Visual tools for business model innovation: Recommendations from a cognitive perspective

TMT transactive memory system and business model design: the moderating effect of strategic orientation

Purpose

Top management team (TMT) serves as the critical designer of a firm’s business model, whose cognition exerts key influence on business model design (BMD). Drawing insights from the managerial cognition and knowledge-based views, this paper aims to examine the effect of TMT transactive memory system on BMD and investigate how the relationship between TMT transactive memory system and BMD is contingent upon the firm’s strategic orientation.

Design/methodology/approach

Survey data collected from 210 Chinese firms was used to test the research hypotheses through multivariate regression analysis.

Findings

This paper reveals that TMT transactive memory system facilitates novelty- and efficiency-centered BMD. Furthermore, both differentiation orientation and cost leadership orientation can strengthen the effect of TMT transactive memory system on novelty-centered BMD; the impact of TMT transactive memory system on efficiency-centered BMD is weakened by differentiation orientation but strengthened by cost leadership orientation.

Originality/value

This paper adds to the business model literature by unraveling the effect of TMT transactive memory system on BMD, which not only enriches the internal cognitive antecedents of BMD but also provides an in-depth understanding of how TMTs can use their knowledge structure to proactively design a certain business model. Moreover, this paper also offers insights into how TMTs can better use transactive memory system to design business models according to the specific strategic orientation.

Intelligent Digital Platform for Community-Based Rural Tourism—A Novel Concept Development in Peru

The COVID-19 pandemic has driven the rapid evolution and digitization of different tourism sectors through Industry 4.0. However, Community-based Rural Tourism (CRT) has not experienced the same technological advancement. Thus, considering tourism as a powerful socioeconomic driver, this research is based on the relevance of the CRT for the development of rural areas through job creation, preservation of historical-cultural and architectural heritage, and appreciation of the local market. Therefore, the objective of this paper is to present a concept development model of an intelligent digital platform (IDP), where tourism products and services are visualized, articulated, and integrated with the different actors of the CRT, offering a personalized tourist experience. The concept was developed based on Business Process Management and Business Model Canvas (BMC). Thus, through meetings and interviews, it was possible to extract essential information to obtain the necessary know-how for the development of the concept. It was concluded that the COVID-19 pandemic has established a new business scenario, intensifying and accelerating the use of digital tools and ICTs in several sectors, including tourism. However, the use of ICTs in CRT is still incipient. As Peru is a country where rural tourism has a strong tradition, but there are no specific platforms for CRT, which makes the broad dissemination of rural experiences difficult, a BMC template has been developed to integrate the expected objectives, and the application of the proposed framework serves as a guide for other platforms with different niches markets in the tourism sector.

Towards Systematic Sustainable Business Model Innovation: What Can We Learn from Business Model Innovation

This research aims to understand how sustainable business model innovation (SBMI) can learn from business model innovation. For this, first, we conducted a bibliometric analysis to evaluate the relationships between business model innovation and SBMI literature. After this, we performed a systematic literature review to create a comprehensive framework for managing SBMI. The bibliometric analysis showed that the SBMI stream grew quickly and significantly in recent years, evolving into a separated new research stream, which does not leverage recent business model innovation advancements. Through the performed analyses, we were able to discuss critical gaps in the SBMI literature and shed light on possible pathways to solve these gaps through lessons learned from business model innovation. We depicted five critical gaps for managing SBMI; (1) the need to understand the sustainable business model as a wicked problem, in which SBMI leads to “better than before” solutions calling for systematic SBMI, (2) the poor definition of distinctive dimensions of dynamic capabilities for SBMI, (3) the lack of studies exploring the role of open innovation for improving the SBMI process, (4) the lack of tools supporting SBMI implementation and (5) the need to explore game-changing, competitive advantages of SBMI. The findings of this study contribute to guiding future research on SBMI, which can be a basis for further efforts towards sustainable development.

