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Book part
Publication date: 17 February 2023

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.

Details

Transformation for Sustainable Business and Management Practices: Exploring the Spectrum of Industry 5.0
Type: Book
ISBN: 978-1-80262-278-2

Keywords

Open Access
Article
Publication date: 2 October 2018

Giovana Sordi Schiavi and Ariel Behr

This paper aims to conduct a review on disruptive business models. Considering that competition among companies will not only happen through new products, services or technologies…

31356

Abstract

Purpose

This paper aims to conduct a review on disruptive business models. Considering that competition among companies will not only happen through new products, services or technologies but also through innovative business models, the disruptive business models arise to replace the existing business models, adapting the organizational structures to the products and services offered and emphasizing the proposition of unique value.

Design/methodology/approach

The literature on this topic was revised, allowing the obtaining of the state of the art and the construction of a research agenda. The analyzed literature was obtained from systematic searches by the term disruptive business model in some databases. For the analysis of the data, the content analysis strategy was used through categorizations in the material exploration phase, and, later, for the processing of the results, the authors made use of inference and interpretation regarding the content analyzed.

Findings

The collected literature made it possible to obtain a set of data formed by different views of authors on disruptive business models, which was analyzed and categorized to make new inferences and interpretations.

Originality/value

Considering that the literature on the disruptive process of business models is emerging and addressing an important phenomenon in the market that lacks the theoretical basis to sustain it, this paper contributes by presenting a consolidated examination on this subject, thus deepening the theoretical analyzes on this topic and reducing this lack in the literature. This study also presents a research agenda, which clarifies the disruptive business model gap and reveals some opportunities for future empirical researches.

Details

Innovation & Management Review, vol. 15 no. 4
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 22 February 2022

Joao Paulo Nascimento Silva and André Grützmann

This article aims to understand the dynamics between disruptive innovations and innovation ecosystems, using disruption business models as a catalyst.

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Abstract

Purpose

This article aims to understand the dynamics between disruptive innovations and innovation ecosystems, using disruption business models as a catalyst.

Design/methodology/approach

This study presents an integrative literature review and a theoretical framework in order to integrate the theories of disruptions and ecosystems.

Findings

The dynamics of disruptive innovation, within an ecosystem, as an essential driver of creating new markets. The effect of creative destruction from a disruption influences business models in a coopetitive dynamic that drives the ecosystem as a whole.

Research limitations/implications

Limited to theoretical research and suggested the application of the proposed model in an empirical study.

Practical implications

Understand the formation of new ecosystems based on the occurrence of a disruption as a way for organisations to prepare for the arrival of this new market.

Originality/value

The contribution of this study is based on joining the literature of disruptive innovation and innovation ecosystem, pointing to a theoretical framework and a flow of Evolution and Adaptation to the Disruptive Ecosystem that integrates this complex dynamic.

Details

European Journal of Innovation Management, vol. 26 no. 5
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 8 July 2019

Giovana Sordi Schiavi, Ariel Behr and Carla Bonato Marcolin

This paper aims to elaborate a set of characteristics that conceptualize and qualify a disruptive business model.

2505

Abstract

Purpose

This paper aims to elaborate a set of characteristics that conceptualize and qualify a disruptive business model.

Design/methodology/approach

The literature on disruptive business models will be analyzed using the latent semantic analysis (LSA) technique, complemented by content analysis, to obtain a more precise qualification and conceptualization regarding disruptive business models.

Findings

The results found described concepts already described in the theory. However, such findings, highlighted by the LSA, bring new perspectives to the analysis of the disruptive business models, little discussed in the literature and which reveal important considerations to be made on this subject.

Research limitations/implications

It should be noted, about the technique used, a limitation on the choice of the number of singular values. For this to be a problem in the open literature, the authors tried to work not just with the cost-benefit ratio given the addition of each new dimension in the analysis, as well as a criterion of saturation of the terms presented.

Practical implications

The presentation of this set of characteristics can be used as a validation tool to identify if a business is or is not a disruptive business model by managers.

Originality/value

The originality of this paper is the achievement of a consolidated set of characteristics that conceptualize and qualify the disruptive business models by conducting an in-depth analysis of the literature on disruptive business models through the LSA technique, considering the difficulty of obtaining precise concepts on this subject in the literature.

