Developing a Maturity Model for Business Model Openness in the Iranian Banking Industry

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Business Policy, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

2 Associate Prof., Department of Business Management, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

3 Associate Prof., Department of Industrial Management, Faculty of Industrial Management and Technology, College of Management, University of Tehran, Tehran, Iran.

4 Assistant Prof., Department of Business Management, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

Abstract

Objective
In recent years, the emergence of concepts such as customer value creation, organizational networks, and open innovation has elevated open business models as an innovative approach in management studies. These models have garnered significant attention in both academic and practical arenas due to their foundational emphasis on collaboration among organizations. However, comprehensive research on specific business models and their maturity stages within the Iranian banking sector remains sparse. This article seeks to develop a model for the maturity of business model openness in this industry. Its primary goal is to identify the distinguishing factors between open and closed business models and to examine the maturity stages and their respective characteristics.
 
Methodology
This study was conducted in two distinct phases. In the first phase, a systematic review of 303 relevant studies was performed, leading to an in-depth analysis of 30 selected articles. This phase facilitated the identification and categorization of key factors influencing business model openness. The systematic review approach ensured that a comprehensive range of literature was considered, allowing for a robust understanding of the current state of knowledge in this area. In the second phase, a grounded theory approach was employed to gather essential data through interviews with 14 experts from the banking industry. These experts provided valuable insights into the practical implications of business model openness. This methodological framework significantly contributed to the formulation of the maturity model for business model openness in this sector.
 
Findings
The research identified 13 subcategories and 48 codes that delineate the distinguishing factors between open and closed business models. These factors were organized into four main categories: deliverable value, value creation, value capture, and value networks, each comprising specific subcategories and codes. This structured classification allows a clearer understanding of how different elements interact within business models. Additionally, the study introduced a classification of business models in the Iranian banking industry from a developmental perspective, providing insights into how these models evolve. This classification offers strategies for enhancing organizational performance and adapting to changing market conditions.
 
Conclusion
This research's findings present a comprehensive model for identifying the distinguishing factors of business models from the perspective of openness within the Iranian banking industry. The maturity framework elaborates on the stages of business model openness and the specific characteristics inherent to each stage. Furthermore, this research serves as a case study that can inform strategies to enhance business practices and boost the competitiveness of banks, facilitating transformative changes within the industry. Ultimately, this research addresses critical scientific and practical gaps in the literature surrounding open management and innovation in the banking sector. It stands as a reliable resource for industry experts and managers, emphasizing the growing significance of business model openness in today’s dynamic environment. The results of this study can guide organizations in their efforts to evolve and optimize their operational performance, ensuring they remain competitive in an increasingly interconnected world.

