Diffusion of 5G Technology and Potential Impact on Business Models : Technology Enabled Value Creation in the Cleaning Industry

Abstract: New technological innovations are considered as one of the major drivers of economic growth. However, in order to be able to achieve this growth, the diffusion of these new technologies is essential. The large number of factors that influence the diffusion process makes it rather difficult to make estimations, before the realization of the process. Especially emerging technologies, such as 5G technology, can considerably benefit from a better analysis of the diffusion process in order to fully realize their potential. Based on this shortcoming in the existing literature, this study aims to determine the possible impacts of adoption of 5G technology on business models within the cleaning industry. As it is implied in the objective, these impacts of adoption of 5G technology on business models are enabled by the adoption of 5G technology. Therefore, the constraints which influence the adoption of 5G technology are researched initially, as it is a prerequisite to identify potential modifications on business models.    A qualitative research methodology was deemed appropriate after the investigation of previous research within the field and to complement the case study design which this thesis internalizes. In addition to the review of relevant academic literature, twelve semi-structured interviews have been conducted as another data source. The qualitative data obtained from these interviews are analyzed using the thematic analysis method and themes are identified after the coding and categorization process. After the analysis, three areas of interest, which are Revenue Models, Logistics Operations and Automation for Individualization, have been identified according to the similarities of results, anticipated opportunities and observed challenges within the cleaning industry. Within these areas, the effects of adopting 5G technology on the value proposition of the business model are examined while considering the drawbacks of the cleaning industry through the collaboration with an external company called L2GO. The study concludes by proposing four potential implications of 5G adoption on business models within the identified areas and identifying the possible changes in their value propositions.