Business model innovation

Abstract

Purpose – The purpose of this paper is to develop a framework that expands business model innovation literature by including a social goal, the emerging markets (EMs) environmental characteristics and adopting a bottom-up perspective. Design/methodology/approach – This paper draws on a single-case study. Sistema Ser/CEGIN (SER–CEGIN) is an Argentine social business that offers high-quality medical healthcare to BOP users. Findings – The paper presents a new conceptualization on business model innovation that includes three dimensions: firm-centric, environment and customer-centric. The framework incorporates to the traditional framework on business model innovation, the social profit equation, the general and task environment and the end-user, as well as the dynamics between them. Research limitations/implications – While the authors acknowledge the importance of studying the components of the business model operating levels (economic, operational and strategic) to determine the type of business model innovation (revenue, enterprise and industrial), the framework incoporates the environment and customer-centric dimension. The suggested framework opens new streams of research both for the innovation business model literature as well as for the EMs – bottom of the pyramid (BOP) literature. Practical implications – To achieve economic and social goals, particularly in the BOP, firms need to adopt a bottom-up approach to understand the components of their business model that need to be modified. Originality/value – The paper proposes a novel business model innovation conceptualization which is useful for both researches to better study business models in the BOP and for firms to successfully operate in the BOP.

Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance

“…In this context, recent research agrees that BGs start international activities early after founding and have a high speed, scale and scope of internationalization as core characteristics (Cesinger et al, 2012;Freeman and Cavusgil, 2007;Kuivalainen et al, 2007;Madsen et al, 2012). Based on a comprehensive review of the current literature a definitional corridor explaining the BGs international nature can be derived as follows: At least four foreign markets have to be conqueredthese markets have to dispose of a high psychic, cultural and geographic distance Oviatt and McDougall (1994);McAuley (1999); Zahra et al (2000); Moen (2002); Andersson and Wictor (2003); Bell et al (2003); Knight and Cavusgil (2004); Laanti et al (2007); Kuivalainen et al (2012) Moreover, researchers have observed that many BGs are forced into globalization because of their high specialized products (Trkman et al, 2015) and that their export performance depends on innovations: the more a firm innovates the more innovations will be exported (Pels and Kidd, 2015). As reflection of the business model their product differentiation strategy influences positively the internationalization process (Gudiksen, 2015) and technological intensity as well as RandD intensity, representing the BGs international innovativeness, are significantly associated with export performance (Amshoff et al, 2015;Dhanaraj and Beamish, 2003).…”

“…Based on their product differentiation strategy which gets reflected in their business models they achieve a higher export performance the more they innovate (Gudiksen, 2015;Pels and Kidd, 2015). In a broader view, future research can orientate on the BG business model archetype with its components presented in the propositions (e.g., market, capability factors) to have a guiding map for research.…”

Mapping Research on Customer Centricity and Sustainable Organizations

“…The search for the real purpose for business and develop a business model with a social goal is shown to be essential to achieve the above [10,87], without forgetting the stakeholder view [88], and that profits are not the only thing necessary to create value [89], be coherent with the corporate purpose [13]. In addition, it is shown that when looking after the environment is good for profit [90], and to get the loyalty of customers [60,91].…”