Keywords

Main Subjects

References

Alcalde, H. & Guerrero, M. (2016). Open business model in entrepreneurial stage: evidence from young Spanish firms during expansionary and recessionary periods. International Entrepreneurial Management Journal, 12 (2), 393-413.
Benyayer, L. & Kupp, M. (2017). Responding to open business model. Journal of Business Strategy, 38(2), 33-40.
Brasseur, T., Mladenow, A. & Strauss, Ch. (2017). Open business model innovation: literature review and agenda for future research. Biznes Informatika-Business Informatics, 42 (4), 7–16.
Charmaz, K. (2006). Constructing grounded theory, a practical guide through qualitative analysis. London: Sage Publications.
Chesbrough, H. & Bogers, M. (2014). Explicating open innovation: clarifying an emerging paradigm for understanding innovation. In: Chesbrough, H., Vanhaverbeque, W., West, J. (Eds.), New Frontiers in Open Innovation. Oxford University Press, New York.
Chesbrough, H. (2003a). The era of open innovation. MIT Sloan Management, 44, 35–41.
Chesbrough, H. (2003b). The logic of open innovation: managing intellectual property. California management review, 45(3), 33–58.
Chesbrough, H. (2007). Why companies should have open business model. MIT Sloan Management Review, 48(2(, 21-28.
Chesbrough, H.W. (2006). Open business models: how to thrive in the new innovation landscape. Boston MA: Harvard Business School Press.
Dahlander, L. & Gann, D.M. (2010). How open is innovation? Research Policy, 39(6), 699–709.
Dasilva, C.M. & Trkman, P. (2014). Business model: what it is and what it is not. Long Range Planning, 47 (6), 379-389.
Davey, S. M., Brennan, M., Meenan, B. & McAdam, R. (2011). Innovation in the medical device sector: an open business model approach for high-tech small firms. Technology Analysis & Strategic Management, 23 (8), 807–824.
Demil, B. & Lecocq, X. (2014). The rise and fall of an open business model. Revue d'économie industrielle, 146, 85-113.
Fasnacht, D. (2009). Open innovation in the financial services, growing through openness, flexibility, and customer integration. Springer.
Foss, N.J. & Saebi, T. (2017). Fifteen years of research on business model innovation. How far have we come, and where should we go? Journal of Management, 43, 200-227.
Frankenberger, K., Weiblen, T. & Gassmann, O. (2013). Network configuration, customer centricity and performance of open business model: a solution provider perspective. Industrial marketing Management, 42, 671-682.
Frankenberger, K., Weiblen, T. & Gassmann, O. (2014). The Antecedents of open business models: an exploratory study of incumbent firms. R&D Management, 44, 173-188.
Gassmann, O., Frankenberger, K. (2014). The Business model navigator: 55 models that will revolutionise your business. Pearson UK.
Geissdoerfer, M., Vladimirova, D. & Evans, S. (2018). Sustainable business model innovation: a review. Journal of Cleaner Production, 198, 401-416.
George, G. & Bock, A. J. (2010). The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35 (1), 83-111.
Ghezzi, A., Cavallo, A., Sanasi, S. & Rangone, A. (2022). Opening up to startup collaborations: open business models and value co-creation in SMEs. Competitiveness Review: An International Business Journal, 32(7), 40-61.
Giesen, E., Berman, S. J., Bell, R. & Blitz, A. (2007). Three ways to successfully innovate your business model. Strategy & Leadership, 35(6), 27–33.
Goncearuc, A., Sapountzoglou, N., Cauwer, C., Coosemans, T., Messagie, M. & Crispeels, T. (2022). An integrative approach for business modelling: Application to the EV charging market. Journal of Business Research, 143, 184-200.
Hamel, G. & Ruben, P. (2000). Leading the revolution. Boston, MA: Harvard Business School Press.
Harun N. A. & Zainol A. Z. (2018). Exploring open innovation as a business model for enhancing asean economy. International Journal of Business and Society, 19, 484–98.
He, J. & Ortiz, J. (2021). Sustainable business modeling: The need for innovative design thinking. Journal of Cleaner Production, 298, 126751.
Holm, A., Günzel, F. & Parm Ulhøi, J. (2013). Openness in innovation and business models: lessons from the newspaper industry. International Journal Technology Management, 61, 324-348.
Hossain, M. (2013). Adopting open innovation to stimulate frugal innovation and reverse innovation. Aalto University.
Hossain, M., Islam, K.M., Abu Sayeed, M. & Kauranen, I. (2016). A comprehensive review of open innovation literature. Journal of Science & Technology, Policy Management, 7(1), 2-25.
Huan, G. & Wen-song, Zh. (2013). Research on coupling intellectual property and open business model. Paper presented at the 2013 International Conference on Management Science and Engineering, Harbin, China, July 17-19: 864–69.
Khumalo, M. & Lingen, E. (2017). The open business model in a dynamic business environment: a literature review. South African Journal of Industrial Engineering, 28(3), 147-160.
Kortmann, S. & Piller F. (2016). Open business models and closed-loop value chains: redefining the firm-consumer relationship. California Management Review, 58 (3), 88–108.
Ku Mannching, S. (2015). Recent trends in specialty pharma business model. Journal of Food and Drug Analysis, 23 (4), 595-608.
Liberati, A., Altman, D. G., Tetzlaff, J., Mulrow, C., Gøtzsche, P. C., Ioannidis, J. P., ... & Moher, D. (2009). The PRISMA statement for reporting systematic reviews and meta-analyses of studies that evaluate health care interventions: explanation and elaboration. Annals of internal medicine, 151(4), W-65.
Lu, Q. & Chesbrough, H. (2021). Measuring open innovation practices through topic modelling: Revisiting their impact on firm financial performance. Technovation, 114, 102434.
Man, A. & Luvison, D. (2019). Collaborative business models: Aligning and operationalizing alliances. Business Horizons, 62, 473-482.
 
