Showing papers on "Value proposition published in 2017"

Measuring business model innovation: conceptualization, scale development, and proof of performance

Abstract: Business model innovation is a topic that has received much attention from academia as well as from business practice. After extensive research on the definition and conceptualization of the concept and publication of many case-based results, recently scholars have been calling for more generalizable results, large-scale investigations and greater empirical sophistication. Despite the great importance of measuring business model innovation for various purposes, a validated measurement scale is still not available. I fill this gap by systematically developing a new scale for business model innovation. I follow a rigorous scale development approach to ensure validity and reliability. Specifically, I collected two large-scale samples of 126 and 232 firms to specify and assess the scale. As a result, I provide a hierarchical three-level scale for measuring business model innovation. At the first level, 41 reflective items are provided to measure ten subconstructs of business model innovation. These can be used as formative measures of three dimensions of business model innovation at the second level, namely value creation innovation, value proposition innovation and value capture innovation. At the third level, these three dimensions form the metaconstruct of business model innovation.

Maneuvering in poor visibility : How firms play the ecosystem game when uncertainty is high

Abstract: Innovation ecosystems are increasingly regarded as important vehicles to create and capture value from complex value propositions. While current literature assumes these value propositions can be known ex-ante and an appropriate ecosystem design derived from them, we focus instead on generative technological innovations that enable an unbounded range of potential value propositions, hence offering no clear guidance to firms. To illustrate our arguments, we inductively study two organizations, each attempting to create two novel ecosystems around new technological enablers deep in their industry architecture. We highlight how ecosystem creation in such conditions is a systemic process driven by coupled feedback loops, which organizations must try to control dynamically: firms first make the switch to creating the ecosystem following an external pull to narrow down the range of potential applications; then need to learn to keep up with ecosystem dynamics by roadmapping and preempting, while simultaneously enacting resonance. Dynamic control further entails counteracting the drifting away of the nascent ecosystem from the firm's idea of future value creation and the sliding of its intended control points for value capture. Our findings shed new light on strategy and control in emerging ecosystems, and provide guidance to managers on playing the ecosystem game.

The customer value proposition: evolution, development, and application in marketing

Abstract: The customer value proposition (CVP) has a critical role in communicating how a company aims to provide value to customers. Managers and scholars increasingly use CVP terminology, yet the concept remains poorly understood and implemented; relatively little research on this topic has been published, considering the vast breadth of investigations of the value concept. In response, this article offers a comprehensive review of fragmented CVP literature, highlighting the lack of a strong theoretical foundation; distinguishes CVPs from related concepts; proposes a conceptual model of the CVP that includes antecedents, consequences, and moderators, together with several research propositions; illustrates the application of the CVP concept to four contrasting companies; and advances a compelling agenda for research.

Value co-creation and co-destruction in the Airbnb sharing economy

Abstract: Purpose This paper aims to develop a theoretical framework of value co-creation and value co-destruction of guest-host social practices facilitated through Airbnb in the sharing economy. Design/methodology/approach This paper makes use of a qualitative online content analysis to extract Airbnb data and to analyse guest reviews and host responses posted in the context of Malta. Findings A theoretical framework is proposed revealing six distinct themes of guest–host social practices and their sub-categories, resulting in a spectrum of dimensions of value formation. Research limitations/implications This paper collects data from Airbnb properties in Malta, with more narratives posted by guests, implying a dominance of guest views on value co-creation and co-destruction. Findings might have a limited transferability beyond similar sharing economy platforms and tourist destinations. Practical/implications The paper uncovers guest–host hospitality value creation practices, providing concrete examples as to what practices lead to distinct value formation or destruction. In addressing the lack of knowledge about value creation practices in the sharing economy, strategic implications are offered to the hospitality sector to understand the distinct value propositions Airbnb offers compared to traditional accommodation types. Originality/value The paper’s contribution is its theoretical framework of value practices of guests staying at Airbnb-listed accommodations, contributing to a better understanding of the distinct value propositions underlying collaborative consumption offers in the sharing economy.

