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1 – 10 of over 74000Juan David Gonzalez-Ruiz, Alejandro Arboleda, Sergio Botero and Javier Rojo
The purpose of this paper is to develop an investment valuation model using the mezzanine debt mechanism based on blue bonds that explicitly allude to public–private partnerships…
Abstract
Purpose
The purpose of this paper is to develop an investment valuation model using the mezzanine debt mechanism based on blue bonds that explicitly allude to public–private partnerships (P3s) and project finance (PF). Additionally, this study proposes the financial captured value (FCV) theory for measuring how much financial value lenders may capture by becoming sponsors through financing of sustainable infrastructure systems (SIS).
Design/methodology/approach
The investment valuation model was validated through the Aguas Claras wastewater treatment plant as a case study.
Findings
The empirical results show that lenders may capture financial value by converting outstanding debt into equity shares throughout the operation and maintenance stage. Furthermore, case study results provide new insights into the implications of the debt–equity conversion ratio on the relationship between the sponsors’ internal rate of return and the FCV.
Research limitations/implications
The most significant limitation is the lack of primary and secondary information on blue bonds. Thus, robust statistical analyses to contrast results were not possible.
Practical implications
Researchers and practising professionals can improve their understanding of how mezzanine debt, P3s and PF into an investment valuation model allows financing SIS using a non-conventional financial mechanism. The recommendations will benefit both the academia as well infrastructure industry in bridging the gap between design theory and practice.
Originality/value
Sustainability components have not been addressed explicitly or combined in the financing’s structuring. Therefore, the investment valuation model could be considered a novel methodology for decision making related to financing and investment of SIS.
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Federica Doni, Mikkel Larsen, Silvio Bianchi Martini and Antonio Corvino
The purpose of this paper is to investigate the engagement with integrated reporting (IR) of the Development Bank of Singapore (DBS), as one of the banks that pioneered IR…
Abstract
Purpose
The purpose of this paper is to investigate the engagement with integrated reporting (IR) of the Development Bank of Singapore (DBS), as one of the banks that pioneered IR. Banking industry members face critical sector-specific issues regarding the use of capitals, especially the disclosure of relational and natural capital-related information, and reporting of the outcomes of capitals. This study examines an innovative approach to accounting for multiple capitals adopted by DBS during its journey toward IR.
Design/methodology/approach
This empirical research follows the case study method, using semi-structured interviews with DBS’s managers, and analyzing reports and other documentation.
Findings
The authors find that DBS re-conceptualizes, re-categorizes and measures multiple capitals as a form of non-financial value using the balance sheet approach to make visible the interactions and potential tensions (trade-offs) among capitals.
Research limitations/implications
Case studies are best used to understand a specific context, so the findings of this study cannot be generalized statistically. However, the study does provide insights into the banking industry that may be applicable to other organizations.
Practical implications
The categorization and reporting of multiple capitals using the balance sheet approach and the integration of the balanced scorecard are innovative operationalizations of the International <IR> Framework.
Originality/value
This study provides an innovative approach to the categorization and measurement of multiple capitals. It represents a step toward reducing the gap between research and practice on IR.
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Andressa Kelly da Silva Nunes, Sandra Naomi Morioka and Ivan Bolis
This study aims to analyze the challenges startups face in implementing business models for sustainability. In particular, the research question of this study is: How do the…
Abstract
Purpose
This study aims to analyze the challenges startups face in implementing business models for sustainability. In particular, the research question of this study is: How do the challenges faced by startups affect business models for sustainability in the context of an emerging country?
Design/methodology/approach
Startups are increasingly incorporating ways to thrive in a competitive environment with innovative sustainable business models, a key factor for competitive advantage and corporate sustainability. This paper analyses startups’ challenges in adopting business models for sustainability through a case study in two startups, using the sustainable value exchange matrix (SVEM) tool through workshops, to carry out the diagnosis of these challenges.
Findings
The barriers and challenges of business models for sustainability in startups were found in different categories, where the main barriers are linked to the institutional category, the organizational and the market and sales culture. Thus, the authors concluded that there is a need to reformulate public policies and to have greater participation of the actors involved.
Research limitations/implications
The main limitation of the research is the number of case studies (only two), which makes it difficult to generalize the results.
Practical implications
The research presents two major contributions. First, through the case studies, it is possible to verify that the barriers and challenges in business models for sustainability have relevance for startups. The second contribution is the adaptation of SVEM in conducting the debate by incorporating the barriers and challenges in value creation and delivery system.
Social implications
This study contributes to the business models for sustainability literature to better understand the challenges startups face in practice and can serve as insights to help overcome them. As this is an empirical study, the information gathered can help create metrics and public policies to achieve the United Nations sustainable development goals.
Originality/value
The present research has as originality the analysis of the challenges in startups in implementing business models for sustainability and their relationships with the value proposition, capture and creation, as well as and delivery (adapted to the challenges found in the literature) applying the SVEM tool proposed by Morioka et al. (2018).
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Enrico Baraldi and Johnny Lind
A highly relevant issue for management is the measurement and appropriation of jointly created value. The existence of relationships is challenging for accounting and for the…
Abstract
A highly relevant issue for management is the measurement and appropriation of jointly created value. The existence of relationships is challenging for accounting and for the sharing and appropriation of values. Interdependences that characterise business relationships make value measurement and appropriation problematic. Yet, measuring value is important for orienting managers’ behaviours, and it affects the solutions implemented in business relationships on which value creation and appropriation depend. Values are created in relationships because resources are combined through relationships. Defining clear boundaries is important to produce measurements, but setting boundaries in interdependent relationships and networks is always problematic, and to some extent, arbitrary.
