Value proposition

About: Value proposition is a research topic. Over the lifetime, 3582 publications have been published within this topic receiving 88855 citations.

Service delivery system design for risk management in sharing-based product service systems: A customer-oriented approach

Abstract: Organizations increasingly develop and offer sharing services enabled by means of product-service systems (PSS). However, organizations offering sharing-based PSS face a unique set of design challenges and operational risks. The purpose of this paper is to provide researchers and practitioners with customer-based insights into service delivery system design and risk management for sharing-based PSS operational success.,This qualitative study combines in-depth interviews with supplementary, multidisciplinary literature and secondary firm data. In total, the authors conducted 56 semi-structured interviews with diverse customers across different business-to-customer (B2C) PSS settings.,First, the authors develop an integrative conceptual framework that reveals what structural and infrastructural design choices customer expect organizations to make for mitigating risks and enhancing customer-perceived value in the sharing economy. These design choices may influence customers' trust and control perceptions in all actors involved in the service delivery system. Second, the results suggest that sharing value proposition, customer-perceived level of consequentiality and level of customer-supplied resources are contingency factors that need to be considered when making design decisions for risk management in the sharing economy.,This study extends Sampson's Unified Service Theory by proposing that, with sharing-based PSS, production flows from customers to customers. This situation creates unique challenges for operations management. This paper extends current understanding of the role, characteristics and contingencies of service delivery system design for risk management in the sharing economy. In doing so, authors challenge common wisdom and suggest understanding both the organizational and customers' individual contexts is critical for (contingency) theory and practice.

The Role of SMEs’ Green Business Models in the Transition to a Low- Carbon Economy: Differences in Their Design and Degree of Adoption Stemming from Business Size

Abstract: The purpose of this paper is to analyze how SMEs define the components of their business models (value proposition, creation and capture) from the point of view of decarbonization. We analyze SMEs as a group, and study whether their size affects this process and, in both cases, we examine evolution over time. We use a database comprising 1161 observations of SMEs, 466 in 2014, and 695 in 2016. The results show that SMEs’ value propositions give an intermediate valuation to both legally required and voluntary reduction of environmental impact, irrespective of SME size and the year analyzed. Regarding value creation, SMEs adopt practically no environmental practices, and there are significant differences according to size, with more difficulties than advantages stemming from small size. The study also shows that such environmental practices are not effective in reducing carbon. This diagnosis indicates that SMEs need help from the administration if they are to play a key role in the process of transformation toward a low-carbon economy. Legislative actions involving harsher environmental protection measures might help shape value propositions that place greater importance on reducing environmental impact, whereas training actions on available environmental techniques, promotion of research on how to adapt such techniques to SMEs and the development of specific practices for SMEs might enhance environmental value creation and capture in their BMs.

Development of a Business Model by Introducing Sustainable and Tailor-Made Value Proposition for SME Clients

Abstract: Due to the combination of vast technology trends brought by Industry 4.0, present-day consumers need and stiff global competition and require businesses from across many industries to constantly innovate. Clients request multifaceted support from manufacturers and service providers while the transition towards new symbiotic ecosystems disrupts traditionally established processes in some sectors. This is largely happening in the global automotive industry where in-car and around-the-car services with asset-sharing concepts are taking a dominant role rather than plain vehicles sales and car ownership. In our paper, we investigate the possibilities of new and improved business collaborations between a car retailer operating in several European countries and its SME (small and medium-sized enterprises) customers across various sectors currently owning car fleets of at least five vehicles. We test several hypotheses and conduct a systematic statistical analysis of the proposed business model’s aspects on the sample of almost 200 SMEs from five countries in Southeast Europe. By using the χ2 test and a one-tailed t-test we tested both frequency data and the continuous variables. Research indicates that SMEs look for new ways to organize their fleet management strategy more efficiently and thus more precisely plan associated costs. Regardless of the country of origin, SMEs want to explore a business model with more introduced to their fleet management and are ready to accept new technologies for fleet management operations.