scholarly journals Determining the KPIs of the German engineering industry based on the evaluation of contemporary business models

2021 ◽  
Vol 26 (3) ◽  
pp. 3-36
Author(s):  
Konstantin Kostin ◽  
Kristina Steinbiß ◽  
Oliver Petrinovic
Keyword(s):  
Business Model ◽  
Performance Indicators ◽  
Business Models ◽  
Key Performance Indicators ◽  
Engineering Industry ◽  
Literature Research ◽  
The Relationship ◽  
Expert Surveys

This study determines the correlation between industry-specific success patterns of the German engineering industry and the business models applied within. In order to identify this correlation, the following objectives are addressed within the framework of this paper: (1) identification and description of business models used by the German engineering industry; (2) analysis of industry-specific success patterns of the German engineering industry by the usage of Key Performance Indicators (KPIs); and (3) determination of correlation between the KPIs and the effectiveness of the business models of the German engineering industry These objectives are mainly achieved by literature research and expert surveys. The findings highlight the KPIs (overall 41) that are relevant for the respective business models. This enables a better understanding of the interrelationships of the business model, in order to derive relevant conclusions. The paper contributes to the literature as it advances this field of research in Germany, and it is one of the first studies to examine the relationship between business models and industry-specific success patterns with relevant KPIs.

scholarly journals Defining business model key performance indicators using intentional linguistic summaries

2021 ◽  
Author(s):  
Rick Gilsing ◽  
Anna Wilbik ◽  
Paul Grefen ◽  
Oktay Turetken ◽  
Baris Ozkan ◽  
...  
Keyword(s):  
Decision Making ◽  
Business Model ◽  
Performance Indicators ◽  
Model Evaluation ◽  
Business Models ◽  
Real Life ◽  
Innovation Process ◽  
Key Performance Indicators ◽  
Business Model Innovation ◽  
Data Availability

AbstractTo sustain competitiveness in contemporary, fast-paced markets, organizations increasingly focus on innovating their business models to enhance current value propositions or to explore novel sources of value creation. However, business model innovation is a complex task, characterized by shifting characteristics in terms of uncertainty, data availability and its impact on decision making. To cope with such challenges, business model evaluation is advocated to make sense of novel business models and to support decision making. Key performance indicators (KPIs) are frequently used in business model evaluation to structure the performance assessment of these models and to evaluate their strategic implications, in turn aiding business model decision making. However, given the shifting characteristics of the innovation process, the application and effectiveness of KPIs depend significantly on how such KPIs are defined. The techniques proposed in the existing literature typically generate or use quantitatively oriented KPIs, which are not well-suited for the early phases of the business model innovation process. Therefore, following a design science research methodology, we have developed a novel method for defining business model KPIs, taking into account the characteristics of the innovation process, offering holistic support toward decision making. Building on theory on linguistic summarization, we use a set of structured templates to define qualitative KPIs that are suitable to support early-phase decision making. In addition, we show how these KPIs can be gradually quantified to support later phases of the innovation process. We have evaluated our method by applying it in two real-life business cases, interviewing 13 industry experts to assess its utility.

Business Modeling to Improve Auditor Risk Assessment: An Investigation of Alternative Representations

2014 ◽  
Vol 28 (2) ◽  
pp. 231-256 ◽  
Author(s):  
J. Efrim Boritz ◽  
Carla Carnaghan ◽  
Paulo S. Alencar
Keyword(s):  
Risk Assessment ◽  
Business Model ◽  
Business Models ◽  
Financial Statement ◽  
Alternative Methods ◽  
Audit Risk ◽  
Strategic Goals ◽  
Diagrammatic Representations ◽  
Model Components ◽  
The Relationship

ABSTRACT This study investigates the effects of alternative methods for documenting business models on audit risk assessment behavior. We consider tabular versus diagrammatic representations of the relationship between business model components such as environmental factors, strategic goals, internal processes and resources, and financial statement accounts. Multiple scenarios based on a real company were constructed and 24 participants, including audit partners, managers, and novice auditors performed a risk assessment for each scenario, presented in either a diagrammatic or a tabular format. The participants' verbal discussions as they performed the risk assessments were tape recorded, transcribed, and coded. A content analysis of the participants' coded verbal behavior indicates that the tabular presentation appears to elicit more frequent mention of accounts by the participants, while the diagram format leads to more mentions of other business model components. There is also some evidence of expertise effects. This study indicates that a tabular presentation can possess many of the benefits often associated with a diagrammatic representation. However, in our study, obtaining such benefits involved the deliberate structuring of the tabular presentation to organize the components of the business model and the links between them and financial statement accounts.

