RETAIL BUSINESS MODELS: ADAPTATION TO NEW CHALLENGES

The aim of the article. The purpose of this paper is to study the impact of extreme situations such as the COVID pandemic on the development of e-commerce business models and identify ways for their successful transformation in Ukraine so as to ensure sustainable development in crisis conditions. Analyses results. Business models (BM) are models of a business system activity, which is always aimed at meeting certain needs. The crisis driven by the pandemic the Covid-19 caused changes in consumer needs and requirements for the ways of their satisfaction, which could not but lead to innovative changes in e-commerce business models. Redesigning or creating a new BM means creating new model components (target customer segments, value propositions, delivery methods, revenue models, key activities, etc.) and/or rearranging the main BM components. To estimate the impact of the pandemic on different types of e-commerce business models, we assessed changes in their components based on the Osterwalder framework. The analysis of these changes showed that the most significant innovations occurred in such components as key consumer segments and needs, which the value proposition is to meet, and, as a result, the value proposition itself as well as the channels of value distribution and ways of interacting with customers. Changes in other components, in particular, revenue generation, appeared to be secondary, although necessary for technological support of renewed business models. Under restrictions on physical contact, new key consumer segments have emerged. Changes in consumer priorities and requirements have forced e-commerce businesses to reconsider their priorities and product mix, complementing their product offerings with related services, and to refocus their BM, partnerships and terms of cooperation. Analysis of the experience of successful e-tailers has shown that the pandemic has led to fundamental changes in the value proposition beyond the change in assortment and digitalisation of the value proposition, including: 1) replacing the offer of a value available for purchase with the value delivered/provided to the consumer; 2) expanding the value proposition to include its visualisation, its virtual testing or virtual use; 3) transition from offering real products to offering their virtual analogues; 4) expanding the value proposition of a product or service through socialisation and gamification of the process of choosing and purchasing goods in e-commerce to restore the social experience lost during the pandemic; 5) transforming the process of choosing and purchasing value into a value proposition itself; 6) creating a purely virtual value proposition for virtual buyers in the form of a package of virtual goods and services without physical analogues, with their further testing and purchase without or with replacement with material copies of virtual products. The need for cheaper, faster and more contactless processing and delivery of a large number of orders prompted the development of automated warehouses: the dark store business model gained in popularity; the format of fast delivery on demand was developed, including for goods that were never supplied in such a way before (food deliveries from restaurants). The dark store model and the innovativeness of its elements are studied. It is also shown that under conditions of decreasing buying ability, it proved advisable to introduce the “Buy now, pay later” (BNPL) service into the e-merchant model, creating a sustainable business ecosystem centred around the online merchant and the BNPL provider platform. It is shown that the most successful in adapting their business models to the challenges of the pandemic appeared to be multivendor marketplaces that implemented the BNPL service and rebuilt their logistics. Conclusions and directions for further research. Although almost all disruptive innovations in e-business models had been made in the pre-covid period, a lot of supporting innovations were stimulated by the challenges of the Covid situation. Changing target segments, needs, and consumer preferences have forced e-businesses to update value proposition, customer relationships, delivery channels and revenue models, with appropriate changes in business models based on the use of the most advanced digital technologies. At the same time, pandemics are not the only unpredictable global factor affecting the development of entrepreneurship in general and e-commerce business models in particular; the impact of other extreme situations, either natural, epidemiological or socio-political, is also significant. The effective adaptation of Ukraine's e-commerce business models to the impact of extreme situations such as military conflicts of various scales is gaining particular relevance, and the ways to achieve this should be the subject of further research.

