Showing papers on "Value proposition published in 2021"

Unpacking the Difference between Digital Transformation and IT-enabled Organizational Transformation

Abstract: Although digital transformation offers a number of opportunities for today’s organizations, information systems scholars and practitioners struggle to grasp what digital transformation really is, particularly in terms of how it differs from the well-established concept of information technology (IT)-enabled organizational transformation. By integrating literature from organization science and information systems research with two longitudinal case studies—one on digital transformation, the other on IT-enabled organizational transformation—we develop an empirically grounded conceptualization that sets these two phenomena apart. We find that there are two distinctive differences: (1) digital transformation activities leverage digital technology in (re)defining an organization’s value proposition, while IT-enabled organizational transformation activities leverage digital technology in supporting the value proposition, and (2) digital transformation involves the emergence of a new organizational identity, whereas IT-enabled organizational transformation involves the enhancement of an existing organizational identity. We synthesize these arguments in a process model to distinguish the different types of transformations and propose directions for future research.

The value proposition of food delivery apps from the perspective of theory of consumption value

Abstract: Purpose The theory of consumption values (TCV) has successfully explained much consumer choice behavior, but few studies have investigated the values that drive food-delivery application (FDA) use. This study aims to bridge this gap by extending the TCV to the FDA context to examine food consumption-related values and interpreting and rechristening generic consumption values to adapt the TCV to the FDA context. Design/methodology/approach An explorative mixed-method research approach was taken to conduct focus group discussions with 20 target users to develop the questionnaire and then administer it for a cross-sectional survey (pen and pencil) to FDA users aged 22–65 years; 423 complete responses so received were analyzed using structural equation modeling. Findings The findings show that epistemic value (“visibility”) is the chief driver of purchase intentions toward FDAs, followed by conditional (“affordances”), price (part of functional value) and social value (“prestige”). Food-safety concerns and health consciousness (proposed as part of functional value) did not share any statistically significant association with purchase intentions toward FDAs. Research limitations/implications The findings of this study are insightful for FDA service providers competing for higher shares in the market by helping them understand ways to influence consumer choices and purchase intentions. Originality/value It is the first study that combines FDAs 2014 an online service that it is attracting a lot of investment 2014and TCV which has continued to be one of the most relevant theories of consumer behavior. It extends the TCV by adapting it to the FDA context with food-consumption-related values. Thus, it adds to the relatively scant literature on FDAs on the whole which is essential, as FDAs represent the business model of new economy, i.e. online-to-offline (O2O). Finally, this study formulates a conceptual framework that may serve as the basis of future research.

Strategic Agility, Business Model Innovation, and Firm Performance: An Empirical Investigation

Abstract: Despite the robust literature on the nature of business models and their implications for firm performance, research on the organizational antecedents of business model innovations (BMIs) is still evolving. In this paper, we empirically examine the extent to which firm-level strategic agility predicts the adoption of three (value creation, value capture, and value proposition) types of BMIs. Furthermore, we propose that the relationship between firm-level strategic agility and BMI adoption is contingent on the degree of environmental turbulence. Finally, we explore the mediating role that BMI plays in the relationship between firm-level strategic agility and firm performance. Our analysis of data from 432 German firms in the electronics industry indicates that strategic agility is positively related to BMI and that this relationship is indeed strengthened by the degree of environmental turbulence. Additionally, our findings show that, while value proposition and value creation BMIs have positive relationships with firm performance, value capture innovation is negatively related to firm performance; these findings are contrary to our prediction. Finally, the results of our mediation tests indicate that BMI serves as an important intermediary mechanism through which firms’ strategic agility contributes to superior firm performance.

Business models for energy communities: A review of key issues and trends

Abstract: The ‘Clean Energy for All Europeans’ legislative package places citizens and communities at the heart of the European energy policy by promoting local energy generation, consumption and trading. As only recently energy communities were formally defined in the European regulatory framework, the literature on energy community business models is still scattered and a clear systematization of community arrangements is missing. This paper aims to provide a comprehensive view of the prevailing and emergent energy communities business models, focusing on the value proposition offered by these initiatives. Community projects across Europe are analyzed and eight community business model archetypes are identified having the current European regulatory framework as background. The Business Model Canvas and the Lean Canvas frameworks are used to characterize and compare these archetypes. The main differences between business models are examined to highlight the most relevant strengths and barriers for energy community development. This analysis revealed the dominance of traditional self-consumption place-based communities, while business models involving differentiated services as demand flexibility, aggregation, energy efficiency and electric mobility are still scarce. However, the research around novel business models must be strengthened as they are expected to become crucial in upholding energy communities as key players in the energy transition and foster the regulatory framework evolution.

