IMITATION PROCESSES AND THEIR APPLICATION FOR BUSINESS MODEL INNOVATION: AN EXPLORATIVE STUDY

2013 ◽  
Vol 17 (01) ◽  
pp. 1340005 ◽  
Author(s):  
ELLEN ENKEL ◽  
FLORIAN MEZGER

The purpose of this paper is to investigate the approach of imitation (across industry boundaries) on business models. We analyzed nine case studies of firms that introduced breakthrough business models by transferring and adapting characteristic business model components of other industries. Our results show that companies can facilitate cross-industry innovation on business model level through a process of abstraction, analogy identification and adaptation. Imitation is realized by deconstructing and mapping business model components based on their contribution to abstract, generic elements of the value proposition. We propose a systematic process model for business model innovation analyzing structural similarities between industries on the level of these abstract elements linked to specific other components of the business model. Firms can leverage this process by transformative learning processes, especially provided through a broad industrial and functional experience of members in business model innovation teams.

2021 ◽  
Vol 2 (1) ◽  
pp. 24-35
Author(s):  
Ignitia Motjolopane

In a constantly changing business environment, with increasing digitisation and fourth industrial revolution blurring the traditional value creation boundaries, companies need to explore ways to push the limits to remain competitive. Business model innovation offers companies the dynamic capability to differentiate business models and find innovative revenue streams while reducing costs. As such, the question arises as to how company may use business model innovation to remain competitive as the world digitises. Based on a literature review and empirical research involving six case studies, a three pronged approach in support of business model innovation is proposed. Business model innovation has the potential to push the limits when company executives and academia focus on the interrelation between drivers, process and components. Moreover, both effective and ineffective practices based on the research are presented. In conclusion, for companies to use business model innovation in pushing the limits, there is need to respond to the business model innovation drivers, adopt a systematic process and change at least one or more business model components and taking into account the interactions between these three concepts. This article may contribute to existing theory in the field of business model innovation and lessons learned from executives that have pushed the limits using business model innovation. Doi: 10.28991/HEF-2021-02-01-03 Full Text: PDF


Author(s):  
Nguyen Manh Thang

Aims: It aims to build and verify the theoretical model among the network of relationships, business model innovation and start-up performance of start-up companies. Methodology: The study employed qualitative and quantitative methods of research in 550 start-up firms in Vietnam. The qualitative method is utilised to adjust and complement the scale (interviews with experts). Utilising the PLS-SEM analysis method with the SmartPLS support tool, the quantitative method is used to assess reliability, permissibility, model testing, and research hypotheses. Results: Start-up firms' relationship network (with government officials, social contacts, and business partners) has a beneficial effect on their performance. Relations with government officials benefit value creation, value proposition, and value capture innovation. Social relationships have a positive impact on value proposition innovation. Relationships with business partners contribute to the creation of value and the innovation of new products and services. Business model innovation can have a sizable impact on the performance of a start-up. Finally, environmental dynamism has no regulatory effect on the innovation of business models or the performance of start-up firms. Conclusion: This study has filled theoretical gaps by confirming the results of prior studies that had questioned the connection between the network of relationships, business model innovation, and start-up performance. The findings propose management solutions for start-ups' owners and senior managers, policymakers, and official government entities.


2021 ◽  
Vol 24 (2) ◽  
pp. 189-210
Author(s):  
Ambara Purusottama ◽  
Yohanes Berenika Kadarusman

Blockchain brings changes and disruptions to the existing business models and therefore deserves further analysis. Accordingly, this study aims to explain the phenomenon of blockchain technology in the business model innovation in the enterprise ecosystem. Empirically, numerous studies have shown that blockchain technology improves organizational performance. This study uses a value system framework to explain the enterprise blockchain phenomenon. Through abductive reasoning, this study uses a multiple-case study to answer the research questions. In sum, this study finds that blockchain technology delivers benefits to organizations in: (i) value capture through increased profitability; (ii) value creation through private partnership; (iii) value delivery through smart contracts; and (iv) value proposition that encourages improving the existing value proposition through operational improvements. Besides, the study also proposes the different types of enterprise blockchain ecosystems: private and consortium. The private ecosystem focuses on improving organizational performance through competition. In contrast, the consortium ecosystem focuses on  business value collaboration.


