Showing papers on "Value proposition published in 2022"

Facebook and the creation of the metaverse: radical business model innovation or incremental transformation?

Abstract: Purpose In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that appears poised to become the future center of gravity for online social interactions. At first glance, the communicated change signals a radically new business model (BM) based on an unprecedented configuration of the three following components: value creation, value proposition and value capture. The purpose of this paper is to analyze Facebook’s announced changes in its BM to clarify whether the change is as radical as communicated or rather represents an incremental transformation of the current BM.Design/methodology/approach This investigation adopted an in-depth case study research method. The process included using a structured approach to collect 153 data points, including academic studies and publicly available information, followed by qualitative content analysis.Findings The results of our analysis of Facebook’s entrepreneurial journey indicate that the communicated strategic refocusing does not correspond to a radical BM innovation pattern. Even though Facebook’s BM might evolve into the innovation phase, as the current changes appear very futuristic, the authors estimate that the core elements of the BM will change incrementally. The investigation indicates that the underlying logic of the straightforward communicative efforts primarily serves two purposes: to improve the external perception of the company and to disseminate an internal change signal within the organization.Originality/value This paper is the first study that takes an entrepreneurship and BM perspective in analyzing Facebook’s approach in rebranding to Meta and refocusing its strategy on building the metaverse. The academic and practical relevance, as well as the potential future impact on business and society, makes the investigation of this case an intriguing prospect. Additionally, the study illuminates the difference between the communicated vision and the real impact on the business, suggesting critical questions about future large-scale rebranding efforts and their effects.

Inside the black box: How business model innovation contributes to digital start-up performance

Abstract: Business model innovation is critical to firm survival and success. Digital revolution has reshaped value-creation methods in recent years, spawning various novel business models. However, we still have limited understanding of how a start-up's business model innovation efforts translate into superior performance in the digital economy. Drawing on insights from the demand-side perspective, this study disassembles the business model innovation architecture into three elements—value proposition, value creation, and value capture innovation—and investigates how business model innovation contributes to digital start-up performance. Based on a survey of Chinese digital start-ups, we find that value proposition innovation is positively related to digital start-up performance. Moreover, this relationship is mediated by value creation and value capture innovation. This study contributes to business model research by examining the impact mechanism of business model innovation on firm performance and providing new insights into the demand-side perspective of business model innovation.

Value creation and value capture for AI business model innovation: a three-phase process framework

Abstract: Abstract The rise of AI technologies is generating novel opportunities for companies to create additional value for their customers by applying a proactive approach, managing uncertainty, and thus improving cost efficiency and increasing revenue. However, AI technology capabilities are not enough—companies need to understand how the technology can be commercialized through appropriate AI business model innovation. When emerging technologies are introduced, business-model concepts often need to be significantly altered. This is necessary to fully capitalize on disruptive technologies because it is just as important to innovate the business model as it is to build advanced technology solutions. Therefore, the purpose of this study is to explain how AI providers align value-creation and value-capture dimensions in order to develop commercially viable AI business models. To fulfill our stated purpose, this study has adopted an inductive and exploratory single case-study approach centered on a market-leading provider of AI-related services. The findings are consolidated into a process framework that explicitly illustrates the key activities that companies need to perform concerning value creation and value capture for AI business model innovation and commercialization. The framework explains that AI providers need to follow three phases—namely, identifying prerequisites for AI value creation , matching value capture mechanisms, and developing AI business model offer . We also find that AI providers need to test and develop multiple AI business models and operate them simultaneously to ensure commercial success.

