SMEs and new ventures need business model sophistication

Kesting, Peter; Günzel-Jensen, Franziska

doi:10.1016/j.bushor.2015.01.002

Cited by 68 publications

(57 citation statements)

References 18 publications

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“…suppliers, partners, customers/beneficiaries, distribution channels, allies, and other forms of coalition) work together toward one goal, the co-production of value. Value network, called also as an ecosystem (see Chesbrough 2007) focuses therefore on stakeholder involvement (Voelpel, Leibold, and Tekie 2005;Kesting 2015). Additionally, from this network perspective, mostly external interactions occur that can have a great influence on the value creation and value capture of a company (Ge, Hisrich, and Dong 2009;Puslecki and Staszkow 2015;Wirtz et al 2016).…”

Section: Value Creationmentioning

confidence: 99%

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2017

MGT

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Section: Value Creationmentioning

confidence: 99%

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2017

MGT

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“…It is not surprising that the capability for BMI is not widespread amongst organizations [10]. When considering small and medium enterprises (SMEs), the challenge is even more prominent, as SMEs tend to focus on business survival rather than planning BMI [11]. Exploiting their current business model (BM) in order to attain economic effectiveness constitutes, by itself, a significant challenge [12].…”

Section: Introductionmentioning

confidence: 99%

“…Exploiting their current business model (BM) in order to attain economic effectiveness constitutes, by itself, a significant challenge [12]. As a consequence, SMEs are likely to be trapped into addressing emerging issues of current BM implementation, neglecting exploring new opportunities [11]. However, for long term survival, it is important to also be innovative and adaptive to a changing context, at a time of shortening BM life cycles [13] and of increased how the strategy can select the best BM option, and how tactics will strengthen the virtuous cycles of the BM.…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2020

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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.Sustainability 2020, 12, 2337 2 of 34 pressure from economic, social and environmental demands, entailed by the transition to sustainable development (SD) [14]. Incorporating environmental and social aspects into businesses represent additional challenges for BMI processes. It requires cross-functional and systems thinking, as well as radical changes in business processes, products, and organizational forms [15]. As a result, most BMIs for sustainability are developed ad-hoc and are neither systematic nor systemic [16].Thus, there is a need to exploit established BMs and, at the same time, a need to search for new BMs that adapt to the needs and demands that are constantly changing, in order to become a sustainable organization, that is, an organization that can achieve (enduring) success while performing well in economic, social and environmental aspects. This managerial capability to exploit and explore refers to organizational ambidexterity [17,18]. Organizational ambidexterity has also been often highlighted as a mechanism to attain sustainability [19,20]. However, this is another concept that is difficult to implement [21]. Again, in the context of SMEs, it becomes an even more difficult task [12], even though, as suggested by recent studies, SMEs could benefit from being ambidextrous and should take action in this direction [22].It is observed that, although BMI and ambidexterity are important mechanisms for achieving sustainability, the connection between both concepts has received limited attention in the literature [23]. This gap is even larger from the perspective of SMEs, as BMI literature mostly focuses on large companies, often neglecting SMEs [7,24]. Laudien and Daxböck [4] argue that BMI research should go beyond the focus on large, established compani...

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“…A search (in December 2015) for the term business model on Google and Google Scholar produced 25 million hits and 450,000 hits, respectively. Since every viable organisation is built on a sound bm (Magretta 2002) and bm design has become a key to entrepreneurial performance and success (Zott and Amit 2007;Kesting and Günzel-Jensen 2015), constant scientific research on bm concept is important for the theoretical development, as well as for venture creation. This is particularly evident in the last 15 years, with academics from various fields of research trying to further explore what stands behind bm concept (Chen 2003;Lam and Harrison-Walker 2003;Seelos and Mair 2005;Chesbrough 2007;Johnson, Christensen, and Kagermann 2008;Zott, Amit, and Massa 2011;Arend 2013;Klang, Wallnöfer, and Hacklin 2014;Zandoval Bonazzi and Zilber 2014;Mosleh, Nosratabadi, and Bahrami 2015).…”

Section: Introductionmentioning

confidence: 99%

Business Model Concept: An Integrative Framework Proposal

Perić¹,

Vitezić²,

Ðurkin³

2017

MGT

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Every firm employs a particular business model seeking competitive advantage. However, this pursuit is difficult, and sometimes unsuccessful. The reasons for failure should be sought in the managers' lack of understanding of their organisations' business models, their unique building blocks, and the potential that they have. To help managers better understand business models, this paper reviews the extant literature and identifies the elements of business models cited therein. Further, considering the new needs on the changing markets and the prevailing search for sustainability beyond profit, this paper portrays essential business model elements in an integrated framework. An updated generic business model framework consists of four primary categories, namely, value proposition, value capture, value creation, and value network, and could be useful for a variety of organisations, profit and non-profit, with various mission and vision orientations and interaction with the environment.

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SMEs and new ventures need business model sophistication

Cited by 68 publications

References 18 publications

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

Business Model Concept: An Integrative Framework Proposal

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