The Influence of Entrepreneurial Cognition on Business Model Innovation: A Hybrid Method Based on Multiple Regressions and Machine Learning

How to achieve business model innovation (BMI) has always been a focus topic in the field of entrepreneurship. Based on cognitive theory, this study takes new ventures as the research object to build a theoretical model to explore the impact of entrepreneurial cognition on BMI choice, its intermediary mechanism, and boundary conditions. We test our framework with a sample of 242 questionnaires; the empirical research results show that entrepreneurial configuration cognition, willing cognition, and ability cognition indirectly affect the BMI of new ventures. Strategic sensitivity (SSE) mediated the relationship between entrepreneurial cognition and BMI; knowledge diversity positively moderates the relationship between SSE and BMI. Machine learning algorithm research has found three prediction models for BMI of new ventures. By constructing a theoretical analysis framework of BMI from the perspective of cognition, the results deepen the relevant research on BMI of new ventures, clarify the source of unique characteristics and capabilities of entrepreneurs, provide a new research perspective for analyzing the impact mechanism of entrepreneurial cognition on BMI, enrich the research results in the field of “situation-cognition behavior,” and further clarify the important role of knowledge in the development of new ventures.

Business model innovation: a review of the process-based literature

Research on business model innovation (BMI) processes is blossoming and expanding in many directions. Hence, the time is ripe to summarize and systematize this body of knowledge for the benefit of current and future BMI scholars. In this article, we take stock of the current literature to clarify the concept of a BMI process, develop a categorization scheme (a “BMI process framework”), and discuss future research possibilities. Building on a systematic literature review of 114 papers, our categorization delineates different types of BMI processes and corresponding sub-processes. Moreover, we develop a framework that illustrates how BMI processes are interrelated and interconnected. Finally, we identify the main process-related research gaps in BMI research and provide directions for future research that emerge from our categorization and discussion.

Innovation in Start-Up Business Model in Energy-Saving Solutions for Sustainable Development

Socially expected innovations are innovations considering sustainable development. The subject of the paper focuses on the business model of a start-up providing energy saving services to local government units using smart technologies of Industry 4.0 in the aspect of low touch economy. A methodical critical literature review including quantitative and qualitative assessment, stakeholder analysis and business modeling techniques using Business Model Canvas and Triple Layer Business Model Canvas (TLBMC) was conducted. In addition, an in-depth analysis of a start-up case study was conducted. The research questions are related to the interpretation of the organization’s business data and methods of interpreting Sustainability 3.0 business solutions. The research questions were directed to the challenges regarding the creation of the organization’s sustainable business model architecture and the Business Sustainability 3.0 sustainable business imaging concept. The research objective is to design a sustainable business model of a start-up providing energy-efficient services to local government units, whose value proposition refers to an extended sustainable value that meets the economic, social and environmental needs of society. The integration of sustainability in the sustainable business model of the start-up allowed to achieve the research objective of designing a sustainable value proposition that meets the economic, social and environmental needs of society.

Making Decision-Making Visible-Teaching the Process of Evaluating Interventions

Significant efforts in the past decades to teach evidence-based practice (EBP) implementation has emphasized increasing knowledge of EBP and developing interventions to support adoption to practice. These efforts have resulted in only limited sustained improvements in the daily use of evidence-based interventions in clinical practice in most health professions. Many new interventions with limited evidence of effectiveness are readily adopted each year-indicating openness to change is not the problem. The selection of an intervention is the outcome of an elaborate and complex cognitive process, which is shaped by how they represent the problem in their mind and is mostly invisible processes to others. Therefore, the complex thinking process that support appropriate adoption of interventions should be taught more explicitly. Making the process visible to clinicians increases the acquisition of the skills required to judiciously select one intervention over others. The purpose of this paper is to provide a review of the selection process and the critical analysis that is required to appropriately decide to trial or not trial new intervention strategies with patients.

Carving out New Business Models in a Small Company through Contextual Ambidexterity: The Case of a Sustainable Company

Business model innovation (BMI) and organizational ambidexterity have been pointed out as mechanisms for companies achieving sustainability. However, especially considering small and medium enterprises (SMEs), there is a lack of studies demonstrating how to combine these mechanisms. Tackling such a gap, this study seeks to understand how SMEs can ambidextrously manage BMI. Our aim is to provide a practical artifact, accessible to SMEs, to operationalize BMI through organizational ambidexterity. To this end, we conducted our study under the design science research to, first, build an artifact for operationalizing contextual ambidexterity for business model innovation. Then, we used an in-depth case study with a vegan fashion small e-commerce to evaluate the practical outcomes of the artifact. Our findings show that the company improves its business model while, at the same time, designs a new business model and monetizes it. Thus, our approach was able to take the first steps in the direction of operationalizing contextual ambidexterity for business model innovation in small and medium enterprises, democratizing the concept. We contribute to theory by connecting different literature strands and to practice by creating an artifact to assist management.