Customer value co-creation in the hospitality and tourism industry: a systematic literature review

Abstract: Purpose This study aims to develop a systematic literature review of customer value co-creation in the hospitality and tourism industry and present the different views of the scientific community, highlighting the dimensions, antecedents and outcomes of customer value co-creation. Design/methodology/approach This study adopted a systematic review process guided by the preferred reporting items for systematic reviews and meta-analyses protocol. Data were collected through a search for papers in Scopus, EBSCO, Web of Science and Science Direct databases. The systematic review was performed based on 216 validated articles. Findings The study reveals that the manifestations of customer value co-creation can be understood, based on two fundamental dimensions: customer behaviours and factors that shape co-creation. However, some antecedents are closely linked to the customer, social environment, service provider and technological resources. Moreover, there are numerous outcomes resulting from customer value co-creation, grouped in customer results, perceived value and organizational performance and market outcomes. Practical implications This research contributes to a more informed explanation for hospitality and tourism organizations about the importance of tourist and guest involvement in value co-creation. This systematic knowledge can facilitate the design of the service, as well as the value proposition offered by hospitality and tourism organizations. Originality/value The study extends the literature by systematizing the empirical and conceptual knowledge, using for the first time a systematic literature review.

Digital Product-Service Systems: The Role of Data in the Transition to Servitization Business Models

Abstract: The Circular Economy, as a guiding model for business processes, is attracting interest due to its potential for aligning business and societal goals as it offers companies the opportunity to simultaneously focus on economic value creation and on the mitigation of environmental damage. It is becoming increasingly clear that digital technologies are an essential component of this model as they enable transparency and efficiency in closing material and energy cycles. Additionally, digitalization leads to efficient business models that revolve around adapting the value proposition to the insights gained from the continual analysis of data, shifting the emphasis of Product-Service Systems towards the service end of the spectrum. As such, these new business models are categorized as forms of Servitization. Despite the increasing importance of Servitization and digitalizing business processes, such as the move towards what is referred to as Industry 4.0 in the manufacturing industry, the associated transition towards widespread adoption of the principles of the Circular Economy is slow. This explorative study investigates key themes and challenges in transitioning towards digitally-enabled Servitization in the manufacturing industry and the relationship with the Circular Economy. Through interviews with experts from the realms of digital technology, Industry 4.0, and business sustainability, a set of research questions is developed that forms a research agenda.

From product system to ecosystem: how firms adapt to provide an integrated value proposition

Abstract: Research Summary Ecosystems represent a key challenge for established firms, shifting their focus from products to system-level collaboration around integrated value propositions. This longitudinal case study of a machine manufacturer reports how an established firm created an ecosystem to enhance its focal product. Drawing on an activity system lens, we develop a model how firms can achieve fit around an integrated value proposition through mutual adaptation of product and ecosystem activities. This strategic transformation is supported by a shift towards collaborative organizational design. We elaborate on how firms can create non-generic complementarities between products and the emerging ecosystem through product adaptations, demonstrate the role of internal and external collaboration in developing ecosystem orchestration capabilities, and highlight data generation and processing as critical factors in realizing complementarities. Managerial Summary Digital ecosystems that enable new integrated value propositions pose a challenge for established firms, as these new activities often fundamentally conflict with the existing product business. Our case study of a machine manufacturer shows how a firm can leverage its product-focused activities to establish itself as an ecosystem leader through the mutual adaptation of its product and ecosystem activities. The focal firm modularized its products and enhanced their information-processing capacities while simultaneously embedding them in an integrative platform with open interfaces for partner components. The firm was thus able to realize data-driven complementarities between the platform and its components. Supporting the ecosystem-creation process required a shift of the organizational design towards collaboration, both internally and with partners.

Exploring Consumer Perceptions of the Value Proposition Embedded in Vegan Food Products Using Text Analytics

Abstract: Given the increasing interest in sustainable food consumption and production, this study aims to understand how consumers perceive the value proposition of vegan food. Over 120,000 tweets relating to veganism were extracted from Twitter, which were then analysed using the text analytics tool Leximancer to ascertain the predominant themes of conversation taking place around vegan food. Our results show that, in light of the three main drivers for vegan food choice—ethical, personal health, and environmental—surprisingly, we see a limited number of environmental or sustainability motivated tweets. This is a significant finding, as, while vegan food consumption is reported to be sustainable, this is not a preferred topic of conversation for consumers. Value propositions communicated with respect to personal health attributes (e.g., dairy free, gluten free, and nutrition), and consumption benefits (e.g., tasty, delicious) are more likely to resonate with consumers and motivate increased consumption while concurrently delivering environmental benefits as a positive side-effect. Furthermore, the polarity of the attitudes and conversations taking place between vegans and non-vegans on Twitter underscores that a single value proposition is unlikely to reach both groups simultaneously and that different value propositions are likely to be required to reach these respective groups.

