Exploring business model innovation for competitive advantage: a lesson from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natasha Saqib ◽  
Mir Shahid Satar
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Customer Service ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Current Knowledge ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Content Type

Purpose Emerging markets are witnessing rapid changes in their economy owing to the ongoing liberalization and globalization. India, as one of the emerging markets in south Asia, is also experiencing a dramatic change in its business ecosystem. This poses huge opportunities to the companies, both start-ups and established ones. In this direction, the business model innovation offers a strategic renewal mechanism. The study aims to explore the practices of an online transport network company (OLA) creating a distinctive place for itself in Indian taxi service sector. Design/methodology/approach Methodologically, an exploratory case study of an India-based online transport company (OLA) business model innovation is reported. Findings This paper reveals that OLA has been able to gain competitive advantage in the Indian emerging market by developing an innovative business model with its distinctive features of personalised customer service, asset sharing, usage-based pricing, collaborative ecosystem, agile and adaptive organising and successful expansion strategies. Research limitations/implications This study adds to current knowledge concerning the theoretical foundations and antecedents of business model innovation as a competitive advantage. The paper is explorative in nature because the analysis is mostly based on literature review. Furthermore, in consideration of the analysis of business model of a single company, further research is required to generalize the results. Practical implications The understanding of the intricacies of business model innovation can be of great concern to existing and prospective managers and entrepreneurs of emerging markets. Originality/value The paper discusses the features of innovative business models and how firms can make their business models more relevant to the competitive markets. As such, the study is hopeful to aid practitioners engaged in the pursuit of beating the competition with innovation driven business models.

Examining the effects of governmental networking with environmental turbulence on the geographic searching of business model innovation generations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haixu Bao ◽  
Chunhsien Wang ◽  
Ronggen Tao
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Environmental Turbulence ◽  
High Tech ◽  
Content Type ◽  
External Resources ◽  
The Relationship

Purpose This study aims to explore the relationship between geographic search and business model innovation and proposed a contingent framework to focus on how governmental networking and environment turbulence are interdependent moderate the relationship between geographic search and business model innovation. Design/methodology/approach A large-scale questionnaire survey was carried out among the firms in three high-tech parks of the Pearl River Delta, with a total of 287 firms as empirical samples. Hypotheses are tested using ordinary least squares analyzes on hierarchical multiple regression to find out how geographic search can drive business model innovation generations. Findings The empirical results showed that the more frequent geographic search is, the more favorable it is for firms to generate innovative business models, and firms may be more effective in geographic searching and business model innovation with better governmental networking. However, the above relationship may be weakened if the environment turbulence in emerging markets is further considered. It was argued that firms must take into account both the positive effects of governmental networking and the negative effects of environmental turbulence in conducting a geographic search for external knowledge resources to generate innovative business models. The study results showed how and why governmental networking can be a key catalyst for firms to generate innovative business models. Research limitations/implications This study contributes to the business model innovation literature by documenting the large-scale survey evidence that confirms the practicality of geographic search in the business model innovation generations. The findings advance previous studies in the business model innovation by identifying the moderating roles of governmental network and environment turbulence that predict business model innovation behaviors in the emerging market. Practical implications The results indicate that the geographic search can be easily operationalized for external resources acquisitions by managers in generating business model innovation. This has applications for external resource acquisitions on the basis of business model innovation in the emerging China market. In addition, to facilitate the business model innovation generations, the focus should be on critical contingency factors; on the one hand, to promote the continued use of external resources, the focus should be on enhancing benefits such as governmental networking. Originality/value The findings extend existing theory in three ways as the original value. First, the results show that geographic search is an important driver of business model innovation generations in an emerging market context. Second, this study is the first to take organizational learning and open innovation perspective to examine geographic search as a boundary-spanning search of external resources in business model innovation generations. Third, this study also explores the moderator role of governmental network and environmental turbulence on how to strengthen or impair the geographic search and business model innovation generations.

scholarly journals A framework for business model with strategic innovation in ICT firms

2018 ◽  
Vol 31 (1) ◽  
pp. 16-41 ◽  
Author(s):  
Nezameddin Faghih ◽  
Banafsheh Dastourian ◽  
Seyyed Mojtaba Sajadi ◽  
Andres Henten ◽  
Pantea Foroudi
Keyword(s):  
Business Model ◽  
Business Models ◽  
Emerging Market ◽  
Business Environment ◽  
Business Model Innovation ◽  
Model Concept ◽  
Model Framework ◽  
Content Type ◽  
Strategic Innovation ◽  
Ict Industry

