Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome-Based Business Models

Industrial manufacturers are innovating their business models by shifting from selling products to selling outcome-based services, where the provider (manufacturer) guarantees to deliver the performance outcomes of the products and services. This form of business model innovation requires a profound yet little understood shift in how value is created, delivered, and captured. To address this research gap, our study examines two successful and four unsuccessful cases of this shift. We find that effectiveness in business model innovation hinges on the three process phases that unfold in collaboration with the customers: value proposition definition, value provision design, and value-in-use delivery. We also find that that success is determined by the alignment of specific value creation and value capture activities in each phase: identifying value creation opportunities—agreeing on value distribution in value proposition definition, designing the value offering—deciding on the profit formula in the value provision design, and finally refining value creation processes—regulating incentive structures in the value-in-use delivery. Our process model contributes to the literature and practice on business model innovation by providing a thorough understanding of how alignment of value creation and value capture processes is ensured, whilst paying special attention to their interdependence and the interactions between provider and customer.     

Price Endogeneity and Food Demand in Urban China

Price endogeneity has been ignored in previous analyses of food demand in urban China. We exploit data provided by the China National Bureau of Statistics on agricultural commodity supply shifters and use reduced‐form price equations to account for price endogeneity. Applying our unique econometric approach to the analysis of provincial‐level food demand in China, we find strong statistical evidence of price endogeneity. Models that ignore price endogeneity result in substantially biased elasticities and misleading estimates of future food demand in China.     

Financial density selection

We propose and study simple but flexible methods for density selection of skewed versions of the two most popular density classes in finance, the exponential power distribution and the t distribution. For the first type of method, which simply consists of selecting a density by means of an information criterion, the Schwarz criterion stands out since it performs well across density categories, and in particular when the DGP is normal. For the second type of method, general-to-specific density selection, the simulations suggest that it can improve the recovery rate in predictable ways by changing the significance level. This is useful because it enables us to increase (reduce) the recovery rate of non-normal densities by increasing (reducing) the significance level, if one wishes to do so. The third type of method is a generalisation of the second type, such that it can be applied across an arbitrary number of density classes, nested or non-nested. Finally, the methods are illustrated in an empirical application.     

Deployment of Restaurants Websites’ Marketing Features: The Case of Spanish Michelin-Starred Restaurants

ABSTRACT

Websites have become a fundamental marketing tool for tourism businesses and have a special importance for highly rated restaurants. The aim of this article is to propose and apply a model to evaluate the deployment and adoption of website marketing features of restaurants from a specific category. The model is based on the application of an extended model of Internet commerce adoption (eMICA) technique for technical depth, combined with content analysis for breadth. This study analyzes the website features and capabilities for Spanish restaurants in the 2015 Michelin Red Guide. A total of 102 restaurants were analyzed. The results of the website evaluation model suggest that, despite the importance of the restaurant sector in the economy and in the tourism industry, the websites of high-quality restaurants require improvements to adapt to customers’ demands. Results further found that these websites are not tourist-orientated and are established at different stages of development.     

Monetary policy in a small open economy with fixed exchange rate: The case of Macedonia

This paper empirically applies the New Keynesian model for monetary policy analysis in a small open economy with a fixed exchange rate. Official reserves are included in the interest rate rule to account for the constraint that these impose on monetary policy when the exchange rate is fixed. Also, the foreign interest rate is included in order to reflect the necessity of following the foreign monetary policy. The model is applied to Macedonian data from the period 1997 to 2011. In general, results indicate that monetary policy has been focused on domestic objectives during this period, despite the fixed currency. In addition, there seem to have been significant differences in the conduct of the monetary policy in the first and second half of this period. The response to inflation has been more aggressive in the earlier period, at a time when reserves appear less important, while the output gap is found to be important only in the latter period, possibly due to the stronger monetary policy transmission. Finally, results indicate that the monetary policy has likely moved from adaptive in the first period to rational in the second period.     

New Technology and The Small Firm

This paper examines how and why the role of small business has become more important over time. A special focus is placed on the role of small business in the New Economy.     

Which factors improve the performance of the internationalization process? Focus on family firms

This study aimed to analyse the impact that the financial features and characteristics of the ownership structures of international companies exert on the performance of their internationalization process, as perceived by managers, and attempted to detect differences between family firms (FF) and nonfamily firms (non-FF). In addition, the impact of these characteristics and others related to FF, such as family ownership and generation, on the perceived performance of their internationalization is analysed. Based on a sample of Spanish companies with direct investment in China, the results indicated that, from the managers’ perspective, being an FF and having lower financial leverage exerted a positive effect on the performance of the internationalization process. Moreover, the study proved that this performance was strongly and positively related to the financial results of the company, and this positive effect was even stronger in the case of FF. Finally, the findings also showed that FF with a higher involvement of the family in their ownership recognized a better performance of their internationalization process. These results will be useful for companies that are considering the value of internationalization as a strategy to improve or maintain their financial results, and they also highlight certain differences between FF and non-FF.