Reviewing literature on digitalization, business model innovation, and sustainable industry : past achievements and future promises

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.fi=vertaisarvioimaton|en=nonPeerReviewed

Value Leakage in Product-Service System Provision : A Business Model Alignment Perspective

To stay competitive, manufacturing companies offer product–service systems (PSS) to avoid commoditization of their products. The potential to create value through PSS offerings lies in a company's ability to successfully implement the PSS business model. However, many companies are unable to realize the benefits because PSS represents significant changes to all the business model elements, which comprise value creation, value delivery, and value capture. This leads to misalignment among the business model elements, which is a topic of interest within PSS and business model literatures. This article aims to provide empirical insights into the business-model-element alignment problems and conceptualize their consequences, which manufacturing companies face during PSS implementation. This article utilizes an abductive multicase study of three Swedish manufacturing companies with long-term experience of PSS provision to provide novel insights by identifying six alignment problems that companies face as a consequence of the interaction among the three business model elements. Furthermore, we contribute to both the PSS and business model literature by conceptualizing the consequences of business model element alignment problems, explaining the three value leakages that occur as a result of inappropriate resource and capability utilization, unattractive offer configurations, and inefficient service network processes in PSS provision.©2022 the Authors. Published by IEEE. This work is licensed under a Creative Commons Attribution 4.0 License. For more information, see https://creativecommons.org/licenses/by/4.0/fi=vertaisarvioitu|en=peerReviewed

Digital servitization strategies for SME internationalization : the interplay between digital service maturity and ecosystem involvement

Purpose The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs. Design/methodology/approach The present study has adopted an exploratory multiple case study, conducting a total of 40 interviews in a two-phased approach to data collection. The first phase consisted of exploratory interviews with twenty-six industrial SMEs connected to the manufacturing industry in Sweden and Finland. Then, six SMEs were selected in the second phase to participate in additional in-depth interviews. Findings First, this study identifies three gradual enabling phases concerned with the digital service maturity of SMEs consisting of digital awareness, digital service innovation and digital service mass customization. Second, the three interdependent phases of ecosystem knowledge synergy, ecosystem integration and ecosystem value co-creation were identified to improve ecosystem involvement. Finally, a process framework has been developed for SME internationalization consisting of a digital servitization innovation strategy, a digital servitization ecosystem strategy and a digital servitization scaling strategy. Originality/value The present research contributes to how digital servitization enables SME internationalization by demonstrating how the development of digital service offerings and ecosystem partnerships supports the internationalization process. This research extends the literature by proposing a process framework for the digital-servitization-enabled internationalization of SMEs. This process perspective provides a richer explanation of the complex interplay between servitization, digitalization and ecosystems choices, which supports the expansion into international markets.© Milad Kolagar, Wiebke Reim, Vinit Parida and David Sjödin. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcodeFunding: The authors gratefully acknowledge the contributors of funders which made this research possible: Vinnova, PiiA, Intereg Nord and Intereg Bothnia Atlantica.fi=vertaisarvioitu|en=peerReviewed

Tackling business model challenges in SME internationalization through digitalization

Many SMEs aim for business development by diversifying their offerings to fit global markets. However, internationalization has consequences for all aspects of a company's business model. Even though internationalization poses many business model challenges, the recent development of digital technology is a key enabler of resource-efficient internationalization and business development, an innovation that SMEs find accommodating. Thus, the purpose of this paper is to analyze how digitalization can help to surmount the business model challenges associated with SME internationalization. This paper builds on an exploratory case study of 29 SMEs who have an internationalization strategy and are from sparsely populated areas in Finland and Sweden. For the data analysis, the first-order codes of different business model challenges of SME internationalization have been merged into second-order themes. The final step of the analysis involved ascertaining the overarching dimensions of these business model challenges. This paper identifies business model challenges related to value creation, delivery, and capture throughout the internationalization process. In addition, a framework is developed that matches digitalization activities with the business model challenges. Because there is no “one fits all” solution, this study matches specific digitalization activities with business model challenges that SMEs face when attempting to operate in international markets. These findings are important because they dissect digitalization into executable activities that SMEs find manageable.© 2022 The Author(s). Published by Elsevier España, S.L.U. on behalf of Journal of Innovation & Knowledge. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)fi=vertaisarvioitu|en=peerReviewed