Enhancing the value co-creation process: artificial intelligence and mobile banking service platforms

Abstract: The purpose of this study is to investigate the relationships that influence the value co-creation process and lead to consumer comfort with artificial intelligence (AI) and mobile banking (AIMB) service platforms,A conceptual model was developed to investigate the value-in-use perceptions of AI-based mobile banking applications via five antecedents: baseline perceptions of current bank service delivery; service delivery configuration benefits; general data security; safety perceptions of specific mobile banking services; and perceptions of AI service delivery Data were collected from 218 respondents and analyzed using structural equation modeling,This study highlights the role and importance of the sequential relationships that impact the assessment of AIMB The findings suggest that service delivery and the customer’s role in value co-creation change as AI is introduced into a digital self-service technology channel Furthermore, AIMB offers transaction-oriented (utilitarian) value propositions more so than relationship-oriented (hedonic) value propositions,The sample consisted on digital natives Additional age cohorts are needed,As financial institutions redirect their business models toward digital self-service technology channels, the need for customers to feel comfortable while interacting with an AI agent will be critical for enhancing the customer experience and firm performance,The authors extend the service-dominant logic (SDL) literature by showing that value co-creation is a function of both firms’ technologies and consumers’ value-in-use, a finding that appears to be unique in the literature The authors advance the digital transformation literature by evaluating AIMB as an interactive process that requires an understanding of key technology constructs, including perceptions of baseline service relationships, desired service configurations, security and safety issues and whether AI is useful for value co-creation To the best of the authors’ knowledge, this is the first SDL framework that investigates interactive and structural relationships to explain value-in-use perceptions of AIMB

The anatomy of circular economy transition in the fashion industry

Abstract: Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.”,This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers.,The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential.,A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models.,This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.

Product-service systems evolution in the era of Industry 4.0

Abstract: Recent economic transformations have forced companies to redefine their value propositions, increasing traditional product offerings with supplementary services—the so-called Product-Service System (PSS). Among them, the adoption of Industry 4.0 technologies is very common. However, the directions that companies are undertaking to offer new value to their customers in the Industry 4.0 have not yet been investigated in detail. Based on a focus group, this paper contributes to this understanding by identifying the main trajectories that would shape a future scenario in which PSS and Industry 4.0 would merge. In addition, future research directions addressing (a) the transformation of the PSS value chain into a PSS ecosystem, (b) the transformation inside a single company towards becoming a PSS provider, and (c) the digital transformation of the traditional PSS business model are identified.

Impact of organizational inertia on business model innovation, open innovation and corporate performance

Abstract: Business model design becomes an essential source of firm innovation in the current competitive world. Business model innovation refers to the creation or reinvention of existing business models by designing novel value-creation systems, proposing new value propositions, and building original value-capturing mechanisms. However, to adopt the innovative business model in any organization, the inertia to change is a substantial barrier, and its role has not been examined completely. The purpose of this study is to examine the impact of organizational inertia on open innovation, business model innovation, and corporate performance. Using the survey as the research model, data were collected from 160 companies operating in the information technology industry in the city of Tehran. These firms were selected via judgment sampling method. The hypotheses were tested using structural equation modeling technique via SmartPLS2 software. Based on the findings, organizational inertia has a negative relationship with business model innovation and open innovation; though, business model innovation and open innovation have a positive effect on the performance.

Social Business Model Innovation: A Quadruple/Quintuple Helix-Based Social Innovation Ecosystem

Abstract: Social innovation is related to new products, services, and models aiming to improve human well-being and create social relationships and collaborations. The business model innovation (BMI) context can foster social innovation and can be applied in social innovation projects and initiatives. What is important for social BMI is the social mission, which needs to be defined in order to be able to move forward with the strategy, the value proposition, and the best practices of the business. Based on the existing social innovation literature and case studies, this paper proposes an “ecosystem” approach that can provide an integrated framework for social business models. This approach adopts the quadruple/quintuple helix innovation models which are able to promote social innovation, enabling a locus-centric and triple-bottom-line-centric entrepreneurial process of knowledge discovery and exploitation. Such a framework may help to study the role, nature, and dynamics of social co-opetitive fractal ecosystems, given emphasis on civil society, political structures, environment, and sustainability. In addition, the social innovation case studies presented in this paper highlight that targeted open innovation is a key element for social BMI.