Details

RAUSP Management Journal, vol. 54 no. 3
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 17 March 2020

Steven Si, Hui Chen, Wan Liu and Yushan Yan

The purpose of this study is to connect disruptive innovation and sharing economy by exploring the underlying mechanisms of how a disruptive innovation–based business project…

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Abstract

Purpose

The purpose of this study is to connect disruptive innovation and sharing economy by exploring the underlying mechanisms of how a disruptive innovation–based business project creates, delivers and captures value in sharing economy through analyzing the case of bike sharing in China.

Design/methodology/approach

An elaborate case study is used to unfold the process as well as the underlying mechanism and relationships among disruptive innovation, business model, bike-sharing business and value creation in sharing economy.

Findings

Bike sharing case fits well in disruptive innovation theory. Its low price and great convenience have led to rapid development in China. However, failures to improve their products and services and build an effective business model which can create, deliver and capture value have caused the failure of many bike-sharing companies. Other factors such as strategic decision-making, internal management problems, external conflicts as well as uncivilized consumer behaviors have also inhibited the sustainable development of bike-sharing companies.

Originality/value

The theoretical contributions of this study include the following: to explore how a disruptive innovation–based business creates, delivers and captures value successfully in sharing economy. This study contributes to both research and practice on disruptive innovation and sharing economy.

Details

Management Decision, vol. 59 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 16 February 2021

Agneta Sundström, Akmal S. Hyder and Ehsanul Huda Chowdhury

The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.

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Abstract

Purpose

The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.

Design/methodology/approach

Based on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.

Findings

The results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.

Practical implications

The methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.

Originality/value

This article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.

Details

Marketing Intelligence & Planning, vol. 39 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 5 June 2017

Eric R. Kushins, Henry Heard and J. Michael Weber

This article proposes a new disruptive innovation in healthcare through the development of a physician assistant business model, which can be most readily applied in vulnerable…

Abstract

Purpose

This article proposes a new disruptive innovation in healthcare through the development of a physician assistant business model, which can be most readily applied in vulnerable rural health care settings.

Design/methodology/approach

This study reviews the current state of the health care system in terms of physician assistant utilization and primary care shortages in rural communities. The study proposes that the physician assistant-owned and -operated primary care business represents a disruptive innovation, via the application of the five principles of Clayton Christensen’s (1997) thesis on disruptive innovation.

Findings

Considering the current state of the health care industry, the study logically defends the proposed model as a disruptive innovation in that it: focuses on an underserved market, has lower costs, has few competitors, offers high quality and provides a sustainable competitive advantage.

Practical implications

The physician assistant business model is a viable solution for providing primary care for rural communities with educational, financial, transportation and other resource limitations.

Originality/value

This is a unique application of the theory of disruptive innovation, which illustrates how a new business model can solve a chronic shortage in primary care, especially in underserved populations.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 11 no. 2
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 1 April 2006

Marnix Assink

The purpose of this paper is to examine why large firms often fail to develop disruptive innovations. This study identifies several key inhibitors or barriers that hinder those…

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Abstract

Purpose

The purpose of this paper is to examine why large firms often fail to develop disruptive innovations. This study identifies several key inhibitors or barriers that hinder those developments. A conceptual model is presented that examines the interrelationship and interdependence of these inhibiting factors, in an effort to provide a better understanding of how companies can improve their disruptive innovation capabilities.

Design/methodology/approach

This paper focuses on disruptive innovation rather than incremental innovation and is limited to research findings on large corporations. Recently published works (1990‐2004) have examined success factors as the determinants of disruptive innovation capability. A complementary approach is to examine the inhibitors of disruptive innovation and investigate their interrelationship and interdependence. The study is based on an extensive review of literature available, and examines both internal and external inhibiting factors to develop a conceptual model of disruptive innovation capabilities.

Findings

Many large corporations fail to develop disruptive innovations. It is argued that the basic constraints to creating successful disruptive innovation stem in large part from several inhibiting factors, and we have identified different clusters of interrelated and partly‐interdependent inhibitors: the inability to unlearn obsolete mental models, a successful dominant design or business concept, a risk‐averse corporate climate, innovation process mismanagement, lack of adequate follow‐through competencies and the inability to develop mandatory internal or external infrastructure. The conceptual disruptive innovation capability model provides a better understanding of the interrelationship among these limiting factors. There is still a vast gap between intention and actual disruptive innovation capability. Developing distinctive capabilities to bridge this gap should be an integral part of a company's strategy for growth.

Research limitations/implications

This paper is based on an extensive review of literature on disruptive innovation barriers. In it is proposed a conceptual interrelationship model of innovation inhibitors as a basis for determining and improving a company's disruptive innovation capability. It is suggested that, in addition to the theory presented in this paper, further empirical research studies be carried out to validate the key inhibitors of our conceptual model, their interrelationship and interdependence, and the impact on disruptive innovation development.

