This paper empirically investigates the ability of a real business-cycle model with nonseparabilities in consumption and leisure and external habits both in consumption and leisure to fit the postwar US data. The results indicate a strong but fast-dying habit in leisure, and a somewhat weaker...
Antonova, A. O.; Reznik, S.; Todorov, M. D.
We compare the behavior of solutions of Goodwin's business cycle equation in the form of neutral delay differential equation with fixed delay (NDDE model) and in the form of the differential equations of 3rd, 4th and 5th orders (ODE model's). Such ODE model's (Taylor series expansion of NDDE in powers of θ) are proposed in N. Dharmaraj and K. Vela Velupillai  for investigation of the short periodic sawthooth oscillations in NDDE. We show that the ODE's of 3rd, 4th and 5th order may approximate the asymptotic behavior of only main Goodwin's mode, but not the sawthooth modes. If the order of the Taylor series expansion exceeds 5, then the approximate ODE becomes unstable independently of time lag θ.
The purpose of this paper is to evaluate a business cycle model that includes a mining sector, with the cyclical variations of the Australian Economy. Large quantities of mineral deposits are found in Australia and there exists high demand for these minerals from developing nations. This results in the mining sector contributing to a high proportion of GDP. Surprisingly, the inclusion of a mining sector has not previously been studied in a business cycle model. Australia is a small open econo...
Full Text Available This paper aims at assessing the usefulness of leading indicators in business cycle research and forecast. Initially we test the predictive power of the economic sentiment indicator (ESI within a static probit model as a leading indicator, commonly perceived to be able to provide a reliable summary of the current economic conditions. We further proceed analyzing how well an extended set of indicators performs in forecasting turning points of the Macedonian business cycle by employing the Qual VAR approach of Dueker (2005. In continuation, we evaluate the quality of the selected indicators in pseudo-out-of-sample context. The results show that the use of survey-based indicators as a complement to macroeconomic data work satisfactory well in capturing the business cycle developments in Macedonia.
den Haan, W.J.; Kaltenbrunner, G.
In a business cycle model that incorporates a standard matching framework, employment increases in response to news shocks, even though the wealth effect associated with the increase in expected productivity reduces labor force participation. The reason is that the matching friction induces
Ph.H.B.F. Franses (Philip Hans); R. Paap (Richard)
textabstractWe address the issue of time varying persistence of shocks to macroeconomic time series variables by proposing a new and parsimonious time series model. Our model assumes that this time varying persistence depends on a linear combination of lagged explanatory variables, where this
Fajar, Muhammad; Darwis, Sutawanir; Darmawan, Gumgum
This study aims to investigate the Indonesia business cycle encompassing the determination of smoothing parameter (λ) on Hodrick-Prescott filter. Subsequently, the components of the filter output cycles were analyzed using a spectral method useful to know its characteristics, and Markov switching regime modeling is made to forecast the probability recession and expansion regimes. The data used in the study is real GDP (1983Q1 - 2016Q2). The results of the study are: a) Hodrick-Prescott filter on real GDP of Indonesia to be optimal when the value of the smoothing parameter is 988.474, b) Indonesia business cycle has amplitude varies between±0.0071 to±0.01024, and the duration is between 4 to 22 quarters, c) the business cycle can be modelled by MSIV-AR (2) but regime periodization is generated this model not perfect exactly with real regime periodzation, and d) Based on the model MSIV-AR (2) obtained long-term probabilities in the expansion regime: 0.4858 and in the recession regime: 0.5142.
Xu, J; Wang, H; Ge, G
A stochastic model on business cycle was presented in thas paper. Simplifying the model through the quasi Hamiltonian theory, the Ito diffusion process was obtained. According to Oseledec multiplicative ergodic theory and singular boundary theory, the conditions of local and global stability were acquired. Solving the stationary FPK equation and analyzing the stationary probability density, the stochastic Hopf bifurcation was explained. The result indicated that the change of parameter awas the key factor to the appearance of the stochastic Hopf bifurcation
Hamad Talibi Alaoui
Full Text Available In the present paper, we extend a delayed IS-LM business cycle model by introducing an additional advance (anticipated capital stock in the investment function. The resulting model is represented in terms of mixed differential equations. For the deviating argument $au$ (advance and delay being a bifurcation parameter we investigate the local stability and the local Hopf bifurcation. Also some numerical simulations are given to support the theoretical analysis.
Ma Junhai; Sun Tao; Liu Lixia
Based on Abraham C.-L. Chian's research, we applied nonlinear dynamic system theory to study the first-order and second-order approximate solutions to one category of the nonlinear business cycle model in resonance condition. We have also analyzed the relation between amplitude and phase of second-order approximate solutions as well as the relation between outer excitements' amplitude, frequency approximate solutions, and system bifurcation parameters. Then we studied the system quasi-periodical solutions, annulus periodical solutions and the path leading to system bifurcation and chaotic state with different parameter combinations. Finally, we conducted some numerical simulations for various complicated circumstances. Therefore this research will lay solid foundation for detecting the complexity of business cycles and systems in the future
Wu, Xiaoqin P.
Research highlights: → The conditions are given such that the characteristic equation may have purely imaginary roots and double zero roots. → Purely imaginary roots lead us to study Hopf and Bautin bifurcations and to calculate the first and second Lyapunov coefficients. → Double zero roots lead us to study Bogdanov-Takens (BT) bifurcation. → Bifurcation diagrams for Bautin and BT bifurcations are obtained by using the normal form theory. - Abstract: In this paper, complete analysis is presented to study codimension-2 bifurcations for the nonlinear Kaldor model of business cycle. Sufficient conditions are given for the model to demonstrate Bautin and Bogdanov-Takens (BT) bifurcations. By computing the first and second Lyapunov coefficients and performing nonlinear transformation, the normal forms are derived to obtain the bifurcation diagrams such as Hopf, homoclinic and double limit cycle bifurcations. Some examples are given to confirm the theoretical results.
In this paper, I extend the business cycle accounting method a la Chari, Kehoe and McGrattan (2007) to a two-country international business cycle model and quantify the effect of the disturbances in relevant markets on the business cycle correlation between Japan and the US over the 1980-2008 period. This paper finds that disturbances in the labor market and production efficiency are important in accounting for the recent increase in the cross-country output correlation. If international fina...
The business cycle accounting method introduced by Chari, Kehoe and McGrattan (2007) is a useful tool to decompose business cycle fluctuations into their contributing factors. However, the model estimated by the maximum likelihood method cannot replicate business cycle moments computed from data. Moment-based estimation might be an attractive alternative if the purpose of the research is to study business cycle properties such as volatility, persistence and cross-correlation of variables inst...
Full Text Available The effects of financial factors on real business cycle is rising to one of the most popular discussions in the field of macro business cycle theory. The objective of this paper is to discuss the features of business cycle under financial shocks by quantitative technology. More precisely, we introduce financial shocks into the classical Kaldor-Kalecki business cycle model and study dynamics of the model. The shocks include external shock and internal shock, both of which are expressed as noises. The dynamics of the model can help us understand the effects of financial shocks on business cycle and improve our knowledge about financial business cycle. In the case of external shock, if the intensity of shock is less than some threshold value, the economic system behaves randomly periodically. If the intensity of shock is beyond the threshold value, the economic system will converge to a normalcy. In the case of internal shock, if the intensity of shock is less than some threshold value, the economic system behaves periodically as the case without shock. If the intensity of shock exceeds the threshold value, the economic system either behaves periodically or converges to a normalcy. It is uncertain. The case with both two kinds of shocks is more complicated. We find conditions of the intensities of shocks under which the economic system behaves randomly periodically or disorderly, or converges to normalcy. Discussions about the effects of financial shocks on the business cycle are presented.
The canonical neoclassical model is insufficient to understand business cycle fluctuations in emerging market and developing economies. The author reformulates the model proposed by Aguiar and Gopinath (2007) in a simple setting that can be used to teach business cycle macroeconomics for emerging market and developing economies at the…
Full Text Available In business activities, there is a certain time lag effect in investment and capital stock, which would affect the dynamic behavior of the business cycle model and then complicate the economic stability adjustment made through investment policies. Considering the influence on investment activities caused by the expectation time about capital stock, this paper, employing the Hopf bifurcation theory, with the delay in investment as the bifurcation parameter, not only studies the equilibrium stability of the business cycle model with a fixed-time delay, but also discusses the formation conditions of the business cycle. The research discovers that the investment lag during the investing process and the expectation time about the capital stock are two crucial incentives of the business cycle; meanwhile, the expecting equilibrium target can be met through the adjustment of the government investment policies. These findings may serve as guidelines in stabilizing the business cycle and making relative economic policies. The conclusion is verified through numerical simulation.
Prime stylized facts of international business cycle theory refer to positive correlation in the cyclical components of important macroeconomic variables across countries. However a number of indicators of business cycle synchronization do not point to clear trends. It can be ascribed to the fact that different forces influence level of business cycle correlation. When investigating into the forces behind the commonness in aggregate fluctuations economic research seems to have pointed in two ...
Stock, James H
The business cycle analysis of Arthur F. Burns and Wesley C. Mitchell and the National Bureau of Economic Research presumed that aggregate economic variables evolve on a time scale defined by business cycle turning points rather than by months or quarters. Do macroeconomic variables appear to evolve on an economic rather than a calendar time scale? Evidence presented here suggests that they do. However, the estimated economic time scales are only weakly related to business cycle time scales, ...
Bashkirtseva, Irina; Ryashko, Lev; Sysolyatina, Anna
We study nonlinear stochastic phenomena in the discrete Kaldor model of business cycles. A numerical parametric analysis of stochastically forced attractors (equilibria, closed invariant curves, discrete cycles) of this model is performed using the stochastic sensitivity functions technique. A spatial arrangement of random states in stochastic attractors is modeled by confidence domains. The phenomenon of noise-induced transitions ;chaos-order; is discussed.
Azevedo, J.M.; Koopman, S.J.; Rua, A.