Value cocreation in service ecosystems: Investigating health care at the micro, meso, and macro levels

Abstract: The purpose of this paper is to understand value cocreation in service ecosystems from a multilevel perspective, uncovering value cocreation factors and outcomes at the micro, meso, and macro levels.,A Grounded Theory approach based on semi-structured interviews is adopted. The sample design was defined to enable the ecosystem analysis at its different levels. At the macro level was the Portuguese Health Information ecosystem. Embedded meso level units of analysis comprised eight health care organizations. A total of 48 interviews with citizens and health care practitioners were conducted at the micro level.,Study results enable a detailed understanding of the nature and dynamics of value cocreation in service ecosystems from a multilevel perspective. First, value cocreation factors are identified (resource access, resource sharing, resource recombination, resource monitoring, and governance/institutions generation). These factors enable actors to integrate resources in multiple dynamic interactions to cocreate value outcomes, which involve both population well-being and ecosystem viability. Study results show that these value cocreation factors and outcomes differ across levels, but they are also embedded and interdependent.,The findings have important implications for organizations that are ecosystem actors (like the Portuguese Ministry of Health) for understanding synergies among value cocreation factors and outcomes at the different levels. This provides orientations to better integrate different actor roles, technology, and information while facilitating ecosystem coordination and co-evolution.,This study responds to the need for a multilevel understanding of value cocreation in service ecosystems. It also illuminates how keystone players in the ecosystem should manage their value propositions to promote resource integration for each actor, fostering resource density and ecosystem viability. It also bridges the high-level conceptual perspective of Service-Dominant logic with specific empirical findings in the very important context of health care.

Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation

Abstract: Digital technology is increasingly important in achieving business goals, and its pervasive effects have resulted in the radical restructuring of entire industries. Consequently, managers’ extensive interest in handling digital innovation is not surprising. Recent research has illustrated how digital technologies give rise to a vast potential for product and service innovation that is difficult to control and predict. Therefore, firms need dynamic tools to support themselves in managing the new types of digital innovation processes that emerge. The nature of these processes forces firms to challenge prior assumptions about their product and service portfolio, their digital environment, and ways of organizing innovation work. In this article, we present a managerial framework that supports firms in this undertaking. The framework, geared at supporting ongoing improvements in digital innovation management, covers five key areas: user experience, value proposition, digital evolution scanning, skills, and improvisation. We also present a diagnostic tool that can be utilized as firms begin the process of implementing the framework. Finally, we conclude with our thoughts on the managerial implications of the framework when going forward in a rapidly changing digital innovation landscape.

Decision making for business model development: a process study of effectuation and causation in new technology-based ventures

Abstract: This study investigates the decision-making logics used by new ventures to develop their business models. In particular, they focussed on the logics of effectuation and causation and how their dynamics shape the development of business models over time. They found that the effectual decision-making logic was used dominantly to generate a viable value proposition for a specific customer segment. Causal logic is then used dominantly to define the other business model components in relation to the value proposition and customer segment. When a shortage of resources emerges, causal logic is replaced by an increase in effectual decision-making again. They concluded that before investing significant resources in a business model it was crucial for firms to reduce, as far as possible, technological and market uncertainty through effectual strategies to avoid high re-configuration costs later.

Intellectual capital in the age of Big Data: establishing a research agenda

Abstract: The purpose of this paper is to contribute to the literature on intellectual capital (IC) in light of the emerging paradigm of Big Data. Through a literature review, this paper provides momentum for researchers and scholars to explore the emerging trends and implications of the Big Data movement in the field of IC.,A literature review highlights novel and emerging issues in IC and Big Data research, focussing on: IC for organisational value, the staged evolution of IC research, and Big Data research from the technological to the managerial paradigm. It is expected that identifying these contributions will help establish future research directions.,A conceptual multi-level framework demonstrates how Big Data validates the need to shift the focus of IC research from organisations to ecosystems. The framework is organised into four sections: “why” – the managerial reasons for incorporating Big Data into IC; “what” – the Big Data typologies that enhance IC practice; “who” – the stakeholders involved in and impacted by Big Data IC value creation; and “how” – the Big Data processes suitable for IC management.,The paper provides many avenues for future research in this emerging area of investigation. The key research questions posed aim to advance the contribution of Big Data to research on IC approaches.,The paper outlines the socio-economic value of Big Data generated by and about organisational ecosystems. It identifies opportunities for existing companies to renew their value propositions through Big Data, and discusses new tools for managing Big Data to support disclosing IC value drivers and creating new intangible assets.,This paper investigates the effects and implications Big Data offers for IC management, in support of the fourth stage of IC research. Additionally, it provides an original interpretation of IC research through the lens of Big Data.

On Value and Value Creation in Service: A Management Perspective:

Abstract: To develop a managerially relevant understanding of value and value creation, these phenomena must be analysed on a micro level. Seen from above, they lack a microfoundation. In the present...