Business relationships have a number of soft and multiple effects that are difficult to measure and consequently difficult to divide among the involved business actors creating specific appropriation problems. An interesting development is underway as companies attempt to develop special tools for handling these problems.
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Francisco Layrisse, Ezequiel Reficco and Andrés Barrios
The purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.
Abstract
Purpose
The purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.
Design/methodology/approach
We draw on a multiple case study of two social enterprises –one nonprofit (Aravind Eyecare) in Asia and one for-profit in Latin America (Biodent)– to analyze the implications of applying the value architecture of a freemium BM to social enterprises.
Findings
The freemium BM departs from standard practice when applied in social enterprises. Meaningful differences include the feasibility/desirability of converting free users to paying ones, the presence of significant variable costs –which requires balancing the ratio of free and paying customers– and the use of nontraditional pricing schemes to enhance value capture. The social freemium BM can increase scalability, value creation and value capture. Under this model, “beneficiaries” can be more than passive recipients of value and contribute to a venture's success in various ways –such as lowering its operational costs or enhancing its value proposition toward third parties.
Originality/value
While in the past years commercial enterprises have been disrupted by the emergence of freemium platforms, the social enterprise field has barely taken notice. We extract lessons and implications from this paradigmatic change for the theory and practice of business model innovation in social enterprises, of particular relevance to Latin America, where social and environmental disequilibria remain a recurring feat.
Propósito
Identificar cómo el modelo de negocio freemium impacta el desarrollo de un emprendimiento social.
Diseño/metodología/enfoque
realizamos un estudio de caso múltiple de dos emprendimientos sociales –uno sin fines de lucro (Aravind Eyecare) ubicada en Asia y el otro con fines de lucro ubicada en América Latina (Biodent)– para analizar las dinámicas qué genera el modelo de negocio freemium en la arquitectura de valor de los emprendimientos sociales.
Hallazgos
Cuando el modelo freemium se aplica a un emprendimiento social, surgen diferencias respecto de la práctica estándar en empresas comerciales. Estas diferencias incluyen la viabilidad/conveniencia de convertir a los usuarios gratuitos en clientes de pago, la presencia de costos variables significativos –que imponen la necesidad de equilibrar la proporción de usuarios gratuitos y clientes de pago– y el uso de esquemas de precios no tradicionales para mejorar la captura de valor. El modelo freemium social puede contribuir a facilitar la escalabilidad, así como la creación y captura de valor de un emprendimiento social. Bajo este modelo, los “beneficiarios” pueden ser más qué receptores pasivos de valor y contribuir al éxito de la empresa de diversas formas –por ejemplo, reduciendo sus costos operativos o mejorando su propuesta de valor.
Originalidad/valor
En las últimas dos décadas, varias industrias sufrieron grandes disrupciones por el surgimiento de modelos de negocio basados en plataformas, como el freemium. Sin embargo, hasta ahora el campo del emprendimiento social parecía no haber tomado nota de este cambio paradigmático. En este artículo, extraemos lecciones e implicaciones de este cambio para la teoría y la práctica de los emprendimientos sociales. Nuestros hallazgos son particularmente relevantes para América Latina, en donde subsisten profundos déficits socio-ambientales.
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The purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research.
Abstract
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.
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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.
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Over the last several decades, the question of the import of firms’ social and environmental responsibilities has taken center stage. While once companies’ obligations to…
Abstract
Over the last several decades, the question of the import of firms’ social and environmental responsibilities has taken center stage. While once companies’ obligations to stakeholders and to sustainability were framed as normative issues, these criteria are taking on instrumental worth. Most recently, advocates of Responsible Investment have suggested that firms’ environmental, social, and governance (ESG) performance possesses critical implications for companies’ creation and capture of long-term economic value. Employing textual analysis, this chapter analyzes the accounting, rating, and reporting standards that have been developed by which companies are expected to measure, communicate, and be evaluated for their ESG performance. Drawing from literature on organizational imprinting, this chapter finds significant differences across these standards, in terms of the determination of materiality and firms’ desired stakeholder relations. The divergence present in the meaning and measure of Responsible Investment across these standards possesses important strategic implications for managers in this field who must consider the implications of each guideline for internal and external purposes.
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Amal Abuzeinab, Mohammed Arif, Mohd. Asim Qadri and Dennis Kulonda
Green business models (GBMs) in the construction sector represent the logic of green value creation and capture. Hence, the call to examine GBMs is growing ever louder. The aim of…
Abstract
Purpose
Green business models (GBMs) in the construction sector represent the logic of green value creation and capture. Hence, the call to examine GBMs is growing ever louder. The aim of this paper is to identify benefits of GBMs by adopting five essential elements of the GBM from the literature: green value proposition; target group; key activities; key resources (KR); and financial logic.
Design/methodology/approach
In all, 19 semi-structured interviews are conducted with construction sector practitioners and academics in the UK. Thematic analysis is used to obtain benefits of GBMs. Further, the interpretive ranking process (IRP) is used to examine which elements of the GBM have a dominant role in providing benefits to construction businesses.
Findings
The benefits are grouped into three themes: credibility/reputation benefits; financial benefits; and long-term viability benefits. The IRP model shows that the element of KR is the most important when evaluated against these three benefit themes.
Practical implications
Linking GBM elements and benefits will help companies in the construction sector to analyse the business case of embracing environmental sustainability.
Originality/value
This research is one of the few empirical academic works investigating the benefits of GBMs in the construction sector. The IRP method is a novel contribution to GBMs and construction research.
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