On the road to digital servitization – The (dis)continuous interplay between business model and digital technology

Abstract: The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.,The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.,To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.,By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.,Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.,A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.

Intellectual capital and business model: a systematic literature review to explore their linkages

Abstract: In the last decades, business and management scholars have given great attention to intellectual capital (IC), which could seem a mature topic, having arrived at its third wave of studies. However, its intersections with the business model (BM) remain an under-investigated topic, and the authors wanted to investigate two research questions (RQs): how the literature addressing IC and BM has evolved so far in the business and management domains? What are possible future research trends of business and management studies regarding IC and BM?,This study answers these questions through a systematic literature review (SLR) of 74 peer-reviewed articles in the area of business and management. First, a bibliometric analysis was conducted to evaluate what is the current trend of such publications and what are the most relevant articles, authors, countries and journals. Then, a content analysis was performed to aggregate and systematize the results and identify future lines of research.,Results show that most of the studies conducted to date are focused on the aspects of value creation and value capture, with a primary focus on investigating the relationship between IC and firms' performances (e.g. economic, financial and organizational).,The relationship between IC and BM has been quite neglected by the literature, or at least it leaves room for further research lines. For example, little is known about how firms use the various IC assets to leverage new forms of value proposition, new target markets or new sources of revenues. This is one of the first papers systematizing the current body of knowledge on this topic and drawing future lines of research.

NDE 4.0—A Design Thinking Perspective

Abstract: Cyber technologies are offering new horizons for quality control in manufacturing and safety assurance in-service of physical assets. The line between non-destructive evaluation (NDE) and Industry 4.0 is getting blurred since both are sensory data-driven domains. This multidisciplinary approach has led to the emergence of a new capability: NDE 4.0. The NDT community is coming together once again to define the purpose, chart the process, and address the adoption of emerging technologies. In this paper, the authors have taken a design thinking approach to spotlight proper objectives for research on this subject. It begins with qualitative research on twenty different perceptions of stakeholders and misconceptions around the current state of NDE. The interpretation is used to define ten value propositions or use cases under ‘NDE for Industry 4.0’ and ‘Industry 4.0 for NDE’ leading up to the clarity of purpose for NDE 4.0—enhanced safety and economic value for stakeholders. To pursue this worthy cause, the paper delves into some of the top adoption challenges, and proposes a journey of managed innovation, conscious skills development, and a new form of leadership required to succeed in the cyber-physical world.

Six ways to build circular business models

Abstract: Purpose Circular business models can improve resource use in a financially and environmentally feasible way. However, companies struggle to choose among the vast variety of ways to achieve circularity within a business model. The purpose of this paper is to offer a pragmatic guide for making strategic decisions on circular business models. Design/methodology/approach This paper develops a conceptual model of six different strategic approaches to circular business models and provides examples to business cases and practice to illustrate these. Findings This study identifies two critical strategy choices companies should make. First, an innovation strategy addresses the extent to which circularity is achieved with internal or external stakeholders. Second, a resource strategy addresses how companies achieve circularity by narrowing, slowing or closing resource loops. Using examples from business practice, this study illustrates how the combinations of these two strategies can be used to design competitive circular business models. Key managerial questions are also identified to help decide upon a feasible strategy for circular business model innovation. Originality/value While different types of circular business models have been described, it is less clear what the strategic choices are that companies need to make to find feasible business cases for circularity in terms of value proposition, value creation and delivery and value capture. This study outlines these through a “circular business model strategy framework”.

Circular entrepreneurship: A business model perspective

Abstract: The circular economy, which takes inspiration from the ‘waste not’ functioning of the ecosystem to propose more resource efficient production and consumption patterns, has attracted the interest of different stakeholders recently. Yet very little is known about the companies that put circular principles at the heart of doing business and their ecological and social sustainability outcomes. Circular entrepreneurship, conceptualised as the processes of exploration and exploitation of opportunities in the circular economy domain, is just emerging in the circular economy literature and the empirical evidence about how it is implemented through innovative business models is still limited. Our research illustrates and describes the entrepreneurial process and orientation from a business model perspective of a circular firm - Wasted Apple - in the British drinks and beverage industry. We find that entrepreneurial value proposition, value creation and delivery and value capture define our case circular business model. Entrepreneurial orientation is also characterised by embeddedness: being entrepreneurial in the circular economy means to create value for the broader system an organisation is part of. Furthermore, the pursuit of ecological and social value is central to the logic of value creation and typifies the entrepreneurial process.

