EXPLORING BUSINESS MODEL DEVELOPMENT: APPROACHES, STRATEGIES, AND CHALLENGES

Aim: In the era of mobile internet, live marketing has become a new business model for network marketing, and is a product of the interactive integration of new technology and marketing activities in the new era.Method: Based on the business model theory, combining the value creation process, using live streaming platforms such as Taobao, Tiktok, Jingdong and Amazon as examples, and adopting a qualitative analysis method, the business model elements and innovation paths of live marketing are analyzed.Findings: The research found that: (1) The live marketing model has new integrated features and new values. The combination of technical system integration and marketing activities is a hotbed for live marketing;(2) Based on the anchors influence and audiences attractiveness as the classification criteria, live broadcast sellers can be divided into super sellers, famous sellers, ordinary sellers and low-level sellers. It is a new classification proposed for the first time, which provides important evaluation contributions for understanding and distinguishing the different categories of live broadcast sellers; (3) Based on the business model canvas, this article finds that the business model innovation of live marketing illustrates the nine elements logical relationship of the business model, value proposition is the key-hub linking other elements. The business model innovation of live marketing also follows the basic laws of value creation, that is, from value proposition to value creation to value transmission, and finally to value acquisition;(4) The business model innovation path of live marketing is also the path of value rebuilding, which increasing value is the essence of the sustainable development of business model innovation.Implications/Novel Contribution: Therefore, these new findings can help non-live broadcast marketers transform their marketing concepts and methods, and improve their sales capabilities. The analysis of the business model innovation and value creation of live marketing reveals the essence of live marketing, and the mechanism of value co-creation between sellers and customers, which this research also creatively proposes its innovation model and value creation process from the perspective of the relationship between business model and value creation. Finally, the article is not in-depth study of its relationship business model innovation and value creation from the perspective of explicit knowledge and tacit knowledge.

Result Report of the Study Business Development and Business Model Innovation - Status Quo and Future Developments

In the last decades, academic and managerial literatures have paid great attention by about the notion of the business model (BM). Accordingly, a wide range of literature was created to identify and acknowledge the capacity to create and renew organizational BM as one of the fundamental sources of competitiveness and value creation. However, until now, the notion and application of business model innovation (BMI) research has mostly been developed in relation to large companies and organizations. Very limited studies have explored what and how context-specific characteristics and knowledge asset management may have effects on BM development and organizations’ sustainability. This latter aspect is particularly true for technological start-ups. Until now, research and managerial practice have been not aligned with national and international policies’ great emphasis on technological start-ups, as well as about the role of the BMI to support organizational performance improvement and stimulate entrepreneurship. From this perspective, technological start-ups represent an interesting basis for analyzing business model mapping and BMI along a knowledge-based perspective. The creation, survival, development, and market success of such organizations are mainly based on the identification, acquisition, and exploitation of their knowledge-based assets. Therefore, it can be relevant to study and analyze how such knowledge assets significantly drive organizational performance and value creation by leveraging innovative technology breakthroughs, highly qualified and distinctive competencies, and implicit knowledge embedded into valuable networks of relationships.

Business models are a cornerstone of innovation for both startups and established firms. The term exists as part of the management lexicon, as media and scholars devote significant attention to it, especially with Internet-based and tech businesses exploiting innovative new models. This review aims to address the question concerning the current knowledge regarding the concepts of the business model and business model innovation. Starting with the business model, the paper examines the diversity of definitions that scholars offer, particularly related to its scope (e.g., firm, network) and conceptualization (e.g., activities, value). The narrative delves into a systematic review and components of the business model. It segues to examining links with the lean startup and associated canvases that encompass components to define value creation, delivery, and capture. This section closes by highlighting the diverse multitude of business models, including fifty-five common patterns, and finally, considers the assessment of the construct, most notably Teece's seven questions. The business model innovation section delves into its diverse characterizations by scholars, leading to the identification of common themes- value, process, novel, change, activities, core elements, model, and discovery. The section discusses two relevant systematic reviews that highlight gaps for further exploration. It then dives into multiple approaches, such as business model development, reconfiguration, discovery-driven planning, customer discovery, parallel play, and reinventing-the-wheel. This discussion closes by examining the role of business model innovation in the organizational learning process, particularly that of experimentation. Finally, it addresses evaluation, featuring Amit and Zott's six questions. Themes to draw for the business model involve that it (1) is essential to define a path to innovation and successful commercialization; (2) embodies the creation, delivery, capture, and apportionment of value; and (3) encompasses exploration and exploitation functions. For business model innovation, a notable extraction is that it involves a critical organizational learning process fashioning a model that offers novelty and value to the firm and its ecosystem of customers, investors, and partners.