Ethereum: State of Knowledge and Research Perspectives

Abstract: Ethereum is a major blockchain-based platform for smart contracts – Turing complete programs that are executed in a decentralized network and usually manipulate digital units of value. A peer-to-peer network of mutually distrusting nodes maintains a common view of the global state and executes code upon request. The stated is stored in a blockchain secured by a proof-of-work consensus mechanism similar to that in Bitcoin. The core value proposition of Ethereum is a full-featured programming language suitable for implementing complex business logic.

The nature and value of terroir products

Abstract: Purpose The aim of this paper is to consider place as a value proposition, in the context of Resource-Advantage Theory, by analysing the concept of terroir, including its antecedents and consequences. Design/methodology/approach The authors conceptually analyse the role of place in marketing by contrasting terroir to three other approaches: “in the style of […]”; “made in […]” and Protected Designations of Origin. They explore the impact of terroir on a range of products, offering a series of terroir value propositions. Findings Versus other place links, terroir offers a more specific Resource-Advantage, operating at environmental, philosophical and commercial levels. It offers a unique form of value to both consumers (e.g. identity, authenticity, cultural rootedness) and producers (e.g. irreproducibility, potential legal protection). Research limitations/implications Propositions address the antecedents and consequences of the terroir designation, the impact of consumer engagement, perceived authenticity and the added value offered to other regional goods. Additionally, how terroir may form a barrier to market entry, the relationship it has with the territorial brand, whether it offers greater product longevity and how it can be used as leverage for other related place-based brands and tourism are examined. Originality/value This is the first paper to address terroir as a marketing concept and to situate it within other forms of place marketing. It provides a definition, outlines the ways in which terroir creates value and provides a research agenda for future engagement with the concept.

Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles:

Abstract: Disruptive technologies tend to underperform on attributes that are considered as key attributes of incumbent technologies and require new value propositions to increase mainstream customer appeal....

Towards Circular Economy implementation: an agent-based simulation approach for business model changes

Abstract: This paper introduces an agent-based approach to study customer behavior in terms of their acceptance of new business models in Circular Economy (CE) context. In a CE customers are perceived as integral part of the business and therefore customer acceptance of new business models becomes crucial as it determines the successful implementation of CE. However, tools or methods are missing to capture customer behavior to assess how customers will react if an organization introduces a new business model such as leasing or functional sales. The purpose of this research is to bring forward a quantitative analysis tool for identifying proper marketing and pricing strategies to obtain best fit demand behavior for the chosen new business model. This tool will support decision makers in determining the impact of introducing new (circular) business models. The model has been developed using an agent-based modeling approach which delivers results based on socio-demographic factors of a population and customers' relative preferences of product attributes price, environmental friendliness and service-orientation. The implementation of the model has been tested using the practical business example of a washing machine. This research presents the first agent-based tool that can assess customer behavior and determine whether introduction of new business models will be accepted or not and how customer acceptance can be influenced to accelerate CE implementation. The tool integrates socio-demographic factors, product utility functions, social network structures and inter-agent communication in order to comprehensively describe behavior on individual customer level. In addition to the tool itself the results of this research indicates the need for systematic marketing strategies which emphasize CE value propositions in order to accelerate customer acceptance and shorten the transition time from linear to circular. Agent-based models are emphasized as highly capable to fill the gap between diffusion-based penetration of information and resulting behavior in the form of purchase decisions.

The Values of Strategy: Valuation Practices, Rivalry and Strategic Agency:

Abstract: The concept of value is held dear by strategy theorists and practitioners alike as they share a concern about value creation, value propositions, value add, value chains, shareholder value and a plethora of other value constructs. Yet, despite its centrality, the concept of value has attracted limited attention in strategy scholarship. Most commonly, notions of value as profit or utility, inherited from economic theory, are assumed rather than analyzed. This paper advances the discussion of value in the strategy discourse by conceptualizing value as a correlate of valuation practices. Following this view, value is neither understood as the property of an object nor as a subjective preference; rather, values are constituted through valuation practices including rankings, ratings, awards, reviews and other valuation mechanisms that bestow values upon things in the first place. The paper explores this idea through analyzing valuation practices and their constitutive mechanisms; and it exploits this idea for ...