2018 ◽  
Vol 30 (1) ◽  
pp. 38-65 ◽  
Author(s):  
Oussama Ammar ◽  
Philippe Chereau

Purpose This paper aims to identify the differentiated paths followed by firms to innovate in business models, among four different strategic postures and also to determine the innovation interactions between business model components, among strategic postures. The authors intend to highlight the differentiated patterns of business model innovation (BMI) in each strategic posture and provide guidance to small and medium enterprises (SMEs) managers regarding the suitable alignments of business model components when they innovate in their business model. Design/methodology/approach The research model developed and tested in this work uses a composite model that borrows from the logic of Miles and Snow’s cycle of adaptive strategic choices as well as Demil and Lecocq’s perspective of permanent change within and between components of a business model. The authors’ model is designed first to encompass the differentiated patterns characterizing the relationships between the strategic posture of defender, prospector and analyzer profiles and the related innovation attributes of their business model components. The study was conducted with independent French manufacturing SMEs ranging from 10 to 250 employees in size and having revenues below €50m (European Commission, 2007). The analysed sample includes 169 firms from 14 sectors representative of French manufacturing SMEs. Findings Results confirm the differentiated propensity to adopt specific BMI behaviours among strategic postures. The authors also highlight the differentiated interactions between and within BMI components. These results suggest that SMEs tend to leverage specific BMI components related to their entrepreneurial, engineering and administrative choices. Thus, firms tend to evolve in a posture-specific, path-dependent dynamic consistency in which BMI attributes interact towards a limited set of alternatives, thus anchoring the new business model into strategic choices. It has been shown that the predictability of strategy–BMI alignment is contingent on the level of fit between empirically derived strategic profile attributes and Miles and Snow’s ideal profile attributes. Research limitations/implications This paper investigates strategy–BMI alignments without addressing such alignments from the standpoint of firm performance. Still, performance from a BMI perspective lies in the ability of the firm to sustain the dynamic consistency of its business model components by identifying the effects of change in interactions between and within components on overall BM performance. Further studies should explore dynamic consistency as a means for firms to generate and maintain performance by innovating in their business model when facing specific contingencies. The conceptual framework designed for the present research seems appropriate for conducting such an investigation on the performance implications of strategy–BMI fit. Practical implications This research offers insights regarding manufacturing SMEs seeking guidance when changing business strategy. Indeed, by combining Miles and Snow’s configurational framework of strategic postures with Demil and Lecocq’s RCOV BM framework, the authors provide insights that can bridge the gap between intended strategy and realized strategy. The authors suggest that when realizing new strategic choices, SMEs should favour behaviours of BMI that are likely to fit the new intended strategic posture. Accordingly, the authors introduce a set of field-based BMI alignments specific to firms’ strategic posture to support the strategic management of innovation in SMEs. Originality/value By unravelling the alignments between strategic posture and business model innovation, this work contributes to enlightening the dynamics of Miles and Snow’s adaptive cycle. Indeed, viewing Miles and Snow’s typology from the configurational perspective of BMI provides a clearer picture of the adaptive cycle through which BMI reflects the path-dependent process of the formation of the firm’s strategic posture through the transformation of its business model.


2020 ◽  
Vol 16 (2) ◽  
pp. 89-95
Author(s):  
Roland Z. Szabó ◽  
Borbála Szedmák

The current coronavirus situation both gives an opportunity to the organizations and forces them to change and rethink fundamentally their business models. The pandemic causes an extremely difficult situation for symphony orchestras, as they have to cancel their performances and redefine how to reach their audience. Either they follow a Red Ocean Strategy and lose significant revenue or develop a Blue Ocean Strategy and prosper. The Blue Ocean Strategy involves a value innovation that can be achieved by four actions (eliminate, reduce, raise, create) and taking advantage of the opportunities offered by digitalization. After briefly reviewing the concept of business model innovation, the article gives an overview of some novel aspirations, attempts and projects selected from international and Hungarian symphonic orchestral life to provide excellent examples of how the value proposition can be redefined and how the expectations of the 21st-century audience can be met.


Author(s):  
Benny Hutahayan ◽  
Wahyono

Purpose This paper aims to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings 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. Originality/value The conflicting approaches exist in the literature on how firms change their business models, this review synthesises these approaches and provide a clear guidance as to the ways through which business model innovation can be undertaken.


