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Book part
Publication date: 11 December 2023

David J. Teece and Henry J. Kahwaty

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is…

Abstract

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.

An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.

Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.

The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Article
Publication date: 15 December 2023

JinHyo Joseph Yun, Xiaofei Zhao, Giovanna Del Gaudio, Valentina Della Corte and Yuri Sadoi

As the restaurant industry is a representative service industry, long-living restaurants could carry the secrets of key factors that are needed to establish “sustainable business

Abstract

Purpose

As the restaurant industry is a representative service industry, long-living restaurants could carry the secrets of key factors that are needed to establish “sustainable business models” in service industry. The authors aim to answer the following question: How can restaurants innovate business model sustainably to last for more than 50 years through the era of digital transformation with open innovation dynamics?

Design/methodology/approach

Five long-lived restaurants from Daegu, Kyoto and Naples were selected separately by using the snowballing approach, and were analyzed through in-depth interviews and participatory observations.

Findings

Restaurants in Daegu have lived long mainly because of adding value to their recipes. Restaurants in Kyoto have lived very long, primarily by decoupling their original services, ingredients and recipes. Restaurants in Naples have enjoyed long lives by coupling or recoupling their ingredients, services and recipes.

Originality/value

The implication is that long-living restaurants or service firms could maintain their own sustainability by dynamically circling the following services: (1) adding and boning recipes (focusing on special menus or products), (2) coupling of ingredients (creative recoupling of original ingredients) and (3) decoupling of services (disconnecting the value chain and rebalancing it).

Details

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

Keywords

Article
Publication date: 12 September 2023

Xiaoying Tang, Mengjun Wang and Hui Li

The purpose of this study is to examine whether service innovation capability can affect firm performance in the architecture, engineering and construction (AEC) context, and, if…

Abstract

Purpose

The purpose of this study is to examine whether service innovation capability can affect firm performance in the architecture, engineering and construction (AEC) context, and, if so, how.

Design/methodology/approach

This study developed a theoretical framework illustrating the performance impacts of service innovation capability through the business model in the AEC sector. An empirical study was conducted to test the hypotheses using 374 valid questionnaires using structure equation model (SEM).

Findings

The results verify that service innovation capability positively influences firm performance mediated by the business model. As to the direct effect, service innovation capability is positively associated with firm performance.

Originality/value

This study highlights how service innovation capability affects performance and reveals the underlying mechanism.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 30 September 2022

Wen-Hong Chiu, Zong-Jie Dai, Hui-Ru Chi and Pei-Kuan Lin

This study aims to explore the innovative strategies of business model of the free-to-fee switch, the relationship between the business model innovation and customer knowledge and…

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Abstract

Purpose

This study aims to explore the innovative strategies of business model of the free-to-fee switch, the relationship between the business model innovation and customer knowledge and further develop a conceptual model.

Design/methodology/approach

This study adopts a multiple case study method with abductive research logic, following the replication logic to select samples. A total of eight outstanding companies with altogether 312 free-to-fee switch events were selected from 1998 to 2021.

Findings

A strategic matrix with four innovative business models for the free-to-fee switch is generated. The parallelism between the models and customer knowledge orientations is also found. Further, the study develops the conceptual model regarding customer knowledge orientation as a key mediation.

Research limitations/implications

The study highlights the conceptualization definition of customer knowledge orientation and its mediation effect to the business model innovation of free-to-fee switch, which is a new issue compared with previous research. Furthermore, it reveals that there exists organizational ambidexterity, which brings a new definition of customer knowledge orientation.

Practical implications

This study suggests how to integrate customer knowledge orientations to support the marketing process of the business model of free-to-fee switch. It also proposes a specific mechanism to conduct the free-to-fee switch with the introduction of four innovative strategic models and eight evolutional paths.

Originality/value

This study creatively proposes the strategic matrix and the conceptual model of business model innovation of free-to-fee switch. Moreover, a new conceptual definition of customer knowledge orientation is specified.

Details

Journal of Knowledge Management, vol. 26 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 6 June 2016

Hao-Chen Huang

In recent years, the freemium model is popular with online users in internet markets. Regarding operation, the characteristics of the freemium business model are the focus of all…

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Abstract

Purpose

In recent years, the freemium model is popular with online users in internet markets. Regarding operation, the characteristics of the freemium business model are the focus of all websites and software managers. However, research lacks the literature on the development of the dimensions of the freemium business model and validation of measurement. Hence, the purpose of this paper is to probe into the development of the dimensions of the freemium business model and validate the measurement.

Design/methodology/approach

First, by related literature and practical observations, this study reorganizes the characteristics of the freemium business model and develops dimensions and items of the freemium business model to design the items of scale. The development of scale is based on the procedures of standardized testing, including draft, expert consultation, and pretest and test analysis, in order to test the reliability and validity of the scale. This study treated online users as the questionnaire subjects and analyzed 1,016 valid questionnaires.

Findings

Regarding empirical analysis, confirmatory factor analysis is conducted to test the internal quality of the model, including composite reliability, convergent validity, and discriminant validity. According to the empirical result, the freemium business model can be divided into basic free tier, two-sided markets, revenue sharing, service convenience, and network effect, which are the key factors of users’ selection of freemium products or services. This study developed 25 items of scale for the freemium business model.