Operationalizing Business Model Innovation through Big Data Analytics for Sustainable Organizations

Business model innovation is considered key for organizations to achieve sustainability. However, there are many problems involving the operationalization of business model innovation. We used a design science methodology to develop an artifact to assist business model innovation efforts. The artifact uses performance measurement indicators of the company’s business model, which are powered by Big Data analytics to endow customer-driven business model innovation. Then, we applied the artifact in a critical case study. The selected company is a fashion ecommerce that proposes a vegan and sustainable value using recycled plastic bottle yarn as raw material, and ensures that no material with animal origin is used. Our findings show that the artifact successfully assists a proactive and continuous effort towards business model innovation. Although based on technical concepts, the artifact is accessible to the context of small businesses, which helps to democratize the practices of business model innovation and Big Data analytics beyond large organizations. We contribute to the business model innovation literature by connecting it to performance management and Big Data and providing paths for its operationalization. Consequently, in practice, the proposed artifact can assist managers dealing with business model as a dynamic element towards a sustainable company.

Overcoming the Main Barriers of Circular Economy Implementation through a New Visualization Tool for Circular Business Models

There is a huge gap between the broad concept of circular economy (CE) and its practical implementation in the industrial sector due to several types of barriers, which shall be led back to the lack of consistent and precise information about resources, products, and processes. Without a proper information flow, it is impossible to quantify circular initiatives, both in comparison with the actual linear situation or with circular alternative opportunities. A proper quantification of circular initiatives allows the assessment of economic, environmental and social benefits and the preventative identification of potential barriers and relative solutions, monitoring the risk associated with circular investments and supporting the decision-making process. This paper describes a new tool to ensure the quantification of circular initiatives and the method to define it. It is a new Circular Business Model (CBM) visualization tool, which overcomes the main limitations of the existing models able to explain CE concepts but not to boost its practical implementation in industry. The new CBM visualization tool can be adopted in every industrial sector to highlight circular opportunities that are still hidden or unexploited or to select the best CE strategy. The proposed CBM visualization tool differs from the previous diagrams in two main characteristics: (i) the possibility to quantify resource flows and important indicators representing energy consumption, environmental and social impact, and (ii) the focus, which is not only on the product, but on the whole system, involving also the process, the company and the entire supply chain. The methodology to adopt and adapt the proposed model to different scales is described in detail. To provide a practical example, the model was qualitatively applied to a generic technical product to highlight its potential in the identification and quantification of circular activities.

A Networked Analysis and Engineering Framework for New Business Models

New technological possibilities and paradigm shifts from product-centered to service-centered offerings are one of the main drivers of business models. Business ventures today are more and more networked. Often, various partners are needed to deliver a service or product to frequently cross-linked customers with sometimes bi- or even multi-variant roles. Furthermore, business models are embedded in socio-technical systems where different kinds of needs and values of all actors, including social, ecological, technical and economic values, have to be balanced. The resulting complex network of actors, needs and values requires continuous management in order to create and operate viable and sustainable business models. This paper proposes a multi-layer framework to analyze existing business models as well as to shape new business ventures in a networked and values-based way and to support the identification of tacit network effects within business ecosystems. Based on an existing multi-layered analysis toolkit, focusing on legal and business dynamics aspects, an enhanced visualization and analysis tool is proposed that focuses especially on ethical, social and environmental aspects to foster the creation of (strongly) sustainable business models. The research process to create the presented approach followed the Design Science Research paradigm by applying argumentative-deductive analysis (ADA) and first applications in real-world case studies. A practical case from an international Open Source Software (OSS) project serves as an example to illustrate this values-based visualization and analysis layer and its benefits for managers and decision makers in the area of business model and information system management.

