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1 – 10 of over 190000David 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.
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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).
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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.
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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…
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.
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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…
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.
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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…
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.
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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.
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.
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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…
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.
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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…
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.
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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…
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.
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