Purpose The purpose of this study is to help gain an accurate and distinct understanding of information-based business concepts and critical steps in designing an appropriate business model, by providing a framework for designing an innovative information-based business to help fledgling businesses development in the information and communication technology (ICT) industry of Iran. What is a business model framework with the strategic innovation approach in the small and medium enterprises (SMEs) of ICT industry? What are the components of this model and the relations between them? Business model is a logical response to how a business can create value. Changing business environment means that business models are rapidly growing; accordingly, innovation is no longer optional. However, innovation is important in general, but the kind of innovation that is widely and directly dependent on business model will be quite critical for all parts of the organization. In fact, business model innovation is an exquisite technic to create, deliver and earn value by changing one or more components of a typical business model. Business model innovation needs information and form business environment based on dynamic information system. Design/methodology/approach The present paper focuses upon SMEs in ICT. Grounded theory has been used for this purpose, with 15 interviews conducted. Findings An emerging market is one in which commercial exchanges of a particular industry between the countries are relatively new but possess great investment attractiveness and a high potential to grow (such as Iran).As the ICT industry of Iran is a leading industry, and the country itself is an emerging market, the main purpose of this study is to provide a framework for designing an innovative information-based business to help fledgling businesses development in the ICT industry of Iran. Originality/value The purpose of this paper is to help accurate and distinct understanding of the business model concept and critical steps in designing an appropriate business model. Studies conducted to simultaneously deal with the business model and strategic innovations are few, and by the time the proposal was written, there was no research observed from Persian sources.

scholarly journals Business Model Innovation for Sustainable Performance in Retail and Hospitality Industries

2018 ◽  
Vol 10 (11) ◽  
pp. 3952 ◽  
Author(s):  
Sarah Cheah ◽  
Yuen-Ping Ho ◽  
Shiyu Li
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Business Model Innovation ◽  
Service Industries ◽  
Superior Performance ◽  
Sustainable Competitive Advantage ◽  
Food Services ◽  
Sustainable Performance

In the service sector, technological innovation is typically dominated by suppliers, and hence involves external knowledge that can be easily acquired and imitated by competitors. However, innovation that can sustain superior performance in retail and hospitality firms tends to be internal and non-technical, involving business models. Building on the perspectives of the resource-based view and dynamic capability, this study aims to understand how industry turbulence in retail and hospitality affects the sustainable competitive advantage of the firms operating in these service industries. Based on a quantitative study of 214 retail and food services companies, our study has empirically demonstrated that firms operating in an industry with high turbulence have a higher probability of achieving a sustainable competitive advantage. Second, our findings establish that a firm’s business model innovation (BMI) activities partially mediate this positive relationship. This suggests that BMI plays a role in enhancing the firm’s ability to address the challenges of the present, as well as prepare itself to adapt to the industry evolution and revolution of the future. BMI not only influences the acquisition and application of external innovations, it also affects the generation of internal innovations.

scholarly journals Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring

2018 ◽  
Vol 10 (11) ◽  
pp. 3970 ◽  
Author(s):  
Juhong Chen ◽  
Ruijun Zhang ◽  
Di Wu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Economic Benefits ◽  
Business Model Innovation ◽  
Equipment Maintenance ◽  
Sustainable Competitive Advantage ◽  
Structured Interviews ◽  
Profit Center ◽  
Manufacturing Enterprises

The equipment maintenance services have become a new profit center and an important way to gain sustainable competitive advantage for manufacturing enterprises. The business model is an important tool for manufacturing enterprises to derive economic benefits from sustainable competitive advantage in the context of digitalization technologies, such as IoT, big data, and cloud computing. At present, the concept of equipment maintenance business model innovation is still vague, and it is rare to report on the innovation behaviors and types of equipment maintenance business models adopted by manufacturing enterprises. Based on literature analysis of equipment maintenance services and business model innovation, following business model gestalt theory, the concept of equipment maintenance business model innovation is analyzed at the business-level, the types are divided into novel and efficient following value sources—“innovation and efficiency”. The initial scale is developed through literature investigation, semi-structured interviews and expert reviews, and tested by exploratory and confirmatory factor analysis by using the data of two independent large-sample questionnaires. The results indicate that the behavior and types of equipment maintenance business model innovation can be described by two types and 19 items.

