Search results

1 – 10 of 520
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: 16 July 2024

Xiufeng Li, Shaojun Ma and Zhen Zhang

The Internet of Things (IoT) platform empowers the digital transformation of the manufacturing industry by providing information technology services. Simultaneously, it enters the…

Abstract

Purpose

The Internet of Things (IoT) platform empowers the digital transformation of the manufacturing industry by providing information technology services. Simultaneously, it enters the market by offering smart products to consumers. In light of different service fee scenarios, this article explores the optimal decision-making for the platform. It investigates the pricing models and entry decisions of IoT platforms.

Design/methodology/approach

In this study, we have formulated a game-theoretic model to scrutinize the influence of the IoT platform ventured into the smart device market on the pre-existing suppliers operating under subscription-based and usage-based pricing agreements.

Findings

Our outcome shows that introducing an IoT platform’s smart device has a differential effect on manufacturers depending on their contract type. Notably, our research indicates that introducing the platform’s own smart device within the subscription-based model does not negatively impact the profitability of incumbent manufacturers, so long as there is a noticeable discrepancy in the quality of the smart devices. However, our findings within the usage-based model demonstrate that despite the variance in smart device quality differentiation, the platform’s resolution to launch their device and impose their pricing agreements adversely affects established manufacturers. Additionally, we obtain valuable Intel regarding the platform’s entry strategies and contractual inclinations. We demonstrate that the platform is incentivized to present its smart device when reasonable entry costs remain. Furthermore, the platform prefers subscription-based contracts when the subscription fee is relatively high in non-platform entry and entry cases.

Originality/value

These findings hold significant practical implications for firms operating in an IoT-based supply chain.

Details

Industrial Management & Data Systems, vol. 124 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 9 September 2024

Boulenouar Lakhdari

This study aims to measure the impact of information and communication technology (ICT) infrastructure on divorce for a sample of developed countries for the period (2012-2021).

Abstract

Purpose

This study aims to measure the impact of information and communication technology (ICT) infrastructure on divorce for a sample of developed countries for the period (2012-2021).

Design/methodology/approach

This paper uses fixed effect and generalized method of moments (GMM) estimation to delve into the impact of eight ICT infrastructure factors on divorce. The analyses are based on data collected from the World Bank Development Indicators.

Findings

The fixed effect analysis revealed that an increase in both fixed-telephone subscriptions and population covered by at least a 4G led to an increase in divorce. However, an increase in mobile cellular subscriptions and active mobile broadband subscriptions lead to a decrease in divorce. The results of the GMM estimator showed that fixed broadband internet prices, mobile broadband internet prices, the percentage of the population covered by the 4 G mobile network and fixed-telephone subscriptions had a substantial effect on divorce. While fixed broadband subscriptions, active mobile broadband subscriptions and mobile cellular basket were found to hinder divorce.

Research limitations/implications

The findings of this study contribute to the existing literature by highlighting the impact of ICT on divorce in a sample of developed countries. Furthermore, it helps decision-makers and families to understand the causes of divorce related to ICT infrastructure in these societies, so they can understand this phenomenon and provide proactive policies.

Originality/value

This study used multiple factors to measure ICT infrastructure as well as the GMM estimator to delve into the impact of ICT on divorce.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 26 June 2024

Sukanya Wadhwa and Seshadev Sahoo

This study aims to investigate the impact of intellectual capital (IC) on investor demand (i.e. subscription rate). The rise of the knowledge economy motivates us to investigate…

Abstract

Purpose

This study aims to investigate the impact of intellectual capital (IC) on investor demand (i.e. subscription rate). The rise of the knowledge economy motivates us to investigate how the value added by the IC of the issuing firms affects potential investors’ responses.

Design/methodology/approach

This study investigates the impact of IC on initial public offering (IPO) subscription rates using 234 IPOs from March 31, 2010 to March 31, 2021. This study uses multivariate regression, including year and industry dummies, and conduct robustness tests with industry subsamples. Additionally, this paper uses an alternative demand proxy (i.e. listing day returns) and two-staged least squares to address endogeneity.