Business model innovation in the digital age is an important exploration carried out by various industries to adapt to market demand, driven by the trend of digitization. This paper takes the new generation digital platform of the Information Network as a case study to deeply study its business model innovation practice and its position in the digital era business model innovation. By analyzing the development history, core structure, functions, and user and market impact of the platform, the unique value of the platform in business model innovation has been revealed. At the same time, a detailed analysis of the evolution of information network business models, core value chains, profit models, and competitive strategies comprehensively presents the diversity and innovation of information network digital platform business models. In practice, the impact of e-commerce, sharing economy, mobile payments, and financial technology on business model innovation was explored, highlighting the diversified paths of business innovation in the digital age. Finally, through in-depth analysis of innovative strategies such as customer value, data-driven decision-making, and multi-channel integration, insights are provided for future business model innovation in the digital age.

Contemporary research on sustainable business practices and business model innovation increasingly emphasises the need to identify new, inclusive pathways for circular enterprise development and sustainable business practices. There is growing interest in alternative knowledge systems for their potential to support innovative and inclusive business model development. Although widely acknowledged for their cultural significance, indigenous clothing traditions have not been sufficiently examined for their potential to contribute to contemporary business model innovation, particularly through adaptive reuse strategies. Most existing literature addresses cultural or aesthetic aspects, with limited empirical research investigating how traditional clothing systems can be transformed into viable, scalable, and sustainable enterprises, supported by both qualitative and quantitative evidence. A mixed-method research design was employed, integrating qualitative approaches with quantitative and descriptive analysis. Ethnographic fieldwork was conducted in Ziro, Arunachal Pradesh, the Apatanis’ homeland, where most community members have ancestral roots. Additionally, Itanagar, the capital city, was selected for its significant Apatani population, enabling comparative insights from both traditional and urban contexts. Consumer perspectives are incorporated to assess market relevance and adoption potential, particularly among younger demographics. A structured survey was administered to the target age group (18–55 years) using snowball sampling. The survey collected quantitative data on usage frequency, perceived barriers, sustainability awareness, and openness to contemporary adaptations. Data were analysed using thematic analysis supported by basic statistical techniques. This study demonstrates how indigenous clothing practices of the Apatani tribe of Arunachal Pradesh can contribute to the evolution of sustainable and circular business models within the fashion and creative industries and facilitate sustainable business model innovation through adaptive reuse, circular design strategies, and community-based value creation. The study conceptualises these practices as embedded knowledge systems that demonstrate resource efficiency, adaptive reuse of materials, and community-based production logic. The research presents an empirically grounded framework connecting cultural heritage to scalable and resource-efficient enterprise models. The resulting business model provides practical guidance for designers, entrepreneurs, and policymakers seeking to create heritage-driven circular enterprises while maintaining cultural integrity. These findings apply to other indigenous and craft-based contexts, supporting sustainable growth, innovation, and broader societal impact within the creative economy.

