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1 – 10 of over 6000Hannu Saarijärvi, Christian Grönroos and Hannu Kuusela
The purpose of this study is to explore and analyze the implications of reverse use of customer data for service-based business models. In their quest for competitive advantage…
Abstract
Purpose
The purpose of this study is to explore and analyze the implications of reverse use of customer data for service-based business models. In their quest for competitive advantage, firms traditionally use customer data as resources to redesign and develop new products and services or identify the most profitable customers. However, in the shift from a goods-dominant logic toward customer value creation, the potential of customer data for the benefit of the customer, not just the firm, is an emerging, underexplored area of research.
Design/methodology/approach
Business model criteria and three service examples combine to uncover the implications of reverse use of customer data for service-based business models.
Findings
Implications of reverse use of customer data for service-based business models are identified and explored. Through reverse use of customer data, a firm can provide customers with additional resources and support customers’ value-creating processes. Accordingly, the firm can move beyond traditional exchanges, take a broader role in supporting customers’ value creation and diversify the value created by the customer through resource integration. The attention shifts from internal to external customer data usage; customer data transform from the firm’s resource to the customer’s, which facilitates the firm’s shift from selling goods to supporting customers’ value creation.
Originality/value
Reverse use of customer data represent a new emerging research phenomenon; their implications for service-based business models have not been explored.
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Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing…
Abstract
Purpose
Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.
Design/methodology/approach
An inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.
Findings
The paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.
Practical implications
The study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.
Social implications
Appropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.
Originality/value
The pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.
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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…
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.
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Anjala S. Krishen, Jesse L. Barnes, Maria Petrescu and Shaheena Janjuha-Jivraj
This interdisciplinary study aims to analyze how service organizations communicate sustainable beliefs in their social media narratives and use them to generate brand awareness…
Abstract
Purpose
This interdisciplinary study aims to analyze how service organizations communicate sustainable beliefs in their social media narratives and use them to generate brand awareness, customer recognition and ongoing demand for sustainable service.
Design/methodology/approach
A two-phase exploratory analysis of 10,342 tweets from 2019–2020 was conducted by sustainable global corporations to identify best practices for their social media teams operating within a service-based business model. First, the significant themes were identified using an unguided machine learning approach of three types of firms: services, goods and mixed. Next, the full set of tweets with linguistic sentiment analysis was analyzed followed by a deeper view of the services-based organizations based on their strategic focus (business-to-business [B2B] versus mixed).
Findings
The findings indicate that tweets that appear to create the highest customer engagement are characterized as having high levels of analytical language, high clout (i.e. are socially relevant), a positive tone, a high number of words and a high number of words per sentence. On the other hand, having complex language in terms of six-letter words does not seem to associate with customer engagement. The last level of analysis shows that B2B services-based corporations with positive tone and higher word count exhibit higher levels of retweets. Implications include providing rational and informational tweets to increase engagement and highlight societal relevance.
Originality/value
Climate change has negative consequences on human and physical capital, and ecosystems across the globe. This study provides specific recommendations for how services corporations can increase their sustainable communications and actions.
Practical implications
The key implication of our research is that corporations must strategically design social media narratives about climate change as part of their online branding and communications process.
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Fabio Cassia, Marta Maria Ugolini, Nicola Cobelli and Liz Gill
To counteract increasing competition and satisfy evolving customers’ needs, many firms are changing the positioning of their product concepts, from being product-based into…
Abstract
Purpose
To counteract increasing competition and satisfy evolving customers’ needs, many firms are changing the positioning of their product concepts, from being product-based into service-based. Despite the increasing relevance of this shift, it is still unclear if this choice has a differential impact on customer perceived value. The purpose of this paper is to analyze customer perceived value for a firm’s product concept being positioned either as service-based or goods-based.
Design/methodology/approach
An experiment was conducted using stimuli for two different product categories (hearing aids and bicycles) and measuring customers perceived value through the PERVAL scale’s four dimensions (quality value, emotional value, price value and social value).
Findings
The results show that presenting the product concepts as service-based instead of good-based can enhance customer perceived value (in particular: quality, emotional and social value), but only if customers are not familiar with the product.
Research limitations/implications
The study is based on one experiment and considers only two product categories. Further studies are needed to corroborate findings.
Practical implications
The findings suggest that, under specific circumstances, the firm may improve customers’ attitude toward the product by emphasizing a service-based instead of a good-based positioning of the product concept.
Originality/value
To our knowledge, this is the first research to evaluate the effects on customer perceived value of repositioning a product which has been traditionally goods-based (such a hearing aid and a bicycle) into service-based.
