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Article
Publication date: 18 September 2024

Marcos Antonio de Araujo Ventura and Dimária Silva e Meirelles

This study examines the use of a dynamic value-based approach to analyze the business model structuration of smart service providers in Brazil, mapping their value creation…

Abstract

Purpose

This study examines the use of a dynamic value-based approach to analyze the business model structuration of smart service providers in Brazil, mapping their value creation, configuration and appropriation strategies, and determining how well-defined their current business models are.

Design/methodology/approach

This is a qualitative study based on semi-structured interviews with entrepreneurs (or CEOs and directors of technology) of seven business ventures in three different phases of business model structuration: (1) academic: companies or innovation and research centers linked to universities; (2) startups: technology-based companies originating from the technological needs of clients, be they new branches of the traditional business of incumbents or new entrants and (3) autonomous service providers whose offerings are related to master’s or doctoral projects.

Findings

We propose a typology of business model structuration with four stages. At first (individual or initial business model), albeit with high skilling of owners, only manual or adaptation services are offered. In the second stage (platform business model), although services offered are oriented toward the entire process automatization of the client (Factory integrated), technologies are restricted to the client company (or even one department) and these clients' needs are mainly data processing and connectivity. In the third stage (scaling digital business model), although the services offered are oriented toward greater digitalization through an entire array of field devices connected to the internet (IoT) and organized in a more formalized structure, the business model is still being constructed, companies in this stage are mainly startups. In the fourth stage (innovation ecosystem business model), the entire manufacturing process is digitized, with integration and network connectivity, both between service providers and the extended supply chain of their clients, and new technologies are customized and developed through the interaction of a whole innovation ecosystem.

Research limitations/implications

Mapping value-based strategies aids in understanding business model structuration in Industry 4.0. Future research should focus on parameterizing the dimensions founded of each value strategy.

Originality/value

This study advances the comprehension of the business model in |Industry 4.0 by providing a value-based strategy perspective of business model structuration. Practically, by focusing on smart service providers, it contributes to a greater understanding of smart service providers in Brazil and their strategic challenges.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 20 September 2024

Yuntao Wu, Along Liu and Jibao Gu

How does business model design play a role in enabling manufacturing firms’ services? This study aims to investigate the impact of two distinct types of business model design…

Abstract

Purpose

How does business model design play a role in enabling manufacturing firms’ services? This study aims to investigate the impact of two distinct types of business model design, namely, efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), and their effects in balanced and imbalanced configurations, on two types of services: product- and customer-oriented services.

Design/methodology/approach

Using matched survey data of 390 top managers and objective performance data of 195 Chinese manufacturing firms, this study uses hierarchical regression, polynomial regression and response surface analysis to test the hypotheses.

Findings

The results show that while EBMD positively affects product-oriented services, NBMD positively affects customer-oriented services. Both types of services exert a significant influence on firm performance. Furthermore, the degree of product- and customer-oriented services increases with an increasing effort level with a balance between EBMD and NBMD. Asymmetrical, imbalanced configuration effects reveal that the degree of product-oriented services is higher when the EBMD effort exceeds the NBMD effort, and the degree of customer-oriented services is higher when the NBMD effort exceeds the EBMD effort.

Originality/value

This study enriches the understanding of designing business models to facilitate service growth in manufacturing firms, ultimately benefiting firm performance. In addition, exploring balanced and imbalanced configurations of EBMD and NBMD offers new insights into business model dual design research.

Details

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

Keywords

Open Access
Article
Publication date: 21 June 2024

Brenda Nansubuga and Christian Kowalkowski

Subscription offerings are being hailed as the next service growth engine for companies in both business-to-consumer (B2C) and business-to-business (B2B) markets. The study…

Abstract

Purpose

Subscription offerings are being hailed as the next service growth engine for companies in both business-to-consumer (B2C) and business-to-business (B2B) markets. The study analyzes how a manufacturing firm can develop and implement a scalable service-based subscription business model for B2C and B2B customers alongside its existing product-centric model.

Design/methodology/approach

A longitudinal case study is conducted, drawing on 25 in-depth interviews with company executives and dealers in key European markets.

Findings

The study outlines an iterative process model for subscription business model innovation. It reveals key events and decisions taken in developing, implementing, and scaling the new business model and how internal and external tensions involving intermediaries arose and were mitigated during the four stages of the process.

Research limitations/implications

The findings highlight the dynamics of business model innovation processes and underscore the importance of organizational learning, collaborative relationships with channel partners, and strategic talent acquisition during business model innovation.

Practical implications

The findings suggest how product-centric firms can implement new service business models alongside existing product models and what this means for partner and customer journey management.