Value co-creation behaviour – role of embeddedness and outcome considerations

Abstract: Purpose The purpose of this paper is to identify antecedents and consequences of customers’ value co-creation behaviour (VCB). VCB as a means to facilitate value realisation processes is gaining importance in service research and practice. Encouraging such enactments can be challenging, but can also offer competitive advantages. Design/methodology/approach We empirically investigate a conceptual model by converging three contemporary concepts of co-creation research – embeddedness, VCB and value-in-context – and examining the interdependencies between them. Data were collected in an online forum of a leading international weight-management firm. Findings Results suggest that customers’ embeddedness is a key antecedent of customers’ VCB in a service system. The three embeddedness dimensions – structural, relational and cultural – have a differential impact on customers’ VCB. Furthermore, findings illustrate that customers’ VCB has a significant impact on their object-oriented, self-oriented and brand-oriented social value-in-context outcomes. Research limitations/implications This study contributes by empirically investigating and validating antecedents and consequences of VCB in a service system. In doing so, the study highlights the significance of the nature of customer’s social constellations to develop contexts where value outcomes are actualised. Understanding the factors that shape VCB offers insights for firms to recognise how and where value propositions can be deployed that drives on-going co-creation processes. Originality/value This study is the first empirical research to offer insights into important pre-conditions and subsequent outcomes concurrently to illustrate how customers’ VCB can be managed and nurtured for sustainable value co-creation processes within service systems. This research further advances mid-range theorizing and microfoundational perspectives in marketing.

Sustainable Consumption and Value Propositions: Exploring Product–Service System Practices Among Swedish Fashion Firms

Abstract: Since sustainable consumption (SC) research focuses primarily on consumer purchasing behaviors, there is a gap regarding how firms attempt to shape sustainable consumption in practice. Utilizing ni ...

Enterprise Architecture for Digital Transformation

Abstract: Digital transformation requires an altogether new institutional logic and effective response at a requisite organizational level. Sensing and seizing fleeting market opportunities and reconfiguring the business in line with the shifting value proposition requires increasingly specialized resources, more dynamic capabilities, and in-built resilience in the face of change. While Enterprise Architecture (EA) has been suggested to facilitate enterprise transformation, the focus has traditionally been on process standardization and integration rather than on continuous adaptation to the changing business and technological landscape. For EA to have a desired impact, more adaptive conceptualizations of EA that address the requirements of the new digital environment are called for. In this conceptual paper, we explore the implications of digital transformation on enterprise architecture. In particular, we note that existing approaches to EA address integration and coherence within a single organization but typically fall short in the face of complexities pertaining to digital ecosystems. We suggest a vertical typology of organizational capabilities and postulate that today's digital environment increasingly requires adaptive capabilities that transcend the traditional notion of dynamic capabilities. We then investigate how EA can help build flexibility and resilience in the organization.

Business model innovation and decision making: uncovering mechanisms for coping with uncertainty

Abstract: As a research subject, business model innovation spans the strategy, innovation, and entrepreneurship fields. Yet, despite the importance of the concept, prior work has paid little attention to how decision-makers cope with uncertainty and gain understanding about interdependencies in new business model configurations. To address this gap, we combine top-down theorising and evidence-based exploration and seek to unpack some of the coping mechanisms that operate in the evolutionary view of business model innovation. Using in-depth interviewing to collect data, our study reveals five strategies – customer centricity, value co-creation, capability evolution, ecosystem growth, and adaptive pricing – that decision-makers apply to cope with uncertainty in business model innovation. We find that coping mechanisms support decision making during the development of new business models. Furthermore, we find that the five coping strategies delineate decision making for value proposition, value creation, and value capture configurations in more detail than existing literature has described. Our findings have important implications for decision making in business model innovation.

Providing Value to New Health Technology: The Early Contribution of Entrepreneurs, Investors, and Regulatory Agencies

Abstract: Background New technologies constitute an important cost-driver in healthcare, but the dynamics that lead to their emergence remains poorly understood from a health policy standpoint. The goal of this paper is to clarify how entrepreneurs, investors, and regulatory agencies influence the value of emerging health technologies. Methods Our 5-year qualitative research program examined the processes through which new health technologies were envisioned, financed, developed and commercialized by entrepreneurial clinical teams operating in Quebec’s (Canada) publicly funded healthcare system. Results Entrepreneurs have a direct influence over a new technology’s value proposition, but investors actively transform this value. Investors support a technology that can find a market, no matter its intrinsic value for clinical practice or healthcare systems. Regulatory agencies reinforce the “double” value of a new technology —as a health intervention and as an economic commodity— and provide economic worth to the venture that is bringing the technology to market. Conclusion Policy-oriented initiatives such as early health technology assessment (HTA) and coverage with evidence may provide technology developers with useful input regarding the decisions they make at an early stage. But to foster technologies that bring more value to healthcare systems, policy-makers must actively support the consideration of health policy issues in innovation policy.