Showing papers on "Value proposition published in 2019"

Digitalization and its influence on business model innovation

Abstract: Increased digitalization has influenced various business activities including companies’ business models (BMs) by enabling various new forms of cooperation between companies and leading to new product and service offerings as well as new forms of company relationships with customers and employees. At the same time, this digitalization has put pressure on companies to reflect on their current strategy and explore new business opportunities systematically and at early stages. While research on digitalization in the context of BMs is now gaining increased attention, a research gap still exists in this field since the number of empirical insights is limited. The paper aims to discuss these issues.,Qualitative empirical data collected from 12 key informants working in two distinctive industries, the media and automotive industries, were collected. An investigation was carried out to examine the differences and similarities among how digitalization influences a company’s value creation, proposition and capture, as well as how firms cope with challenges presented by increased digitalization.,The findings of the study show that, whilst digitalization is generally considered to be important, the value proposition itself as also the position in the value network determine the perceived available options for business model innovation (BMI) by digitalization. Moreover, the organizational capacities and employee competences were identified as future challenges that will be faced by both industries.,The findings of this study have revealed that representatives of the media and automotive industries perceive both the pressures and opportunities of digitalization regarding BMI; its application and exploitation, however, remain challenging. This study contributes to the existing body of knowledge by providing empirical insights in the context of digitalization and BMI.

Business model innovation in small- and medium-sized enterprises: Strategies for industry 4.0 providers and users

Abstract: Purpose Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user. Design/methodology/approach The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users. Findings The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships. Research limitations/implications Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level. Practical implications Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users. Originality/value The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.

Value of social robots in services: social cognition perspective

Abstract: Purpose The technological revolution in the service sector is radically changing the ways in which and with whom consumers co-create value. This conceptual paper considers social robots in elderly care services and outlines ways in which their human-like affect and cognition influence users’ social perceptions and anticipations of robots’ value co-creation or co-destruction potential. A future research agenda offers relevant, conceptually robust directions for stimulating the advancement of knowledge and understanding in this nascent field. Design/methodology/approach Drawing from service, robotics and social cognition research, this paper develops a conceptual understanding of the value co-creation/destruction potential of social robots in services. Findings Three theoretical propositions construct an iterative framework of users’ evaluations of social robots in services. First, social robots offer users value propositions leveraging affective and cognitive resources. Second, users’ personal values become salient through interactions with social robots’ affective and cognitive resources. Third, users evaluate social robots’ value co-creation/destruction potential according to social cognition dimensions. Originality/value Social robots in services are an emerging topic in service research and hold promising implications for organizations and users. This relevant, conceptually robust framework advances scholarly understanding of their opportunities and pitfalls for realizing value. This study also identifies guidelines for service managers for designing and introducing social robots into complex service environments.

Outcomes to Partners in Multi-Stakeholder Cross-Sector Partnerships: A Resource-Based View

Abstract: The prevalence and complexity of local sustainable development challenges require coordinated action from multiple actors in the business, public, and civil society sectors. Large multi-stakeholder partnerships that build capacity by developing and leveraging the diverse perspectives and resources of partner organizations are becoming an increasingly popular approach to addressing such challenges. Multi-stakeholder partnerships are designed to address and prioritize a social problem, so it can be challenging to define the value proposition to each specific partner. Using a resource-based view, this study examines partner outcomes from the perspective of the strategic interest of the partner as distinct from the strategic goal of the partnership. Based on 47 interviews with representatives of partner organizations in four Canadian case studies of community sustainability plan implementation, this article details 10 resources partners can gain from engaging in a multi-stakeholder partnership.