This article proposes a multivariate bandpass filter based on the trend plus cycle decomposition model. The underlying multivariate dynamic factor model relies on specific formulations for trend and cycle components and produces smooth business cycle indicators with bandpass filter properties.
Kallåk Anundsen , André; Sigurd Holmsen Krogh, Tord; Nymoen, Ragnar; Vislie, Jon
This paper presents the business cycle model that Trygve Haavelmo developed as part of his research program in macroeconomic and monetary theory. Driven by a mismatch between the marginal return to capital and the rate of return required by capital owners, this model generates endogenous cycles. The theory leads to a distinct analysis of the scope and limitations of monetary policy. A main message of the model is that care should be taken when conducting 'autonomous' monetary policy and that ...
Benedetto Molinari; Francesco Turino
This paper provides new empirical evidence of quarterly U.S. aggregate advertising expenditures, showing that advertising has a well defined pattern over the Business Cycle. To understand this pattern we develop a general equilibrium model where targeted advertising increases the marginal utility of the advertised good. Advertising intensity is endogenously determined by profit maximizing firms. We embed this assumption into an otherwise standard model of business cycle with monopolistic comp...
Sushko, Irina; Wegener, Michael; Westerhoff, Frank; Zaklan, Georg
Metzlers inventory model may produce dampened fluctuations in economic activity, thus contributing to our understanding of business cycle dynamics. For some parameter combinations, however, the model generates oscillations with increasing amplitude, implying that the inventory stock of firms eventually turns negative. Taking this observation into account, we reformulate Metzlers model by simply putting a floor to the inventory level. Within the new piecewise linear model, endogenous business cycle dynamics may now be triggered via a center bifurcation, i.e. for certain parameter combinations production changes are (quasi-)periodic.
Full Text Available The paper researches business cycles synchronization. The fluctuations in post-Soviet countries are considered. The study examines different measures of synchronization in groups of countries according to some criteria.
Mario J. Crucini
This paper is a non-technical review of research developments in the international real business cycle literature. International business cycle facts are summarize with particular attention to the sources of output variance from the expenditure side of the NIPA and the production side, using a familiar neoclassical production function. Theoretical developments focus on the how consumption smoothing and investment dynamics shape the current account; the search for sources and propagation mecha...
Gregory, Allan W; Smith, Gregor W
We outline in turn criticisms made by econometricians of the methods used in empirical business-cycle research and then criticisms made by business-cycle researchers of some methods used by econometricians. The aim is to clarify and in some cases correct these criticisms. Overall there is no conflict in using rigourous statistical procedures to study modern dynamic stochastic general equilibrium models. We also provide a concise bibliography of recent research on statistical methods for busin...
Sayfy, A.; Khoury, S.; Ibdah, H.
A collocation approach, based on a fourth order cubic B-splines is presented for the numerical solution of a Kaleckian business cycle model formulated by a nonlinear delay differential equation. The equation is approximated and the nonlinearity is handled by employing an iterative scheme arising from Newton's method. It is shown that the model exhibits a conditionally dynamical stable cycle. The fourth-order rate of convergence of the scheme is verified numerically for different special cases.
Saiki, Y.; Chian, A.C.L.; Yoshida, H.
Highlights: → Intermittent economic behavior of Keynes-Goodwin type model is investigated. → After a transition the system keeps its memory before the transition. → The intermittent phenomena is examined from the business cycle patterns. → It is concluded that dynamical patterns do not alter much around the transition. - Abstract: Intermittent behavior of economic dynamics is investigated by a two-country model of Keynes-Goodwin type business cycles. Numerical simulations show that after an economic system evolves from weak chaos to strong chaos the system keeps its memory before the transition and its time series alternates episodically between periods of weakly and strongly chaotic fluctuations. In addition, we examine the intermittent phenomena from the view point of business cycle patterns near the crisis point.
Saiki, Y., E-mail: email@example.com [Department of Mathematics, Hokkaido University, Sapporo 060-0810 (Japan); Chian, A.C.L. [National Institute for Space Research (INPE) and World Institute for Space Environment Research (WISER), P.O. Box 515, Sao Jose dos Campos-SP 12227-010 (Brazil); California Institute of Technology, Pasadena, CA 91125 (United States); Yoshida, H. [College of Economics, Nihon University, Tokyo 101-8360 (Japan)
Highlights: > Intermittent economic behavior of Keynes-Goodwin type model is investigated. > After a transition the system keeps its memory before the transition. > The intermittent phenomena is examined from the business cycle patterns. > It is concluded that dynamical patterns do not alter much around the transition. - Abstract: Intermittent behavior of economic dynamics is investigated by a two-country model of Keynes-Goodwin type business cycles. Numerical simulations show that after an economic system evolves from weak chaos to strong chaos the system keeps its memory before the transition and its time series alternates episodically between periods of weakly and strongly chaotic fluctuations. In addition, we examine the intermittent phenomena from the view point of business cycle patterns near the crisis point.
SzydIowski, Marek; Krawiec, Adam
We consider the Kaldor-Kalecki model of the business cycle which is the modified Kaldor model with the Kalecki time delay in investment. The model is formulated in terms of a second-order nonlinear delay differential equation with a negative feedback. We investigate the problem of stability of cycles caused by retarded action. The method of a centre manifold is used to find the conditions for the Hopf bifurcation. The conditions for stability of limit cycles on the centre manifold is given
Narayan, Paresh Kumar
In this paper we employ a theoretical framework - a simple macro model augmented with health - that draws guidance from the Keynesian view of business cycles to examine the relative importance of permanent and transitory shocks in explaining variations in health expenditure and output at business cycle horizons for the USA. The variance decomposition analysis of shocks reveals that at business cycle horizons permanent shocks explain the bulk of the variations in output, while transitory shocks explain the bulk of the variations in health expenditures. We undertake a shock decomposition analysis for private health expenditures versus public health expenditures and interestingly find that while transitory shocks are more important for private sector expenditures, permanent shocks dominate public health expenditures. Copyright (c) 2009 John Wiley & Sons, Ltd.
Zhou, Lujun; Li, Yaqiong
In this paper, we analyze a augmented IS-LM business cycle model with the capital accumulation equation that two time delays are considered in investment processes according to Kalecki's idea. Applying stability switch criteria and Hopf bifurcation theory, we prove that time delays cause the equilibrium to lose or gain stability and Hopf bifurcation occurs.
Lau, Sau-Him Paul; Ng, Philip Hoi-Tak
Following the analytical approach suggested in Campbell, the authors consider a baseline real-business-cycle (RBC) model with endogenous labor supply. They observe that the coefficients in the loglinear approximation of the dynamic equations characterizing the equilibrium are related to the fundamental parameters in a relatively simple manner.…
T. Berger (Tino); L.C.G. Pozzi (Lorenzo)
textabstractWe investigate the presence of international business cycles in macroeconomic aggregates (output, consumption, investment) using a panel of 60 countries over the period 1961-2014. The paper presents a Bayesian stochastic factor selection approach for dynamic factor models with
Linnemann, L.; Schabert, A.
This paper assesses the transmission of fiscal policy shocks in a New Keynesian framework where government expenditures contribute to aggregate production. It is shown that even if the impact of government expenditures on production is small, this assumption helps to reconcile the models'
Goodwin's model, which was formulated in , still attracts economists' attention. The model possesses numerous interesting properties that have been discovered only recently due to the development of the chaos theory and the complexity theory. The first numerical explorations of the model were conducted in the early s by Strotz, McAnulty and Naines (1953). They discovered the coexistence of attractors that are well-known today, two properties of chaotic systems: the sensitive dependence on the initial conditions and the sensitive dependence on parameters. The occurrence of periodic and chaotic attractors is dependent on the value of parameters in a system. In case of certain parametric values fractal basin boundaries exist which results in enormous system sensitivity to external noise. If periodic attractors are placed in the neighborhood of the fractal basin boundaries, then even a low external noise can move the trajectory into the region in which the basin's structure is tangled. This leads to a kind of movement that resembles a chaotic movement on a strange attractor. In Goodwin's model, apart from typical chaotic behavior, there exists yet another kind of complex movements - transient chaotic behavior that is caused by the occurrence of invariant chaotic sets that are not attracting. Such sets are represented by chaotic saddles. Some of the latest observation methods of trajectories lying on invariant chaotic sets that are not attracting are straddle methods. This article provides examples of the basin boundary straddle trajectory and the saddle straddle trajectory. These cases were studied by Lorenz and Nusse (2002). I supplement the results they acquired with calculations of capacity dimension and correlation dimension.
Tepe, Markus; Vanhuysse, Pieter
Strong institutional constraints and better-informed voters may lead re-election seeking incumbents to shift the use of political business cycle mechanisms away from monetary and fiscal policy towards other policy domains that are more easily manipulable, targetable, and timeable. We investigate...... teacher employment patterns at the state level in Germany and find strong evidence of cycling mechanisms, in the form of electioneering and honeymooning. Against a backdrop of a continuously shrinking total teachers' pool, German state-level incumbents accelerate the hiring of new teachers during election...... periods and partly reverse this during politically safer points in the electoral cycle. Cycles are mediated by issue salience: heightened attention to German public schooling after the notorious PISA-2000 tests further strengthens the manipulation of new teacher hiring for electoral purposes....
Tepe, Markus; Vanhuysse, Pieter
Strong institutional constraints and better-informed voters may lead re-election seeking incumbents to shift the use of political business cycle mechanisms away from monetary and fiscal policy towards other policy domains that are more easily manipulable, targetable, and timeable. We investigate...... teacher employment patterns at the state level in Germany and find strong evidence of cycling mechanisms, in the form of electioneering and honeymooning. Against a backdrop of a continuously shrinking total teachers' pool, German state-level incumbents accelerate the hiring of new teachers during election...... periods and partly reverse this during politically safer points in the electoral cycle. Cycles are mediated by issue salience: heightened attention to German public schooling after the notorious PISA-2000 tests further strengthens the manipulation of new teacher hiring for electoral purposes....