Originality/value

While servitization research predominantly concerns B2B manufacturers, B2C research focuses on digital subscription contexts. The study bridges this divide by investigating the move to subscriptions in both markets.

Details

Journal of Service Management, vol. 35 no. 6
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 17 May 2024

Gjoko Stamenkov

The purpose of this article is to identify the role of cloud computing services in business continuity and disaster recovery plans and delineate responsibilities for their…

Abstract

Purpose

The purpose of this article is to identify the role of cloud computing services in business continuity and disaster recovery plans and delineate responsibilities for their execution. In recent times, there has been a huge upsurge in the usage of cloud service models such as infrastructure-as-a-service, platform-as-a-service, software-as-a-service and disaster recovery-as-a-service. However, in case of an emergency event or during contract negotiations, a question might arise as to who should be accountable and responsible for the content and execution of recovery plans. The main stakeholders in this scenario are cloud service providers and cloud consumers.

Design/methodology/approach

After a review of academic articles, standards, guidelines and vendor documentation, a proposal for assigning accountability and responsibility for business continuity and disaster recovery plans is presented, based on the RACI (responsible, accountable, consulted and informed) matrix. In this regard, a critical information infrastructure protection plan, a disaster recovery plan, an information systems contingency plan and a business continuity plan have been elaborated on in the article.

Findings

RACI matrices are presented for three general cloud service models and for three DRaaS models (managed, assisted and self-service). Accountability and responsibilities depend on the deployed cloud service model and the roles of cloud service providers and cloud consumers.

Originality/value

The proposed model for accountability and responsibility assignment provides a guideline for the allocation of responsibilities to roles not only during recovery but also during contract negotiations between cloud service providers and cloud consumers. By delving into business continuity and disaster recovery processes and activities, similar yet nuanced RACI matrices should be developed, as presented in this paper. They need to be customised for the specific context.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 18 December 2023

Christian Grönroos

In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by…

1168

Abstract

Purpose

In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by adopting service logic (SL) and developing strategies and organizational resources and processes to create a service-centric business model called servification, defined as the process of identifying and developing strategies and organizational resources and processes to create a business model based on SL.

Design/methodology/approach

This article is conceptual and extends servitization in the direction of service-centric business model innovation by drawing on and extending SL.

Findings

The article defines service as a higher-order concept according to SL and develops the concept of a helping strategy as the foundation for a service-based business model. Further, it develops a typology of organizational resources and processes that must be developed for the emergence of such a business model.

Research limitations/implications

Since this article is the first to conceptually develop servification, more both theoretical and empirical research is naturally required. The development of servification takes servitization in the direction of service-based business model innovation and also contributes to the research on SL.

Practical implications

Servification enables the development of service-centric strategies and organizational resources and processes and service-based business models.

Originality/value

This article is the first to adopt SL in studies of business model innovation.

Details

Journal of Service Theory and Practice, vol. 34 no. 3
Type: Research Article
ISSN: 2055-6225

Keywords

Abstract

Details

Understanding Products as Services: How the Internet and AI are Transforming Product Companies
Type: Book
ISBN: 978-1-83797-824-3

Article
Publication date: 10 July 2024

Lakshminarayana Kompella

External pressures, like the pandemic, influence industry and academia. ICT can assist in creating service innovations and better responses to external pressures. When higher…

Abstract

Purpose

External pressures, like the pandemic, influence industry and academia. ICT can assist in creating service innovations and better responses to external pressures. When higher education institutes combine service innovations with an appropriate business model, they can better understand educational transformations and marketing and aim for productivity, effectiveness, and sustainability. This paper aims to provide insights into transformations by organizing innovations and business models and creating a positive influence.

Design/methodology/approach

This paper uses a case study method to examine the educational transformation in its settings. The method followed is direct non-participant observation, and the selected case is a marginalized business school of an Indian public institution. Combining observation and case study provides deeper insights into individuals/groups in a social context. The direct non-participant allows the researcher to get closer to the field of research while retaining the position of an outsider.

Findings

This paper defines service innovations with four conceptualizations – ICT, socio-techno-organization, demand, and orchestration. The findings provide insights into business models and educational marketing, with three suggestions for sustainability and economic growth. The suggestions are (1) operationalization based on incremental, iterative, and spiral expansion for the first two, (2) orchestrating educational marketing and value elements for a value-driven business model, and (3) social reengineering based on human values and leadership commitment.

Research limitations/implications

It uses a single marginalized negative case study and is not bereft of limitations. Selecting positive cases representing geographically dispersed units, hybrid lectures, and diverse participants provides further insights into the operationalization of ICT and socio-techno-organizational aspects.