The synergetic effect of knowledge management and business model innovation on firm competence: A systematic review

Abstract: The purpose of this paper is to provide a systematic review of the linkage between knowledge management, business model innovation and firm competence. The study attempts to summarize a few important and essential issues which future research should address.,Researchers have conducted an extensive review of the literature covering 50 journals from various databases like Scopus, ProQuest and Emerald. A total of 88 articles from 1997 to 2018 on knowledge management and business model innovation were selected and analyzed.,The study found that the integration of knowledge management and business model innovation leads to a sustainable competitive advantage. The relationship between knowledge management, business model innovation and firm competence seems to be fragmented because of various meaning and conceptualizations. The study endeavors to examine the relationship between the dimensions (knowledge acquisition, knowledge conversion, knowledge dissemination, knowledge application and knowledge reuse) of knowledge management and business model innovation (value proposition, assets and capabilities, revenue and cost architecture and actors in business networks). The study highlights that chief knowledge officers have a vital role to play in enhancing knowledge management orientation of a company so that knowledge regarding new ways of value creation and value capture is heard within an organization.,This study provides a distribution schema of knowledge management and business model innovation articles based on different search criteria by highlighting different future research avenues. The study is believed to serve as a basis and be a valuable tool for researchers to understand the current and future scenarios about knowledge management and business model innovation. Researchers also acknowledge the limitations of this study with regard to exclusive search criteria, which might affect its generalizability.,The study argues that better knowledge sharing between departments could benefit value creation and therefore drive the organization toward business model innovation which would automatically boost firm competence. The study has made an attempt to highlight the role of Chief Knowledge Officer with regard to business model innovation. Therefore, the proposed model developed in this review will help the organization to better understand the role of knowledge management and business model innovation.,This is one of the first systematic reviews of knowledge management and business model innovation which provides a detailed understanding of the past and future research on the two.

The relationship between servitization and product customization strategies

Abstract: The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship.,The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries.,The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment.,Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization.,This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.

A rolling stone gathers no moss: the effect of customers' perceived business model innovativeness on customer value co‐creation behavior and customer satisfaction in the service sector

Abstract: Both researchers and practitioners have been focusing extensively on business model innovation, as it has shown to positively influence business performance. Although the effect of business model innovativeness on customer behavior might be an important mediator between business model innovation and business performance, it has not yet been analyzed. In line with recent calls to consider the customer side in business model innovation research, our paper addresses this problem by studying the influence of customers' perceived business model innovativeness (CPBMI) on customer satisfaction and customer value co‐creation behavior in the service sector. We, therefore, emphasize customers' perceptions and reactions to business model changes. Relying on data from a large‐scale survey of restaurant customers, we find that perceived value creation innovativeness and value proposition innovativeness positively affect customer satisfaction and customer value co‐creation behavior. In addition, we identify a significant indirect effect of CPBMI on customer satisfaction via customer value co‐creation behavior. Our findings allow deriving concrete implications for both researchers and practitioners.

The NASSS Framework - A Synthesis of Multiple Theories of Technology Implementation.

Abstract: Technologies are often viewed as the route to better, safer and more efficient care, but technology projects rarely deliver all the benefits expected of them. Based on a literature review and empirical case studies, we developed a framework (NASSS) for studying the non-adoption, abandonment and challenges to scale-up, spread and sustainability of technology-supported change efforts in health and social care. Such projects meet problems usually because they are too complex - and because the complexity is sub-optimally handled. NASSS consists of six domains - the illness or condition, the technology, the value proposition, the individuals intended to adopt the technology, the organisation(s) and the wider system - along with a seventh domain that considers how all these evolve over time. The NASSS framework incorporates a number of other theories and analytic approaches described elsewhere in this book. It is not intended to offer a predictive or formulaic solution to technology adoption. Rather, NASSS should be used to generate a rich and situated narrative of the multiple influences on a complex project; to identify parts of the project where complexity might be reduced; and to consider how individuals and organisations might be supported to handle the remaining complexities better.

Sport fans' roles in value co-creation

Abstract: Research question: The sports industry has witnessed sustained growth. The cultural, symbolic and stakeholder-embedded nature of sport provides a dynamic setting for developing service research. In this context, an evolution in the logic of value creation can be observed; fans are no longer passive receivers of value but, instead, can be active value co-creators. The sport fan exhibits distinctive characteristics and an ability and willingness to integrate resources and co-produce value propositions, which necessitates an understanding of fan value co-creation. We answer one key research question: what is the role of fans in value co-creation in sports? We do so by conceptually exploring the processes through which sport fans co-create and provide value propositions.Research methods: We use case exemplars to provide a base for the theoretical consideration of the role of sport fans in value co-creation. We verify and consolidate the service-dominant logic (SDL) in the sport context. However, due t...