Full Text Available This study begins with the establishment of a three-dimension business cycle model based on the condition of a fixed exchange rate. Using the established model, the reported study proceeds to describe and discuss the existence of the equilibrium and stability of the economic system near the equilibrium point as a function of the speed of market regulation and the degree of capital liquidity and a stable region is defined. In addition, the condition of Hopf bifurcation is discussed and the stability of a periodic solution, which is generated by the Hopf bifurcation and the direction of the Hopf bifurcation, is provided. Finally, a numerical simulation is provided to confirm the theoretical results. This study plays an important role in theoretical understanding of business cycle models and it is crucial for decision makers in formulating macroeconomic policies as detailed in the conclusions of this report.
Lin, Zifei; Li, Jiaorui; Li, Shuang
This paper analyzes the dynamics of a business cycle model with fractional derivative of order α (0 < α < 1) subject to narrow-band random excitation, in which fractional derivative describes the memory property of the economic variables. Stochastic dynamical system concepts are integrated into the business cycle model for understanding the economic fluctuation. Firstly, the method of multiple scales is applied to derive the model to obtain the approximate analytical solution. Secondly, the effect of economic policy with fractional derivative on the amplitude of the economic fluctuation and the effect on stationary probability density are studied. The results show macroeconomic regulation and control can lower the stable amplitude of economic fluctuation. While in the process of equilibrium state, the amplitude is magnified. Also, the macroeconomic regulation and control improves the stability of the equilibrium state. Thirdly, how externally stochastic perturbation affects the dynamics of the economy system is investigated.
Rand, John; Tarp, Finn
This paper demonstrates that developing countries differ considerably from their developed counterparts when focus is on the nature and characteristics of short run macroeconomic fluctuations. Cycles are generally shorter, and the stylized facts of business cycles across countries are more diverse...... than those of the rather uniform industrialized countries. Supply-side models are generally superior in explaining changes in output, but a “one-size fits all” approach in formulating policy is inappropriate. Our results also illustrate the critical importance of understanding business regularities...
R.W. Strachan (Rodney); H.K. van Dijk (Herman)
textabstractThe empirical support for a real business cycle model with two technology shocks is evaluated using a Bayesian model averaging procedure. This procedure makes use of a finite mixture of many models within the class of vector autoregressive (VAR) processes. The linear VAR model is
Full Text Available Prime stylized facts of international business cycle theory refer to positive correlation in the cyclical components of important macroeconomic variables across countries. However a number of indicators of business cycle synchronization do not point to clear trends. It can be ascribed to the fact that different forces influence level of business cycle correlation. When investigating into the forces behind the commonness in aggregate fluctuations economic research seems to have pointed in two directions. One strand of the literature examines the idea of common exogenous shocks that affect economies simultaneously. In addition to that economic interdependencies such as trade in goods and services or capital account transactions may serve as the channels through which disturbances spill over across countries.The observed degree of output co movement reflects both the nature of the shocks that have occurred and the degree of economic interdependence. In the periods when common shocks prevail level of synchronization is usually higher than in times of transmission dominance.
Andersen, Torben M.; Svarer, Michael
The consequences of business cycle contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between "good" and "bad" states of nature. We show that not only is there an insurance argument for such contingencies, but there may also be an incentive...
In the empirical finance literature findings on the risk return tradeoff in excess stock market returns are ambiguous. In this study, we develop a new QR-GARCH-M model combining a probit model for a binary business cycle indicator and a regime switching GARCH-in-mean model for excess stock market return with the business cycle indicator defining the regime. Estimation results show that there is statistically significant variation in the U.S. excess stock returns over the business cycle. Howev...
An important identifying assumption for business cycle models is contained in the mathematical form of the model, which determines the nature of its possible movements. Tinbergen's and Frisch's original understanding of business cycle theories was that of a closed model, containing only endogenous
Drew Creal; Siem Jan Koopman; Eric Zivot
In this paper we investigate whether the dynamic properties of the U.S. business cycle have changed in the last fifty years. For this purpose we develop a flexible business cycle indicator that is constructed from a moderate set of macroeconomic time series. The coincident economic indicator is based on a multivariate trend-cycle decomposition model that accounts for time variation in macroeconomic volatility, known as the great moderation. In particular, we consider an unobserved components ...
Zhang Chunrui; Wei Junjie
A kind of business cycle model with delay is considered. Firstly, the linear stability of the model is studied and bifurcation set is drawn in the appropriate parameter plane. It is found that there exist Hopf bifurcations when the delay passes a sequence of critical values. Then the explicit algorithm for determining the direction of the Hopf bifurcations and the stability of the bifurcating periodic solutions are derived, using the normal form method and center manifold theorem. Finally, a group conditions to guarantee the global existence of periodic solutions is given, and numerical simulations are performed to illustrate the analytical results found
Riad, Driss; Hattaf, Khalid; Yousfi, Noura
Highlights: • A delayed business cycle model is formulated and rigorously analyzed. • Well-posedness of the model and local stability of the economic equilibrium are determined. • Direction and stability of the Hopf bifurcation are investigated. • Global existence of bifurcating periodic solutions is established. • Numerical simulations are presented to illustrate our theoretical results. - Abstract: The aim of this paper is to study the dynamics of a delayed business cycle model with general investment function. The model describes the interaction of the gross product and capital stock. Furthermore, the delay represents the time between the decision of investment and implementation. Firstly, we show that the model is well posed by proving the global existence and boundedness of solutions. Secondly, we determine the economic equilibrium of the model. By analyzing the characteristic equation, we investigate the stability of the economic equilibrium and the local existence of Hopf bifurcation. Also, the direction of the Hopf bifurcation and the stability of the bifurcating periodic solutions are derived by applying the normal form method and center manifold theory. Moreover, the global existence of bifurcating periodic solutions is established by using the global Hopf bifurcation theory. Finally, our theoretical results are illustrated with some numerical simulations.
Whitta-Jacobsen, Hans Jørgen
We investigate how imperfect competition affects the occurrence and the properties of endogenous, rational expectations business cycles in an overlapping generations model with constant returns to scale in production. The model has explicit product and labor markets all characterized...... by monopolistic competition. An implicit assumption of barriers to entry justifies that the number of firms is fixed even when positive profits occur. It turns out that both market power of firms on the product markets and market power of unions on the labor markets make the occurrence of cycles more likely....... In particular, imperfect competition on the product markets and the positive profits associated with it may have the effect that there is a cycle even if the labor supply curve is increasing in the real-wage rate. For competitive cycles is required not only a decreasing labor supply curve, but a wage elasticity...
Hattaf, Khalid; Riad, Driss; Yousfi, Noura
Highlights: • A generalized business cycle model is proposed and rigorously analyzed. • Well-posedness of the model and local stability of the economic equilibrium are investigated. • Direction of the Hopf bifurcation and stability of the bifurcating periodic solutions are determined. • A special case and some numerical simulations are presented. - Abstract: In this work, we propose a delayed business cycle model with general investment function. The time delays are introduced into gross product and capital stock, respectively. We first prove that the model is mathematically and economically well posed. In addition, the stability of the economic equilibrium and the existence of Hopf bifurcation are investigated. Our main results show that both time delays can cause the macro-economic system to fluctuate and the economic equilibrium to lose or gain its stability. Moreover, the direction of the Hopf bifurcation and the stability of the bifurcating periodic solutions are determined by means of the normal form method and center manifold theory. Furthermore, the models and results presented in many previous studies are improved and generalized.
Shelomentsev, A. G.; Medvedev, M. A.; Berg, D. B.; Lapshina, S. N.; Taubayev, A. A.; Davletbaev, R. H.; Savina, D. V.
Present study is devoted to the development of competition life cycle mathematical model in the closed business community with limited resources. Growth of each agent is determined by the balance of input and output resource flows: input (cash) flow W is covering the variable V and constant C costs and growth dA/dt of the agent's assets A. Value of V is proportional to assets A that allows us to write down a first order non-stationary differential equation of the agent growth. Model includes the number of such equations due to the number of agents. The amount of resources that is available for agents vary in time. The balances of their input and output flows are changing correspondingly to the different stages of the competition life cycle. According to the theory of systems, the most complete description of any object or process is the model of its life cycle. Such a model describes all stages of its development: from the appearance ("birth") through development ("growth") to extinction ("death"). The model of the evolution of an individual firm, not contradicting the economic meaning of events actually observed in the market, is the desired result from modern AVMs for applied use. With a correct description of the market, rules for participants' actions, restrictions, forecasts can be obtained, which modern mathematics and the economy can not give.
Ikeda, Y.; Aoyama, H.; Fujiwara, Y.; Iyetomi, H.; Ogimoto, K.; Souma, W.; Yoshikawa, H.
The sectoral synchronization observed for the Japanese business cycle in the Indices of Industrial Production data is an example of synchronization. The stability of this synchronization under a shock, e.g., fluctuation of supply or demand, is a matter of interest in physics and economics. We consider an economic system made up of industry sectors and goods markets in order to analyze the sectoral synchronization observed for the Japanese business cycle. A coupled oscillator model that exhibits synchronization is developed based on the Kuramoto model with inertia by adding goods markets, and analytic solutions of the stationary state and the coupling strength are obtained. We simulate the effects on synchronization of a sectoral shock for systems with different price elasticities and the coupling strengths. Synchronization is reproduced as an equilibrium solution in a nearest neighbor graph. Analysis of the order parameters shows that the synchronization is stable for a finite elasticity, whereas the synchronization is broken and the oscillators behave like a giant oscillator with a certain frequency additional to the common frequency for zero elasticity.
Koellinger, Philipp D.; Thurik, A. Roy
We find new empirical regularities in the business cycle in a cross-country panel of 22 OECD countries for the period 1972 to 2007; entrepreneurship Granger-causes the cycles of the world economy. Furthermore, the entrepreneurial cycle is positively affected by the national unemployment cycle. We
Koopman, S.J.; Creal, D.D.
