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1 – 10 of over 39000Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing…
Abstract
Purpose
Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.
Design/methodology/approach
An inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.
Findings
The paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.
Practical implications
The study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.
Social implications
Appropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.
Originality/value
The pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.
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Misbah Faiz, Naukhez Sarwar, Adeel Tariq and Mumtaz Ali Memon
Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership…
Abstract
Purpose
Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership capabilities influence business model innovation. Building on the dynamic capabilities view, we address this gap by linking digital leadership capabilities with business model innovation via managerial decision-making through provision of grants received by new ventures.
Design/methodology/approach
The study is cross-sectional research. Data have been collected utilizing purposive sampling from 313 founding members of new ventures in high-velocity markets, i.e. from Pakistan. SPSS has been used to conduct the moderated mediation analysis.
Findings
Digital leadership capabilities foster the business model innovation of the new ventures because they enable new ventures to capitalize on digital technologies and create new ways of generating value for the customers and themselves. Moreover, managerial decision-making mediates digital leadership capabilities and business model innovation relationship, whereas, grants moderate the indirect positive effect of digital leadership capabilities on business model innovation via managerial decision-making. The study generates initial evidence on the impact of digital leadership capabilities on business model innovation via managerial decision-making for new ventures. We advance knowledge on new ventures’ business model innovation by deep-diving into dynamic capabilities view and emphasizing digital leadership capabilities as a significant driver for business model innovation.
Originality/value
With the help of dynamic capabilities theory, this study analyzes how new ventures make use of digital leadership capabilities to promote business model innovation.
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Nino Bernd Hoch and Stelian Brad
This study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within…
Abstract
Purpose
This study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within business models has increased dramatically in recent years. Because of this, new knowledge on how to transform traditional business models into digital business models in a systematic way is needed. Digital technologies, embedded in previously non-digital goods, force companies to rethink their business models.
Design/methodology/approach
A design science research methodology was chosen for this study. A literature review and semi-structured interviews served as the theoretical foundation to integrate behavioural science into the design science process. From the design science perspective, an artefact is introduced to provide an architectural framework to manage business model innovation in a systematic way. The artefact's application is demonstrated through a case study conducted at a real company and evaluated afterwards by means of structured interviews with experts.
Findings
The authors propose a highly useable and valuable conceptual framework for systematic business model innovation. However, one limitation of the research is that it was conducted among construction professionals in Germany, and so the result might not hold true for other firms or industry branches.
Research limitations/implications
The research was conducted among construction professionals in Germany, and this acts as a limitation, as the result might not hold true for other firms or industry branches.
Originality/value
The purpose of this study is to provide managers with a framework for business model innovation, helping them systematically integrate digital technologies to create customer-added value. The proposed framework presents an innovative conceptual analysis of systematic business model innovation, which has not been addressed in prior studies.
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Mehreen Malik, Muhammad Mustafa Raziq, Naukhez Sarwar and Madiha Gohar
We explore the skills required for digital leadership for reshaping existing business models toward digital models. Digital leadership is pivotal in gaining a competitive…
Abstract
Purpose
We explore the skills required for digital leadership for reshaping existing business models toward digital models. Digital leadership is pivotal in gaining a competitive advantage and achieving successful digital transformation. However, little is known with regard to the underlying mechanisms related to digital leadership and transformation.
Design/methodology/approach
Data are collected through semi-structured interviews involving 20 participants from five Pakistani textile companies. Thematic analysis was employed as a data analysis tool.
Findings
Findings show that certain skills such as technological know-how, innovativeness, adaptability, ability to lead and steer, honesty, integrity, transformative vision, communication and collaboration are conducive to successful digital transformation in textile manufacturing firms. Similarly, digital leaders can significantly enhance business model innovation, create value for the firm, help develop new products (value proposition) and create Ecosystem partnerships (value network).
Originality/value
This article bridges gaps between existing literature on digital transformation and leadership. Digital leadership skills for digital transformation and the role of digital leaders in business model innovation have not been explored before. The conceptual framework is put forth, propositions are proposed and the findings offer some future research directions.