 Matějíček, M. & Marešová, P. (2020). Open business model and open innovation: bibliographic analysis. Hradec economic days 2020, 10: PT 1.
Mosleh, A. & Dehghan, M. (2017). Design a model to explain the impact of the open business model on competitive advantage in knowledge-based companies of Bushehr province. Helix, 7 (4), 1572–84.
Najar, T.H. (2020). Antecedents to open business model in the ICT-based sectors. The Journal of High Technology Management Research, 31(2).
Naqshbandi, M. & Jasimuddin, S. (2022). The linkage between open innovation, absorptive capacity and managerial ties: A cross-country perspective. Journal of Innovation & Knowledge, 7(2).
Osterwalder, A. & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challenges. Wiley & Sons.
Pedersen, E. R. G., Gwozdz, W. & Hvass, K. K. (2018). Exploring the relationship between business model innovation, corporate sustainability, and organizational values within the fashion industry. Journal of Business Ethics, 149(2), 267–284.
Pohle, G. & Chapman, M. (2006). IBM’s global CEO report 2006: Business model innovation matters. Strategy & Leadership, 34(5), 34–40.
Purdy, M., Robinson, M. C. & Wei, K. (2012). Three new business models for “the open firm”. Strategy & Leadership, 40(6), 36–41.
Rojas, E. & Azevedo, A. (2014). Pillars and elements to develop an open business model for innovation networks. Paper presented at the 15th IFIP WG 5.5 Working Conference on Virtual Enterprises, Amsterdam, Netherlands, and October 6-8: 317–326.
Romero, D. & Molina, A. (2011). Collaborative networked organisations and customer communities: value co-creation and co-innovation in the networking era. Production Planning & Control, 22(5–6), 447–472.
Saebi, T. & Foss, N. (2014). Business models for open innovation: matching heterogenous open innovation strategies with business model dimension. European Management Journal, 33(3), 201- 213.
Sandulli, F. & Chesbrough, H. (2009). The two faces of open business models. Available at SSRN: 1325682.
Schneider, S. & Spieth, P. (2013). Business model innovation: towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1340001.
Schueffel, P. & Vadana, I. (2015). Open Innovation in the Financial Services Sector - A global literature review. Journal of Innovation Management, 3(1), 25-48.
Snihur, Y. & Bocken, N. (2022). A call for action: The impact of business model innovation on business ecosystems, society and planet. Long Range Planning, 55(1).
Spieth, P. & Meissner, N. S. (2018). Business model innovation alliances: how to open business models for cooperation. International Journal of Innovation Management, 22 (04), 1850042.
Spieth, P., Schneckenberg, D. & Ricart, J. E. (2014). Business model innovation – state of the art and future challenges for the field. R&D Management, 44(3), 237–247.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.
Tsutsui, Y., Yamada, N., Mitake, Y., Sholihah, M. & Shimomura, Y. (2020). A strategic design guideline for open business models. International Journal of Automation Technology, 14(5), 678-689.
Weiblen, T. (2014). The open business model: understanding an emerging concept. Journal of Multi Business Model Innovation and Technology, 1و 35-66.
Weiblen, T. (2015). Open up the business model: business model innovation through collaboration. Dissertation of the University of St. Gallen.
Wirtz, A., Pistoia, A., Ullrich, S. & Gottel, V. (2016). Business models: origin, development, and future research perspectives. Long Range Planning, 49 (1), 36-54.
Yun, J., Jung, W. & Yang, J. (2013). The knowledge and business model condition for sustainable growth of SMEs. Proceedings of the 6th Knowledge Cities World Summit: 253-266.
Yun, J., Won, D., Park, K., Yang, J. & Zhao, X. (2017). Growth of a platform business model as an entrepreneurial ecosystem and its effects on regional development. European Planning Studies, 25(5), 805-826.
Yun, J., Yang, J. & Park, K. (2016). Open innovation to business model: new perspective to connect between technology and market. Science Technology and Society, 21 (3), 324–348.
Yun, J., Zhao, X., Park, K. & Shi, L. (2020). Sustainability condition of open innovation: dynamic growth of Alibaba from SME to large enterprise. Sustainability, 12(11).
Zhu, X., Xiao, Zh., Chuoyan, D. & Gu, J. (2019). The Fit between firms’ open innovation and business model for new product development speed: a contingent perspective. Technovation, 86, 75–85.
Journal of Business Management
Volume 16, Issue 4
2024
Pages 1110-1137

Files

Share

How to cite

Statistics