We develop a flexible business cycle indicator that accounts for potential time variation in macroeconomic variables. The coincident economic indicator is based on a multivariate trend cycle decomposition model and is constructed from a moderate set of US macroeconomic time series. In particular, we
Ph.D. Koellinger (Philipp); A.R. Thurik (Roy)
textabstractWe find new empirical regularities in the business cycle in a cross-country panel of 22 OECD countries for the period 1972-2007; entrepreneurship Granger-causes the cycles of the world economy. Furthermore, the entrepreneurial cycle is positively affected by the national unemployment
This thesis contains five essays on economic growth and business cycles. The main focus is on the interaction between economic growth and the cycle: is cyclical variability good or bad for the long-run rate of economic growth? The introduction aims to provide some empirical evidence for an
I study a business cycle model where agents learn about the state of the economy by accumulating capital. During recessions, agents invest less, and this generates noisier estimates of macroeconomic conditions and an increase in uncertainty. The endogenous increase in aggregate uncertainty further reduces economic activity, which in turn leads to more uncertainty, and so on. Thus, through changes in uncertainty, learning gives rise to a multiplier effect that amplifies business cycles. I use ...
Brianzoni, Serena; Mammana, Cristiana; Michetti, Elisabetta
We consider a discrete-time growth model of the Solow type where workers and shareholders have different but constant saving rates and the population growth dynamics is described by the logistic equation able to exhibit complicated dynamics. We show conditions for the resulting system having a compact global attractor and we describe its structure. We also perform a mainly numerical analysis using the critical lines method able to describe the strange attractor and the absorbing area, in order to show how cyclical or complex fluctuations may be produced in a business-cycle model. We study the dynamic behaviour of the model under different ranges of the main parameters, i.e. the elasticity of substitution between the two production factors and the one in the logistic equation (namely μ). We prove the existence of complex dynamics when the elasticity of substitution between production factors drops below one (so that capital income declines) or μ increases (so that the amplitude of movements in the population growth rate increases).
This study examines the impact of oil price shocks on output fluctuations of several oil-exporting economies. In most studies of business cycles, the role of oil price is ignored; the few studies that use oil price as one of the variables in the system focus on modeling oil-importing economies. The vector autoregression (VAR) technique is used to consider the cases of Norway, Nigeria, and Mexico. Both atheoretical and 'structural' VARs are estimated to determine the importance of oil price impulses on output variations. The study reports two types of results: variance decomposition and impulse response functions, with particular emphasis on the issues of stationarity and co-integration among the series. The empirical results suggest that shocks to oil price are important in explaining output variations. In most cases, shocks to oil price are shown to explain more than 20% of the forecast variance of output over a 40-quarter horizon
Luther, Vishal; Hammersley, Daniel; Chekairi, Ahmed
Medical admission units are continuously under pressure to move patients off the unit to outlying medical wards and allow for new admissions. In a typical district general hospital, doctors working in these medical wards reported that, on average, three patients each week arrived from the medical admission unit before any handover was received, and a further two patients arrived without any handover at all. A quality improvement project was therefore conducted using a 'Plan, Do, Study, Act' cycle model for improvement to address this issue. P - Plan: as there was no framework to support doctors with handover, a series of standard handover procedures were designed. D - Do: the procedures were disseminated to all staff, and championed by key stakeholders, including the clinical director and matron of the medical admission unit. S - STUDY: Measurements were repeated 3 months later and showed no change in the primary end points. A - ACT: The post take ward round sheet was redesigned, creating a checkbox for a medical admission unit doctor to document that handover had occurred. Nursing staff were prohibited from moving the patient off the ward until this had been completed. This later evolved into a separate handover sheet. Six months later, a repeat study revealed that only one patient each week was arriving before or without a verbal handover. Using a 'Plan, Do, Study, Act' business improvement tool helped to improve patient care.
Menno, Dominik Francesco
This paper studies the effect of foreign direct investment (FDI) on the transmission of international business cycles. I document for the G7 countries between 1991 and 2006 that increases in bilateral FDI linkages are associated with more synchronized investment cycles. I also find...... that the relation between FDI integration and synchronization of gross domestic product (GDP) is - yet positive - statistically insignificant after controlling for time fixed effects. I then study a model of international business cycles with an essential role for FDI and shocks to multinational activity...
Brevik, Frode; Gartner, Manfred
The authors review the graphical approach to teaching the real business cycle model introduced in Barro. They then look at where this approach cuts corners and suggest refinements. Finally, they compare graphical and exact models by means of impulse-response functions. The graphical models yield reliable qualitative results. Sizable quantitative…
Bergman, Ulf Michael; Jonung, Lars
In this paper we study business cycle synchronization in the three Scandinavian countries Denmark, Norway and Sweden prior to, during and after the Scandinavian Currency Union 1873–1913. We find that the degree of synchronization tended to increase during the currency union, thus supporting earlier...
de Reuver, G.A.; Athanasopoulou, A.; Haaker, T.I.; Roelfsema, M.; Riedle, M; Breitfuss, G.
Business model innovation (BMI) is becoming increasingly relevant for enterprises as they are faced with profound changes like digitalization. While business model thinking in academia has advanced, practical tooling that supports business model innovation for small and medium sized enterprises
Eline Haan; Martin Zoet; Koen Smit
Business rule models are widely applied, standalone and embedded in smart objects. They have become segregated from information technology and they are now a valuable asset in their own right. As more business rule models are becoming assets, business models to monetize these assets are designed.
William T. Gavin; Finn E. Kydland
This paper documents changes in the cyclical behavior of nominal data series that appear after 1979:Q3 when the Federal Reserve implemented a policy to lower the inflation rate. Such changes were not apparent in real variables. A business cycle model with impulses to technology and a role for money is used to show how alternative money supply rules are expected to affect observed business cycle facts. In this model, changes in the money supply rules have almost no effect on the cyclical behav...
Nielsen, Mads Stenbo
This paper studies how corporate bond spreads vary with the business cycle. I show that both level and slope of empirical credit spread curves are correlated with the state of the economy, and I link this to variation in idiosyncratic jump risk. I develop a structural credit risk model...... that accounts for both business cycle and jump risk, and show by estimation that the model captures the counter-cyclical level and pro-cyclical slope of empirical credit spread curves. In addition, I provide a new procedure for estimation of idiosyncratic jump risk, which is consistent with observed shocks...
This paper investigates asymmetric effects of monetary policy over the business cycle. A two-state Markov Switching Model is employed to model both recessions and expansions. For the United States and Germany, strong evidence is found that monetary policy is more effective in a recession than during
Koopman, Siem Jan; Azevedo, Joao Valle e
This paper investigates business cycle relations among different economies in theEuro area. Cyclical dynamics are explicitly modelled as part of a time series model. Weintroduce mechanisms that allow for increasing or diminishing phase shifts and for time-varyingassociation patterns in different
Mocan, N H
"Using vector-autoregressions...this paper shows that fertility moves countercyclically over the business cycle....[It] shows that the United States fertility is not governed by a deterministic trend as was assumed by previous studies. Rather, fertility evolves around a stochastic trend. It is shown that a bivariate analysis between fertility and unemployment yields a procyclical picture of fertility. However, when one considers the effects on fertility of early marriages and the divorce behavior as well as economic activity, fertility moves countercyclically." excerpt
Ma Junhai; Cui Yaqiang; Liulixia
Based on the researches of Szydlowski and Krawiec, we studied the inherent complexity of a chaotic business cycle with great excitements in non-resonant condition. First, we got the first-order and second-order approximate solutions of the system by using multiple scale method. Then deduced the formulation reflecting the complex relations between vibration, phase, bifurcation parameter μ and excite frequency Ω of first-order solution. As the great excitement F varied, the global changes of the system solutions were analyzed. We also explored the different paths leading the systems with different parameter combinations into catastrophe region, fuzzy region or chaos region. Finally, we discussed the evolution trends of business cycle models under the above-mentioned conditions. Hence, this paper has some theoretical and practical significance.
Chian, Abraham C.-L.; Borotto, Felix A.; Rempel, Erico L.; Rogers, Colin
A numerical study is performed on a forced-oscillator model of nonlinear business cycles. An attractor merging crisis due to a global bifurcation is analyzed using the unstable periodic orbits and their associated stable and unstable manifolds. Characterization of crisis can improve our ability to forecast sudden major changes in economic systems
Jensen, Henrik; Ravn, Søren Hove; Santoro, Emiliano
In the last decades, capital markets across the industrialized world have undergone massive deregulation, involving increases in the loan-to-value (LTV) ratios of households and firms. We study the business-cycle implications of this phenomenon in a dynamic general equilibrium model with multiple...
Naoussi , Claude Francis; Tripier , Fabien
This article explores the role of trend shocks in explaining the specificities of business cycles in Sub-Saharan African (SSA) countries using the methodology introduced by Aguiar and Gopinath (2007) [Emerging Market Business Cycles: The Cycle Is the Trend Journal of Political Economy 115(1)]. We specify a small open economy model with transitory and trend shocks on productivity to replicate the differences in the business cycle behavior of output and consumption across countries, especially ...
R.W. Strachan (Rodney); H.K. van Dijk (Herman)
textabstractThe empirical support for features of a Dynamic Stochastic General Equilibrium model with two technology shocks is valuated using Bayesian model averaging over vector autoregressions. The model features include equilibria, restrictions on long-run responses, a structural break of unknown
Full Text Available This paper uses several produceres to date and analyse the Brazilian business and growth cycles. In particular, a Markov switching model is fitted to quarterly and annual real production data. The smoothed probabilities of the Markov states are used as predictive rules to define different phases of cyclical fluctuations of real Brazilian production. The results are compared with different non-parametric rules. All methods implemented yield similar dating and reveal asymmetries across the different states of the Brazilian business and growth cycles, in which slowdowns and recessions are short and abrupt, while high growth phases and expansions are longer and less steep. The resulting dating of the Brazilian economic cycles can be used as a reference point for construction and evaluation of the predictive performance of coincident, leading, or lagging indicators of economic activity. In addition, the filtered probabilities obtained from the Markov switching model allow early recognition of the transition to a new business cycle phase, wich can be used, for example, for evaluation of the adequate strength and timing of countercyclical policies, for reassessment of projected sales or profits by businesses and investors, or for monitoring of inflation pressures.
