Search results
1 – 10 of 817Marco Cucculelli, Cristina Bettinelli and Angelo Renoldi
The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs…
Abstract
Purpose
The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions.
Design/methodology/approach
Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account.
Findings
Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions.
Originality/value
This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).
Details
Keywords
Kumar Saurabh, Neelam Rani and Parijat Upadhyay
Today, business model innovations leverage digital technologies to gain a competitive advantage and transform business processes. Blockchain is still gaining attention in specific…
Abstract
Purpose
Today, business model innovations leverage digital technologies to gain a competitive advantage and transform business processes. Blockchain is still gaining attention in specific fields and bringing value to business models. There is a dearth of research on how blockchain decentralized autonomous organizations impact organization business model innovations. This study attempts to contribute the body of knowledge based on a review of decentralized autonomous organizations and the business model innovation literature using the integrative and generative approach.
Design/methodology/approach
The paper offers an analysis of decentralized autonomous organizations based on digital business models built on the well-established work by Osterwalder and Pigneur (2010). The practical multilayered decentralized autonomous organizations architectural implementation model design is achieved using practical archetypes depicted in the proposed decentralized autonomous organizations business model. The paper evaluates a marketplace comprising 13 decentralized autonomous organizations led platforms with core functionalities.
Findings
The paper delivers decentralized autonomous organizations led digital business model canvas elements to explain decentralized autonomous organization business model innovations. It presents the underlying multilayered decentralized autonomous organizations architectural implementation model required to conceptualize a practical business model with an enterprise-ready target operating model.
Research limitations/implications
The paper contributes directly to the practical decentralized autonomous organizations business model canvas, exemplifying the nine elements of decentralized autonomous organizations’ characteristics for any organizational transformation. The tools and accelerators (business model, layered architecture, target operating model and product mapping) developed in the paper address the managerial challenges of redesigning the decentralized business models.
Originality/value
The proposed decentralized autonomous organizations smart contract powered business model provide a digital platform to adhere to rules, follow policies, preserve principles and develop consensus without human interventions. The paper shapes the first of its kind decentralized autonomous organizations marketplace evaluation while mapping it to decentralized autonomous organizations layered architecture product requirement considering business model dimension to adopt actionable target operating model.
Details
Keywords
Peng Liu and Robin Bell
This paper aims to investigate four successful Chinese ICT enterprises to determine what initiated their business-model innovations and the process they went through by exploring…
Abstract
Purpose
This paper aims to investigate four successful Chinese ICT enterprises to determine what initiated their business-model innovations and the process they went through by exploring how they adapted and innovatively renewed four key elements of their business models.
Design/methodology/approach
This investigative and exploratory research adopted a multiple-case-study design exploring four purposively selected successful Chinese ICT enterprises which had all engaged in significant business model innovation since their inception. Data for the case studies were collected through in-depth interviews with the founders and analyses of the companies’ history to gain a detailed account of the evolution of the firms’ business models since their formation.
Findings
The research identified three key initiating factors to business model innovation in the firms studied, namely, constant and rapid product iteration, along with an emergent strategy, leading to business model innovations to take full advantage of the firms’ competitive advantages; a reaction to threats and environmental changes; and an opportunistic behaviour to extend the business model to new markets. The research found that networks were a key factor in the process, including the customer base, financial investors and network collaborators.
Research limitations/implications
This research is limited to four successful Chinese ICT firms; this in-depth approach means the information may have only limited transferability but provides depth on a burgeoning Chinese sector.
Originality/value
This research addresses the call for more research and a greater understanding of what initiates business model innovation and the process firms go through to develop the key elements of their business models by looking at a purposively selected sample of successful Chinese enterprises in a fast-moving and technologically driven market.
Details
Keywords
Lars Witell and Martin Löfgren
The purpose of the present research is to identify how business model innovation can be used to make the transition from service for free to service for fee. In particular, the…
Abstract
Purpose
The purpose of the present research is to identify how business model innovation can be used to make the transition from service for free to service for fee. In particular, the focus is on identifying, describing and analysing alternative transition strategies, degree and type of innovation, and how building blocks in the business model change.
Design/methodology/approach
A multiple case study of six manufacturing firms was performed. Data were collected through interviews with CEOs, service managers and sales managers. In addition, two workshops were performed with the participating firms.
Findings
The present research identified eight strategies for transitioning from service for free to service for fee. These strategies represent change in the business model, incremental business model innovation and radical business model innovation. It is suggested to change the content and structure to perform incremental business model innovation and change the governance to perform radical business model innovation.
Originality/value
In most models for service infusion, the change of business model is seen as a necessary step and focus is placed on that a change of business model is needed. The present study elaborates on what approaches manufacturing firms use to make the change from one business model to another.
Details
Keywords
Ambara Purusottama, Togar Mangihut Simatupang and Yos Sunitiyoso
A blockchain (BC) is a breakthrough technological invention that comprises entirely different mental models than conventional technology. This fundamental difference can…
Abstract
Purpose
A blockchain (BC) is a breakthrough technological invention that comprises entirely different mental models than conventional technology. This fundamental difference can potentially change the systems of many organizations since the current systems are built upon a centralized paradigm. The adoption of BC brings various benefits to an organization which can initiate changes to a business model (BM). However, the contribution of BC for business model innovation (BMI) is challenging to identify. Therefore, this study aims to understand and describe the adoption of BC for developing BMI.