Originality/value

Finally, this study plans to develop a scale of the freemium business model, which can serve as an appropriate measurement tool to measure the freemium business model, as well as help websites and software developers to plan or execute the introduction of freemium products and services. Hence, it can develop and design products and services meeting the needs of online consumers. Website and software managers can adjust their products and services to satisfy online users’ needs.

Details

Internet Research, vol. 26 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 14 June 2011

Teea Palo and Jaana Tähtinen

This study seeks to identify the generic elements of a business model in the field of technology‐based services and uses those elements to build a networked business model. A…

3369

Abstract

Purpose

This study seeks to identify the generic elements of a business model in the field of technology‐based services and uses those elements to build a networked business model. A networked business model reflects a situation when it is impossible for a single company to govern all the relevant resources and activities needed in developing, producing, and marketing technology‐based services.

Design/methodology/approach

The empirical part of the paper presents a qualitative futures study that employs the Delphi method and scenario planning.

Findings

The paper presents a framework describing the core elements of a networked business model, and shows how it can be applied in developing business model scenarios for technology‐based services.

Originality/value

By examining the business model from a network perspective, the study creates conceptual tools for both researchers and managers to describe, plan and develop future business models.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 13 April 2015

Per Andersson and Lars-Gunnar Mattsson

– The purpose of this paper is to develop a new conceptual framework that reflects network dynamics in Internet of Things (IoT)-enabled service innovation processes.

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Abstract

Purpose

The purpose of this paper is to develop a new conceptual framework that reflects network dynamics in Internet of Things (IoT)-enabled service innovation processes.

Design/methodology/approach

Based on literature on service innovations, business networks and IoT, dynamic concepts are selected. Aided by information about an evolving case “The connected vehicle”, propositions about interaction between the variables in the framework are formulated.

Findings

A conceptual framework consisting of four interacting variables: overlapping, intermediating, objectification of actors and business modelling is developed, linking several streams of research. Propositions are motivated and issues for further research questions formulated.

Research limitations/implications

The framework may stimulate further research on IoT-enabled service innovations.

Practical implications

Understanding network dynamics for developing and implementing business models for service innovations.

Originality/value

The conceptual framework provides an original contribution to understanding IoT-enabled service innovations.

Details

IMP Journal, vol. 9 no. 1
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 5 February 2018

Giulia Nardelli and Risto Rajala

The purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client…

1411

Abstract

Purpose

The purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client relationships in facilities management (FM) services.

Design/methodology/approach

This study of FM services in Denmark consists of an explorative case study and three case studies of FM clients. Both phases, related and overlapping, involved collection and analysis of in-depth, semi-structured interviews and archive data.

Findings

Findings show that business model innovation entails interorganisational collaboration across different phases of the innovation process. The research demonstrates that external orientation within FM service ecosystems involves both a reaction to changes in the external environment and the proactive involvement of stakeholders throughout business model innovation.

Research limitations/implications

The selection of business model innovation processes was limited to the Danish context. The sample, although heterogeneous and representative, represented only a fraction of the total population, which may have excluded processes of business model innovation that contradict the research.

Practical implications

This paper suggests that by observing the business models of the value network over time, organisations could learn from the interdependencies between intra- and interorganisational stakeholders, thereby supporting the monitoring of risks and uncertainties as well as the anticipation of potential consequences of changes in the ecosystem.

Originality/value

This paper introduces new thinking on the subject of business model innovation to the context of FM. It presents the external orientation of FM business models as a way to combine planned and emergent business model innovation through interorganisational collaboration and value creation in FM ecosystems.

Details

Journal of Facilities Management, vol. 16 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 11 February 2014

Anton Joha and Marijn Janssen

Shared services are often viewed as a single type of business model but in reality, shared services can be organized in different ways. The goal of this research is to understand…

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Abstract

Purpose

Shared services are often viewed as a single type of business model but in reality, shared services can be organized in different ways. The goal of this research is to understand the factors influencing the shaping of shared services business models.

Design/methodology/approach

Inductive case oriented research is conducted by investigating three different types of shared services arrangements using Al-Debei and Avison's unified framework for business models.

Findings

A total of 12 different factors were identified that influence the shape of shared services business models including the path dependency, legal/regulatory driver, customer orientation, target segment, strategic importance, ICT/business orientation, IT governance structure, change strategy, degree of outsourcing, integration potential, economic rationale and the business value.

Research limitations/implications

The level of customization and standardization can influence the potential benefits that can be gained from bundling services and it is important to understand the factors that influence this dimension.

Practical implications

The appropriate configuration of these factors can be helpful to design shared services arrangements with a balanced degree of standardization and customization. The choices regarding the configuration of these factors could result in a more or less effective functioning business model and could influence the governance processes and mechanisms that need to be put in place.

Originality/value

There is no prior research that addresses the shared services business model from a holistic perspective and this research provides a first conceptual model for shared services business models.

Details

Strategic Outsourcing: An International Journal, vol. 7 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 3 April 2018

Maicon Gouvêa de Oliveira, Glauco Henrique de Sousa Mendes, Andrei Aparecido de Albuquerque and Henrique Rozenfeld

The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It…

1193

Abstract

Purpose

The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country.

Design/methodology/approach

The research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice.

Findings

Results described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments.

Originality/value

This paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

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