Halliday, Timothy J
We investigate the proposition that illness poses as an obstacle to one's ability to use migration to hedge the business cycle. We employ data on migration, regional unemployment rates and health status from 10 years (1984-1993) of the US Panel Study of Income Dynamics. Our results provide considerable for support this proposition. The evidence is the strongest for men, but we also find weaker evidence for married women. These results suggest that--ceterus paribus--aggregate health outcomes in an area should improve when the regional economy expands.
This paper analyzes the dynamics and nature of regional business cycle synchronization for East Asian countries in the period of 2000:Q1-2011:Q4. Estimating a dynamic two-factor model extracts the common factor and the nation- specific factor from both the macroeconomic aggregates and plausible driving forces of regional business cycles. Evidence for regional business cycle synchronization is particularly strong for Korea, Malaysia and the Philippines, while Japan shows weak evidence of regio...
In the present paper, we investigate the chaotic implications of a seven-equation model of the business cycle. The main distinguishing features of the model are related to: (a) the role played by the bargaining power in the process of income redistribution; (b) the consideration of hysteresis effects on workers’ consumption demand; (c) the effect of public expenditure on labor productivity. In addition, the role played by the agents’ memory on the actual dynamics of the economic system, with particular regard to their learning-by-doing process, is particularly emphasized. Under all these assumptions, the system exhibits a rich and complex phenomenology, characterized by a number of transitions to chaos (in particular via sequences of period doubling bifurcations), aperiodic behavior, bistability, tristability, etc. We maintain that our analysis takes us another step forward in the building of a more general model of the business cycle. In particular, the model we propose may be of help in the explanation of some peculiar features of advanced capitalist economies, with particular regard to the role played by the State in the determination of agents’ disposable income, to the debt dynamics of the various macroagents, and to the main dilemmas of economic policy. More in general, the main lesson one learns from our investigation is that “disequilibrium paths”, characterized by “complicated” dynamics which, more often than not, takes the form of aperiodic motion, should be considered as the “normal” state of the system.
Dodgson, Mark; Gann, David; Phillips, Nelson; Massa, Lorenzo; Tucci, Christopher
The chapter offers a broad review of the literature at the nexus between Business Models and innovation studies, and examines the notion of Business Model Innovation in three different situations: Business Model Design in newly formed organizations, Business Model Reconfiguration in incumbent firms, and Business Model Innovation in the broad context of sustainability. Tools and perspectives to make sense of Business Models and support managers and entrepreneurs in dealing with Business Model ...
Ayhan Kose; Christopher Otrok; Charles H. Whiteman
This paper studies the changes in world business cycles during 1960-2003. We employ a Bayesian dynamic latent factor model to estimate common and country-specific components in the main macroeconomic aggregates of the Group of Seven (G-7) countries. We then quantify the relative importance of these components in explaining comovement in each observable aggregate over three distinct time periods: the Bretton Woods (BW) period (1960-72), the period of common shocks (1972-86), and the globalizat...
This book presents a process-oriented business modeling framework based on semantic technologies. The framework consists of modeling languages, methods, and tools that allow for semantic modeling of business motivation, business policies and rules, and business processes. Quality of the proposed modeling framework is evaluated based on the modeling content of SAP Solution Composer and several real-world business scenarios.
Deeper trade integration between Central America and the United States, as envisaged under the Central American Free Trade Agreement, is likely to lead to closer links between Central American and U.S. business cycles. This article assesses the degree of business cycle synchronization between Central America and the United States—relevant not only for a better understanding of the influence of important trading partners on the business cycle fluctuations in the domestic economy but for evalua...
Abstract The question of aggregate welfare over time makes business cycle studies important. Finance studies allocation of resources under uncertainty. Thus both these fields of study dwell on intertemporal resource allocation under uncertainty. This paper attempts to shed light on how finance can be integrated into business cycle theory to provide richer and deeper insights than the standard real business cycle theory. JEL Classification: E32, E44, G
Mark Aguiar; Gita Gopinath
Business cycles in emerging markets are characterized by strongly counter-cyclical current accounts, consumption volatility that exceeds income volatility, and dramatic “sudden stops” in capital inflows. These features contrast with those of developed, small open economies and highlight the uniqueness of emerging markets. Nevertheless, we show that both qualitatively and quantitatively a standard dynamic stochastic, small open economy model can account for the behavior of both types of market...
Carrasco-Gutierrez, Carlos Enrique; Reis Gomes, Fábio Augusto
The aim of this work is to analyze the business cycles of Mercosur member countries in order to investigate their degree of synchronization. The econometric model uses the Beveridge-Nelson-Stock-Watson multivariate trend-cycle decomposition, taking into account the presence of common features such as common trend and common cycle. Once the business cycles are estimated, their degree of synchronization is analyzed by means of linear correlation in time domain and coherence and phase in f...
Bashkirtseva, Irina; Ryashko, Lev; Ryazanova, Tatyana
A problem of mathematical modeling of complex stochastic processes in macroeconomics is discussed. For the description of dynamics of income and capital stock, the well-known Kaldor model of business cycles is used as a basic example. The aim of the paper is to give an overview of the variety of stochastic phenomena which occur in Kaldor model forced by additive and parametric random noise. We study a generation of small- and large-amplitude stochastic oscillations, and their mixed-mode intermittency. To analyze these phenomena, we suggest a constructive approach combining the study of the peculiarities of deterministic phase portrait, and stochastic sensitivity of attractors. We show how parametric noise can stabilize the unstable equilibrium and transform dynamics of Kaldor system from order to chaos.
Inklaar, Robert; Jacobs, Jan; Romp, Ward
Business cycle indexes are used to get a timely and frequent description of the state of the economy and its likely development in the near future. This paper discusses two methods for constructing business cycle indexes, the traditional NBER method and a recently developed dynamic factor model, and
This thesis addresses historical business cycles and market integration in Europe and America in the 19th and 20th centuries. For the analysis of historical business cycles, the widely used methodology of historical national accounting is complemented with a dynamic factor model that allows for
Berman, Jay; Pfleeger, Janet
An analysis of the 1994-2005 Bureau of Labor Statistics employment projections can be used to identify industries that are projected to move differently with business cycles in the future than with those of the past, and can be used to identify the industries and occupations that are most prone to business cycle swings. (Author)
This Economics Research Note examines inventories in the business cycle for Australia covering the period since the mid 1980s. The Australian Bureau of Statistics (ABS) defines inventories as all materials etc., work in progress and finished goods owned by a business, whether held at locations of the business or elsewhere. These items are usually held by businesses in anticipation of a product’s sale. Inventory investment is counted as an additional contribution to gross domestic product (...
Ratti, Stefano; Hanson, Alan; Shakir, Sam; Louvet, Thibault
There are different strategies available for managing used nuclear fuel. Some countries recycle used fuel to re-utilize valuable material, while others store used fuel for future disposal in geologic repositories ('once-through' fuel cycle). For the last twenty years, the U.S. has adopted the once-through cycle and has begun the development of a geologic repository for used fuel disposal at Yucca Mountain. Several factors have emerged in the last few years and have started to re-open the debate on what is the appropriate used fuel management strategy in the U.S. Most notably, cost estimates for the development of a geologic repository have escalated and are expected to keep increasing in the near future. At the same time, the U.S. is seeing a renewed interest in nuclear energy and significant nuclear power generation capacity is expected to be added to the current base. Moreover, price of uranium have experience a dramatic rise, as much as a seven-fold increase, in the last two years. Finally, the recycling strategy has proven to be operationally effective in countries other than the U.S. and a solid industrial experience base has accumulated. Recycling as part of a comprehensive nuclear waste management strategy and complementary to an exclusive once-through strategy appear to be a viable option that requires serious consideration. Several questions need to be addressed to determine the viability of recycling in the U.S. What are the underlying economics and how does recycling compare with alternative options? What approach for technology and funding has the highest success rate for such a capital-intensive project? What kind of infrastructure (recycling plant, transportation, process, etc.) is needed? What is the most appropriate development schedule? Several scenarios have been evaluated through economic modeling and analyses of system dynamics. Results indicate that a recycling approach that includes a commercially-developed integrated recycling facility
Full Text Available The dynamics behaviors of Kaldor–Kalecki business cycle model with diffusion effect and time delay under the Neumann boundary conditions are investigated. First the conditions of time-independent and time-dependent stability are investigated. Then, we find that the time delay can give rise to the Hopf bifurcation when the time delay passes a critical value. Moreover, the normal form of Hopf bifurcations is obtained by using the center manifold theorem and normal form theory of the partial differential equation, which can determine the bifurcation direction and the stability of the periodic solutions. Finally, numerical results not only validate the obtained theorems, but also show that the diffusion coefficients play a key role in the spatial pattern. With the diffusion coefficients increasing, different patterns appear.
Meertens, Lucas Onno; Starreveld, E.; Iacob, Maria Eugenia; Nieuwenhuis, Lambertus Johannes Maria; Shishkov, Boris
Intuitively, business cases and business models are closely connected. However, a thorough literature review revealed no research on the combination of them. Besides that, little is written on the evaluation of business models at all. This makes it difficult to compare different business model alternatives and choose the best one. In this article, we develop a business case method to objectively compare business models. It is an eight-step method, starting with business drivers and ending wit...
Full Text Available This paper focuses on the business cycle development of Czech and Slovak economies. The main objective is to compare several methodological approaches to identify business cycles with the main theoretical sources of the economic activity movements in the analyzed periods. As both economies are of transition type, the growth business cycle concept will be considered. In this respect, deterministic as well as stochastic methods for obtaining cyclical fluctuations are applied. Czech and Slovak economies fall into the group of transition economies where the problems of insufficient number of observations and structural changes in empirical time series analysis occur. Even if there are many similarities in the institutions of both economies, the authors identified different regular periodicities of the waves. The used frequency analysis is a slightly unique approach of business cycle modeling. The analysis of business cycle movements has significant potential to improve economic policy efficiency.
