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Open Access
Article
Publication date: 30 August 2023

Christoffer Weland Johannes Lindström, Behzad Maleki Vishkaei and Pietro De Giovanni

This study analyzes how tech firms can implement the modern wave of subscription-based business model (SBBM), including value proposition, value creation, value capture and…

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Abstract

Purpose

This study analyzes how tech firms can implement the modern wave of subscription-based business model (SBBM), including value proposition, value creation, value capture and performance. In fact, these elements push tech firms to move from traditional to SBBMs.

Design/methodology/approach

To achieve the objectives of this study, we initially construct a theoretical framework for applying SBBM. Subsequently, we employ qualitative research to examine the current implementation of the subscription-based economy within tech firms.

Findings

A successful SBBM necessitates capturing value through sustainable revenue transactions and revising aspects of the value proposition, creation and capture. Continuous improvement through business value analysis is imperative. Additionally, an agile operations system is vital to address revenue complexities, enable data collection and enhance value proposition, service innovation, churn rate and customer retention, which are essential for SBBM maintenance.

Originality/value

This study delves into how the subscription-based economy is reshaping the business models of tech firms. Beyond exploring the theoretical foundation of this transformative path, this study offers actionable insights on enhancing the value proposition, creation, capture and business value within subscription-based economy frameworks.

Details

International Journal of Industrial Engineering and Operations Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2690-6090

Keywords

Article
Publication date: 25 August 2023

Kali Charan Sabat and Som Sekhar Bhattacharyya

The purpose of this study was to empirically investigate the role of e-service quality factors in predicting e-satisfaction. The study context was spirituality and well-being…

Abstract

Purpose

The purpose of this study was to empirically investigate the role of e-service quality factors in predicting e-satisfaction. The study context was spirituality and well-being over-the-top services. The e-service quality factors consisted of perceived functional completeness, perceived performance, perceived quality of interface and interaction, perceived quality of content and information and perceived quality of customer support. The study goal was to ascertain over-the-top services customers’ behavioral intention toward upgrading to premium subscription and the spread of electronic word of mouth.

Design/methodology/approach

This study was based upon the integrated stimulus-organism-response framework where e-service quality represented the stimulus, e-satisfaction the organism, behavioral intention and electronic word of mouth as the response. The study used a moderated-mediation approach with e-satisfaction as the mediator and the price value of a premium subscription as the moderator. To empirically test the model, the authors collected data from 312 spirituality and well-being over-the-top services users in India. Partial least squares-structured equation modeling was used to analyze the collected data.

Findings

The findings of the study supported the association between e-service quality factors and e-satisfaction while using spirituality and well-being over-the-top service. The results furthermore indicated that satisfied spirituality and well-being over-the-top customers were willing to upgrade to the premium subscription and spread favorable electronic word of mouth. The moderated-mediation study results revealed that the price value of premium subscriptions moderated the relationship between e-service quality and e-satisfaction but did not moderate the relationship between e-satisfaction and behavioral intention, and e-satisfaction and electronic word of mouth.

Research limitations/implications

This study offered a comprehensive stimulus-organism-response theoretical model by using the five e-service quality measurement factors as “stimuli” for motivating the internal state of spirituality and well-being over-the-top subscribers. This was toward sustained usage in over-the-top services subsequent to the end of the freemium period. Furthermore, in this study, both e-service quality theory and user satisfaction theory were integrated into the stimulus-organism-response model. This helped to better comprehend the impact of e-service quality factors in driving e-satisfaction among spirituality and well-being over-the-top service users.

Practical implications

This study revealed the significance of differentiating premium over-the-top subscriptions based on price value. To ensure a high level of e-satisfaction from a premium subscription, a greater emphasis on the e-service quality dimensions was required. This study provided insights to managers regarding the role of favorable electronic word of mouth in fostering effective customer acquisition.

