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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…

1749

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…

3666

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…

3367

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.

6468

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…

1408

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…

2725

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…

1192

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

Article
Publication date: 16 November 2015

Rozeia Mustafa

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective of…

2038

Abstract

Purpose

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective of business model concepts. The purpose of this conceptual paper is to initiate a debate for future research in the agenda highlighted in this paper.

Design/methodology/approach

In this paper, mobile banking business ecosystem of Easypaisa is used as an illustrative case to understand mobile banking business model innovation in the context of business ecosystem and activity system perspective.

Findings

Based on Porter’s view of mobile financial service (MFS) industry, it is suggested that patterns of business model innovation can be explained through business ecosystem and activity system. The notion of business model innovation can also be explained through integrated value chain of mobile network operator and its partners in the supply chain of MFS.

Research limitations/implications

This paper provides preliminary overview of the exiting academic literature on business model innovations, business ecosystem and activity system in the in the context of value network. Since this is only a literature review paper, therefore, no primary data have been collected for this case study through interviewing from the relevant people.

Originality/value

So far, no research has been conducted in Pakistan to address business model innovation in mobile banking sector in the context of business ecosystem and activity system perspective.

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 9 February 2010

Anu H. Bask, Markku Tinnilä and Mervi Rajahonka

In recent decades, supply chains have diverged and new types of services and operators have emerged in the logistics sector. The purpose of this paper is to focus on analyzing…

6282

Abstract

Purpose

In recent decades, supply chains have diverged and new types of services and operators have emerged in the logistics sector. The purpose of this paper is to focus on analyzing service strategies and service‐related business models, as well as their modular business processes in logistic services. The aims are to describe these three levels and to match strategic service positioning with business models and modular business processes. Different types of services are analyzed and the analyses are conducted on both the industry and corporate levels.

Design/methodology/approach

The theoretical focus of the paper illustrates frameworks for service strategy, service positioning, business models, and business processes. The corporate level approach aims to describe the efficiency and quality of services and their processes, while the industry level approach focuses on service strategies in an industry and on the organization of business, i.e. business models. A case study is used to illustrate the strategic level divergence in logistic services and to match this with the business model framework and the business process approach.

Findings

The findings show that a match exists between service strategy, business models, and operational level business processes. Standardization, service productization and modularization of services, and also service production structures are useful tools for efficient service production and output.

Originality/value

Companies are currently examining new roles in supply chains and the logistics market. For management, the frameworks presented facilitate analysis of the different options available for the firm in terms of strategic positioning, structural business model portfolio, and modular business processes. Based on the theoretical frameworks, it is possible to evaluate past developments and also predict the future of services.

Details

Business Process Management Journal, vol. 16 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 19 October 2010

Usama Abdulazim Mohamed, Galal H. Galal‐Edeen and Adel A. El‐Zoghbi

The previous generations of implemented B2B e‐commerce hub solutions (e‐Marketplaces) did not successfully fulfil the requirements of buyers and suppliers (“Participants”) in…

2221

Abstract

Purpose

The previous generations of implemented B2B e‐commerce hub solutions (e‐Marketplaces) did not successfully fulfil the requirements of buyers and suppliers (“Participants”) in different business domains to carry out their daily business and online commercial transactions with one another because of their inappropriateness, and lack of flexibility. The limitations of these provided solutions came from a lot of architectural and technological challenges in the provided technical architectures that were used to build these solutions. This research aims to provide a proposed architecture to build integrated B2B e‐Commerce hub solutions. It also aims to make use of bottom‐up/top‐down approaches to building an integrated solution and to resolve the reasons for the failure of previous generations of B2B e‐commerce hubs.

Design/methodology/approach

The research uses the EDI reference model, which is provided by the ISO organization to survey and analyze the challenges of previous generations of B2B e‐Commerce hubs solutions and their architectures. The study develops a proposed solution architecture based on the recent approaches to building IOSs to build a B2B e‐commerce hub solution architecture that can be used to implement vertical B2B e‐commerce hubs (vertical e‐Marketplaces). The paper assesses the capabilities of the proposed solution architecture for building vertical B2B e‐Marketplaces by applying the proposed architecture to the building of a vertical B2B e‐Marketplace for the oil and gas sector in Egypt.

Findings

Previous B2B e‐Commerce hub initiatives failed to extend their products and services to their “Participants”, and required substantial investment and effort from each “Participant” to join such a B2B e‐Commerce hub. The failure of these IOS projects lies in their inability to integrate B2B e‐Commerce networks based on IOS and consequently, they supported very few partners and “Participants”. These IOS approaches did not resolve the existing challenges of B2B e‐Commerce hubs, especially in the realm of interoperability.

Originality/value

The main contribution of the proposed architecture comes from the creation of a clear automatic path between a business requirements layer and a technology layer by combining both Service Oriented Architecture and management requirements in a single framework to provide dynamic products and flexible services. It provides a complete Multi Channel Framework to resolve the interoperability challenges.

Details

Journal of Enterprise Information Management, vol. 23 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

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