Business model describes the company’s most important activities, proposed value, and the compensation for the value. Business model visualization enables to simply and systematically capture and describe the most important components of the business model while the standardization of the concept allows the comparison between companies. There are several possibilities how to visualize the model. The aim of this paper is to describe the options for business model visualization and business mod...
Fischer, Carolyn; Heutel, Garth
Environmental economics has traditionally fallen in the domain of microeconomics, but approaches from macroeconomics have recently been applied to studying environmental policy. We focus on two macroeconomic tools and their application to environmental economics. First, real-business-cycle models
Raymond J. Hawkins
Full Text Available We extend sociodynamic modeling of the financial business cycle to the Euro Area andJapan. Using an opinion-formation model and machine learning techniques we find stable modelestimation of the financial business cycle using central bank lending surveys and a few selectedmacroeconomic variables. We find that banks have asymmetric response to good and bad economicinformation, and that banks adapt to their peers’ opinions when changing lending policies.
Deleersnyder, Barbara; Dekimpe, Marnik; Wierenga, B.; van der Lans, R.
The recent Global Financial crisis has reminded companies that macro-economic developments, and especially business-cycle fluctuations, can be among the most influential determinants of a firm’s activities and performance.
Xin, Chen; Huang, Ji-Ping
Agent-based modeling and controlled human experiments serve as two fundamental research methods in the field of econophysics. Agent-based modeling has been in development for over 20 years, but how to design virtual agents with high levels of human-like "intelligence" remains a challenge. On the other hand, experimental econophysics is an emerging field; however, there is a lack of experience and paradigms related to the field. Here, we review some of the most recent research results obtained through the use of these two methods concerning financial problems such as chaos, leverage, and business cycles. We also review the principles behind assessments of agents' intelligence levels, and some relevant designs for human experiments. The main theme of this review is to show that by combining theory, agent-based modeling, and controlled human experiments, one can garner more reliable and credible results on account of a better verification of theory; accordingly, this way, a wider range of economic and financial problems and phenomena can be studied.
Chen Xin; Ji-Ping Huang
Agent-based modeling and controlled human experiments serve as two fundamental research methods in the field of econophysics.Agent-based modeling has been in development for over 20 years,but how to design virtual agents with high levels of human-like "intelligence" remains a challenge.On the other hand,experimental econophysics is an emerging field;however,there is a lack of experience and paradigms related to the field.Here,we review some of the most recent research results obtained through the use of these two methods concerning financial problems such as chaos,leverage,and business cycles.We also review the principles behind assessments of agents' intelligence levels,and some relevant designs for human experiments.The main theme of this review is to show that by combining theory,agent-based modeling,and controlled human experiments,one can garner more reliable and credible results on account of a better verification of theory;accordingly,this way,a wider range of economic and financial problems and phenomena can be studied.
Presentatie gegeven op 13 mei 2013 op de bijeenkomst "Business Model Canvas Challenge Assen".
Het Business Model Canvas is ontworpen door Alex Osterwalder. Het model werkt zeer overzichtelijk en bestaat uit negen bouwstenen.
Jensen, Henrik; Ravn, Søren Hove; Santoro, Emiliano
In the last half-century, capital markets across the industrialized world have undergone massive deregulation, involving large increases in the loan-to-value (LTV) ratios of house- holds and firms. We study the business-cycle implications of this phenomenon in an es- timated dynamic general...... macroeconomic volatility, a countercyclical LTV ratio proves to be successful in dampening business cycle fluctuations and, most importantly, avoiding dramatic output drops....
Foss, Nicolai J.; Saebi, Tina
While research on business models and business model innovation continue to exhibit growth, the field is still, even after more than two decades of research, characterized by a striking lack of cumulative theorizing and an opportunistic borrowing of more or less related ideas from neighbouring...
Meertens, Lucas Onno; Starreveld, E.; Iacob, Maria Eugenia; Nieuwenhuis, Lambertus Johannes Maria; Shishkov, Boris
Intuitively, business cases and business models are closely connected. However, a thorough literature review revealed no research on the combination of them. Besides that, little is written on the evaluation of business models at all. This makes it difficult to compare different business model
Heikkila, J.; Heikkila, M.; Bouwman, W.A.G.A.
Business Model Innovation is attracting more and more attention from business as well as from academics. Business Model Innovation deals with both technological and knowledge related changes that either may disrupt or sustain existing product/market strategies. Timing of Business Model Innovation
Casadesus-Masanell, Ramon; Ricart, Joan E.
In this article a business model is defined as the firm choices on policies, assets and governance structure of those policies and assets, together with their consequences, be them flexible or rigid. We also provide a way to represent such business models to highlight the dynamic loops and to facilitate understanding interaction with other business models. Furthermore, we develop some tests to evaluate the goodness of a business model both in isolation as well as in interaction with other bus...
Januario, Cristina; Gracio, Clara; Duarte, Jorge
The purpose of this paper is to study the dynamical behavior of a family of two-dimensional nonlinear maps associated to an economic model. Our objective is to measure the complexity of the system using techniques of symbolic dynamics in order to compute the topological entropy. The analysis of the variation of this important topological invariant with the parameters of the system, allows us to distinguish different chaotic scenarios. Finally, we use a another topological invariant to distinguish isentropic dynamics and we exhibit numerical results about maps with the same topological entropy. This work provides an illustration of how our understanding of higher dimensional economic models can be enhanced by the theory of dynamical systems.
Gudiksen, Sune Klok; Poulsen, Søren Bolvig; Buur, Jacob
Well-established companies are currently struggling to secure profits due to the pressure from new players' business models as they take advantage of communication technology and new business-model configurations. Because of this, the business model research field flourishes currently; however, t...
Liu, Xiangdong; Cai, Wenli; Lu, Jiajun; Wang, Yangyang
According to rational expectation hypothesis, the government will take into account the future capital stock in the process of investment decision. By introducing anticipated capital stock into an economic model with investment delay, we construct a mixed functional differential system including delay and advanced variables. The system is converted to the one containing only delay by variable substitution. The equilibrium point of the system is obtained and its dynamical characteristics such as stability, Hopf bifurcation and its stability and direction are investigated by using the related theories of nonlinear dynamics. We carry out some numerical simulations to confirm these theoretical conclusions. The results indicate that both capital stock's anticipation and investment lag are the certain factors leading to the occurrence of cyclical fluctuations in the macroeconomic system. Moreover, the level of economic fluctuation can be dampened to some extent if investment decisions are made by the reasonable short-term forecast on capital stock.
Full Text Available This paper analyzes the dynamics and nature of regional business cycle synchronization for East Asian countries in the period of 2000:Q1-2011:Q4. Estimating a dynamic two-factor model extracts the common factor and the nation- specific factor from both the macroeconomic aggregates and plausible driving forces of regional business cycles. Evidence for regional business cycle synchronization is particularly strong for Korea, Malaysia and the Philippines, while Japan shows weak evidence of regional synchronization. On the other hand, Indonesia, Thailand, Singapore and China are decoupling from regional business cycles. The driver of monetary aggregate is the most significant determinant of regional fluctuations of macroeconomic aggregates, whereas oil price and productivity are on average important driving forces of nation-specific fluctuations of real economic activities.
Cavalcante, Sergio Andre
The aim of this paper is to base organisational change on the firm's business model, an approach that research has only recently start to address. This study adopts a process-based perspective on business models and insights from a variety of theories as the basis for the development of ideas...... on the design of business model change. This paper offers a new, process-based strategic analytical artefact for the design of business model change, consisting of three main phases. Designing business model change as suggested in this paper allows ex ante analysis of alternative scenarios of change...
Tao, Yu-Hui; Yeh, C. Rosa; Hung, Kung Chin
Several theoretical models have been constructed to determine the effects of buisness simulation games (BSGs) on learning performance. Although these models agree on the concept of learning-cycle effect, no empirical evidence supports the claim that the use of learning cycle activities with BSGs produces an effect on incremental gains in knowledge…
Chesbrough, H.; Di Minin, Alberto; Piccaluga, A.
This chapter explains the business model concept and explores the reasons why “innovation” and “innovation in services” are no longer exclusively a technological issue. Rather, we highlight that business models are critical components at the centre of business innovation processes. We also attempt
Jensen, Henrik; Petrella, Ivan; Ravn, Søren Hove
We document that the U.S. economy has been characterized by an increasingly negative business cycle asymmetry over the last three decades. This finding can be explained by the concurrent increase in the financial leverage of households and firms. To support this view, we devise and estimate......, booms become progressively smoother and more prolonged than busts. We are therefore able to reconcile a more negatively skewed business cycle with the Great Moderation in cyclical volatility. Finally, in line with recent empirical evidence, financially-driven expansions lead to deeper contractions...
de Reuver, Mark; Bouwman, Harry; Maclnnes, Ian
In the turbulent world of e-commerce, companies can only survive by continuously reinventing their business models. However, because most studies look at business models as snapshots in time, there is little insight into how changing market-related, technological and regulatory conditions generally drive revisions in business models. In this paper, we examine which types of external drivers are strongest in forcing business models to change throughout their life cycle. To do so, we study 45 l...
Bonenkamp, Jan; Jacobs, Jan; Kuper, Gerard H.
This paper compares different business cycle dating methods both on theoretical and practical grounds. Weighing the pros and cons of these methods, and based on a new data set for The Netherlands in the nineteenth century, we finally recommend two preferred methods for doing further business cycle research on the economy of the Netherlands. With respect to the methods for finding turning points in the level of economic activity, the classical cycle definition, we prefer the Bry-Boschan algori...