Originality/value

This was one of the first studies which concurrently integrated perceived value of the premium subscription and e-satisfaction with customers’ behavioral intention and electronic word of mouth through the theoretical lens of stimulus-organism-response.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Open Access
Article
Publication date: 26 September 2023

René Hubert Kerschbaumer, Thomas Foscht and Andreas B. Eisingerich

The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription…

Abstract

Purpose

The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.

Design/methodology/approach

In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.

Findings

The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.

Originality/value

This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 22 August 2022

Ranjan Chaudhuri, Sheshadri Chatterjee, Arka Ghosh, Demetris Vrontis and Alkis Thrassou

The paper aims to examine the nature and scale of the sustainability value of car sharing and to identify, through consumer analysis, the contextual and consumer factors of…

Abstract

Purpose

The paper aims to examine the nature and scale of the sustainability value of car sharing and to identify, through consumer analysis, the contextual and consumer factors of success of car subscription as a business model.

Design/methodology/approach

The study evaluates the car sharing model against the sustainable development goals defined by the United Nations in 2019. Individual interviews were performed for preliminary understanding of the factors affecting consumers' choices. Subsequently, through two phases of data collection, factor analysis and path model analysis were performed to identify and confirm latent factors. Consumer market segmentation was performed using cluster analysis.

Findings

Car sharing was found to have an overall positive net impact, with certain potential negative dimensions. Willingness, financial affordability, location and experience were identified as the key factors of consumers opting for car subscriptions. The findings further highlight the significant business potentialities of car subscription in India, consequent also to consumers' attitudes toward car ownership.

Practical implications

The research has substantial implications for both society and business, with the former being presented with an innovative sustainable means of transportation, and the latter with the elements of success of an entrepreneurial business model to support the former.

Originality/value

The study is a pioneer in objectively evaluating and prescribing positive social and business value creation for and through car subscription in India, based on consumer analysis.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 26 February 2024

Cheikh Tidiane Ndour and Simplice Asongu

This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability.

Abstract

Purpose

This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability.

Design/methodology/approach

The focus is on a panel of 42 sub-Saharan African countries over the period 2005–2020. The empirical evidence is based on generalized method of moments. The environmental sustainability indicator used is CO2 emissions per capita. Three indicators of women’s economic inclusion are considered: female labour force participation, female employment and female unemployment. The chosen ICT indicators are mobile phone penetration, Internet penetration and fixed broadband subscriptions.

Findings

The results show that: (1) fixed broadband subscriptions represent the most relevant ICT moderator of gender economic inclusion for an effect on CO2 emissions; (2) negative net effects are apparent for the most part with fixed broadband subscriptions (3) both positive ICT thresholds (i.e., critical levels for complementary policies) and negative ICT thresholds (i.e., minimum ICT levels for negative net effects) are provided; (4) ICT synergy effects are apparent for female unemployment, but not for female employment. In general, the joint effect of ICTs or their synergies and economic inclusion should be a concern for policymakers in order to better ensure sustainable development. Moreover, the relevant ICT policy thresholds and mobile phone threshold for complementary policy are essential in promoting a green economy.

Originality/value

The study complements the extant literature by assessing linkages between information technology, gender economic inclusion and environmental sustainability.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 16 February 2024

Noha Emara and Raúl Katz

The purpose of this study is to use the structural model to determine the influence of mobile telecommunication on Egypt’s economic growth from 2000 to 2009. By focusing on mobile…

Abstract

Purpose

The purpose of this study is to use the structural model to determine the influence of mobile telecommunication on Egypt’s economic growth from 2000 to 2009. By focusing on mobile unique subscribers and mobile broadband-capable device penetration as indicators of telecommunications adoption, the authors seek to understand their overarching effects on the nation’s economic landscape.

Design/methodology/approach

The paper uses quarterly time-series data set over the period 2000–2019 and uses a structural econometric model based on an aggregate production function, a demand function, a supply function and an infrastructure function to detect causality and examine long-run relationships between variables.