Business model innovation（BMI）is becoming the important carrier of corporate transformation and upgrading, and its theme design as the value source of corporate sustainable competitive advantage has attracted much attention in recent years. Being embedded in a particular social situation and institution environment, BMI theme design is a product of contextualization. However, most researchers don’t have sufficient understanding for start-ups’ BMI institutional context. BMI under China’s transitional economy is much different from that one under western situation, China has become ‘a legitimate and viable context for management and organization reasearch’. Widespread ‘institution vacuum’ and ‘institution defect’ in transitional context have sharpened antecedents of business model design, have triggered a responsive motivation and creative challenge, and have provided theme design space with pioneering BMI and perfecting BMI. Therefore, it is very necessary to design the theme of BMI in China’s context and incorporate its operation to make measurement more meaningful and effective. In conformity with the research logic of theme business model design, based on China’s unique context, and focusing on how China’s start-ups change trading institution through BMI, this paper firstly excavates the trading and the institution attributes of business model, analyzes the influence of China’s transitional context on start-ups’ BMI, and refines out the theme design connotation of pioneering and perfecting BMI. Then, according to the development logic of measurement scale, by the use of combined approach, this paper initializes the scale of pioneering and perfecting BMI. Finally, by virtue of two sets of independent sample data respectively, we conduct EFA and CFA quantitative research to purify and validate the scale. Empirical analysis results show that BMI in transitional context is composed of 2 theme dimensions and 16 items, thus confirming our pioneering and perfecting BMI theoretic framework and developing a corresponding scale with a favorable reliability and validity, which is better to explain start-ups’ BMI behavior in the context of China’s transitional economy. The pioneering and perfecting BMI theme design which respectively acts on ‘institution vacuum’ and ‘institution defects’, frames not only the design elements of business model, but also conveys organization meaning, beliefs and values. This paper makes up for the lack of BMI contextualization in the answer of how China’s start-ups actively change incumbent institution, brings out the operative definition of pioneering and perfecting theme design, and makes theoretical contribution to the literature of BMI and corporate strategy. Moreover, the flexible use of pioneering and perfecting BMI, the equal attention to transaction innovation and organizational legitimacy, and the diagnostic tool function of theme scale all provide practical implications for start-ups’ business model innovative catching-up.

The term business model innovation refers to the introduction of innovations that differ from state-of-the-art business models in the same field. Current research indicates that business model innovations are more resilient (e.g. to imitation) overall and more successful in the long term compared to traditional types of innovation (e.g. product innovations). Working on business model innovation, therefore, can provide valuable insights, particularly for start-ups looking to grow and scale up under conditions of extreme uncertainty. Business model innovation involves the innovation of two of four core elements of a business model: customer, value proposition, value chain and revenue mechanism. A business model can be described using these four elements in a sophisticated and comprehensive manner. Moreover, these elements help us to determine whether a business model innovation exists. However, do start-ups really use the advantages of business model innovation and to what extent? This research paper addresses this issue and examines the role business model innovation plays for start-ups as well as how it has been implemented. To gain these insights, we examine the business plans of 24 finalists of a Swiss innovation competition in 2021 in a multi-stage process. We systematically reviewed and analysed business plans individually using pre-defined innovation criteria for each of these four elements of a business model. The individual analysis allows a robust assessment to be able to make a comprehensible classification. On reviewing the results, we were surprised by how many of the analysed start-ups are pursuing business model innovations, and that they often innovate more than two elements of their business models. According to our findings, start-ups nowadays deal with business model innovation more often than they did in previous research studies. We can also show that business model innovations are often more complex than they were in the past.

Organizations continually realise that fulfilling their sustainability objectives requires emerging innovations and innovation in the business model. Initially, most research revolved around product or method innovations with a new field of concern for the innovation in the business for its sustainability. A variety of new techniques & strategies have been designed to promote sustainability in the business models. While creating a large variety of business models, very few have been introduced successfully. Despite the topic's importance, research shows that many business model innovations fail. The causes of failure are largely unexplored and there is a lack of a comprehensive review of the literature on innovation in sustainable business models. The identified gaps in the areas of sustainable business model innovation that undermine bridging the design-implementation gaps are; the process of implementing business model innovation; its tools; and its challenges. The Cambridge Business Model innovation process (CBMIP) enables current and newly designed tools to be incorporated into the market modelling process, showing deficiencies.