Møller, Stig Vinther; Nørholm, Henrik; Rangvid, Jesper
Answer: The business cycle. We show that consumer confidence and the output gap both excess returns on stocks in many European countries: When the output gap is positive (the economy is doing well), expected returns are low, and when consumer confidence is high, expected returns are also low...
In this paper I study the way in which individual unemployment durations vary over the business cycle, as measured by the aggregate unemployment rate. I decompose the cyclical variations in observed unemployment durations into a composition al and a general part. The compositional part consists...
Andersen, Esben Sloth
Schumpeter designed Business Cycles as his major work, but it has never received much attention. The problem is partly related to its complex treatment of the theory of waveform economic evolution and the related study of the statistics and history of 150 years of capitalist evolution, but the book...
"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
Child, John; Hsieh, Linda; Elbanna, Said
This paper addresses two questions through a study of 180 SMEs located in contrasting industry and home country contexts. First, which business models for international markets prevail among SMEs and do they configure into different types? Second, which factors predict the international business...... models that SMEs follow? Three distinct international business models (traditional market-adaptive, technology exploiter, and ambidextrous explorer) are found among the SMEs studied. The likelihood of SMEs adopting one business model rather than another is to a high degree predictable with reference...
Nelson F. Souza-Sobrinho
Full Text Available This paper offers additional insights on the relationship between interest rates and business cycles in Brazil. First, I document that Brazilian interest rates are very volatile, counter-cyclical and positively correlated with net exports, as observed in other emerging market economies. Next, I present a dynamic stochastic general equilibrium model in which firms face working capital constraints and labor supply is independent of consumption. This parsimonious model, appropriately calibrated to the Brazilian economy, predicts that interest rate shocks can explain about one third of output fluctuations and delivers business cycle regularities consistent with the Brazilian data.
When SME´s practice business model (BM) innovation (BMI), leading strategically BMs through the innovation process can be the difference between success and failure to a BM. Business Model Innovation Leadership (BMIL) is however extremely complex to carry out especially to small and medium size...
UNCTAD; World Bank
This note provides guidance on considerations in the selection of an appropriate business model through which to conduct an agricultural investment. Agricultural investments have a wide range of impacts, positive and negative. The choice of business model is one, but by no means the only, determining factor of the financial success of the investment, as well as its socioeconomic and enviro...
Waldner, Florian; Poetz, Marion
Successfully adapting existing business models or developing new ones significantly influences a firm?s ability to generate profits and develop competitive advantages. However, business model innovation is perceived as a complex, risky and uncertain process and its success strongly depends...... on whether or not firms are capable of understanding and addressing their customers? needs. This study explores how crowdsourcing-based search approaches can contribute to the process of business model innovation. Drawing on data from a crowdsourcing initiative designed to develop ideas for new business...... models in the podcast industry, we provide first exploratory insights into the value of crowdsourcing for innovating a firm?s business model, and discuss which characteristics of crowd-contributors increase the quantity and quality of the outcome....
Maria Cristina Enache
Full Text Available A Social Business embraces networks of people to create business value. A Social Business connects people to expertise. It enable individuals – whether customers, partners or employees – to form networks to generate new sources of innovation, foster creativity, and establish greater reach and exposure to new business opportunities. It establishes a foundational level of trust across these business networks and, thus, a willingness to openly share information. It empowers these networks with the collaborative, gaming and analytical tools needed for members to engage each other and creatively solve business challenges. A Social business strives to remove unnecessary boundaries between experts inside the company and experts in the marketplace. It embraces the tools and leadership models that support capturing knowledge and insight from many sources, allowing it to quickly sense changes in customer mood, employee sentiment or process efficiencies. It utilizes analytics and social connections inside and outside the company to solve business problems and capture new business opportunities. A Social Business leverages these social networks to speed up business, gaining real time insight to make quicker and better decisions. It gets information to customers and partners in new ways -- faster. Supported by ubiquitous access on mobile devices and new ways of connecting and working together in the Cloud and on open platforms, a Social Business turns time and location from constraints into advantages. Business is free to occur when and where it delivers the greatest value, allowing the organization to adapt quickly to the changing marketplace. We believe the most effective approach to enabling a Social Business centers around helping people discover expertise, develop social networks and capitalize on relationships.
Adil H. Mouhammed
Full Text Available This paper investigates the instability of capitalism defined as a condition under which capitalism creates inflation, unemployment, and business cycles. Great economists such as Marx, Veblen, and Schumpeter have examined this problem, concluding that capitalist instability will transform capitalism. A model is developed in this paper to investigate instability, and the finding is that the basic causebehind instability is the conflict on income share: wages and profits. The fluctuations in the share of profits create inflation, unemployment, and business cycles. This generalization has been verified by using data from the American economy for the 1970s, 1980s, and the 1990s. Over this period, the paper concludes, whenthe profit share is high, moderate inflation and employment were generated, and when profit share is low, inflation, unemployment, and business cycles have appeared.
Claudia M. Buch
The globalization of capital and product markets has many implications for economic welfare. Countries can specialize in the production of goods for which they have comparative advantages, and capital is allocated more efficiently. However, one potentially adverse effect of globalization is the possibility that business cycle volatility might increase. Rapid and badly co-ordinated capital account liberalization has been blamed for enhancing the vulnerability of emerging markets to unstable in...
Erdenebat Bataa; Denise R. Osborn; Marianne Sensier; Dick van Dijk
We investigate changes in international business cycle affiliations using an iterative procedure for detecting system-wide structural breaks. We analyze GDP growth rates in two systems, one with the US, Euro-area, UK and Canada and the other for the Euro-area countries of France, Germany and Italy. We discover that international dynamic interactions change in both the mid-1980s and early 1990s, with such changes being particularly important for studying influences on the aggregate Euro-area. ...
Japan depends on foreign countries almost for establishing nuclear fuel cycle. Accordingly, uranium enrichment, spent fuel reprocessing and the safe treatment and disposal of radioactive waste in Japan is important for securing energy. By these means, the stable supply of enriched uranium, the rise of utilization efficiency of uranium and making nuclear power into home-produced energy can be realized. Also this contributes to the protection of earth resources and the preservation of environment. Japan Nuclear Fuel Co., Ltd. operates four business commercially in Rokkasho, Aomori Prefecture, aiming at the completion of nuclear fuel cycle by the technologies developed by Power Reactor and Nuclear Fuel Development Corporation and the introduction of technologies from foreign countries. The conditions of location of nuclear fuel cycle facilities and the course of the location in Rokkasho are described. In the site of about 740 hectares area, uranium enrichment, burying of low level radioactive waste, fuel reprocessing and high level waste control have been carried out, and three businesses except reprocessing already began the operation. The state of operation of these businesses is reported. Hereafter, efforts will be exerted to the securing of safety through trouble-free operation and cost reduction. (K.I.)
Lindgren, Peter; Rasmussen, Ole Horn
Leading business model (BM) strategizing through “the field of innovation” has not yet been covered in business model and innovation leadership literature. This is a bit peculiar considering that there has been an increased focus on BM innovation (BMI) by academics and industry since 2011......”. This emphasizes the importance of questioning. How is BM innovation leadership (BMIL) carried out in companies related to various BM(s) and BMI tasks and throughout their business model innovation process? And, how can innovation leadership be related to BMI? A framework model for BMIL based on case research...
This is an ethnographic study of business model innovation in an established manufacturing company. The motivation of the thesis is to propose a sensemaking (Weick, 1995), with focus on enactment (Weick, 1979), analysis of a business model innovation process, stepping outside the usual perspectives...... employed in analysing such a phenomenon, namely activity system, dynamic capability and transaction costs, discovery driven or cognitive perspective. The research question guiding the thesis is: How do established companies enact new business models? The innovation of business models in established...... companies is an intricate process, and a mountain to climb in the eyes of top management. Often, in the choice between innovation and control the latter wins. Studies have shown that technologies and processes, which have the potential to challenge the exiting model, are being filtered out. In here...
Waldner, Florian; Poetz, Marion Kristin; Bogers, Marcel
Successfully adapting existing business models or developing new ones significantly influences a firm’s ability to generate profits and develop competitive advantages. However, business model innovation is perceived as a complex, risky and uncertain process and its success strongly depends...... on whether or not the firm is capable of understanding and addressing their customers’ needs. We conduct a quantitative exploratory case study to investigate how crowdsourcing-based search approaches among user communities can contribute to developing business model innovation. Drawing on data from...... a crowdsourcing initiative designed to develop ideas for new business models in the podcast industry, we provide first exploratory insights into the value of crowdsourcing for innovating a firm’s way of creating, delivering and capturing value, and discuss characteristics of crowd-contributors that influence...
Ahrensbach Rasmussen, Klement
The topics of business model innovation (BMI) and organizational design have potentially important links. And yet, there has been little cross-fertilization of ideas between the two fields. The purpose of this thesis is to fill that gap by proposing and developing an organizational view of BMI...... that focuses on the missing links between business model innovation and organizational design theory. Guided by the research question—what is the role of organizational design in the process of business model innovation?—the thesis not only investigates how BMI activity unfolds, but also looks at the different...... roles of the firm’s organizational design and where the activity takes place. Moreover, this research provides ample detail on how organizational complementarities emerge or vanish as a result of the fit or misfit between business model elements and design choices. To drive home these important points...
Mark W. French
The cycle in output and hours worked is not symmetric: it behaves differently around recessions than in expansions. Similarly, the trend in multifactor productivity (MFP) seems to pass through different regimes; there was an extended period of slow MFP growth from about 1973 through 1995, and faster growth thereafter. Typical linear models and linear filters such as the Kalman filter deal poorly with asymmetry and regime changes. This paper attempts to determine more accurately and quickly an...
Aba Alkhail, Bandar A.