Findings

The findings of the structural model reveal that both mobile unique subscribers and mobile broadband-capable device penetration significantly contributed to Egypt’s gross domestic product (GDP) growth from 2000 to 2019. Specifically, a 1% increase in mobile unique subscriber penetration and mobile broadband-capable device adoption is estimated to result in an average annual contribution to GDP growth of 0.172% and 0.016%, respectively.

Research limitations/implications

The scarcity of panel data is the main research limitation for comparative study with other Middle East and North African Region (MENA) countries. Research extensions would include testing the significance of complementarities such as improving governance measures and building human capacity for both households and firms, which are necessary to boost the impact of telecommunication on economic growth in the MENA region.

Practical implications

Based on these findings, the study puts forth policy recommendations aimed at maximizing investment in network utilization, including mobile and internet services, as well as fixed broadband subscriptions. It highlights the crucial role of these investments in promoting social and economic development, not only in Egypt but also across the MENA region as a whole.

Social implications

The findings of this research emphasize the importance of strategic investments in network utilization, encompassing mobile, internet services and fixed broadband subscriptions. Such investments are pivotal for fostering social and financial inclusion. The study underscores the potential of these investments to drive social and economic progress, not just within Egypt but throughout the entire MENA region.

Originality/value

Overall, existing literature generally supports the notion that the telecommunications sector has a positive economic impact. However, there is a gap in the literature when it comes to understanding the specific effects of the Egyptian telecommunications sector on the country’s economy, particularly in relation to the Egypt Vision 2030. The study aims to fill this gap by focusing specifically on Egypt and providing additional insights into the direct and indirect effects of the Egyptian telecommunications sector on the economy. By conducting a thorough analysis of the sector’s role, the authors aim to contribute to the existing literature by providing context-specific findings and recommendations.

Details

Digital Policy, Regulation and Governance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 30 May 2023

Simplice Asongu and Nicholas M. Odhiambo

This study investigates how enhancing information and communication technology (ICT) affects female economic participation in sub-Saharan African nations.

Abstract

Purpose

This study investigates how enhancing information and communication technology (ICT) affects female economic participation in sub-Saharan African nations.

Design/methodology/approach

Three female economic participation indicators are used, namely female labour force participation, female unemployment and female employment rates. The engaged ICT variables are fixed broadband subscriptions, mobile phone penetration and Internet penetration. The Generalized Method of Moments is used for the empirical analysis.

Findings

The following main findings are established: First, there is a (1) negative net effect in the relevance of fixed broadband subscriptions in female labour force participation and female unemployment and (2) positive net effects from the importance of fixed broadband subscriptions on the female employment rate. Secondly, an extended analysis is used to establish thresholds at which the undesirable net negative effect on female labour force participation can be avoided. From the corresponding findings, a fixed broadband subscription rate of 9.187 per 100 people is necessary to completely dampen the established net negative effect. Hence, the established threshold is the critical mass necessary for the enhancement of fixed broadband subscriptions to induce an overall positive net effect on the female labour force participation rate.

Originality/value

This study complements the extant literature by assessing how increasing penetration levels of ICT affect female economic inclusion and by extension, thresholds necessary for the promotion of ICT to increase female economic inclusion.

Details

African Journal of Economic and Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 27 November 2023

Deanna Kathleen de Zilwa

Netflix is the market leader in the streaming entertainment industry. In 2020 and 2021, Netflix’s subscriber numbers and revenue increased. During the first two quarters of 2022…

Abstract

Purpose

Netflix is the market leader in the streaming entertainment industry. In 2020 and 2021, Netflix’s subscriber numbers and revenue increased. During the first two quarters of 2022, Netflix lost millions of subscribers, revenue and profit declined and its share price and market capitalization deteriorated. The purpose of this study is to investigate how and why a company with such a strong track record as Netflix can experience this crisis and, most importantly, how it overcame the crisis and returned to growth.