Proposal of a Business Model Based on the Triple Business Performance-E

2019 ◽  
pp. 123-143
Author(s):  
Carlos Ricardo Rey-Campero
Keyword(s):  
Business Model ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Family Firms ◽  
Theoretical Framework ◽  
Systems Development ◽  
Model Based ◽  
Categorical Regression ◽  
The Relationship

This chapter aims to analyze the relationship between business models and dynamic capabilities in firms of the systems development sector of Bogota (Colombia). Based on the theoretical framework of business models, the author applies an analysis based on principal categorical components and categorical regression. Results show a correlation between the elements of the business model (strategy and dynamic capabilities) and business performance. In conclusion, the author proposes a business model endowed with efficiency, effectiveness, and efficacy for newly created micro, small, and medium-sized family firms that highly correlates with business performance.

scholarly journals The breadth of business model reconfiguration and firm performance

2020 ◽  
pp. 147612702095513
Author(s):  
Panos Desyllas ◽  
Ammon Salter ◽  
Oliver Alexy
Keyword(s):  
Business Model ◽  
Business Models ◽  
Past Performance ◽  
Business Services ◽  
Knowledge Intensive Business Services ◽  
Knowledge Intensive ◽  
And Performance ◽  
Using Data ◽  
Original Survey ◽  
The Relationship

Looking at business models as systems of interdependent elements, we study how the breadth of an incumbent firm’s business model reconfiguration influences its performance. Drawing on the metaphor of firms searching on a performance landscape, we argue that the relationship between business model reconfiguration breadth and performance should form an inverted U-shape. While firms can gain from increasing business model reconfiguration breadth, these benefits need to be traded-off against the increasing complexity of its associated changes. We further predict that this inverted U-shape will flip for highly performing firms while being amplified for firms heavily active in innovation. Using data from an original survey of knowledge-intensive business services firms, we find that, on average, business model reconfiguration has little effect on performance. However, U-shaped effects clearly emerge when accounting for the effects of past performance and innovative activity. Our findings contribute to a better understanding of the conditional nature of the advantages stemming from business model reconfiguration.

scholarly journals Development of the mechanism of motivation and tangible incentivisation

2018 ◽  
Vol 170 ◽  
pp. 01094
Author(s):  
Ludmila Lavrova ◽  
Nikolay Chernegov ◽  
Maria Ivanova ◽  
Zhanna Lemesheva ◽  
Elena Akimova
Keyword(s):  
Construction Industry ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Construction Process ◽  
Construction Enterprises ◽  
Strategic Objective ◽  
Motivational Mechanism ◽  
Relationship Of ◽  
The Relationship

The main objective of the study is the development of an effective motivational mechanism for employees of construction enterprises. The paper considers particularities of remuneration of participants of construction process in order to define the application of various mechanisms of motivation and incentivisation. The existing methods of development of motivation and incentivisation are analyzed as a tool for increasing the performance of the enterprise. Scientific and methodological recommendations on the establishment and implementation of the mechanisms of motivation and incentivisation as a tool for increasing the performance of enterprises in the construction industry were developed. These recommendations allow identifying the relationship of motivation and incentivisation with the performance of the enterprise. The developed mechanism is based on the relationship between the strategic objective of the enterprise and the key performance indicators of the units or specific employees.

How small-medium enterprises leverage intangibles during recessions. Evidence from the Italian clothing industry

2014 ◽  
Vol 52 (8) ◽  
pp. 1491-1515 ◽  
Author(s):  
Marco Cucculelli ◽  
Cristina Bettinelli ◽  
Angelo Renoldi
Keyword(s):  
Business Model ◽  
Market Share ◽  
Business Models ◽  
Additional Data ◽  
Data Set ◽  
Content Type ◽  
Contingent Factor ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Relationship

Purpose – The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions. Design/methodology/approach – Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account. Findings – Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions. Originality/value – This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).

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.

scholarly journals Pre-conceptual-schema-based patterns for deriving key performance indicators from strategic objectives

2017 ◽  
Vol 37 (2) ◽  
pp. 120-128
Author(s):  
Carlos Mario Zapata Jaramillo ◽  
Luis Fernando Castro Rojas
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Business Success ◽  
Conceptual Schema ◽  
Strategic Objectives ◽  
Systematic Derivation ◽  
Derivation Process ◽  
Organizational Objectives

Performance measurement is crucial for achieving business success. Moreover, such success is also related to the fulfillment of the organizational strategic objectives. Hence, an adequate determination of relevant performance indicators—or key performance indicators (KPIs)—and their relationships to organizational objectives is needed. Even though several approaches for treating KPIs and objective-KPI relationships have been proposed, they exhibit some drawbacks associated with the lack of reusability and traceability. We attempt to fill this gap by proposing a set of patterns based on pre-conceptual schemas for supporting the systematic derivation of KPIs and their relationships to organizational objectives. In this way, the proposed patterns guarantee a reusable and traceable derivation process of a set of candidate KPIs from organizational strategic objectives. Lastly, we provide a lab study in order to illustrate the usefulness of this proposal.

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