Business model innovation: past research, current debates, and future directions

2017 ◽  
Vol 10 (3) ◽  
pp. 342-359 ◽  
Author(s):  
Mokter Hossain
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Current Knowledge ◽  
Past Research ◽  
Business Model Innovation ◽  
The Body ◽  
Future Research ◽  
Content Type ◽  
Body Of Knowledge

Purpose The purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research. Design/methodology/approach A systematic literature review approach was adopted with thematic analysis being conducted on 92 articles. Findings The body of knowledge for this concept is in its infancy and is highly fragmented. This study therefore attempts to consolidate this fragmented knowledge. It reveals dominant themes, establishes coherence, and identifies conflicting arguments in the current literature. It also points out gaps in the research and highlights new directions for research. Research limitations/implications This study analyzed articles that were found based on a systematic literature review approach. Practical implications This study identifies some fundamental issues that managers need to understand regarding BMI. Originality/value The main value of this study lies in its synthesis of the current knowledge of BMI.

IBM's global CEO report 2006: business model innovation matters

2006 ◽  
Vol 34 (5) ◽  
pp. 34-40 ◽  
Author(s):  
George Pohle ◽  
Marc Chapman
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Content Type ◽  
Revenue Growth ◽  
Business Executives ◽  
Operating Margin ◽  
Operational Innovation ◽  
Study Participants

PurposeTo ascertain whether the choices CEOs were making about particular types of innovation and key enablers had any correlation with financial performance, IBM looked at a subset of our sample where publicly reported financial information was available.Design/methodology/approachThe findings in this report are based on in‐depth, consultative interviews on the topic of innovation with 765 CEOs, business executives and public sector leaders from around the world.FindingsFor a subset, the authors compared their financial performance to that of an industry‐accepted list of their nearest competitors (up to ten companies with similar revenue and publicly available information). Some of their competitors were CEO study participants, but most were not. By taking a five‐year view, the researchers were able to identify which companies outperformed and under‐performed the average revenue growth, operating margin growth and historical operating margins of their closest competitors.Research limitations/implicationsThroughout the analysis, IBM used these top‐half and bottom‐half groupings to look for notable financial correlations. In this report, the term outperformers refers to the study participants that are in the top 50 percent based on this competitive comparison, and under‐performers are those that fall in the bottom 50 percent.Practical implicationsThe authors report on how business leaders are seeking and finding new ways to adapt their business models to remain competitive in their current industry – or to seek growth by entering new industries.Originality/valueCompanies focusing on business model innovation have enjoyed significant operating margin growth, while those using products/services/markets and operational innovation have sustained their margins over time.

Digital platforms in Russia: competition between national and foreign multi-sided platforms stimulates growth and innovation

2019 ◽  
Vol 21 (2) ◽  
pp. 129-145 ◽  
Author(s):  
Yaroslav Eferin ◽  
Yuri Hohlov ◽  
Carlo Rossotto
Keyword(s):  
Emerging Markets ◽  
Business Models ◽  
Emerging Market ◽  
Policy Framework ◽  
Policy Objective ◽  
Content Type ◽  
Digital Platforms ◽  
Digital Platform ◽  
Winner Takes All

Purpose This paper aims to test the “winner-takes-all” vs the “winner-takes-some” scenarios in digital platform competition dynamics in emerging markets. Design/methodology/approach This paper uses an analytical reference framework to assess the emergence of digital platforms in Russia, including four elements: definition of multi-sided platforms (MSPs), platform enablers, business models and competitive dynamics. Findings This paper concludes that Russia shows that a healthy competition between national and foreign MSPs led to the emergence of a shared equilibrium, where local platforms were able to retain a significant, often majority, share vis-à-vis foreign and global platforms. Research limitations/implications This paper stands as a counterpoint to the widespread conviction that digital platform dynamics will result into a “winner-takes-all” scenario and dominance of global platforms. Practical implications This case study offers practical data and analysis that can be used to create a baseline and evaluate the dynamics of digital platforms in emerging markets. It offers data, trends and evidence on Russia’s digital economy. Social implications This research provides a logical framework to help policymakers take decisions on a policy framework to regulate platforms in emerging markets. The good outcome of competition between local and foreign platforms should emerge as a policy objective to achieve in most emerging markets. Originality/value This case study is the first baseline to assess the dynamics of competition between national and foreign digital platforms in the Russian market. It is one of the first papers to tackle the market of digital platforms in an emerging and developing economy. It tries to address the debate between “winner-takes-all” and “winner-takes some” competition equilibrium through a concrete case study in an important G20 emerging market economy.