Practical implications

As educational institutions decide the appropriate strategy for their institution, the findings provide practitioners with insights to create value, expansion, growth, and insights into educational marketing.

Originality/value

The three steps in findings and their contribution to economic growth and sustainability enhance the body of knowledge – transformations in educational institutions. It provides insights into business models and educational marketing.

Details

International Journal of Educational Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-354X

Keywords

Book part
Publication date: 4 July 2024

Lidija Weis and Gordana Nikolić

This chapter elucidates the significance of innovation in fostering green entrepreneurship and cultivating a resilient, eco-friendly economy. It underscores the three categories…

Abstract

This chapter elucidates the significance of innovation in fostering green entrepreneurship and cultivating a resilient, eco-friendly economy. It underscores the three categories of innovation available to green entrepreneurs: product innovation, process innovation, and business model innovation. These avenues empower green entrepreneurs to craft sustainable products and services, enhance operational efficiency, and establish novel markets for eco-friendly goods and services. This chapter also explores green entrepreneurs’ challenges, including lack of funding, limited market demand, and regulatory barriers, provides strategies to overcome these challenges, and discusses the role of public–private partnerships (PPPs) and cross-sector collaboration in promoting green entrepreneurship and sustainable development. It also highlights the benefits of these collaborations, such as access to funding and resources, technical expertise, market development, networks, collaboration, and shared knowledge and expertise. Finally, this chapter emphasizes that green entrepreneurship can be supported through partnerships that combine the strengths and resources of multiple sectors, such as the government, private industry, non-profits, and academia. Ultimately, this chapter provides a roadmap for green entrepreneurs to overcome challenges and leverage collaborations to create sustainable products and services, improve efficiency, and develop new markets for sustainable goods and services.

Details

Entrepreneurship and Development for a Green Resilient Economy
Type: Book
ISBN: 978-1-83797-089-6

Keywords

Article
Publication date: 24 September 2024

Julia Yonghua Wu, Chris Akroyd and Frederick Ng

This paper aims to examine the management controls that support (and fail to support) a craft brewery’s servitization journey from start-up, through growth, to maturity. It…

Abstract

Purpose

This paper aims to examine the management controls that support (and fail to support) a craft brewery’s servitization journey from start-up, through growth, to maturity. It enriches our understanding of how management controls can facilitate the discovery of a service-identity that provides the foundation for servitization.

Design/methodology/approach

Drawing on in-depth interviews, fieldwork and secondary data analyses, this paper reports on a longitudinal case study of a craft brewery. The authors trace the case company’s servitization journey using a service-dominant logic theoretical perspective. This perspective focuses us on how the value of a product is cocreated with customers, rather than being created by the firm and then distributed.

Findings

The study found that many management controls emerged at the craft brewery from start-up to maturity. Some management controls supported a goods logic, while others supported a service logic. The findings highlight how people and cultural controls in particular enabled the company to move toward a service logic focused on servitization. These management controls informed the evolution of offerings, structure reconfiguration and resources at the craft brewery necessary to support servitization.

Originality/value

Studying a craft brewery contributes an alternative type of manufacturing context and shows how service-identity features such as craftiness, collectiveness, neolocalism and innovation affect a company’s servitization journey.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 26 February 2024

Beini Liu, Zhenyan Li and Yaoyao Fu

Servitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of…

Abstract

Purpose

Servitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of servitization on manufacturer performance follows a linear or a curvilinear relationship. However, the understanding of the underlying mechanisms between servitization and manufacturer financial performance remains limited. This paper aims to examine the non-linear relationship between servitization and manufacturer performance as well as the mediating process and boundary condition associated with this relationship.

Design/methodology/approach

Drawing on resource-advantage theory, this paper proposes a theoretical model of the U-shaped relationship between servitization and the financial performance of equipment manufacturers. Panel data of 248 listed equipment manufacturers in China during the period of 2010–2020 are used to test each hypothesis through the ordinary least square method.

Findings

The empirical results indicate that servitization follows a U-shaped relationship with service business focus and the financial performance of equipment manufacturers. Service business focus mediates this U-shaped relationship between servitization and financial performance, and digital technology application moderates this relationship.

Originality/value

This paper pioneers the unraveling of the potential mechanism that can explain the curvilinear relationship between servitization of manufacturers and financial performance. This mechanism is the focus of the service business, which is theoretically delineated and empirically tested. Furthermore, digital technology application enables manufacturers to achieve service business focus more effectively in the process of servitization. Thus, this study addresses the call for research on digital servitization.

Details

Journal of Service Theory and Practice, vol. 34 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

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