Convergence or Divergence among Business Models of Public Bus Transport Authorities across the Globe: A Fuzzy Approach

Abstract

Building on the debate about global convergence or divergence of practices, this study aims to query the viability of a new strategic action tool specifically geared to the interests of public bus transportation authorities (PBTA) around the globe and explore the degree of homogeneity in their responses as well as the possible drivers of them. To answer its research question, the study first offers a generic business model design for a PBTA, which integrates an extended version of the business model canvas with external environmental factors in order to enhance its sustainability. Subsequently, the importance attributions of international transportation experts to different model components are evaluated by using the Spherical Fuzzy AHP method. The model is developed in three hierarchical layers and evaluated by experts from four continents: America, Asia, Australia, and Europe. The results indicate that the expert opinions tend to converge more on the internal components of the model and diverge on the external components, especially regarding economic and technological factors. A strategic response action set is also designed to facilitate the adoption of the model by PBTA. The study not only extends the research on the strategic management of the public bus transportation domain but also contributes to the convergence and divergence debate by offering a reconciliatory duality perspective.

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“…According to Osterwalder and Pigneur [87], a business model can be defined as "the way organizations create, deliver, and capture value". In other words, the purpose of a business model is to support strategies so that companies in any sector can objectively demonstrate to their investors, customers, and the market their ability to generate value for their product or service [91,92]. Consequently, in the last ten years, the topic has gradually gained the attention of academia and the business sector [92,93].…”

“…In other words, the purpose of a business model is to support strategies so that companies in any sector can objectively demonstrate to their investors, customers, and the market their ability to generate value for their product or service [91,92]. Consequently, in the last ten years, the topic has gradually gained the attention of academia and the business sector [92,93]. Currently, considering the existing literature, the most used business model is the BMC [91,94].…”

“…Developed by Osterwalder and Pigneur [87], BMC is a flexible and easy-to-understand visual management tool that helps to identify the vital elements of a business, allowing new ideas and hypotheses to be analyzed before the business plan matures [91,95,96]. This interactive framework highlights the relationships between competencies and capabilities with external segments [92], helping organizations to structure their action plan and clearly communicate their business logic [97], enabling a better understanding of what should be delivered to the customer and how the process should be conducted [98].…”

“…The BMC is composed of nine categories or blocks [92,95,99]: Value proposition; Key partners; Key activities; Key resources; Customer relationships; Channels; Customer segments; Cost structure; and Revenue streams. These nine blocks can be divided into four main groups: Business core; Internal factors; External factors; and Financial factors (Figure 1).…”