Posted Content•
Ride on! Mobility Business Models for the Sharing Economy
TL;DR: In this article, the authors discuss existing shared mobility business models in an effort to unveil the optimal relationship between service providers (agents) and the local governments (principals) to achieve the common objective of sustainable mobility.
Abstract: The public perception of shared goods has changed substantially in the past few years. While co-owning properties has been widely accepted for a while (e.g., timeshares), the notion of sharing bikes, cars, or even rides on an on-demand basis is just now starting to gain widespread popularity. The emerging “sharing economy” is particularly interesting in the context of cities that struggle with population growth and increasing density. While sharing vehicles promises to reduce inner-city traffic, congestion, and pollution problems, the associated business models are not without problems themselves. Using agency theory, in this article we discuss existing shared mobility business models in an effort to unveil the optimal relationship between service providers (agents) and the local governments (principals) to achieve the common objective of sustainable mobility. Our findings show private or public models are fraught with conflicts, and point to a merit model as the most promising alignment of the strengths of agents and principals.
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TL;DR: In this paper, the authors provide an objective, systematic and holistic review of the sharing economy (SE) academic literature to uncover the theoretical foundations and key themes underlying the field by using co-citation analysis and content analysis.
628 citations
TL;DR: In this paper, the authors explore worker experiences within the on-demand economy and argue that Uber's digitally and algorithmically mediated system of flexible employment builds new forms of surveillance and control into the experience of using the system, resulting in asymmetries around information and power for workers.
Abstract: This empirical study explores labor in the on-demand economy using the rideshare service Uber as a case study. By conducting sustained monitoring of online driver forums and interviewing Uber drivers, we explore worker experiences within the on-demand economy. We argue that Uber’s digitally and algorithmically mediated system of flexible employment builds new forms of surveillance and control into the experience of using the system, which result in asymmetries around information and power for workers. In Uber’s system, algorithms, CSRs, passengers, semiautomated performance evaluations, and the rating system all act as a combined substitute for direct managerial control over drivers, but distributed responsibility for remote worker management also exacerbates power asymmetries between Uber and its drivers. Our study of the Uber driver experience points to the need for greater attention to the role of platform disintermediation in shaping power relations and communications between employers and workers.
597 citations
Cites background from "Ride on! Mobility Business Models f..."
...Previous work on ridesharing in general has explored the phenomena in its ad hoc, not-for-profit, or cooperative contexts (Anderson, 2014; Chan & Shaheen, 2012; Cohen & Kietzmann, 2014; Furuhata et al., 2013)....
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TL;DR: In this paper, the authors conduct a morphological analysis of 26 current circular economy business models from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions.
Abstract: The circular economy (CE) requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to CE principles. A review of these frameworks shows that some models are frequently discussed, some are framework specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance; reuse and redistribution; refurbishment and remanufacturing; recycling; cascading and repurposing; and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs. (Less)
525 citations
TL;DR: In this paper, the authors take stock of the ambivalent and contested nature of the sharing economy and highlight the paradoxical nature of sharing economy, and make a case for balanced initiatives that combine the promises of each core while mitigating contradictions.
468 citations
Cites background from "Ride on! Mobility Business Models f..."
...…behaviour (Bardhi and Eckhardt, 2012; Habibi et al., 2016), sociology (Schor et al., 2016), geography (Richardson, 2015), anthropology (Belk, 2014a), management (Cohen and Kietzmann, 2014), innovation (Guttentag, 2015) and law (Cohen and Sundararajan, 2015; Kassan and Orsi, 2012; Redfearn, 2016)....
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TL;DR: In this article, the authors identify three criteria to delineate collaborative consumption from related constructs, such as access-based consumption, sharing or renting, and introduce a literature-based framework.
374 citations
Cites background from "Ride on! Mobility Business Models f..."
...For example, when using CC for transportation services, customers are not burdened with the costs associated with purchasing a car, providing insurance or maintenance, and only pay for the time they actually use the car, or the distance they drive or both (Cohen & Kietzmann, 2014)....