Striking creative new partnership models, updating publishing practices, transforming business models Our first Learned Publishing issue of 2020 addresses the shifting economic and cultural realities facing the publishing enterprises of member-based associations with scholarly and professional missions. The diverse contributors consider case studies, original research, and industry updates that paint a portrait of an industry in transition, striking creative new partnership models, updating publishing practices, and transforming business models. As evidenced by the Fifth Wiley Society Member Survey, reported in this issue by Jonathan Roscoe, society publishers are challenged to meet demands for high-quality, competitive offerings while balancing financial sustainability and the ever-changing expectations of research funders, corporate customers, and institutional subscribers. In his Industry Update, Phill Jones offers highlights of how societies are responding to these adversities with his report of a 2019 SSP webinar. And, looking at the experiences of learned societies in Finland as a case study, Elina Late and colleagues outline the ways in which society publishers are critical players in the dissemination of high-quality research, particularly open access publishing. Transforming traditional business models and addressing systematic campaigns to accelerate the shift to open access publishing is a dominant theme in this special issue. While the specific impact of Plan S will vary greatly between different publishers and journals, it has acted as a general catalyst for publishers of all kinds, whose revenues are still heavily dependent on subscriptions and must now consider how to transition their income streams from ‘read’ to ‘publish’. From a variety of expert perspectives, contributors to this issue highlight the latest trends to be aware of going into the new year. Reporting the latest analysis coming out of the Society Publishers Accelerating Open Access and Plan S (SPA-OPS) project, Alicia Wise and Lorraine Estelle discuss the remarkable 27 models currently being tested and highlight findings of their survey of society publisher experiences. Putting such models into practice for 2020, Malavika Legge at Portland Press discusses their commitment to develop and deploy transformative agreements with research institutions, taking on an exploratory approach to strike new arrangements that work for each customer. Quan Hoang Vuong also reflects on such transformations and observes an ‘existential threat’ to the economic models that have sustained independent society-based publishing for decades. Many societies are engaging with changing business models and editorial policies, struggling to maintain academic freedom in today's information economy. The authors in this issue demonstrate that there is no ‘one size fits all’ solution. Instead, we find an industry ripe for innovation and experimentation. Some publishers, such as those behind the British Ecological Society, have found partnerships with larger commercial publishers to be a beneficial path to support the society's mission, community, and future sustainability. Michael Clarke outlines best practices in exploring and establishing publishing service agreements with such commercial partners, raising important points to consider in this type of decision-making. Some society-based publications, such as the Journal of Orthopaedic & Sports Physical Therapy (JOSPT), have carved a path that retains full editorial and publishing independence. Limited partnerships models, for example, where one specific publishing aspect is outsourced to a commercial publisher, work for other society publishers as described by Sophia Anderton at the British Institute of Radiology. And others, such as those geological and earth science publishers that partner with GeoScience World, look to non-profit collaborative models, as outlined by Marc Segers and his colleagues. The value proposition that society publishing brings to a membership organization can create fulfilling career opportunities. Edith Holmes relates her experience with JOSPT and how the independent publishing operation adds to the enrichment of the community. The contribution to science, professional development, and advancement of research are additional benefits of a career in society publishing highlighted by Richard Dodenhoff. We hope that all our industry colleagues, whether society publishers or otherwise, will find something in this issue that offers insights or inspiration for the new year ahead. Please send us feedback – reach out to us (www.alpsp.org/Learned-Publishing) or find us on Twitter (@LearnedPublish) – we want to hear what you think! Special issue editorial team, Lettie Y. Conrad, Peter Richardson, and Rebecca Rinehart L. Y. Conrad P. Richardson R. Rinehart

Climate‐smart agriculture (CSA) is essential for sustainable farming. However, the adaptation of farm business models (BM) for widespread CSA implementation in Europe remains underexplored. This article investigates how CSA practices change or innovate farm BMs. Applying a multiple case study design based on 30 semistructured interviews with farmers across five European countries, we implement a BM value framework and BM change typologies to uncover the underlying management mechanisms. Findings reveal that CSA practices trigger incremental BM changes rather than radical BM innovations, improving operational efficiency and environmental benefits. Although value creation and delivery are enhanced, value capture faces unresolved challenges. Effective BM changes require improved value propositions and better capture mechanisms. The study contributes to the CSA literature by providing empirical evidence on the pathways of BM change, clarifies the BM change and BM innovation distinction, and broadens the scope from technological improvements to business strategies needed for sustainable farming practices.

Business models have received increasing attention in both academic and managerial communities. However, little attention has been paid to how business models change in response to extreme events. This topic is of critical importance since failure to achieve adaptation in a timely manner can lead to negative consequences such as a significant decrease in firm value or bankruptcy. This study explores how the business model paradigm of the Portuguese footwear industry changed following China’s entry into the World Trade Organization in 2001. The empirical results suggest that the shock acted as a trigger for change for the Portuguese footwear firms which reflected in the adoption of a new business model characterized by speed and flexibility in the manufacturing process, faster response to customer needs and, in specific cases, in downward integration through the creation of own brands selling directly to final consumers. This result, however, was not the outcome of a sudden change but rather the consequence of a planned adaptation strategy led by a key industry actor that acted as a network orchestrator coordinating the actions of the Portuguese footwear firms. The implications of these findings as well as directions for future research are discussed in the last part of this study.

This article explores the impact of the COVID-19 epidemic on the business models of automotive-sector organizations, specifically authorized passenger car dealerships in Poland. The research aims to determine how business models were transformed during the pandemic. The research methods used include a literature review and opinion polls. The article begins by discussing the significance and evolution of business models and changes in the automotive sector. The results focus on how the pandemic brought about change in business models in the automotive sector, and the conclusion includes information as to limitations and further areas of study.