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Paolo Gaiardelli and Lucrezia Songini
The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links…
Abstract
Purpose
The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links that allow it to stand out in terms of service delivery and business performance.
Design/methodology/approach
This study applies an inductive qualitative multiple case study approach through the empirical analysis of top-performing Italian service centres operating in the Medium–Heavy Commercial Vehicle sector.
Findings
Research findings underline that the BM components of top performers are consistent amongst each other and with the adopted strategy and make a positive impact on the firm's performance. In particular, top performers are characterised by a solid financial structure based on equity, formalised and flexible organisational structures and processes, clarity in strategic direction and long-term orientation, grounded capabilities, competences and skills, trustful relationships with main service partners and a comprehensive set of managerial mechanisms.
Research limitations/implications
This paper presents some limitations, typical of qualitative research based on case studies. Future works may include other dimensions of performance for identifying top performers, and extend the empirical analysis to different sectors and national contexts.
Originality/value
This paper supports the relevance of contingency theory – particularly the strategy-structure-performance paradigm – in the analysis of the role of a BM in successful servitization strategies of service centres. It highlights that the BMs of the top-performing companies are characterised by some common elements. From a practical perspective, the authors provide insights that can be useful for designing successful service-based BMs for service networks.
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Jacqueline Zonichenn Reis, Rodrigo Franco Goncalves, Epaminondas de Souza Lage and Irenilza de Alencar Nääs
Considering the relevance of innovative business models in the digitally transformed market and the lack of clarity on the internet of services (IoS) contribution for a business…
Abstract
Purpose
Considering the relevance of innovative business models in the digitally transformed market and the lack of clarity on the internet of services (IoS) contribution for a business model deployment in current literature, this study aims to fill this gap by evaluating a business model that converges to an IoS adoption in a direct sale of free-range eggs from farmers to consumers.
Design/methodology/approach
From the bibliographical research regarding the IoS and business model, the authors developed an IoS-based model framework. The framework has been evaluated in a real business scenario by using a single case study through an interview with the entrepreneur and documental analysis.
Findings
As the main result, a framework with the attributes can be considered a tool for an IoS-based business model deployment. The case study concluded that the business is aligned with the IoS adoption, and the framework presents adherence to it.
Research limitations/implications
The case study was limited to only one company owing to the IoS’s novelty and the lack of correlated business models. Although the case study limits to the agriculture field, the proposed framework may be broadly applied.
Originality/value
Considering that the lack of a comprehensive business model causes new businesses to face challenges, it is relevant bringing up the present case study of the IoS-based business model, which correlates these two subjects, still poorly explored in the scientific literature: IoS and business models.
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The purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and…
Abstract
Purpose
The purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and requirements of Industry 4.0, here denoted as Service Management 4.0.
Design/methodology/approach
The study is an in-depth and descriptive case study of the Swedish railway system with specific focus on a railway vehicle maintainer. Public reports, statistics, internal documents, interviews and dialogues forms the basis for the empirical findings.
Findings
The article describes the complex business environment of the deregulated Swedish railway industry. Main findings are in the form of identified business opportunities and new business model propositions for one of the key actors, a vehicle maintainer.
Originality/value
The article provides valuable understanding of business strategy development within complex business environments and how maintenance related business models could be developed for reaching Service Management 4.0.
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Jingsi Zhang, Liangqun Qi, Chengdong Wang and Xichen Lyu
This study aims to examine how servitization affects the environmental and social performance of manufacturing firms.
Abstract
Purpose
This study aims to examine how servitization affects the environmental and social performance of manufacturing firms.
Design/methodology/approach
The hypotheses are tested using fixed-effect panel models based on secondary data of 1,413 manufacturing firms publicly listed in the USA.
Findings
Results show that servitization is positively related to the social performance of manufacturing firms; this positive relationship is more prominent under high levels of human resource slack. However, the impact of servitization on environmental performance depends on the level of absorptive capacity and human resource slack. Servitization improves environmental performance under high levels of absorptive capacity and human resource slack, while this positive impact is insignificant under low levels of absorptive capacity and human resource slack.
Research limitations/implications
The study focuses on the degree (depth) of servitization but ignores the scope of services provided by manufacturing firms (breadth of servitization).
Practical implications
This research suggests that servitization is an effective way of achieving simultaneous improvements in environmental and social performance. However, high levels of absorptive capacity and human resource slack are needed to achieve this goal.
Originality/value
This study contributes to the servitization literature by demonstrating the environmental and social sustainability benefits of servitization. The findings also highlight the crucial role of absorptive capacity and human resource slack on improving environmental and social performance through servitization.
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