Findings

This paper documents an inverse relationship between investor demand and human capital efficiency alongside a positive correlation between investor demand and structural capital efficiency. Additionally, IC efficiency positively affects listing day returns, with individual investor demand significantly driven by institutional investors.

Originality/value

This study uses Pulic’s (2000) methodology for measuring IC and examines whether it reduces information asymmetry in the IPO market and encourages investors to subscribe to an issue. This study holds significant implications for IPO issuing firms, investors and regulators regarding the IC disclosure in the prospectus.

Article
Publication date: 10 May 2024

Hyeon Jo

This study examines the key determinants of subscription intentions for ChatGPT Plus (paid version) in business settings, focusing on tasks such as system quality, information…

Abstract

Purpose

This study examines the key determinants of subscription intentions for ChatGPT Plus (paid version) in business settings, focusing on tasks such as system quality, information support, service quality, perceived intelligence, goal-congruent outcome and self-efficacy.

Design/methodology/approach

The study utilized a survey of office workers, analyzed through structural equation modeling, to explore these determinants.

Findings

The results demonstrate that system quality, service quality and perceived intelligence significantly influence satisfaction, while service quality and perceived intelligence also impact goal-congruent outcomes. Contrary to traditional models, satisfaction does not significantly correlate with usage. Instead, a significant relationship is observed between goal-congruent outcomes and usage. Self-efficacy emerges as a crucial predictor of subscription intentions, further underlined by the significant impact of usage on subscription intention.

Research limitations/implications

The study’s focus on office workers and a single artificial intelligence (AI) chatbot type may limit generalizability. Its findings illuminate several avenues for future research, particularly in diversifying the context and demographics studied.

Practical implications

This research offers actionable insights for businesses and practitioners in the implementation of AI chatbots. It highlights the importance of enhancing system quality, personalization and user confidence to boost subscription intentions, thereby guiding strategies for user engagement and technology adoption.

Originality/value

This study pioneers in investigating subscription intentions towards AI chatbots, particularly ChatGPT, providing a novel framework that expands upon traditional user behavior theories.

Details

Marketing Intelligence & Planning, vol. 42 no. 6
Type: Research Article
ISSN: 0263-4503

Keywords

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…

9316

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. 6 no. 3
Type: Research Article
ISSN: 2690-6090

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. 45 no. 5
Type: Research Article
ISSN: 0275-6668

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.

Article
Publication date: 10 September 2024

Soo Il Shin, Sumin Han, Kyung Young Lee and Younghoon Chang

The television (TV) content ecosystem has shifted from traditional broadcasting systems to dedicated content producers and over-the-top (OTT) services. However, less empirical…

Abstract

Purpose

The television (TV) content ecosystem has shifted from traditional broadcasting systems to dedicated content producers and over-the-top (OTT) services. However, less empirical effort has been paid to the actual behaviors of the mobile users who watch TV content when explaining the impact of OTT service and mobile network profiles in watching TV content. This study aims to investigate the impact of gratifications and attitude formed by mobile TV users on actual mobile TV watching behaviors, as well as the moderating impacts of paid OTT service subscriptions and mobile network profiles, based on gratification theory, cognition–affect–behavioral (CAB) framework, sunk cost effect and walled-garden effect.

Design/methodology/approach

This study employs the generalized linear model (GLM) with generalized estimating equations (GEE) to test hypothesized relationships. A total of 338 mobile phone users who have been watching TV content using a mobile phone participated in the survey. The moderating variables, 4 types of paid streaming platform subscriptions, were classified based on the walled gardens formed by mobile telecom services.

Findings

The study’s results revealed that obtained gratifications and opportunity constructs substantially influenced a mobile phone user’s attitude and behaviors. Additionally, mobile network profiles and the degree of access to paid platform services played significant moderating roles in the relationship between users’ attitudes and behavior.

Originality/value

This research enriches the existing OTT service literature and is one of the pioneering studies investigating the walled-garden effect’s role in mobile phone users’ actual watching behaviors, offering valuable practical implications for the OTT platform providers.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

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. 15 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

1 – 10 of 520