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Thilini Chathurika Gamage and Athula Gnanapala
Digital disruption no longer ensures the security or longevity of established firm structures and business models. Instead, it necessitates that firms reinvent their business…
Abstract
Digital disruption no longer ensures the security or longevity of established firm structures and business models. Instead, it necessitates that firms reinvent their business models, including business processes, people, and technologies that align with the organizational goals. Despite the exponential growth of digital disruption, prior literature indicates that the concept of business model innovation is poorly understood in developing economies. Furthermore, little is known about how low-tech firms in developing economies should adapt and reinvent their business models to cope with and shape digital disruption as it unfolds. Grounded in two overarching theoretical frameworks, namely the theory of disruptive innovation and the resources–processes–values (RPV) framework, this chapter addresses this void in prior literature. Based on multiple case study analyses of 10 low-tech firms in diverse industries in Sri Lanka, the findings indicate that successful disruptive business model innovation in low-tech firms in Sri Lanka is predicated on an effective technology management strategy, suitable organizational structure, compatible organizational culture, and devoted corporate governance. Moreover, external influences like changing market dynamics, competition, and shifts in consumer behavior also significantly influence disruptive business model innovation of selected firms. This chapter acts as a springboard for future researchers by extending the theory of disruptive innovation and RPV framework to low-tech industries in developing economies.
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Anjar Priyono, Baziedy Darmawan and Gunawan Witjaksono
This study aims to investigate how manufacturing firms in the creative industries harness digital technologies to undertake business model innovation.
Abstract
Purpose
This study aims to investigate how manufacturing firms in the creative industries harness digital technologies to undertake business model innovation.
Design/methodology/approach
This study used in-depth case studies to examine the complex interplay between digital technologies and business model innovation. A longitudinal approach was selected to capture major events both within the firm and in the business environment. Building on the firm’s archival data, interviews and secondary data that was available to the public, the authors carefully analyzed impactful digital technology events and the firm’s responses to the technological changes that occurred over the period of 2004–2020.
Findings
The findings suggest that digital technologies alone are not sufficient for business model innovation to be successful; support from sociotechnical factors is also required. Additionally, firms should reinvent a new business model when the existing ones seem to start to diminish.
Research limitations/implications
In this study one firm was examined as the subject, using a qualitative method. This method allowed us to observe complex interplays among the resources required in business models. Future research can combine qualitative methods with computational case studies, which utilize a large volume of quantitative big data.
Practical implications
The results of this study suggest that managers must ensure that the resources within and outside organizations are loosely connected and are readily available to be mobilized for supporting business model innovation. To enable this, managers must prepare the required resources in advance.
Originality/value
The current findings add to a growing body of literature on business model innovation and digital technologies. In particular, this study describes the process of how a traditional firm from a least developed country pursues business model innovation with the support of digital technologies.
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Xuemei Xie, Huimiao Zhang and Cristina Blanco
Family businesses often lack sufficient knowledge about digital business model innovation digital business model innovation (BMI). This study's purpose was to analyze how and when…
Abstract
Purpose
Family businesses often lack sufficient knowledge about digital business model innovation digital business model innovation (BMI). This study's purpose was to analyze how and when organizational readiness for digital innovation exerts a positive impact on family businesses' digital BMI. To do so, the authors examined the mediating effect of the familiness learning mechanism and the moderating effect of family involvement on this relationship.
Design/methodology/approach
A quantitative survey method was used to collect the data for this study. Using a sample of 282 family businesses involved in manufacturing in China, the authors conducted hierarchical regression analyses to evaluate the authors' theoretical model.
Findings
The results of this work demonstrate a positive relationship between organizational readiness for digital innovation and family businesses' digital BMI, and the find that the familiness learning mechanism mediates this relationship. The findings also show that second-generation family involvement in management moderates the direct effect of organizational readiness for digital innovation on the familiness learning mechanism, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism. Moreover, the results establish that family involvement in ownership moderates the direct effect of the familiness learning mechanism on digital BMI, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism.
Practical implications
This study provides practical contributions to the literature on family businesses and to public policy, providing concrete suggestions for fostering digital innovation in family enterprises. This study also enriches our understanding of the unique conditions by which family businesses can successfully implement digital BMI.
Originality/value
This research confirms that organizational readiness for digital innovation is an antecedent of digital BMI. This finding offers a new perspective that helps explain what might lead family businesses to engage in digital BMI. This study also places the familiness learning mechanism into a theoretical framework, which expands the current understanding of how organizational readiness for digital innovation facilitates digital BMI. Moreover, this work provides new insights into the boundary conditions by which organizational readiness for digital innovation affects the digital BMI of family businesses in terms of second-generation family involvement in management and family involvement in ownership.
