Network-Based Business Models, the Institutional Environment, and the Diffusion of Digital Innovations: Case Studies of Telemedicine Networks in Germany

Abstract

Previous research has emphasized the importance of matching innovations with a suitable business model. The design of business models for digital innovations such as telemedicine is a major challenge in health care systems. In this regulated context, the institutional environment plays a critical role for the sustainability of business models. In this paper, I propose an extended business model framework for network-based digital innovations. My study examines how the institutional environment and network-based organizational benefits affect the total value creation of telemedicine networks. I show how both perspectives acting in concert are able to account for the total value created in network-based business models in health care and contribute to the diffusion of digital innovations. My findings suggest that institutional bodies present important key partners in business models in regulated contexts, especially during the early stages of development and diffusion. Second, preexisting network structures, upon which network-based digital innovations can build, may accelerate the diffusion. Third, my study demonstrates the importance of value co-creation and appropriation that encompass all stakeholders in a network. Finally, I describe four key drivers for total value: (1) improvements in quality of and access to care, (2) reimbursement regulation, (3) network-based organizational benefits such as efficiency gains, learning, or knowledge transfer, and (4) legitimacy gains resulting from institutional isomorphism.

COVID-19 as a Driver for Digital Transformation in Healthcare

“…The COVID-19 pandemic had an impact on every stakeholder and individual, which got everyone involved in the fight. The rapid adoption of digital technologies during the crisis shows that stakeholders will be motivated to engage in the digital transformation in healthcare if each one can benefit from these digital innovations (e.g., Steinhauser 2019 ). It also points to the importance of digital complementary assets for a swift adoption of digital innovations such as telemedicine or AI (Steinhauser et al 2020 ).…”

“…Healthcare systems around the world struggle with rising healthcare expenditures, increasing staff shortages, and structural barriers to access (e.g., Christensen et al 2009 ; Steinhauser 2019 ). Digital innovations and digital transformation, however, are perceived as an opportunity to improve the quality of and access to care while at the same time containing costs (Agarwal et al 2010 ; Fichman et al 2011 ).…”

How Important Is the Business Environment for The Performance of Enterprises? Case Study of Selected European Countries

“…Source: own calculation Moreover, this national market is typical for its high productivity levels, skilled labour force, quality engineering, transport infrastructure, and location in the centre of Europe (Steinhauser, 2019). France, the second country with the most pro-business environment, is an advanced and industrialised country with a sophisticated financial market, the largest capital market, great infrastructure, developed telecommunication and technology sectors, and a highly educated workforce, which makes it an attractive country for doing business (Cera et al, 2020).…”

Transporte de Produtos Farmacêuticos

“…Porém, eles exigem modelos de negócios fundamentalmente diferentes. O desenvolvimento de um modelo de negócio sustentável para aplicação em telemedicina ainda representa um grande desafio para as partes envolvidas (ALKMIM et al, 2015;STEINHAUSER, 2019). Assim sendo, o desenvolvimento de um modelo de negócio que garanta a sustentabilidade e a definição de valor para uma aplicação em telemedicina ainda representa um grande desafio para as partes envolvidas (ACHEAMPONG; VIMARLUND, 2015).…”