Although business model innovation (BMI) is more and more being acknowledged as key strategic task, current research is missing a conceptualization of core elements and relevant organizational capabilities. These research gaps impede a full theoretical understanding and a systematic and purposeful managerial application. By drawing on dynamic capability literature, this study addresses the question of how firms systematically and purposefully pursue BMI. Empirical analysis is based on six case studies in the specialized publishing industry, in which technological change has triggered numerous opportunities for new business models. The findings demonstrate that BMI can be conceptualized as a distinct dynamic capability. This capability can be disaggregated into a firm's capacity to sense business model opportunities, seize them through the development of valuable and unique business models, and reconfigure the firms' competences and resources accordingly. The present study outlines how distinct organizational routines and processes undergird these capacities. A conceptualization as dynamic capability contributes to a theoretical underpinning of BMI by integrating previously discussed dimensions of this phenomenon. Moreover, managers can gain concrete guidelines about how to systematically and purposefully approach BMI.

Despite increasing interest in business model innovation (BMI), there is only limited scholarship that examines how business model (BM) innovators present and explain their innovations to various stakeholders. As BMI often involves the creation of a new ecosystem, understanding how innovators can gain support of future ecosystem members is important. Based on a longitudinal case study of Salesforce, a pioneer in cloud computing, the authors show how the innovator’s skillful framing to different audiences fosters the emergence of an ecosystem around the new BM. The authors suggest that effective framing constitutes an important strategic process that enables BM innovators to shape new ecosystems due to the performative power of words.

In recent years, the mobility industry has experienced a radical transformation, driven by factors such as digitalization, innovative business models, servitization, and the entry of new actors into the value chain. This study presents a comprehensive case study focusing on four prominent automobile manufacturers within the context of the Global Value Chain. The primary aim is to investigate how these traditional automobile manufacturers are adapting to the new business models that are closely linked to the growing concept of mobility as a service. The findings of the research reveal a profound metamorphosis instigated by digitalization, which has not only altered the fundamental business models but also redefined the relationships between traditional and emerging actors. The digital era has served as a catalyst for an unprecedented reconstruction of the conventional automotive landscape, compelling industry players to respond swiftly to the evolving market dynamics. The companies under examination have exhibited a notable responsiveness, having embraced a diverse range of business models, including those related to electric and autonomous vehicles, digital platforms, connectivity solutions, and car-sharing ventures. One of the most striking trends is the growing prominence of marketplaces facilitated through digital platforms. These marketplaces serve as dynamic hubs where various actors converge, enabling transactions and interactions within the value chain. Additionally, there has been a significant emphasis on content services and applications related to connectivity, indicating a strategic focus on enhancing the user experience and integrating vehicles seamlessly into the digital ecosystem. At the heart of this paradigm shift is the increasing importance of data. Effective data management, strategic sourcing, and seamless interconnection have emerged as critical success factors in this rapidly changing environment. Companies are increasingly utilizing data for both operational efficiency and innovation, as the ability to collect and interpret vast datasets has become a critical factor in gaining a competitive edge in the modern mobility value chain. With the complexity of relationships within the value chain, technology providers have emerged as vital partners in driving the industry forward through their expertise in developing and implementing cutting-edge solutions. This shift in dynamics has led to a more balanced distribution of decision-making power within the value chain, with technology providers wielding significant influence. It is imperative for countries with a robust automotive industry to invest in technologies underpinning the new mobility landscape, as such investments not only enhance decision-making capabilities within the industry's value chain but also create high-quality, knowledge-intensive employment opportunities. The convergence of technological advancements, evolving business models, and strategic investments presents a transformative opportunity for countries to shape the future of their automotive industries, fostering resilience and competitiveness in a rapidly changing global landscape.

