Business model renewal in context of integrated solutions delivery: a network perspective

Abstract

Successful business model renewal requires the companies to understand the changes that the new business model causes with respect to their activities, value drivers and value appropriation logic. The study employs a comparative case study strategy. Conceptualizing business models as activities, the changes that adopting an integrated solution business model to implement a real estate development causes to the business models of companies in the project delivery network, compared to their business models applied in conventional project delivery networks following a disintegrated approach, is analyzed. The findings suggest that the shift towards more integrated project delivery models causes significant changes in the alignment of value drivers and value appropriation mechanisms across the network of firms. Simultaneously, companies adhere to their existing activity content and governance. The results contradict previous studies on the organizational impact of shift towards integrated solutions. Existing research on integrated solutions and alliances has primarily focused on developing practices from the perspective of a customer-producer relationship. This study gives valuable insights related the importance of the internal logic of the service providers in achieving successful project coalition.

PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

“…As reflected in the number of articles in PSS literature (Section 2.2) which specifically devote their focus to strategic alignment, the attention that has been paid to this topic remains limited. However, the identified articles greatly emphasized the relevance and importance of alignment for service transition [13,17,24,31,[66][67][68][69]. Consistency between the change process, the development of service capabilities, and the multi-level cooperative relationship among them plays an important role as an enabler for the transition towards PSS [67].…”

“…The inconsistency of six aspects in the outcome-based contracts between provider and customer was found as an important rationale behind commercial and operational risk [31]. In addition to these two perspectives, the most common belief regarding strategic alignment in service transition is its role as a key success factor [13,68,69]. The strategic alignment among the company's internal elements, as well as with its customer, affords a contingency to establish a more sustainable business model of integrated solutions [68].…”

“…The strategic alignment among the company's internal elements, as well as with its customer, affords a contingency to establish a more sustainable business model of integrated solutions [68]. If a company intends to develop more integrated offerings, the company needs to initially utilize its existing activity and resource base, then focus on aligning the value appropriation logic for the inter-firm alignment of its business model [69]. The strategic alignment is a key success factor to manage the challenges in service transition, specifically among four essential aspects: (1) the strategic orientation and the service portfolio; (2) the strategic orientation and the internal organization; (3) the internal dimensions and the service network; (4) the internal dimensions and the customer [13].…”

“…The alignment among change process, capability development, and cooperative relationship enables PSS business model implementation [67] Misalignment between top managerial and organizational intentions triggers resistance to service transition [17] The alignment proposition is needed to manage the transition barrier from basic product to service-based solution [66] The company needs to ensure several internal elements are concurrently present and harmoniously aligned so that the transition from product to service can be established [13] Risk factor Misalignment between provider and customer in the outcome-based contracts is a risk factor for commercial and operational aspects [31] Key success factor Strategic alignment between a company's internal dimension and its customer allows the development of more sustainable PSS business model [68] The inter-firm alignment of a business model is a key for establishment of more integrated offerings [24,69] Four crucial aspects need to be well aligned in service transition, i.e., the strategic orientation and the service portfolio; the strategic orientation and the internal organization; the internal dimension and the service network; and the internal dimension and the customer [13]…”

A Hybrid MCDM Technique for Risk Management in Construction Projects

“…Ulubeyli and Kazaz [61] developed a fuzzy based sub-contractor selection model (CoSMo) for global based construction projects. Rajakallio et al [62] analysed the solution delivery from a network perspective in integrated business model renewal. For assessing risk in deep foundation excavation, Valipour et al [63] developed a step-wise weight assessment ratio analysis (SWARA) based complex proportional assessment (COPRAS) framework to analyse Iranian construction project uncertainty.…”