Implementering av affärsmodeller: Ett ramverk för produkt-tjänstesystem

Manufacturing companies are increasingly focused on service-led growth to gain new revenue streams and achieve sustainable competitive advantages. In this regard, offering product-service systems (PSS) is proposed as an attractive solution for manufacturing companies to achieve economic, environmental, and social benefits. More specifically, through the integration of provider and customer operations, efficiency is increased because each party focuses on its core competencies, and operations are optimized. For example, prolonged product lifetimes and increased resource utilization are part of the sustainability achievements that can be achieved through successful PSS implementation. Still, successful implementation of PSS is rare. The business model has become acommon unit of analysis in PSS and the crucial factor that may differentiate successful and unsuccessful PSS companies. Revising business models toward PSS provision and the implementation of the PSS business model is a challenging process that constitutes a major reason why companies struggle to increase the service degree of their offerings. This thesis suggests that a better understanding of tactics, risk management, service network adjustment, and activity alignment is associated with PSS business model implementation. Therefore, the purpose of this thesis is to advance the understanding of PSS business model implementation. Comprised of a cover story and five separate but interrelated articles, this dissertation explores the implementation of product-service systems business models. The results are based on a systematic literature review and four case studies with Swedish manufacturing companies. The thesis is empirical based on 107 interviews with employees from four different manufacturing companies and eight distributers of one of the case companies. This thesis contributes to the PSS literature by proposing a four-phase PSS business model implementation framework. The framework goes beyond selecting a PSS business model to also include the configuration of related tactical sets, risk identification and management, and adjustment of the delivery practices, along with activity alignment. All phases are crucial for PSS business model implementation and therefore make specific contributions by themselves. Furthermore, by applying agency theory to mitigate adverse customer behavior, this thesis contributes to the increased legitimacy of the PSS research field

Implementation of Artificial Intelligence (AI): A Roadmap for Business Model Innovation

Technical advancements within the subject of artificial intelligence (AI) leads towards development of human-like machines, able to operate autonomously and mimic our cognitive behavior. The progress and interest among managers, academics and the public has created a hype among many industries, and many firms are investing heavily to capitalize on the technology through business model innovation. However, managers are left with little support from academia when aiming to implement AI in their firm’s operations, which leads to an increased risk of project failure and unwanted results. This paper aims to provide a deeper understanding of AI and how it can be used as a catalyst for business model innovation. Due to the increasing range and variety of the available published material, a literature review has been performed to gather current knowledge within AI business model innovation. The results are presented in a roadmap to guide the implementation of AI to firm’s operations. Our presented findings suggest four steps when implementing AI: (1) understand AI and organizational capabilities needed for digital transformation; (2) understand current BM, potential for BMI, and business ecosystem role; (3) develop and refine capabilities needed to implement AI; and (4) reach organizational acceptance and develop internal competencies

Circular Business Models for the Bio-Economy: A Review and New Directions for Future Research

Circular and bio-economy represents a political and industrial initiative to ensure that our society can rely on renewable biological sources while achieving economic growth. However, there is a need to critical review how realistic and feasible such initiatives are towards fulfilling the promised benefits of this economy. The literature on bio-economy often discusses the importance of innovative business models and their role in a successful shift to a bio-economy. Still, much of the discussion that is related to circular business models is fragmented and immature. Therefore, the purpose of this study is to conduct a systematic literature review of circular business model activities and the barriers to a bio-economy. Further, this review provides future research directions for a shift to a bio-economy. This study is based on a systematic review of 42 scientific journal articles and book chapters on a forest-based bio-economy. The business model canvas is used to provide a structured aggregation of the existing circular business models activities being used by the forestry sector. In addition, we develop a framework that describes the barriers to bio-economy-based circular business models and suggest new directions for future research. The study highlights the need for alignment among the elements of a business model as a key condition for its successful implementation in a bio-economy

Aligning Production and Logistics- The case of SKF’s E-factory

Efficient production is essential for a production facility to stay profitable in today’s high competitive environment. A high resource utility and well organized production flow is also required to meet intra company standards. At SKF’s E-factory in Gothenburg, a factory relocation led to frequent changing routines and production flows which hindered efficient and well-coordinated operations. Adapted to the complexity of the factory and the production this work develops a methodology that is designed to enable the mapping, analysis and solution creation for the various problems occurring in the factory. The complexity and interdependency of problems and their solution require comprehensive analysis on the levels task responsibility, equipment utilization, factory layout and information flows. Because the extensive problems cannot be cured with only one solution a tool for prioritization was developed and led to an action plan for recommended solution implementation to improve the operations at SKF’s E-factory. The methods developed for this case have high potential to be more generalized and used to solve similar problems.MSc in Innovation and Industrial Managemen

Business model and capability development for underutilized local food resources : A case of Baltic sea fish

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