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Dominik Dellermann, Alexander Fliaster and Michael Kolloch
Past research demonstrated that novel IT-based business models generate tremendous returns for innovators. However, the risks associated with these innovations remain…
Abstract
Purpose
Past research demonstrated that novel IT-based business models generate tremendous returns for innovators. However, the risks associated with these innovations remain under-explored. This paper aims to address this critical gap analyzing risks and offering important insights particularly for practitioners.
Design/methodology/approach
The authors adopted an exploratory multiple-case study research design. It draws on 22 semi-structured interviews with managers from leading energy utilities, as well as leading providers of virtual power plants technology within the German energy industry.
Findings
The research reveals that main risks in new digital business models in the energy sector are associated with three forms of interdependence between innovation actors: the regulatory, the technological and the collaborative. To deal with these interdependencies, the authors propose an original multi-step risk management framework. This framework considers the outreach as a critical dimension for risk assessment and offers a new risk response matrix to draw individual and collective mitigation activities for specific types of risks.
Practical implications
This paper offers a framework for the management of interdependence risks that are fundamental for business model innovations based on IT. Thus, it is applicable in companies both inside the energy sector and beyond.
Originality/value
This paper analyzes an important digital business model innovation that has not yet been explored in management literature – the virtual power plant (VPP). It is based on original and current empirical work and proposes a novel risk management framework for business organizations.
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Nastaran Hajiheydari, Mohammad Kargar Shouraki, Hamed Vares and Ayoub Mohammadian
How to respond to social and environmental concerns while pursuing economic goals remained a dilemma for today’s businesses. Besides, the digital revolution has profoundly changed…
Abstract
Purpose
How to respond to social and environmental concerns while pursuing economic goals remained a dilemma for today’s businesses. Besides, the digital revolution has profoundly changed people's lifestyles, turning out the challenge of how to present products and services to the new generations of consumers through emerging digital channels. To overcome these challenges, a business needs to rely on its internal capabilities but must make them dynamic and modify them, when necessary, in response to or anticipation of external changes. This study aims to propose a model for business model innovation (BMI) with the goal of pursuing sustainability and adapting to the changes of the digital age pursuing dynamic capabilities principles.
Design/methodology/approach
This study followed a mixed-method design, using meta-synthesis in its first phase (qualitative) and interpretive structural modelling in its second phase (quantitative).
Findings
The proposed model consists of four layers including approach, aspect, dimension and component. Based on quantitative results, the 16 dimensions were categorised in four main levels of “sustainable computing”, “sustainable execution”, “sustainable engagement” and “sustainable results”. Considering sustainability and digital transformation as main change drivers for contemporary businesses, this paper proposes a novel framework in the field of BMI.
Originality/value
The results of this study suggest that BMI requires not only proper business design based on social and environmental sustainability and digital transformation requirements but also attention to a new component called sustainable engagement, which represents the need for engaging with social and environmental issues in addition to customers.
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Charlotta Kronblad and Johanna Envall Pregmark
The effects of the spread of COVID-19 across the world are devastating, both from a health and an economic perspective. However, we also see encouraging examples of collaborative…
Abstract
Purpose
The effects of the spread of COVID-19 across the world are devastating, both from a health and an economic perspective. However, we also see encouraging examples of collaborative and innovative initiatives, in society and in organizations. The purpose of this paper is to focus on initiatives related to digital business model innovation. The authors explore how organizational characteristics provide a variety of opportunities for digital responses to the COVID-19 pandemic and discuss the potential consequences for the speed of digital transformation in organizations and society.
Design/methodology/approach
In this paper, the authors analyze how organizations attempt to mitigate the negative effects of fighting COVID-19 using digital business model responses. The authors draw on a qualitative study where they have collected data from the retail and service industries. They have analyzed the data in relation to theory to better understand this ongoing phenomenon.
Findings
The authors have identified four categories of organizations (crisispreneurs, accelerators, endurers and thrivers). Each category faces different challenges and shows a different intensity in their digital transformation. The authors propose that the rapid turn toward digital business models will have enduring effects, as organizations have gained transformational capabilities that will remain, and that the digital trajectory has, as a result, changed forever.
Originality/value
The findings in this paper point toward new challenges for leaders and policymakers in terms of how to support initiatives and meet the needs of different categories of organizations while simultaneously being conscious of the potential societal effects of this rapid digital shift. The authors hope that this paper can be of value for managing this shock and learning how to adapt for the future taking certain aspects of current business models as the departure point.
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