Research Challenges in Digital Marketing: Sustainability

Abstract: Great progress has been made in the field of marketing and sustainability. Nevertheless, there is still an important gap between the behavior and beliefs of society and markets about sustainability, and companies’ capability to understand and face this trend. Digital marketing is key to filling this gap. However, research in digital marketing and sustainability is very scarce. The purpose of this research is to examine the literature in the subject, since 2009 until 2018, and to elaborate a research agenda about digital marketing and sustainability. Through a previous analysis based on bibliometrics, a research agenda has been developed that shows the main challenges for the digital marketing and sustainability field: (1) customer orientation and value proposition; (2) digital consumer’s behavior; (3) digital green marketing; (4) competitive advantage; (5) supply chain; and (6) capabilities. This work contributes to the development of the research in digital marketing and sustainability, suggesting various challenges for the field that lead to future lines of research, and favoring the development of a new research approach capable of reducing the existing gap between society and business on sustainability issues.

The immediate effect of corporate social responsibility on consumer-based brand equity

Abstract: In response to consumer and society demands for firms to be socially responsible, brands have been taking a strategic approach to corporate social responsibility (CSR) by integrating socially responsible activities into their brands’ core value propositions to strengthen brand equity. Thus, from a brand building perspective, this paper aims to investigate the immediate effect that brand CSR communications have on the change in brand awareness, perceived quality and loyalty, to provide a deeper understanding of how each dimension affects the overall change in brand equity.,With evidence from an experiment conducted in three different countries (Australia, United States and Spain), based on an actual brand CSR program, this paper explores the different immediate effects of change in brand awareness, perceived brand quality and brand loyalty, after the exposure to a CSR message, on the overall immediate change in value that consumers give to a brand. Furthermore, it examines the role of brand-cause fit and the influence that differences in cultural, economic and political environments have on this effect.,The change in brand loyalty due to CSR communication is the key dimension driving the immediate positive change in overall brand equity. In addition, change in brand awareness has an inverted U-shape relationship with change in overall brand equity, whereas the change in perceived brand quality does not have an influence. Finally, the results indicate that this immediate effect holds regardless of the level of brand-cause fit, but is greater in countries where firms are expected to participate and CSR reporting is not mandatory, making such practices be seen as voluntary.,The findings of this study offer research implications for academics, and practical considerations for brand managers, interested in how to rapidly generate changes in consumer perception by leveraging CSR activities for brand building in global settings. Specifically, it indicates that when the aim is to quickly build brand equity, the goal of communicating CSR activities must be to increase the level of attachment that consumers have to the brand since loyalty is the main driver of the immediate change in overall brand equity.,Although many scholars have demonstrated the impact of CSR on various consumer behavior outcomes (e.g., brand attitude, purchase intention, loyalty), from a brand build perspective the implications of the immediate effect of a brand communication of CSR practices on consumer-based brand equity remain less clear. This study addresses this gap to gain a deeper understanding of how to rapidly generate changes in consumer perception to build strong brands while leveraging CSR practices.

Partner Strategic Capabilities for Capturing Value from Sustainability-Focused Multi-Stakeholder Partnerships

Abstract: As social and ecological problems escalate, the role of collective capacity and knowledge is becoming more critical in reaching solutions. This capacity and knowledge are dispersed among diverse stakeholder organizations. Thus, organizations in the private, public and civil society sectors are experiencing pressure to address these complex challenges through collaborative action in the form of multi-stakeholder partnerships. One major challenge to securing and maintaining partner engagement in these voluntary collaborative initiatives is defining the value proposition for prospective and existing partner organizations. Understanding the relationship between different forms of partner involvement and the subsequent resources that partners stand to gain is necessary to articulate the value proposition of the partnership to partners. This study conducts a survey of partner organizations from 15 different sustainability-focused multi-stakeholder partnerships in Canada. We compare three partner strategies for implementation and value capture and discover that each strategy is associated with different partner-level resource outcomes. Our findings indicate that product stewardship strategies are associated with financial and organizational capital, marketing and promotion with human capital, and internal implementation structures with shared capital. This study has implications for multi-stakeholder partnership researchers and practitioners because it suggests the possibility that certain partner-level outcomes could rely on the partner, as well as partnership implementation strategies.