Digital transformation of the value proposition: A single case study in the media industry

Abstract: Digital transformation is among the most pervasive forces disrupting business models across every industrial sector. While prior research has explored the digital transformation of business models, the effect on the value proposition as a key element of the business model has received only limited attention. Drawing on an extensive single case study in the regional media industry involving 59 interviews with one service provider and its customers, this study explores the digital transformation of the provider’s value proposition and how this process was collectively enacted by the provider and its customers. This study develops an empirically grounded framework illustrating the key value proposition transformation drivers, provider and customer sense-making practices, and value element reshaping implications. Overall, this study advances contemporary digital transformation and value proposition research by demonstrating how the process of digital transformation changes the nature and content of the value proposition and how managers can facilitate this process.

The stakeholder value proposition of digital platforms in an urban ecosystem

Abstract: • Digital platforms can create value with city stakeholders through a substantive, localized, and dynamic stakeholder value proposition (SVP). • One of the first empirical operationalizations and evaluations of SVP delivery by a digital platform. • Process of joint value creation between digital platform and its stakeholders is possible, although it can be complex and gradual. • When SVP is not delivered to the city, conflict can escalate. • Stakeholder theory approach to business model design. Using a mixed-method approach, we assess the conditions under which digital platforms can successfully deliver their stakeholder value propositions (SVP)—declarative statements that the digital platform makes about how it adds value or solves a problem for target stakeholders—in cities. We examine the popular digital platform Airbnb in the touristic city of Barcelona and analyze the extent to which it delivers its value proposition to guests, hosts, and the city. Evidence suggests that Airbnb in Barcelona closely resembles the existing hotel industry, reinforcing over-tourism and inequality , which explains the adverse reactions Airbnb has faced from the city. We contrast this with the case of a nearby non-touristic city, Igualada, where the platform has delivered on its SVP. Our findings suggest that, while complex and gradual, the process of joint value creation between the digital platform and its stakeholders is possible and can be beneficial under conditions of mutual adjustment and business model adaptation. We uncover the substantive, localized, and dynamic characteristics of the SVP design process and discuss the academic, policymaking, and managerial implications of adequate platform design.

Business model innovation for sustainability: a new framework

Abstract: Purpose Sustainable business model innovation (SBMI) is a change in the way a firm operates in order to create positive impacts or to reduce negative consequences for the environment and the society. The aim of this paper is to explain what pathways a firm can take when it implements a sustainable business innovation process in line with Sustainable Development Goals (SDGs). Design/methodology/approach The article starts with the analysis of the existing literature about BMI and SBMI in order to extrapolate the main elements of these topics. Findings Thanks to the combined information from academic and nonacademic sources, the study proposes a new framework. It is divided into three sectors: value proposition, value capture delivery and value capture according to the main studies about the business model. Research limitations/implications Regarding theoretical implications, this study contributes to developing a theory of both BMI and sustainable innovation. Indeed it helps in the understanding of the dynamic vision about how the business model changes in order to incorporate triple sustainability. Practical implications From a practical view, the paper can serve as a guideline for corporate reorganization. Originality/value The new framework differs from some recent academic efforts first of all for its theoretical characteristics: BMI construct and not business model concept is the core of the framework. The business model represents the subject of innovation, not its vehicle. Another unique aspect that can be derived from the approach adopted is that it links theoretical with practical sources.