2020 ◽  
Vol 1 ◽  
pp. 2119-2128
Author(s):  
M. P. P. Pieroni ◽  
T. C. McAloone ◽  
D. C. A. Pigosso

AbstractTo implement circular economy, manufacturers will need to develop new business models. Available approaches are granular, generic, infrequently focusing on advice or implementation, and lacking practical demonstration. This article presents how a tool was proposed to cover these gaps. Based on design research methodology, twenty-two conceptual and practical requirements were identified and translated in functions for the development of the Circular Economy Business Model Configurator, a tool that supports manufacturers in strengthening proposals of business models for circular economy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gina Rennings ◽  
Michael Wustmans ◽  
Martin Kupp

Purpose Business model innovation (BMI) provides enormous opportunities to multinational corporations (MNCs). Consequently, some MNCs have created dedicated BMI units. Yet, research only provides limited guidance and lacks empirical evidence on the implementation of BMI processes in a corporate environment through dedicated units. Accordingly, the main goal of the research is to shed light on understanding the role (s) of a dedicated BMI unit and how it interacts with the existing businesses to help them identify, evaluate or implement new business models. Design/methodology/approach This work adopts a case study approach as a research design (Yin, 2015). In particular, the study is set up as a single in-depth case study in a holistic design (Yin, 2013). The data consists of a total of nine extensive interviews with employees of Bosch’s BMI unit, as well as project team members the unit has worked with. Of the nine interviewees, six are working within the BMI unit (internal perspective) and three are members of two project teams, i.e. customers of the BMI unit (external perspective). Archival records serve as an additional source of evidence aimed at enhancing internal validity. Findings This research is the first work to determine the explicit roles of an MNC’s dedicated BMI unit throughout the BMI process. Through derivation of roles from the tasks and responsibilities of Bosch’s BMI unit in each process phase, six overarching roles have been identified, namely, process owner, executor, enabler, challenger, networker and connector. Simultaneously, this work has suggested the existence of process-independent roles, namely, knowledge intermediary and trainer. Research limitations/implications The case study approach underlying this work allowed an in-depth investigation of the BMI process and the BMI unit of Bosch but the results are still based on a single case study. In this regard, limitations that occur for qualitative case study approaches are also relevant for this study, i.e. although careful analysis to reveal the stage-gate such as the design of BMI processes or the roles of a dedicated BMI unit was performed, a certain degree of subjectivity remains. Practical implications The results underline that a dedicated BMI unit within an MNC constitutes a way to allow for managing the cross-functional and complex tasks of BMI by giving projects the necessary flexibility to develop while remaining aligned and benefitting from the organizational setting. This paper further observes that a dedicated BMI unit expresses an opportunity to define responsibilities for corporate BMI processes that are described in the literature (Geissdoerfer et al., 2017; Tesch, 2019; Wirtz and Daiser, 2018). Thus, the results may be used by practitioners working in MNCs to understand some of the issues related to the implementation of BMI processes in a corporate context, i.e. how to organize and structure BMI (Geissdoerfer et al., 2017; Winterhalter et al., 2017) or where to locate and how to interlink BMI with existing corporate functions (Chesbrough and Rosenbloom, 2002; Cortimiglia et al., 2016). Originality/value The outcomes of this work are twofold. First, building on existing literature, a process model for BMI through dedicated BMI units is proposed. Second, based on findings from the in-depth case study, eight overarching roles a BMI unit can hold have been identified. Thereby, this work constitutes a starting point for intensified research on the value and the implications of dedicated BMI units in the context of BMI and BMI processes.


Author(s):  
E. J. Schwarz ◽  
P. Gregori ◽  
I. Krajger ◽  
M. A. Wdowiak

AbstractIn times of increasing concerns and extensive political debates about social and environmental problems, incumbent firms are obliged to reduce their negative environmental impact by implementing sustainable business model innovation. Yet, realizing more sustainable business model variants entails several complexities and associated challenges that need to be overcome. To support this task, this article takes an entrepreneurship perspective on sustainable business model innovation and combines literature of business models and entrepreneurial lean thinking (ELT). In doing so, it derives a workshop design grounded in contemporary theory with state-of-the-art tools and methods. The workshop is framed as a stage-gate process facilitating the notions of ELT with iterative cycles of ‘create, test, and improve’ and spans the phases of opportunity identification, opportunity evaluation, opportunity development through sustainable business model design, and decision of opportunity exploitation. The article shows that ELT is an appropriate yet underutilized approach for sustainable business modeling. Further, it discusses how the workshop supports opportunities and mitigate pitfalls of ELT for sustainable business modeling. As such, the findings have theoretical implications for the intersection of sustainability and lean approaches in innovation research as well as implications for practitioners by providing a comprehensive framework to support sustainable business model innovation.


2021 ◽  
pp. 1-30
Author(s):  
Sonia Mehrotra ◽  
S. Ramakrishna Velamuri

ABSTRACT We study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.


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