scholarly journals Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth in Facing Economic Downturns

2021 ◽  
Author(s):  
Librita Arifiani ◽  
Harjanto Prabowo ◽  
Asnan Furinto ◽  
Wibowo Kosasih
Keyword(s):  
Business Model ◽  
Quantitative Research ◽  
Large Scale ◽  
Business Models ◽  
Disruptive Innovation ◽  
Environmental Turbulence ◽  
Economic Downturn ◽  
Technological Transformation ◽  
Qualitative Nature ◽  
Exogenous Factors

Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0. In this study, environmental turbulence refers to exogenous factors that give rise to an uncertain and volatile situation that impacts performance. This study was measured by asking respondents’ perceptions through explanatory studies and preliminary surveys about market predictability, innovation, and customer preference. Disruptive innovation and environmental turbulence are key creative drivers for reengineering businesses; however, only agile innovation can take advantage of the economic downturn. Exploratory case studies and literature reviews are using to test the antecedent of environmental turbulence, Distinctive Innovation Capabilities, through an innovative business model to firm performance. From a managerial perspective, this study provides a comprehensive view of environmental turbulence’s impact, how to develop a DIC strategy for developing an organization’s business model, how to achieve it, what variables contribute, and how to relate it to performance. This research’s authenticity lies in how management comes up with a practically oriented framework of how organizations shape to be innovative and competitive by constructing common business models. However, this study has limitations due to its qualitative nature and conceptual framework, which needs to be investigated further through large-scale surveys by quantitative research.

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.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

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.

Business Model

2012 ◽  
pp. 100-131 ◽  
Author(s):  
Arash Najmaei
Keyword(s):  
Business Model ◽  
Mental Model ◽  
Business Models ◽  
Disruptive Innovation ◽  
Future Research ◽  
Disruptive Technology ◽  
New Business ◽  
Managerial Implications ◽  
Established Firms ◽  
Strategic Logic

Today’s world of business is increasingly witnessing exemplary firms which introduce new business models, exploit new markets and disrupt established firms in order to create a unique competitive position. Although the theoretical and conceptual posture of this phenomenon is well grounded and explained in the extant literature on disruptive innovation, little is known about strategic logic of this phenomenon. In other words, the managerial paradigm or cognitive and mental model that underlies the orchestration of micro- and macro-organizational mechanisms of a disruptive move, such as market and technological knowledge, have surprisingly received little attention. In this sense, an analytical review of literature suggests that strategic logic of a disruptive technology can be well presented through the lens of business model (BM) and its innovation. Accordingly, it is argued that business model represents a mental model which underlines activities such as acquisition of market and technological insights, opportunities and requisite actions required for transforming a disruptive idea into a disruptive market movement. This view offers new insights into the study of disruptive phenomenon. It addresses the managerial (i.e. mental model) underpinnings of disruptiveness, instead of market, economical and technological dimensions. Business model innovation (BMI) is a disruptive change in the core logic of value creation and capture. It is a value-revolutionizing framework which explicitly delineates the strategic processes of a disruptive strategy. Thus, it is essentially a paradigm for strategizing the craft of disruptive innovation (technology). Given this view, this chapter conceptually explicates this contour and shows how BMI effectuates a disruptive technological phenomenon by presenting four propositions. Finally theoretical and managerial implications of this view are illuminated in order to furthering the practice and enhancing future research in this growing field of inquiry.

scholarly journals The Role of Business Models in Developing Business Networks

2011 ◽  
pp. 221-231 ◽  
Author(s):  
Jukka Heikkila ◽  
Marikka Heikkila ◽  
Markku Tinnila
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Model Development ◽  
Customer Relationship ◽  
Business Networks ◽  
Geographical Distances ◽  
Business Model Development

Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessary means by which companies can coordinate cooperation in practice. The CSOFT metamodel proposed in this chapter provides guidance for joint business model development by emphasizing customer relationship and adjustment processes needed within the network.

scholarly journals A Business Model in Spa Tourism Enterprises: Case Study from Poland