Design/methodology/approach
This study presents a model that describes the adoption of BC for developing BMI. To justify the model, this study used an empirical approach based on multiple case study through a rigorous process. The case study selection process referred to the products or services that adopt BC to deliver to their customers and monetize their businesses, which resulted in six cases in different areas. Meanwhile, the data collection applied semi-structured interviews and adequate secondary data. The data/information was analyzed using a value proposition, creation, and capture framework.
Findings
The findings identify the adoption of BC in BMIs generated through value creation as a new technological sub-element. This technological adoption evidently affects value proposition and value capture in a different mode. Furthermore, through the model, this study classifies the adoption of BC in BMI based on two dimensions: (1) the level of complexity of BC adoption and (2) the intensity of BMI. The findings show that the cases in this study are dispersed among all quadrants of the conceptual model.
Originality/value
This study can serve as an antecedent for stakeholders in the innovation of BC-based BMs and their implementation patterns. Simultaneously, this study sheds light on the body of knowledge about BC adoption for developing BMI through a validated model from selected cases and technical experts. This study also describes the BC-based activity systems that provide the contributions and benefits from the technology.
Details
Keywords
Sevenpri Candra, I Nyoman Agus Dwi Wiratama, Muhammad Airlangga Rahmadi and Vincent Cahyadi
Micro, small and medium enterprises (MSMEs) are a critical part of a country or region’s economy. They have contributed to more than half of Indonesia’s gross domestic product…
Abstract
Purpose
Micro, small and medium enterprises (MSMEs) are a critical part of a country or region’s economy. They have contributed to more than half of Indonesia’s gross domestic product. However, MSMEs today are still getting problems and obstacles in the Indonesian industry. One of them is the lack of knowledge about entrepreneurship that hampers the development of a business and the emergence of innovation. This study aims to understand the innovation process and extend the knowledge regarding entrepreneurship in food and beverage MSMEs in Greater Jakarta Area.
Design/methodology/approach
This study is descriptive–associative research. It uses the online survey as a data collection method with a cross-sectional design. The sampling technique is purposive sampling with the criteria foodpreneurs from MSMEs in Greater Jakarta Area. The data are measured using Likert scale and analyzed using structural equation modeling-partial least squares.
Findings
The results suggest that centralized decision-making positively impacts collaboration, communication and contributes to innovation. Communication effects the entrepreneur's knowledge and collective entrepreneurship. In terms of collaboration, it affects entrepreneur's knowledge and collective entrepreneurship. Then, the entrepreneur's knowledge and collective entrepreneurship influence innovation.
Research limitations/implications
This research is only conducted using MSMEs of food and beverages in Greater Jakarta Area as the samples. Hence the results cannot be generalized. Different sectors may have different results.
Practical implications
A centralized decision can be done but limited in certain situations only. Then, foodpreneurs should collaborate and communicate more intensely with their employees. It will impact the harmonious collaboration and collective problem-solving to achieve creative solutions.
Originality/value
There is limited research focusing on foodpreneurs and the innovation process. So, this research results can add to the existing literature review.
Details
Keywords
Elaine Ramsey, Pat Ibbotson, Jim Bell and Brendan Gray
The Internet is causing fundamental changes in the economics of service industries as new, network‐based global e‐business models emerge, where small‐ and medium‐sized enterprises…
Abstract
The Internet is causing fundamental changes in the economics of service industries as new, network‐based global e‐business models emerge, where small‐ and medium‐sized enterprises (SMEs) have been identified as key users of Internet commerce. Initially the paper contextualises the research issues via a review of the theoretical opportunities afforded firms of all sizes. Correspondingly, an examination of the practical impediments from an SME perspective suggests that, among other things, there are major hurdles for SMEs going online including strategic appreciation of the dynamics of the Web and the development of capabilities for managing the information infrastructure for e‐business. To illustrate the inherent issues, the findings of empirical research are presented. Both inductive and deductive methodological approaches were employed to investigate e‐business awareness, attitudes and activities among a sample of Irish (north and south) service sector SMEs.
Details
Keywords
Ian Fillis, Ulf Johansson and Beverly Wagner
A previous paper by the authors drew on existing research on e‐business and the smaller firm, developed a conceptual model and a set of research propositions. This paper analyses…
Abstract
A previous paper by the authors drew on existing research on e‐business and the smaller firm, developed a conceptual model and a set of research propositions. This paper analyses a series of qualitative, in‐depth interviews of owner/managers of smaller firms in central Scotland in order to test the research propositions. Results indicate that industry and sectoral factors play an important role in the level of e‐business development achieved. In many cases the customer determines the need for e‐business adoption, rather than any internally planned programme of adoption. Other important factors include the degree of entrepreneurial orientation of the key decision maker and the ability to exploit appropriate competencies. Recommendations for encouragement of e‐business development are made and suggestions for future research are included.
Details