Design/methodology/approach

This case study investigates Netflix’s rise, fall and recovery between 2020 and 2023 using qualitative research methods. It examines earnings calls, transcripts and letters to shareholders as well as the views of investment analysts, journalists and academics.

Findings

Netflix turned its fortunes around because its leaders faced the crisis head-on. They acknowledged that previous strategic decisions were no longer working, that no advertisements were on the platform and that there was no account sharing and they reversed these decisions. Netflix also realized that it needed to innovate, so it partnered with Microsoft to execute its go-to-market with advertising. It also launched games, made strategic acquisitions of gaming studios and developed its capabilities with new products.

Originality/value

This is a valuable case study. Investigating how a company as successful as Netflix can encounter a severe decline and how it changed its strategies and tactics to reverse the decline provides important lessons for other companies.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

Open Access
Article
Publication date: 12 March 2024

Md Aslam Mia, Md Imran Hossain and Sunil Sangwan

Digitalization is one of the major factors that fosters economic growth across the world. However, the level of digitalization varies significantly between developed and…

Abstract

Purpose

Digitalization is one of the major factors that fosters economic growth across the world. However, the level of digitalization varies significantly between developed and developing countries, with the latter often lagging behind. To bridge this gap, it is crucial to pinpoint the drivers of digitalization, specifically from the macroeconomic and country-level governance dimensions. Therefore, this study aims to investigate the determinants of digitalization, particularly for countries in Asia and the Pacific region.

Design/methodology/approach

Our study utilizes unbalanced panel data from 46 Asian and Pacific countries for the period of 2001–2021. Initially, we analyzed the data using conventional econometric methods, such as pooled ordinary least squares (POLS), random-effects model (REM) and fixed-effects model (FEM). Moreover, we employed endogeneity-corrected techniques and alternative proxies to enhance the robustness and reliability of our findings.

Findings

Our findings reveal that economic development progress, government expenditure relative to country size and political stability are key drivers of digitalization. In contrast, corruption at the country level emerges as a significant impediment. Notably, our results remain robust to endogeneity-corrected techniques and alternative proxies of digitalization. Overall, these insights can inform policymakers, helping them to understand the macroeconomic and governance factors shaping digitalization and guide their decision-making toward effective policy interventions.

Originality/value

This study’s empirical findings add significant value to the existing literature by quantifying the impact of macroeconomic and governance factors on digitalization in selected countries. This offers valuable insights for policymakers, particularly in nations with lower levels of digitalization.

Details

Digital Transformation and Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2755-0761

Keywords

Article
Publication date: 24 October 2023

V.P. Priyesh and Lukose P.J. Jijo

This study investigates the impact of pre-IPO earnings management on investor demand in the Indian IPO market. It also examines whether earnings management by issuer firms affects…

Abstract

Purpose

This study investigates the impact of pre-IPO earnings management on investor demand in the Indian IPO market. It also examines whether earnings management by issuer firms affects IPO valuation, a topic that is underexplored in accounting research.

Design/methodology/approach

The study uses the data of 310 IPOs from India during the period 2000–2021. The association between pre-IPO earnings management with investor demand and valuation is tested using cross-sectional ordinary least squares regression models with heteroscedasticity-robust standard errors.

Findings

The study finds that the degree of pre-IPO earnings management impacts retail investor demand, measured as their over-subscription multiple. Pre-IPO earnings management is unrelated to institutional investor bidding. Further, this paper suggests no relation between pre-IPO earnings management and IPO valuation.

Research limitations/implications

Future studies could explore various other forms of earnings management and their impact on investor demand and valuation.

Practical implications

The findings of this study will help the investors and regulators to understand the practice of earnings management among IPO firms and how it is related to IPO demand and valuation.

Originality/value

This study contributes to the existing literature on IPO-earnings management and investor demand by documenting that issuer firms engage in earnings management to influence investor demand, particularly retail investor demand. Analysis of IPO valuation reveals that earnings management is mostly unrelated to IPO valuation, contrary to the general perception in the literature.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

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