Purpose The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their existing business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, the review synthesises these approaches and provides a clear guidance as to the ways through which business model innovation can be undertaken.

PurposeThe purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client relationships in facilities management (FM) services.Design/methodology/approachThis study of FM services in Denmark consists of an explorative case study and three case studies of FM clients. Both phases, related and overlapping, involved collection and analysis of in-depth, semi-structured interviews and archive data.FindingsFindings show that business model innovation entails interorganisational collaboration across different phases of the innovation process. The research demonstrates that external orientation within FM service ecosystems involves both a reaction to changes in the external environment and the proactive involvement of stakeholders throughout business model innovation.Research limitations/implicationsThe selection of business model innovation processes was limited to the Danish context. The sample, although heterogeneous and representative, represented only a fraction of the total population, which may have excluded processes of business model innovation that contradict the research.Practical implicationsThis paper suggests that by observing the business models of the value network over time, organisations could learn from the interdependencies between intra- and interorganisational stakeholders, thereby supporting the monitoring of risks and uncertainties as well as the anticipation of potential consequences of changes in the ecosystem.Originality/valueThis paper introduces new thinking on the subject of business model innovation to the context of FM. It presents the external orientation of FM business models as a way to combine planned and emergent business model innovation through interorganisational collaboration and value creation in FM ecosystems.

Network embeddedness, which determines the various resources obtained by the sci-tech enterprise and ultimately affects its growth status, is the stable connection formed in the enterprise due to its previous ties and interactions. This paper introduces organizational legitimacy and business model innovation as causal dual mediating variables, constructs the chain mediating conceptual model of “network embeddedness–organizational legitimacy– business model innovation–enterprise growth”, and presents the research hypothesis accordingly.We conduct the research in the form of questionnaire and select the scale widely used in the Chinese context. In order to ensure the rationality of the questionnaire, we carry out a small sample prediction test for managers of scientific and technological enterprises as well as university experts, in which the questionnaire is modified according to their feedback results. Following this, we commission a professional research company to collect 371 valid questionnaires. The conclusions are carried out through exploratory factor analysis, correlation analysis, hierarchy regression analysis and Sobel model.The research shows that: First, both relational embeddedness and structural embeddedness promote the growth of scientific and technological enterprises. Second, organizational legitimacy and business model innovation play a mediating role in the relationship between network embeddedness and the growth of scientific and technological enterprises respectively, in which the mediator effect of organizational legitimacy is more significant. Third, organizational legitimacy and business model innovation play a chain mediating role in the relationship between relational embeddedness and growth of scientific and technological enterprises. Fourth, the improvement of organizational legitimacy promotes the influence of relational embeddedness and business model innovation on the growth of scientific and technological enterprises. Therefore, this paper verifies the chain mediating role of organizational legitimacy and business model innovation, clarifies the influence mechanism of network embeddedness on the growth of scientific and technological enterprises, enriches the research content in the field of network embeddedness and firm growth, and expands the applicable scope of the iceberg theory of business model.The main contributions of this research are as follows: First, it analyzes the influence mechanism of network embeddedness on the growth of scientific and technological enterprises, confirms that network embeddedness, organizational legitimacy and business model innovation are important antecedent variables in the field of enterprise growth, and further enriches the related studies of network embeddedness and enterprise growth theory. Second, it introduces organizational legitimacy and business model innovation as causal dual mediating variables, analyzes the chain mediating role of organizational legitimacy and business model innovation, as well as explores the moderating role of organizational legitimacy. These results expand the research on the influence mechanism of network embeddedness on enterprise growth, and provide a novel perspective to explain the divergence in previous research. Third, it takes Chinese local scientific and technological enterprises as the research samples, and explores the antecedents and after-effects of business model innovation from an empirical perspective, which further develops the research content of the iceberg theory of business model and establishes a foundation for the follow-up research.