Value Modeling for Ecosystem Analysis

Scholars have proposed many approaches to represent and analyze value creation. Value creation in ecosystems such as platform ecosystems often relies on a specific structure of partner alignment. Value modeling techniques can improve the understanding of how ecosystem risks and non-generic complementarities determine value creation and the alignment structures required. First, we conceptualize ecosystem analysis as a tool for alignment in the context of business innovation. Then, we carry out a structured literature review to identify existing techniques, which could support ecosystem analysis. Further, we provide a comprehensive overview of the value modeling techniques and integrate our ecosystem analysis conceptualization with existing classification frameworks. This integrative framework allows researchers and scholars to identify techniques that suit specific needs in terms of internal alignment reach, tooling, innovation phase and ecosystem analysis. Our results show limited support for ecosystem analysis. Still we are able to identify techniques that can provide a useful conceptual or tooling basis to enable ecosystem analysis.

Impact of business model innovations on SME’s innovativeness and performance

Purpose

Business model innovations (BMIs), their drivers and outcomes are attracting increasing attention in academic literature. However, previous studies have mainly focused on large companies, while knowledge of BMI in small-to-medium-sized enterprises (SMEs) is limited. Therefore, the purpose of this paper is to add new insights into how related BMI drivers, practices and outcomes are in relation to SMEs.

Design/methodology/approach

An extensive review of the existing literature was performed. Consequently, the relationships between BMI drivers, BMI practices and outcomes of BMI were developed as a conceptual framework. An empirical study was carried out. A structural equation modeling (SEM) procedure was used to empirically test the model using a quantitative data set of Lithuanian SMEs (n=73).

Findings

The study provides insights into the relations between BMI drivers, BMI practices and outcomes of BMI in SMEs. The findings of SEM, four drivers (innovation activities, strategic orientation, market and technology turbulence, respectively) are indicated to contribute to BMI of SMEs. In addition, the results proved that the implementation of BMI practices leads to strategic and architectural changes in firms and has a positive impact on SMEs performance and innovativeness.

Research limitations/implications

Empirical research is focused on a limited number of internal and external BMI drivers, which have an influence on BMI in SMEs from one geographical region. Consequently, there are many external and internal BMI drivers which also may have an influence on BMI in SMEs, such as industry life cycle, organizational inertia and leadership. Meanwhile, SMEs possess multiple characteristics, i.e. a phase of maturity, gender of CEO, firm size and industry; therefore, the aforesaid aspects are considered to be significant limitations. In addition, the importance of SMEs characteristics as mediators for the effects on a firm’s performance and innovativeness should be considered in future research avenues.

Practical implications

Findings of this research can be used by SME managers to better understand how firms might actively engage in BMI practices, what drivers lead to BMI and, in turn, affect their firm’s performance and innovativeness. SME managers should be encouraged to pay attention to strategic and architectural changes of BM that can contribute to enterprise performance and innovativeness.

Originality/value

This paper adds to the stream of BMI research by empirically exploring drivers and outcomes of BMI in SMEs. In addition, this paper fulfills research gaps proposed by Bouwman et al. (2018), Foss and Saebi (2017), Heikkilä, Bouwman and Heikkilä (2018) and Lambert and Davidson (2013), and enhances the current overall understanding of BMIs.

A Review and Evaluation of Circular Business Model Innovation Tools

The circular economy has been heralded as a potential driver for sustainable development by business, academia, and policymakers. In a future circular economy, new business models are needed that slow, close and narrow resource loops to address key resource and climate challenges. After a phase of excitement and inspiration, an operationalization phase needs to start to ensure the best possible implementation and transition towards a circular economy. This operationalization phase will involve the development of products, processes and business models that significantly lower the negative impact on the environment, reduce waste and resource pressures and, rather, create a positive impact on society and environment. This paper focuses on the circular business model lens as a comprehensive way of addressing business innovation. Within this evolving circular economy operationalization phase, several tools, approaches and methods are emerging that could support circular business model innovation. This paper seeks to create a comprehensive tools overview through a literature and practice review. It provides structure to the emerging range of tools, methods and approaches, and, based on this, a guideline for future tool development. Finally, it gives an overview of opportunities and gaps as well as a future agenda for research and practice.