Originality/value

The study is intended to provide practical insight into clusters of inhibiting factors that prevent large organisations from improving their disruptive innovation capability. The conceptual model facilitates the development of distinctive competencies and mindsets to improve these capabilities.

Details

European Journal of Innovation Management, vol. 9 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 30 August 2011

Farsan Madjdi and Stefan Hüsig

This paper aims to study how three incumbent mobile network operators (MNOs) in Germany forecasted, framed and responded in terms of their strategy to the emergence of the

1010

Abstract

Purpose

This paper aims to study how three incumbent mobile network operators (MNOs) in Germany forecasted, framed and responded in terms of their strategy to the emergence of the wireless local area network technology (W‐LAN) and how they interpreted this potential technological disruption in their own strategic context.

Design/methodology/approach

Drawing on empirical evidence from case studies conducted with these three major MNOs in Germany using the theoretical framework of disruptive technology, the results were then evaluated in a cross‐case analysis to study how these firms interpreted and reacted to the potential disruptiveness of W‐LAN. To meet this objective, an explorative, multiple and holistic case study design was utilized. Data was collected by the combination of information gained through semi‐structured interviews with key informants and background information that were publicly available. Interviews were conducted with company representatives using a semi‐structured interview guide. Information gathered from the interview, documentation and direct observations was transposed into a content analysis framework to enable easy analysis of the information gathered for each company.

Findings

As a result, significant differences for the respective MNOs between their perception of W‐LAN as a potential disruptive technology, their strategic development processes inside the organisation to understand the potential impact of W‐LAN on their respective business model, and to enforce an appropriate response strategy and structural implementation were identified. The results indicated that corporate representatives from each incumbent interpreted potentially disruptive technologies like W‐LAN from a different perspective and direction depending primarily on the strategic and structural context and their organisation's resources, processes, and values. The findings also identified that practitioners inside the organisation were aware about the disruptive technology concept but however did not react in accordance with the theory. Forecasting results and categorisation that prove wrong can still lead to taking the right action since it seems to provide better results than non‐forecasting and inactivity due to a lack of awareness of potential risks.

Research limitations/implications

Because of the chosen research approach, the research results may lack generalisation and need to be further studied in a larger number of cases with different technologies and industries.

Social implications

For managers and forecasters the study indicates that they should consider the impact of the heterogeneity in firms when formulating a response strategy based on their respective perception of the impact of a potential disruptive technology on their business. They should also be considerate about the consistency between their motivation to respond, the strategic development processes inside their organisation supporting the development of the response strategy and the subsequent structural implementation. Threat‐framing seemed to be a key factor in unlocking resources even in the face of sustaining technological change and can be activated by threatening forecasts.

Originality/value

The consideration of incumbent heterogeneity in different framing settings and the resulting innovation categorisation with respect to the organisational actions and outcomes was not studied before.

Article
Publication date: 26 May 2021

Frank Lozada-Contreras, Karen L. Orengo-Serra and Maria Sanchez-Jauregui

Given that few studies examine how disruptive events affect customer relationships during and after the event, this study examines the resilience of companies in Puerto Rico…

Abstract

Purpose

Given that few studies examine how disruptive events affect customer relationships during and after the event, this study examines the resilience of companies in Puerto Rico, their underlying vulnerabilities, and how they deployed customer relationship management (CRM) resilience strategies during and after Hurricane Maria.

Design/methodology/approach

The study analyzed data gathered from qualitative focus groups composed of 41 firms via an exploratory approach. Participants were business owners and managers of enterprises in Puerto Rico.

Findings

All companies faced critical government infrastructure failures that affected their CRM activities. Firms implemented one or more CRM resilience strategies in response to the natural disaster. Accordingly, a comprehensive, adaptive CRM contingency model was postulated using marketing crisis management strategies discussed in the literature, existing resilience models and research studies in marketing resilience. The adaptive CRM contingency model operationalizes all processes at the business-logic level via the event-driven process chain (EPC) language, thus making it easier to understand and employ.

Originality/value

This study presents a unique model that shows the value of CRM and its capacity to evolve under disruptive environments that affect company–customer relationships. The operationalization of the model allows practitioners, policymakers and academic researchers to better understand how CRM is not only a suitable tool for managing business continuity after a natural disaster but also a mitigating technique for responding to new customer needs and expectations.

Details

Journal of Advances in Management Research, vol. 19 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

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