Use-Oriented Business Model for Consumer Durables : an Exploratory Case Study on Business Model Capabilities
Abstract: Purpose - The purpose of this study is to explore capabilities needed to deploy a use-oriented businessmodel (UOBM) for consumer durables with low utilization rate. Therefore, the study seeks to uncover activities needed to realize business model capabilities and the capabilities impact on business performance. Method - The study was conducted with an explorative single case study research approach, investigating an incumbent original equipment manufacturing (OEM) firm of consumer durables based in Sweden. The study adopts a qualitative approach where 34 interviews were conducted in three waves, and results were derived using thematic analysis. Findings – The study results in a framework which illustrates 13 key capabilities within the three dimensions of the business model (value creation, delivery, and capture) needed to successfully deploy a UOBM in a consumer market. The capabilities were generated through findings of 47 key activities within all three dimensions that build the business model specific capabilities. Based on the data, additional findings of organizational preconditions needed to deploy the UOBM were found and presented in the framework. Theoretical and Practical Implications – The study contributes to the limited previous research of Product-Service Systems (PSS) in a consumer context through empirically developing the PSS B2C business model research. By the identifying business model specific capabilities, we have given practitioners an operational map in business-critical capabilities as well as capabilities that can be built over time to improve business performance. Limitations and Future Research – The study is limited to one single case study of an OME in the early stages of deploying the UOBM. Hence, future research is recommended with a wider set of data to further examine the generalizability of our study, also, to both confirm the recognized capabilities and to possibly find others.
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