IKEA Inc.: the India way

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Learning Outcomes ◽  
Emerging Market ◽  
Local Environment ◽  
Global Strategy ◽  
International Strategy ◽  
Content Type ◽  
Academic Level

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

scholarly journals Driving internationalization through business model innovation

2019 ◽  
Vol 28 (2) ◽  
pp. 201-220 ◽  
Author(s):  
Angelo Cavallo ◽  
Antonio Ghezzi ◽  
Bertha Viviana Ruales Guzmán
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
International Entrepreneurship ◽  
Single Case ◽  
Business Model Innovation ◽  
Content Type ◽  
A Company ◽  
North Western

Purpose This paper aims to investigate how a firm may innovate its business model to internationalize. Design/methodology/approach Owing to its novelty and to the depth of the investigation required to grasp the mechanisms and logics of business model innovation aiming at internationalization, a single case study has been performed related to a company located in North-Western Colombia. Findings The study provides detailed empirical evidences over the mutual connection and complementarities among value mechanisms of business models. Moreover, this study suggests that BMI fosters internationalization to scale, which, in turn, will require additional changes to match new customer needs as they emerge. Also, the study shows an extension of the action–space of lean startup approaches, intended as scientific approaches to international entrepreneurship. Originality/value This study connects business model innovation and internationalization as few studies have done before.

Last mile farm inputs: farm shop delivers

2016 ◽  
Vol 9 (3) ◽  
pp. 1-22
Author(s):  
Monica C. Diochon ◽  
Yogesh Ghore
Keyword(s):  
Business Model ◽  
Social Marketing ◽  
Social Entrepreneurship ◽  
Social Enterprise ◽  
Business Models ◽  
Emerging Market ◽  
Sub Saharan Africa ◽  
Theory Of Change ◽  
Content Type ◽  
Farm Inputs

Subject area The subject areas are social entrepreneurship and marketing in social enterprises. Study level/applicability This study is applicable to undergraduate or MBA-level courses; possibly executive programs as well. Case overview Farm Shop was established in 2012 as a not-for-profit trust, with an aim of developing a distribution platform for poor, rural communities across sub-Saharan Africa so that smallholder farmers could get the farm inputs and services needed to increase their productivity and income. Attempting to reach scale, this social enterprise is in the process of building a micro-franchise network. Unlike franchises in industrialized countries where the franchisor starts with a vetted and replicable turnkey business, Farm Shop was created from scratch. After prototyping the shop concept and validating the business model in Kiambu County of Kenya, Farm Shop has 10 fully operational shops and is keen to start its growth phase, aiming to have 120 shops in its network within the next 12-18 months. It is only at that point that break-even will be achieved. Recognizing the key role of marketing in Farm Shop’s growth efforts, the founders are now focused on finalizing their go-to-market (GTM) strategy. Having initiated and measured the results of a number of marketing activities over the past six months, it is now time to decide which of these activities should be incorporated into their micro-franchise system. The management team knows that to provide advice, training and quality products to farmers, they first needed to develop awareness, interest and desire for what Farm Shop has to offer, not to mention the need to gain the farmers’ trust. Fundamentally, farmers needed to be convinced that Farm Shop can help them improve their productivity and income. Expected learning outcomes The study enables to gain an overall understanding of the range of challenges and opportunities associated with establishing a micro-franchise in an emerging market context; to gain a better understanding of social marketing, including the four types of behavioral influence it attempts to achieve and the similarities and differences between social and commercial marketing; to introduce the “theory of change” concept, providing a framework for understanding how and why change will occur; to introduce the concept of business models and explore the differences between “traditional” and “social entrepreneurship” business models; to understand how a competitive advantage is created; to introduce basic marketing concepts and the GTM concept and its role and application in a business model for a new social enterprise and to understand how marketing contributes to the social enterprise’s strategic goals and sustainability, thereby gaining an understanding of how “social marketing” is differentiated from commercial marketing. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

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