How start-ups in emerging economies embrace circular business models and contribute towards a circular economy

Abstract: Purpose The purpose of this paper is to investigate the practices that start-ups in emerging economies can implement to design circular economy business models and how they can create and capture value from a circular economy business model. Design/methodology/approach The paper adopts a qualitative case method approach with semi-structured interviews with start-up founder promoters, its employees, its beneficiaries and its customers, conducted in two local Indian start-ups engaged in the manufacture of products and providing services that promote adoption of circular economy principles. Findings Analysis of the two business models reveals common patterns in building value proposition. The findings suggest that start-up ventures adopt an iterative approach to produce reusable and interlinked products and co-create with customers, vendors and local communities. They adopt mechanisms that can create, deliver and capture value while maintaining economic viability, and thus contribute towards micro- and macro-level benefits. Research limitations/implications This study maximizes the depth of the phenomenon under investigation by leveraging case study methodology. Future research opportunities could be found in quantitative studies to increase the generalizability of the findings of this paper. Practical implications The paper presents a theoretical model linking the circular business model design and deployment mechanisms that can be used by start-up entrepreneurs desirous of embracing circular economy principles and thus contribute towards environmental, economic and developmental goals in emerging economies. Social implications To accelerate the transition of adoption of circularity principles in emerging markets, start-up ventures could adopt circular business models that contribute towards achieving positive behavioural change. This can be achieved by integrating with different stakeholders in the value network such that they play a vital role in the process of value creation and delivery and benefit from the value captured. Originality/value An interdisciplinary approach that integrates the research streams of circular economy, and business model design has been pursued to identify the design and deployment mechanisms adopted in the circular business models of start-ups in real-world emerging economies’ context.

Dynamism and realignment in the HR architecture: Online labor platform ecosystems and the key role of contractors

Abstract: Given the widespread contribution of independent contractors to organizational innovation and competitive advantage, it is timely to reassess assumptions about the HRM practices appropriate to their management and the rationale for organizations to work with them. In the original and highly influential HR architecture model of Lepak and Snell (1999), contractor status is viewed as an outcome of the low value and/or low uniqueness of human capital resulting in the proposition to externalize and manage them using either none or minimal compliance-based HRM practices. Developments in digital technologies and algorithmic management epitomized by online labor platforms prompt us to reconsider these assumptions and to challenge the proposed links between value/uniqueness of human capital, employment mode and HRM practices that are assumed by the HR architecture model. Using insights from online labor platforms, we argue that the significant benefits to firms of working with contractors, coupled with the possibilities offered by algorithmic management to efficiently monitor and regulate their behavior, provide a compelling reason for organizations to choose external employment modes even when workers are key to value creation. We challenge the alignment and stability of the relationships proposed by the HR architecture model, and offer propositions to extend the model by reconsidering the rationale for, and nature of, HRM practices associated with contractors. This reassessment is both timely and relevant given the growing prominence of business models where externalizing workers is central alongside the development of new forms of algorithmic human resource management to control them.

Conceptualizing and Assessing the Value of Internet of Things Solutions

Abstract: The Internet of Things (IoT) is associated with enormous economic potential. To date, however, actual revenues remain below expectations. This circumstance particularly affects IoT solution providers in industrial contexts where effective value assessment is critical for market success. Since a deeper understanding of how IoT solutions create value is required to address this challenge, we develop a framework and corresponding value levers for assessing the value of IoT solutions along an archetypical yet configurable business-to-business-to-consumer (B2B2C) value chain. Taking the perspective of an IoT solution provider in the industrial context, we evaluate the framework with five such solution providers and apply the value levers for an initial value quantification. Our work extends previous research and furthers knowledge on the business value of IT and IoT. It also supports practitioners in assessing IoT value potential.