Business models research is attracting the interest of both academics and practitioners due to digitalization changing the socio-economic landscape. The digitalization generates many new risks for traditional business models. At the same time, it provides new opportunities for value creation and thus contributes to changes in the enterprises business models. The object of our study is business models in light industry in the context of digitalization. Research works of scientists-economists, data of the research reports carried out by the authors were used to write this article. General scientific methods, system approach, institutional approach was applied during the research. We found that the business model transformation under the influence of digitalization is a process of irreversible essence changes in the mechanism of reproduction of the use value. These changes are due to the introduction of digital technologies and tools in production and business processes, in systems of interaction with other participants in the value chain and consumers as well as in the goods or services. We found that new sources of use value in light industry are emerging under the influence of digitalization as a result of an increase in the speed of design, production and distribution of goods; customization; value chains transformation and dynamic organization of production; the home country reputational capital use; attracting highly qualified personnel to the industry; redistribution of capitalization between individual value creation processes; transition to hybrid value creation models combining virtual and real processes; the domino principle in the digitalization of an enterprise and industry.KeywordsBusiness modelsDigitalizationLight industryFashion industryValue chainDigital technologiesDigital business-models

The increasing popularity of Software as a Service has strongly affected the established business model of on‐premise enterprise software. Software as a Service has distinctive characteristics of disruptive innovations that typically create several difficulties for incumbent firms, in particular with regard to adapting business models. To date, however, little empirical understanding exists regarding the dynamics of business model change – a topic of special importance to the highly dynamic software industry, which is characterised by rapid and regular emergence of disruptive innovations. As disruptive innovations require gathering distant knowledge and experimenting with new ideas, this study addresses theoretical gaps regarding the role of absorptive capacity and organisational ambidexterity in the process of business model change owing to the emergence of a disruptive innovation. Drawing on evidence from multiple case studies of six incumbent vendors of enterprise resource‐planning software and informed by a thorough review of related secondary data, we investigate the pace and path of incumbents' business model adaptations. We propose a theoretical model that refines prior literature on absorptive capacity and organisational ambidexterity, particularly with regard to the process of business model change. This study identifies further technological factors that determine how and why incumbents change business models. In addition, our study provides in‐depth insights on the technological trajectory of enterprise resource‐planning software switching from on‐premise to on‐demand software services. © 2016 Blackwell Publishing Ltd

It is important for companies to be able to make their business models dynamic. This enables them to adapt to changing circumstances and remain viable. The aim of this paper is to combine insights from the literature on business models and business model dynamics into a comprehensive dynamic business model framework. The framework that is developed in this paper takes into account various origins of changes in business models (internal or external to the company) and various types of changes in business models (primary or secondary changes and forced changes or strategic choices) and also includes the issue of business model consistency. In order to combine different origins and different types of business model change into one dynamic business model framework, some simplifications of reality were needed. The framework is described in text and shown in a comprehensive picture. The application of the framework to two cases of renewable energy companies in Indonesia shows that the framework is able to capture business model dynamics in a simplified and comprehensive way and that it allows for case study comparison. In a thorough discussion, it is shown how the framework can be adapted to make it better able to represent more complex dynamics.

The article explores the evolution of marketing innovations in the retail sector through the lens of technological development and the transformation of consumer expectations. Five key stages of innovation development are identified—traditional, network based, digital, omnichannel, and innovation-technological—each characterized by specific challenges, opportunities, and influencing factors. The traditional stage was marked by a focus on product policy and individual promotions within the physical store. The network-based stage introduced the integration of IT solutions into logistics, CRM systems, and initial customer segmentation. The digital stage was distinguished by the emergence of online stores, mobile marketing, and personalized communication. The omnichannel stage involved the full synchronization of online and offline channels to ensure a holistic customer experience. The innovation-technological stage includes the extensive implementation of artificial intelligence, AR/VR, blockchain, and emotional analytics. The study draws conclusions about the patterns of transition between stages and the role of innovation in transforming business models in retail. Key directions for further development of marketing innovations are identified, including the technologization of customer experience, intelligent marketing automation, a sustainable approach, Web3 integration, the growth of social commerce, and the use of emotional analytics. However, the implementation of these directions is accompanied by a number of challenges related to the rapid pace of technological change, increasing consumer expectations, and the need to adapt business models to new ethical and environmental standards. In Ukraine, these challenges are further intensified by martial law conditions, market instability, limited resources, and the urgent need for rapid transformation of the retail sector to fit the new realities. It is noted that the development vectors of marketing innovations in retail form a complex yet high-potential system of change that requires strategic thinking, flexibility, and readiness to implement new formats of customer interaction. The article has practical significance for marketing professionals, retail business managers, and researchers working on adapting business practices to the evolving digital economy.