2019 ◽  
Vol 11 (10) ◽  
pp. 2880 ◽  
Author(s):  
Adam R. Szromek ◽  
Mateusz Naramski
Keyword(s):  
Business Model ◽  
Quantitative Research ◽  
Business Models ◽  
Excessive Pressure ◽  
Doing Business ◽  
Scientific Issue ◽  
Wide Range ◽  
Tourism Enterprises ◽  
Depth Interviews

This article expands on knowledge about modeling tourism business. The basic scientific problem of the conducted research was the need to modernize the way of doing business in spa tourism enterprises by popularizing the business model and to provide an indication of the elements of the business model that should be grounded in the principles of sustainable spa development. The aim of the article is to present the results of our own research carried out in Polish spa enterprises in 2018. The key scientific issue was to examine the range of use of the business model templates in the management of tourism-treatment activities carried out in spas. Discussing the research results was preceded by a review of the literature on business models and the characteristics of activities carried out by spa tourism enterprises. The conducted research used qualitative methods, especially in-depth interviews, conducted with managers of the largest enterprises of spa tourism in Poland. Quantitative research was also conducted to examine the needs of tourists and patients. Our own scientific research has shown that spa enterprises in Poland very rarely and only within the scope limited to some elements of their activity, use the business model, and are not always aware of the wide range of its applications. As a result of the applications received, a business model dedicated to spa enterprises was developed. The article refers to the overtourism phenomenon in spas and indicates the need to put in business models, which are activities that protect spa areas against excessive pressure on tourism and the exploitation of natural resources.

Harnessing platform-based business models to power disruptive innovation

2016 ◽  
Vol 44 (5) ◽  
pp. 6-14 ◽  
Author(s):  
Haydn Shaughnessy
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Business Environment ◽  
Disruptive Innovation ◽  
Senior Managers ◽  
Content Type ◽  
Continuous Innovation ◽  
New Business ◽  
Unique Customer

Purpose Adopting and implementing a platform-based business model is fraught with problems and complications, many of which are poorly understood even by industry insiders. As they try to sort through the best practices for operating in this new business environment, senior managers need to carefully analyze the strengths of the business model of some of most successful companies before trying to imitate them. . Design/methodology/approach For a team to execute such a strategy quickly and seamlessly it must first thoroughly understand the components of such a business model and how they interact to produce unique customer value and formidable competitive advantage Findings The platform is a new way to organize wealth-creating activity. Practical implications The author details the components of a successful platform-based business model. Originality/value Platform-based business models seek to leverage the assets of third parties and in the process extend the value of economic activity to customers in ways that engage and benefit them. Senior leaders and operations managers alike need to understand that continuous innovation of customer value and policies that attract asset-rich partners and skillful developers is essential to the growth of the network.

scholarly journals The Role of Business Models in Developing Business Networks

2011 ◽  
pp. 235-249 ◽  
Author(s):  
Jukka Heikkila ◽  
Marikka Heikkila ◽  
Markku Tinnila
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Model Development ◽  
Customer Relationship ◽  
Business Networks ◽  
Geographical Distances ◽  
Business Model Development

Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessary means by which companies can coordinate cooperation in practice. The CSOFT metamodel proposed in this chapter provides guidance for joint business model development by emphasizing customer relationship and adjustment processes needed within the network.

scholarly journals Business Model as an Inducer of Disruptive Innovations: The Case of Gol Airlines

2015 ◽  
Vol 3 (2) ◽  
pp. 28-42 ◽  
Author(s):  
Sirlei de Almeida Pereira ◽  
Fabricio Garcia Imbrizi ◽  
Alessandra Demite Goncalves De Freitas ◽  
Marcelo Aparecido Alvarenga
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Business Models ◽  
Disruptive Innovation ◽  
Business Model Innovation ◽  
Disruptive Innovations ◽  
Innovation Processes