Determinant factors and business strategy in a sustainable business model: An explorative analysis for the promotion of solid waste recycling technologies

Abstract: Innovation strategies for the promotion of solid waste recycling technologies include not only new technologies for resource utilization of solid waste but also sustainable business models to support the adoption of these technologies. This study presents how to incorporate the determinant factors affecting technology promotion and business strategy into a sustainable business model for the promotion of solid waste recycling technologies. A systematic literature review summarizes the determinant factors affecting the aforementioned promotion, including market-, policy-, company-, and technology-related factors. Combined with the theoretical background of the sustainable business model, this study analyzes that for the promotion of solid waste recycling technologies from value dimensions (value proposition, value creation & delivery, and value capture) and sustainability dimensions (economic, social, and environmental). We confirm the importance of incorporating determinant factors into the sustainable business model from the analysis of the Daye Non-Ferrous Metal Recycling Park. Our case study proposes that innovation of the sustainable business model needs to drive changes in business strategy. To promote the aforementioned technologies, we propose an Internet-based technology service platform as the core strategy of the sustainable business model. As the private sector, technology companies can make full use of technological innovation, public policies, and the market environment to achieve and develop sustained competitive advantages through an Internet-based platform and to effectively enhance the promotion of solid waste recycling technologies and help achieve sustainable development.

Extended Reality in Marketing - A Multiple Case Study on Internet of Things Platforms

Abstract: This research highlights how cloud platform as a service technologies host extended reality technologies and convergent technologies in integrated solutions. It was only around 2019 that scholarly literature conceptualized the role of extended reality, that is, augmented reality, virtual reality, and mixed reality, in the marketing function. This article is a multiple case study on the leading eleven platform as a service vendors. They provide the programming technology required to host software as a service in the cloud, making the software available from everywhere. Of the eleven cases, 10% integrate technologies in solutions. Research results show that extended reality technologies reinvent digital marketing; as part of this, they shape the customer delivery model in terms of customer value proposition; favor the choice of customer channel (the omnichannel); possibly lead to new customer relationships, such as cocreation; and reach global mass customers. Extended reality in the delivery model is complemented by other technologies in the operating model. These combinations provide the foundations of the business models, which are either network or platform business models. This study identifies a number of solutions enabled by extended reality, which have an integrated goal in the form of customer value contribution and are to be studied in further articles.

Why do some sustainable urban logistics innovations fail? The case of collection and delivery points

Abstract: Combined with current trends in e-commerce, demand for urban logistic services are putting significant pressure on the environment. While some European examples show that collection-and-delivery points (CDPs) offer a sustainable solution, this is not always the case. This paper explores the mechanisms that support CDPs as sustainable urban logistics innovations while providing viable market offerings. To do so, it analyses a failure case using multiple data sources, such as a consumer survey, interviews and secondary data. Using diffusion of innovations (DoI) theory, the study explains how CDP failed in a developing market setting. Sustainable logistics innovations fail due to both supply chain-related and market-related factors. Significant factors on the supply chain side include network structures, IT integration and diverse value propositions while the market side includes consumer market characteristics, regulations, security issues and convenience of existing alternatives. Important factors for success include looking for horizontal collaboration opportunities, building strong network partnerships with customers and distribution channel actors. CDPs should be positioned as sustainable solutions and complemented with other urban logistics services to diversify the value proposition.

Innovation and Key Benefits of Business Models in Blockchain Companies

Abstract: Existing business models are changed and disrupted by blockchain technology, which warrants more research. This study tries to describe the phenomena of blockchain technology in relation to business model innovation in the enterprise ecosystem on the basis of that. Blockchain technology has been shown to increase organizational performance empirically. The value system concept is used in this study to explain this phenomena. This study employs a multiple-case study to respond to research questions using abductive reasoning. Overall, the outcomes According to this study, blockchain technology benefits an organization in four different ways: I value capture through higher profitability; (ii) value creation through private partnerships; (iii) value delivery through smart contracts; and (iv) value proposition that drives value by raising the organization's business value through operational improvements. This report also suggests a blockchain ecosystem with various private and consortium organizations. Private ecosystem focused on internal organizational performance enhancement within one corporate enterprise. The consortium ecosystem, on the other hand, is focused on fostering corporate cooperation.