The studies are devoted to the transformational processes associated with digitalization, which takes place in the Ukrainian economy. Economic development is impossible without widespread introduction and full use of the digital technologies. The rate of digital innovation is growing every year. The transformation of the landscape of interpersonal connections and economic relations leads to the digitalization of the operational processes and the change in business models, which generally results in large-scale digital transformation of companies. Meanwhile, it should be noted that the digitization and transformation processes of business models, taking place mainly at the level of private and state enterprises, are expanding to the level of government and have a significant impact on the competitiveness of the economy. Today, there is a significant number of projects of digital transformation in Ukraine. The general idea is to create a unified digital communication system. It is nice to note that not only private companies but also state structures have joined this system, which testifies to their interest in self-development and the desire to keep up with the modern technologies, focusing on clients.

Editorial

Drawing on existing theories of managerial behavioral decision making within firms (behavioral theory of the firm and threat-rigidity), we investigate how managerial perception of relative firm performance influences the formation of intention to enact business model change. The developed theoretical framework distinguishes between intentions to incrementally improve the current business model along the established trajectory that provided past success (exploitative business model change) and bringing wholesale changes to the way value is created and monetized (explorative model change). The theoretical predictions of the study are empirically tested in the real estate brokerage industry during a time period of a major technological and regulatory change. We demonstrate that the strength of intention to enact explorative and exploitative business model change could be explained by different performance-related antecedents. Specifically, the relationship between a managerial perception of a firm’s relative performance and intention to enact explorative business model change is inversely U-shaped. In the case of weak perceived firm performance on one hand (“we are too frightened to change our business model”) and strong performance on the other (“we have no need to change our business model”) we observe unwillingness to undertake explorative business model change. We also find that more incremental, exploitative business model changes are positively linearly related to relative business performance (“doing more of what we’ve been doing before”). Moreover, two salient factors from behavioral decision making theory (prior successful risk experience and financial slack) significantly moderate these relationships.

Purpose – The purpose of the present research is to identify how business model innovation can be used to make the transition from service for free to service for fee. In particular, the focus is on identifying, describing and analysing alternative transition strategies, degree and type of innovation, and how building blocks in the business model change. Design/methodology/approach – A multiple case study of six manufacturing firms was performed. Data were collected through interviews with CEOs, service managers and sales managers. In addition, two workshops were performed with the participating firms. Findings – The present research identified eight strategies for transitioning from service for free to service for fee. These strategies represent change in the business model, incremental business model innovation and radical business model innovation. It is suggested to change the content and structure to perform incremental business model innovation and change the governance to perform radical business model innovation. Originality/value – In most models for service infusion, the change of business model is seen as a necessary step and focus is placed on that a change of business model is needed. The present study elaborates on what approaches manufacturing firms use to make the change from one business model to another.

Purpose This article aims to investigate the relationship between business model adaptation, company performance and digitalization capability among startups during the coronavirus disease-2019 pandemic to determine whether there is a correlation among these aspects in uncertainty scenarios. Design/methodology/approach The research used a mixed approach. First, it utilized a survey-based data collection method in which over 400 Brazilian startups participated, representing diverse demographic and cultural characteristics. Following the data analysis, the authors interviewed startup founders who participated in the first phase to enrich the discussion section. Findings The results revealed that startups with stronger digital capabilities and higher performance were associated with lower levels of business model adaptation. However, this association was observed primarily in the dimensions of value creation and value capture, and not in value delivery. Research limitations/implications The limitation of this study includes the cross-sectional data collection, which prevents the assessment of causality between variables. Practical implications The findings suggest that startups should carefully evaluate their business models and adaptation strategies during uncertain periods. Social implications The social implications of this study lie in supporting public policies and initiatives for entrepreneurship and startups. Government agencies and support institutions can use the findings to better understand the challenges faced by startups during uncertain times, effectively guiding their assistance and resources. Originality/value This research contributes to the literature on business models and digitalization capability. It offers insights into the interplay between performance, digital capabilities and business model adaptation. Furthermore, the study contradicts the common sense that businesses should favor adaptation in uncertain moments, at least for startups in similar contexts.

This paper examines the changing business models in the creative industries facilitated by digital technologies. A holistic business model framework was developed from a systematic literature review, which is then used to analyse the evidence gathered from two strands of empirical work in the creative industries. The research found that digital technologies have facilitated pervasive changes in business models, but the resultant new business models are not necessarily novel or unprecedented. In many cases, digital technologies allow organisations to deploy a wider range of business models than previously available to them, often by adapting and applying traditional business models to different ranges or stages of products or services in the online environment. One important trend highlighted in this research is the emergence of the portfolio models in three different variants, where one organisation simultaneously adopts more than one business model to tackle different markets niches, to exploit different stages of work-in-progress as well as the final product, or to engage with multi-sided markets. This is a rapidly evolving field and new research is needed to understand emerging trends and their theoretical, business and policy implications. Three themes for future research are identified.