the convergence between two different industries (TV and the Internet) and spreads on the need of new users. Quirky, with its innovative open business model, is manufacturing new products designed and developed by the community and finally produced with the use of 3D printing technology. While Google in a multi-sided model are giving their new glasses to different developers who build their own application on them, Kickstarter finds its business funders in the crowd, and pays them back with its future products, according to what the organization needs. Another element that adds complexity to the previous framework is the new customer. He or she is showing a social attitude in favour of transparency, openness, collaboration, and sharing. Every second more than 600 tweets are posted on Twitter and around 700 status updates are posted on Facebook. At the same time, people are receiving text messages, e-mails and skype or phone calls and simultaneously consuming TV, radio and print media. In this scenario characterized by trends where employees, funders, customers and partners do not play a stable role but work together with a sort of “platform organization” to create a product or service completely customized for different market niches, how can an organization set up an innovative business model in a defined trend? Is it possible to identify a sort of framework, able to inspire new business models, with an examination of trends? In this article we will use a mix of different approaches to inspire new business model.


2020 ◽  
Vol 14 (79) ◽  
pp. 79-88
Author(s):  
G. N. Chernukhina ◽  

He article discusses the current state and trends in the development of the sharing economy as a business model. Initially, the sharing economy assumed an exchange between people, but businessmen quickly learned to use the growing popularity of the trend. Companies began to provide platforms for sharing goods.The growing number of mobile and online platforms that effectively connect people who have underutilized assets with people who want to use them, allows you to advertise and sell products widely. In the sharing economy, the role of the consumer is changing to a two-way one, with consumers acting as buyers and suppliers of resources.By “sharing economy” the author understands such a social model, where there is a conscious rejection of private property in favor of collective, and this refusal is associated not with a lack of money, but with a desire to expand their capabilities.The economy of shared consumption today affects most areas of everyday life, changing the methods of transportation (Uber app, BlaBlaCar, Delimobil), living conditions in travel (on Airbnb), ways of entertainment (Netflix and YouTube, etc.), performing tasks (TaskRabbit itself), financing (Kickstarter), etc.Continuing the research, the author found that a number of prerequisites influenced the emergence and development of this business model, for example, the development of the Internet, a change in thinking in favor of a more open and trusting (for example, a trip with strangers to the BlaBlaCar site), a lack of desire to save for a long time to purchase property, urbanization, etc.


2017 ◽  
Vol 4 (2) ◽  
pp. 125-133
Author(s):  
Ni Wayan Purnawati ◽  
Djoko Budiyanto Setyohadi

In the internet Era as now everything is easily accessible, obtaining good information, education, services even trade. E-Marketplace as a new innovation for interaction between buyer and seller can also encourage micro medium to promote his business. www.pesansaja.com released by dipeta in the field of E-Marketplace of local culinary, which still require a lot of innovation to be able to attract customers and keep them. Innovation is also needed to be able to compete with other competitors on the E-Marketplace that engaged in the same. Hence the need for the implementation of the business model in this business model Canvas to get new business models to suit the wishes of the customer and an evaluation based on the strong and weak points of this business. The results of the implementation are expected to make the company's E-Marketplace is getting big and compete at a national level as an E-Marketplace of successful culinary attract customers


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