This study was undertaken to investigate the premises that the success of disruptive innovation is related to the business model adopted by organizations. An analysis of five business models from the literature review - Bovet and Martha (2000), Applegate (2001), Chesbrough and Rosenbloom (2002), Osterwalder and Pigneur (2010), and Rodrigues, Maccari and Lenzi (2012) – was conducted based on the case of the Brazilian Gol Airlines who is recognized as a success business that promoted a disruptive innovation. The results suggest that the assertive choice of the business model can leverage innovation processes, and two of the models listed are adherence to the case studied. Keywords: Disruptive Innovation; Business Model; Innovation Elements; Strategy; Gol Airlines.

scholarly journals Business Model in Air Transport: Evolution of Innovation Concept

2017 ◽  
Vol 13 (31) ◽  
pp. 455
Author(s):  
Pierluigi Passaro
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Knowledge Society ◽  
Disruptive Innovation ◽  
Incremental Innovation ◽  
Transport Sector ◽  
Industrial Sectors ◽  
Close Relationship ◽  
Innovation And Invention

With the advent of the knowledge society, new opportunities, business models and concepts have emerged in most industrial sectors and in particular in the transport sector. The European air travel market, dominated by airlines, influenced to varying degrees from their countries of origin, has been, since the early nineties, completely revolutionized by the entrance in the competitive arena of several small companies, which, in accordance with the principles of „disruptive innovation‟, have completely changed the field of passenger transport. To understand how this was possible, it is necessary to investigate, just with the help of these new tools of Strategic Management as the business models, about the way in which these airlines are able to generate their business and create value. This work aims to analyse the close relationship between innovation of product / service and corporate business model in order to understand the dynamics of the relationship. Various contributions from literature showed how the concept of innovation within the company has evolved over the years and what were the approaches used to study it. This analysis begins with the study of the contributions of Schumpeter, the first economist to write about innovation and author of the dynamic development model and creator of the first distinction between innovation and invention. His theories have made a major contribution in this area, but none the less were also constructively criticized by other economists such as Freeman, who introduced the concept of incremental innovation and analysed the factors triggering innovation. Albernathy and Clark then added another fundamental element of analysis: the competitive environment. They studied the influence of innovation on those factors that are considered essential to achieve a competitive advantage. The same Albernathy, with Utterback, then studied the dynamics of innovations over time. Each of the cited authors analysed the phenomenon of innovation in a different light and all of their contributions allows for a broad and comprehensive concept. The picture is completed by adding the recent contributions of Christensen, who has taken up and deepened the concepts of "sustaining innovation" and " disruptive innovation" and, especially, began to highlight how essential it is that innovation is supported by a suitable business model. In this regard, he has shown that even the same business model can be object of innovation and that this type of innovation is one of the main drivers of the creation of competitive advantage.

Biotechnology-driven business model archetypes: Sustainability, Innovation and Commercial Viability

2019 ◽  
Vol 24 (3) ◽  
Author(s):  
George Peppou
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Secondary Data ◽  
Sustainable Business ◽  
Biotechnology Firms ◽  
Business Model Canvas ◽  
Triple Layer ◽  
Content Analysis Method ◽  
Sustainable Business Models

PurposeIn spite of enthusiasm for biotechnologies to enable sustainability and the development of innovative sustainable business models, limited research, tools and resources exist. Therefore, this research questions how the business model of sustainable biotechnology-driven firms differs from other businesses.Methodology         This article applies a structured content analysis method to enumerate sustainable business model archetypes in biotechnology firms focuses utilising secondary data from 64 existing. The triple-layer business model canvas is used as the categorisation matrix.FindingsFive sustainable business model archetypes were identified for biotechnology firms. Findings highlight that sustainable biotechnology-driven businesses can reach a sustainable business model through either operating as an environmentally-led or economically-led domain.Research limitations/implicationsThis article recognises that transitioning to a sustainable business model requires significant change to many facets of the business, therefore this study provides a template for future organisations, supporting the realisation of future, sustainable, biotechnology innovations.Originality/value Unlike previous studies this article focuses exclusively on biotechnology firms, as well as utilising the Triple Layer Business Model Canvas as the categorisation matrix, the first article to do so. This article provides a template for large-scale industrial businesses to build, or transition to, more sustainable business models utilising biotechnology. 

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