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...CC models allow customers to access and offer underutilized resources in creative and innovative ways (Cohen & Kietzmann, 2014)....
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References
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TL;DR: The population problem has no technical solution; it requires a fundamental extension in morality.
Abstract: The population problem has no technical solution; it requires a fundamental extension in morality.
22,421 citations
"Ride on! Mobility Business Models f..." refers background in this paper
...The failed first-generation bikesharing projects are prime examples of the tragedy of the commons, first introduced by Garret Harden (1968)....
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TL;DR: In this article, the authors review agency theory, its contributions to organization theory, and the extant empirical work and develop testable propositions and conclude that agency theory offers unique insight into information systems, outcome uncertainty, incentives, and risk.
Abstract: Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure.
11,338 citations
"Ride on! Mobility Business Models f..." refers background in this paper
...Across all of these disciplines, agency theory is addressing conflicting goals between the principal and the agent (Eisenhardt, 1989)....
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...With this understanding, agency theory has been a controversial but frequently applied theory not only across disciplines such as economics, finance, marketing political science, and organizational behavior (Eisenhardt, 1989) but also entrepreneurship....
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...The primary focus of agency theory research is “relationships that mirror the basic agency structure of a principal and an agent who are engaged in cooperative behavior, but have differing goals and differing attitudes toward risk” (Eisenhardt, 1989, p. 59)....
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Book•
01 Jan 1921
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Abstract: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets. To explain this seeming paradox, Knight uncovers the distinction between calculable risk and essentially unknowable uncertainty. Knight argued that risk stems from repeated events, which therefore allow probabilities to be calculated and factored into decisions, as for instance insurers do. Uncertainty however, stems from events that are unpredictable and as such cannot be prepared against. According to Knight, it is the interplay between risk and uncertainty on the one hand and competition between incumbent and new entrepreneurs that accounts for the enormous variation in profitability across firms and, for the same firms, over time. His insights on the sources of profit have been instrumental in shaping modern economic theory and to the development of a useful understanding of probability. This New Edition has been typeset with modern techniques and contains a newly compiled Index of important topics. It has been painstakingly proofread to ensure that it is free from errors and that the content is faithful to the original.
10,309 citations
"Ride on! Mobility Business Models f..." refers background in this paper
...For example, Knight (1921) suggests that entrepreneurs bear the risks of organization and failure as an agent for the consumer....
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TL;DR: In this paper, the authors explore the significance of business models and explore their connections with business strategy, innovation management, and economic theory, and understand how the enterprise can organize to best meet customers' needs, get paid for doing so, and make a profit.
6,242 citations
"Ride on! Mobility Business Models f..." refers background in this paper
...While there is a lack of consensus on the definition of what a business model actually is (Arend, 2013), a useful definition for the purposes of this research is that of Teece (2010): the design or architecture of the value creation, delivery and capture mechanisms....
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Posted Content•
TL;DR: In this article, the authors present a framework that defines social media by using seven functional building blocks: identity, conversations, sharing, presence, relationships, reputation, and groups, and explain the implications that each block can have for how firms should engage with social media.
Abstract: Traditionally, consumers used the Internet to simply expend content: they read it, they watched it, and they used it to buy products and services. Increasingly, however, consumers are utilizing platforms – such as content sharing sites, blogs, social networking, and wikis – to create, modify, share, and discuss Internet content. This represents the social media phenomenon, which can now significantly impact a firm’s reputation, sales, and even survival. Yet, many executives eschew or ignore this form of media because they don’t understand what it is, the various forms it can take, and how to engage with it and learn. In response, we present a framework that defines social media by using seven functional building blocks: identity, conversations, sharing, presence, relationships, reputation, and groups. As different social media activities are defined by the extent to which they focus on some or all of these blocks, we explain the implications that each block can have for how firms should engage with social media. To conclude, we present a number of recommendations regarding how firms should develop strategies for monitoring, understanding, and responding to different social media activities.
3,551 citations