Business Model Experimentation for the Circular Economy: Definition and Approaches

Abstract: Business model experimentation has been identified as a key driver for business competitiveness but is underexplored in the sustainability and circular economy spheres. What is business model experimentation for the circular economy? This study follows a two-step approach: a literature analysis followed by a qualitative practitioner study. Based on these, circular business model experimentation is defined as an iterative approach to develop and test circular value propositions in a real-life context with customers and stakeholders, starting with a shared goal. It involves rapid learning based on empirical data to provide evidence on the viability of circular value propositions. Iterations involve increased complexity of experiments. There is a learning focus on initiating wider transitions, such as transforming consumer behaviours for the circular economy. We visualise the emerging research landscape, including research streams from business, transitions, engineering, and design. Practically, we illuminate how practitioners view the concept and current experimentation tools and approaches.

Innovative Circular Business Models in the Olive Oil Sector for Sustainable Mediterranean Agrifood Systems

Abstract: Considering the large amounts of harmful waste produced in the Mediterranean olive sector, entrepreneurial initiatives creating value from olive waste and by-products via circular bio-economy approaches are reviewed. These circular business models aim to enhance the functionality use of olive trees beyond traditional patterns for value creation. The study focuses on business drivers and value creation mechanisms, and specifically on conversion pathways of olive waste towards new value propositions. In total, 41 cases are analyzed mainly according to the Business Model Canvas components with NVivo, based on data gathered from an extensive online search mainly of company websites and reports, online articles, research project reports, professional websites, and newsletters. Results indicate that some innovative businesses have emerged specializing in the domain of olive waste valorization, driven by environmental concerns and mainly focusing on bioenergy production. However, the overall olive biomass potential yet seems to be under-valorized. A more radical and systemic change will be needed for effective implementation of circular business models contributing to sustainable development in the Mediterranean olive sector, with adequate subsidies, common regulations, more collective actions for creating economies of scale, and marketing strategies to increase consumer awareness for bio-based products.

Platform-based mobile payments adoption in emerging and developed countries: Role of country-level heterogeneity and network effects

Abstract: Platform-based payment services such as mobile wallets (Mwallet) provide a unique value proposition to both customers and firms over other digital payment methods. Interestingly, the story of platform-based mobile payments adoption is unfolding differently across countries, with some emerging countries (China and India) outperforming developed countries. Using extant literature in International Business/International Marketing, industry reports, and qualitative interviews, we present a conceptual framework for mobile payments adoption at an aggregate level for customers and retailers. We present a set of hypotheses and derive the explanations using the literature on network effects and institutional theory. We test our framework on a diverse set of 30 countries and confirm the presence of network effects and the differential impact of perceived value, inertia, and culture on the adoption level of innovators and imitators. Importantly, we find a significant level of within- and between-country heterogeneity for mobile payment adoption, which provides further evidence for leapfrogging by emerging countries in the context of the mass adoption of mobile payments. These findings have significant implications for theory and practice in multinational organizations.

Rethinking of Tourism and Hospitality Education When Nothing Is Normal: Restart, Recover, or Rebuild

Abstract: COVID-19 has intensified and magnified the need of the overdue change in the tourism and hospitality education. COVID-19 has also been a grand global living-lab experiment of accelerated (technology) educational change. However, to respond to the current reality and get ready for the next normal, tourism and hospitality education should perceive and implement change that goes beyond the simple digitisation of educational offerings. It is the aim of this paper to re-imagine how tourism and hospitality education should re-imagine and re-set its ?business model? for the next normal. To achieve that, the paper first outlines the transformations happening in the major actors of the educational landscape (i.e. students, educational providers, industry and labour markets). Educational change should respond both re-actively and pro-actively to such changes. Hence, the paper continues by advocating how the educational institutions should change in order to not only overcome the crisis but also to lead the re-form of the tourism and hospitality industry to build back better. Changes are proposed in relation to educational offerings, curricula design and content, delivery methods, learning aims and competencies, types and management models of educational instructors, all of them affecting the ?business model? of educational providers including their value proposition, revenue and delivery models.

The impact of digital logistics start-ups on incumbent firms: a business model perspective

Abstract: Purpose – Digital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents’ companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies. Design/methodology/approach – Based on the primary data gathered from eight interviews with experts from start-ups’ and incumbents’ logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components’ value proposition, value creation, value delivery and value capture. Findings – The results show that differences between DFFs and TFFs appear in all four business models’ components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode. Originality/value – This is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.