IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i21p9278-d441862.html
   My bibliography  Save this article

Business Model as a Base for Building Firms’ Competitiveness

Author

Listed:
  • Tihana Koprivnjak

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek, 31000 Osijek, Croatia)

  • Sunčica Oberman Peterka

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek, 31000 Osijek, Croatia)

Abstract

Designing and creating a business model is crucial for a successful firm’s operation in today’s market in a complex and changing environment. A business model is the factor that differentiates one firm from another—it defines the distinctions of the firm, how the firm deals with the competition, the firms’ partnerships, and customer relations. This paper explores the role of the business model in the creation of sustainable competitive advantage. The empirical part of the paper presents the business model of three small companies from the Information and Communications Technology (ICT) industry in Croatia using the Business Model Canvas. Additionally, business model components were also analyzed using a framework for evaluating a business model. The results of the analysis point to a few crucial components of the business model, on which small ICT firms in Croatia build their competitive advantage by creating significant distinctions of those components. These distinctions are essential for their longevity and sustainability.

Suggested Citation

  • Tihana Koprivnjak & Sunčica Oberman Peterka, 2020. "Business Model as a Base for Building Firms’ Competitiveness," Sustainability, MDPI, vol. 12(21), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:9278-:d:441862
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/21/9278/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/21/9278/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Farrukh Saleem & Bahjat Fakieh, 2020. "Enterprise Architecture and Organizational Benefits: A Case Study," Sustainability, MDPI, vol. 12(19), pages 1-23, October.
    2. Daniela Andreini & Cristina Bettinelli, 2017. "Business Model Innovation," International Series in Advanced Management Studies, Springer, number 978-3-319-53351-3, October.
    3. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    4. Curtis, Sarah & Gesler, Wil & Smith, Glenn & Washburn, Sarah, 2000. "Approaches to sampling and case selection in qualitative research: examples in the geography of health," Social Science & Medicine, Elsevier, vol. 50(7-8), pages 1001-1014, April.
    5. Daniela Andreini & Cristina Bettinelli, 2017. "Systematic Literature Review," International Series in Advanced Management Studies, in: Business Model Innovation, chapter 0, pages 1-23, Springer.
    6. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Grenoble Ecole de Management (Post-Print) hal-00869707, HAL.
    7. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    8. Yogesh Malhotra, 2000. "Knowledge Management and New Organization Forms: A Framework for Business Model Innovation," Information Resources Management Journal (IRMJ), IGI Global, vol. 13(1), pages 5-14, January.
    9. Keiningham, Timothy & Aksoy, Lerzan & Bruce, Helen L. & Cadet, Fabienne & Clennell, Natasha & Hodgkinson, Ian R. & Kearney, Treasa, 2020. "Customer experience driven business model innovation," Journal of Business Research, Elsevier, vol. 116(C), pages 431-440.
    10. Haim Mendelson, 2000. "Organizational Architecture and Success in the Information Technology Industry," Management Science, INFORMS, vol. 46(4), pages 513-529, April.
    11. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Post-Print hal-00869707, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao Junting & Jereco Jims J. Agapito, 2024. "Strategic Business Model Development for Architectural Services: Analyzing Competitor Designs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1716-1730, January.
    2. Haiyan Yu & Shan Li & Yiyuan Liu & Qiuping Liu & Yuxin Lu, 2023. "Do International Trade Frictions Influence the Competitiveness of Entity Enterprises? Evidence from the Perspective of Financialization," SAGE Open, , vol. 13(4), pages 21582440231, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    2. Budler, Marko & Župič, Ivan & Trkman, Peter, 2021. "The development of business model research: A bibliometric review," Journal of Business Research, Elsevier, vol. 135(C), pages 480-495.
    3. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    4. E. Moreva L. & Е. Морева Л., 2017. "Бизнес-Модель И Ее Роль В Разработке Инновационной Политики (Анализ Зарубежных Концепций) // The Business Model And Its Role In The Development Of The Innovation Policy (Analysis Of Foreign Concepts)," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 21(4), pages 126-137.
    5. Thomas Clauss & Ricarda B. Bouncken & Sven Laudien & Sascha Kraus, 2019. "BUSINESS MODEL RECONFIGURATION AND INNOVATION IN SMEs: A MIXED-METHOD ANALYSIS FROM THE ELECTRONICS INDUSTRY," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-35, April.
    6. Adiloğlu-Yalçınkaya, Leyla & Besler, Senem, 2021. "Institutional factors influencing business models: The case of Turkish Airlines," Journal of Air Transport Management, Elsevier, vol. 91(C).
    7. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    8. Jean-Robert Agher & Patrice Dubois & Améziane Aoussat, 2021. "A Bibliometric Analysis of Product-Service Systems’ Design Methodologies: Potential Root-Cause Identification of PSS’ Failures," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    9. Federico Cosenz & Vinicius Picanço Rodrigues & Francesco Rosati, 2020. "Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 651-664, February.
    10. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    11. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    12. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    13. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.
    14. Best, Bernadette & Miller, Kristel & McAdam, Rodney & Moffett, Sandra, 2021. "Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 643-657.
    15. Hanna Rydehell, 2019. "Stakeholder Roles In Business Model Development In New Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-38, May.
    16. von Delft, Stephan & Zhao, Yang, 2021. "Business models in process industries: Emerging trends and future research," Technovation, Elsevier, vol. 105(C).
    17. Ferreras-Méndez, José Luis & Olmos-Peñuela, Julia & Salas-Vallina, Andrés & Alegre, Joaquín, 2021. "Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 108(C).
    18. Andreja Pucihar & Gregor Lenart & Mirjana Kljajić Borštnar & Doroteja Vidmar & Marjeta Marolt, 2019. "Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    19. Gasparin, Marta & Green, William & Lilley, Simon & Quinn, Martin & Saren, Mike & Schinckus, Christophe, 2021. "Business as unusual: A business model for social innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 698-709.
    20. Ricarda B. Bouncken & Sascha Kraus & Norat Roig-Tierno, 2021. "Knowledge- and innovation-based business models for future growth: digitalized business models and portfolio considerations," Review of Managerial Science, Springer, vol. 15(1), pages 1-14, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:9278-:d:441862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.