Technology Impact Types for Digital Transformation

Abstract: Digital transformation is based on direct and indirect effects of the application of digital technologies and techniques on organizational and economic conditions on the one hand and new products and services on the other. Its impact can be distinguished in three dimensions: value creation model, value proposition model and customer interaction model. The paper provides a generic model that helps exploring potential cause-effect relationships between the application of digital technologies and their impact on a company along the three dimensions. Based on 75 case studies, the outcome is threefold: (1) a systematic categorization of digital technologies, (2) a set of 10 detailed impact types of digital transformation along with their subgroups, and (3) a coherent model of technologies, causes and impact types along the three dimensions of digital transformation.

Business model innovation: a review and research agenda

Abstract: The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation.,A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016.,Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value.,Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored.,The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their existing business models.,Because conflicting approaches exist in the literature on how firms change their business models, the review synthesises these approaches and provides a clear guidance as to the ways through which business model innovation can be undertaken.

Incorporating the value proposition for society with business models of health tourism enterprises

Abstract: This article discusses the need to expand the concept of the value proposition, in order that this business model component includes the value for a customer, the value captured by the enterprise, and the value for the community, as well as benefits for the natural environment. The objective of the article is to identify sustainable development components that have been proposed for tourist enterprises in the research literature. The article proposes actions to complement existing tourist enterprises business models in order to give them the characteristics of a sustainable business model and to implement practices of value creation for the community. The research notes that the value captured by an enterprise determines the level of implementation of its economic objectives resulting from the value creation for the customer and implementation of social objectives (including pro-ecologic ones). The revenues of an enterprise depend, first of all, on meeting the expectations of the customer, meaning that they depend on the value proposition for the customer, and their volume will allow researchers to determine the possibility of creating value for the community. The expected tendency to create value for the community is argued to be proportional to the effectiveness of customer value influence, less the value captured by the enterprise. After an initial review of relevant literature, attention is focused on health tourism enterprises and how these principals can be applied in that context.

Value proposition as a framework for value cocreation in crowdfunding ecosystems

Abstract: The aim of this article is to explore whether the ecosystem approach is required to understand the new service model of crowdfunding. The value proposition approach offers different interpretations...

Sustainable development concept and creation of innovative business models by retail chains

Abstract: The purpose of this paper is to recognise the areas of implementation of the principles of sustainable development (SD) in the model of retail chains activity. In the paper, the assumption was made that nowadays it is necessary to adopt the rules following SD while making strategic decisions by retail chains.,The study uses secondary data sources, reports, academic literature and the case study research method. A case study research is a multi-method paradigm based on full range of a scientist’s tool-kit: reviewing literature studies, examining secondary documents and comparing the websites of investigated retail chains.,According to that business model, the authors were recognising selected components of this model, that is to say: recourses and competences of retail chains and value proposition for their customers. The greatest chances of development will be enjoyed by those retail chains that will be able to provide real value to customers. Maintaining a competitive advantage will require constant improvements in the quality of service and innovative business models connected with sustainable elements.,It seems necessary to develop research tools that allow for identification of the level of use of the SD concept in retail chain’s business models in the future.,The paper is of interest to practitioners and students of retail management.,The concept of the SD model included in the retailer business models serves to build value for the customer through the care of his quality of life. The vast majority of retailers believe that it is the responsibility of the business sector to respond to social and environmental challenges.,The paper intends to fill the gap in the literature concerning the influence of SD concept on changes in the business models of retail chains. The SD activities can lead to the development of specific capabilities based on intangible recourses that are sources of competitive advantage (SD). That is the main reason of undertaking this subject.