This dissertation consists of three chapters. Chapter one presents a theoretical model using a dynamic stochastic general equilibrium (DSGE) approach to investigate the role of world oil prices in explaining the business cycle in Saudi Arabia. This model incorporates both productivity and oil revenue shocks. The results indicate that productivity shocks are relatively more important to business cycles than oil shocks. However, this model has some unfavorable features that are associated with both investment and labor hours. The second chapter presents a modified theoretical model using DSGE approach to examine the role of world oil prices versus productivity shocks in explaining the business cycles in Saudi Arabia. To overcome the unfavorable features of the baseline model, the alternative model adds friction to the model by incorporating investment portfolio adjustment cost. Thus, the alternative model produces similar dynamics to that of the baseline model but the unfavorable characteristics are eliminated. Also, this chapter conducts sensitivity analysis. The objective of the third chapter is to empirically investigate how real world oil price and productivity shocks affect output, consumption, investment, labor hours, and trade balance/output ratio for Saudi Arabia. This chapter complements the theoretical model of the previous chapters. In addition, this study builds a foundation for future studies in examining the impact of real world oil price shocks on the economies of key trade partners of Saudi Arabia. The results of the third chapter show that productivity shocks matter more for macroeconomic fluctuations than oil shocks for the Saudis' primary trade partners. Therefore, fears of oil importing countries appear to be overstated. As a whole, this research is important for the following reasons. First, the empirical model is consistent with the predictions of our theoretical model in that productivity is a driving force of business cycles in Saudi Arabia
Archer, Norm; Yuan, Yufei
Since the core of e-commerce is information and communications, support for managing customer relationships is available to those who know how to use it. Discusses how technology can be used to encourage and facilitate customer-business relationships. Shows through a customer relationship life cycle model how the management of related procurement…
This paper proposes a model of endogenous fluctuations in investment. A monopolistic producer has an incentive to invest when the aggregate demand is high. The investment at the firm level is also known to exhibit a threshold behavior called an (S,s) policy. These two facts lead us to consider that the fluctuation in aggregate investment is generated by the global coupling of the non-linear oscillators. From this perspective, we characterize the probability distribution of the investment clustering in a partial equilibrium of product markets, and show that its variance can be large enough to match the observed investment fluctuations. We then implement this mechanism in a dynamic general equilibrium model to explore an investment-driven business cycle. By calibrating the model with the SIC 4-digit level industry data, we numerically show that the model replicates the basic structure of the business cycles.
Buchinger, Uschi; Ranaivoson, Heritiana; Ballon, Pieter
Background and Purpose: Though Mobile Wallets have the potential to entirely substitute their physical predecessor, many Mobile Wallets narrow their operations to one particular feature. This might be because of strategic business- model design choices to position themselves strategically as intermediates between users and business partners (third parties) in more delimited markets. Thus, Mobile Wallet Applications (MWAs) often represent platforms in narrow two-sided market structures. De...
Murray, Alan; Scuotto, Veronica
With global and local markets being transformed by the new techno-culture of digital and social technologies, more and more entrepreneurs need to be guided through their entrepreneurial journey. Whilst the management literature declares that there are numerous widely recognised tools available which the entrepreneur can use to help build or develop their business model in order to keep abreast of technological changes such as the business plan, lean start up and experimental lab, we propose t...
Mathä, Thomas Y.; Pierrard, Olivier
Abstract Abstract Empirical evidence suggests that most firms operate in imperfectly competitive markets. We develop a search-matching model between wholesalers and retailers. Firms face search costs and form long-term relationships. Price bargain results in both wholesaler and retailer markups, which depend on firms? relative bargaining power. We simulate the general equilibrium model and explore the role of product market search frictions for business cycles. We conclu...
Jacobs, Jan; Smits, Jan-Pieter
This article exploits a unique new dataset containing information on the economy of the Netherlands to date business cycles turning points in the 19th century (1815-1913) using a modern econometric technique. The business cycle in the Netherlands is compared to the international (UK and US) business
Mikhalkina, T.; Cabantous, L.
Despite ample research on the topic of business model innovation, little is known about the cognitive processes whereby some innovative business models gain the status of iconic representations of particular types of firms. This study addresses the question: How do iconic business models emerge? In other words: How do innovative business models become prototypical exemplars for new categories of firms? We focus on the case of Airbnb, and analyze how six mainstream business media publications ...
Waldner, Florian; Poetz, Marion; Grimpe, Christoph
evidence seems to be confined to firm-level antecedents and pays little attention to the impact of industry structure. This study investigates how different stages of an industry’s life cycle and levels of industry competition affect firms’ business model innovation, and how such innovation translates...... into innovation performance. Based on a cross-industry sample of 1,242 Austrian firms, we introduce a unique measure for the degree of innovation in a firm’s business model. The results indicate that the degree of business model innovation is highest toward the beginning of an industry life cycle, that is......What makes firms innovate their business models? Why do they engage in innovating how they create, deliver, and capture value? And how does such innovation translate into innovation performance? Despite the importance of business model innovation for achieving competitive advantage, existing...
Full Text Available In modern economies, current research generally acknowledges that the central issues in macroeconomics are essentially the same as those identified by Keynes in the General Theory of Employment, Interest and Money. One way or the other, economists are trying to address the same macroeconomic issues that they did seven decades ago: How can we account for the different growth rates and various fluctuations observed in national economies? Which are the economic policies most suitable to solve the issues of growth and cyclic behavior? Both the new classicals and the new Keynesians have made considerable progress within their research paradigms: to explain economic fluctuations, the new classicals focus on technological perturbations, the intertemporal substitution of leisure and real business cycles; on the other hand, the new Keynesians speak in terms of monopolistic competition, menu costs or efficiency wages. On the whole, the new classicals believe that the business cycle can best be understood within the market-clearing model, whereas the new keynesians believe that business fluctuations are due to certain market failures of various sorts.The present paper focuses on the main directions of research of the new classical school on the business cycle, given that the theoretical progress in this field has been significant and relevant for economic policy during the past four decades.
Benk, S.; Gillman, M.; Kejak, Michal
Roč. 73, č. 4 (2005), s. 542-562 ISSN 1463-6786 R&D Projects: GA ČR GA402/05/2172 Institutional research plan: CEZ:AV0Z70850503 Keywords : monetary business cycle * credit model Subject RIV: AH - Economics Impact factor: 0.319, year: 2005 http://dx.doi.org/10.1111/j.1467-9957.2005.00458.x
Boz, Emine; Daude, Christian; Durdu, C. Bora
The data reveal that emerging markets do not differ from developed countries with regards to the variance of permanent TFP shocks relative to transitory. They do differ, however, in the degree of uncertainty agents face when formulating expectations. Based on these observations, we build an equilibrium business cycle model in which the agents cannot perfectly distinguish between the permanent and transitory components of TFP shocks. When formulating expectations, they assign some probability ...
Full Text Available Business cycles are highly irregular fluctuations in economic activity. This article attempts to determine whether there are some properties of business cycles that can make them look more regular. This is done by analysing business cycle dynamics, especially by employing and adjusting to contemporary business cycle analysis the theories of growth cycles and classical cycles. The non-homogeneity of business cycles is surveyed in theory and practice with use of ad hoc filtering, spectral analysis and unobserved components models. With their use business cycles are extracted. Several macroeconomic indicators for 32 economies are analysed to draw up additional characteristics of contemporary business cycles. The author proposes that fluctuations in economic activity lasting 8-19 quarters should be called ‘growth cycles’ and those lasting 20-40 quarters – ‘classical cycles’. The value added of this article is the consideration of the two different type of cycles in light of the same methods of extraction, while to date they have been thought of as the ones that can be analysed with use of different methods of extraction. Another innovation is comparison of the cyclicality of different macroeconomic indicators from the point of view of the two types of cycles, while to date they have been analysed in the light of a single business cycle. In the article it is shown that dividing business cycles into such defined classical cycles and growth cycles enables us to understand the differences between the cyclicality of various macroeconomic aggregates and countries. It also enables us to distinguish between smaller downturns and severe recessions. Another conclusion is that the duration of contemporary business cycles around the world closes in a range of 2 to 10 years.
Lopes, António M; Tenreiro Machado, J A; Huffstot, John S; Mata, Maria Eugénia
This paper reports the dynamical analysis of the business cycles of 12 (developed and developing) countries over the last 56 years by applying computational techniques used for tackling complex systems. They reveal long-term convergence and country-level interconnections because of close contagion effects caused by bilateral networking exposure. Interconnectivity determines the magnitude of cross-border impacts. Local features and shock propagation complexity also may be true engines for local configuration of cycles. The algorithmic modeling proves to represent a solid approach to study the complex dynamics involved in the world economies.
This paper reports the dynamical analysis of the business cycles of 12 (developed and developing) countries over the last 56 years by applying computational techniques used for tackling complex systems. They reveal long-term convergence and country-level interconnections because of close contagion effects caused by bilateral networking exposure. Interconnectivity determines the magnitude of cross-border impacts. Local features and shock propagation complexity also may be true engines for local configuration of cycles. The algorithmic modeling proves to represent a solid approach to study the complex dynamics involved in the world economies. PMID:29408909
Antero, Michelle C.; Hedman, Jonas; Henningsson, Stefan
The ERP industry has undergone dramatic changes over the past decades due to changing market demands, thereby creating new challenges and opportunities, which have to be managed by ERP vendors. This paper inquires into the necessary evolution of business models in a technology-intensive industry (e...
Taran, Yariv; Nielsen, Christian; Thomsen, Peter
, by developing (inductively) an ontological classification framework, in view of the BM process configurations typology developed. Design/methodology/approach – Given the inconsistencies found in the business model studies (e.g. definitions, configurations, classifications) we adopted the analytical induction...
Sebastian Florian Enea
Full Text Available Globalization and business cycles are equally elusive economic phenomena; hence they represent a continuous research possibility and a source of possible inquiries due to their complex nature. The aim of the paper is to explain the synchronization of business cycles using the relationship between the growth rate of the GDP and FDI, considered as percentage of the GDP. The results show that there is no unique European business cycle, but two cores between which countries migrate and stress out the importance of the FDI channel in business cycle transmission. The future research directions will employ fuzzy cluster techniques, used on a larger sample.
Buur, Jacob; Mitchell, Robb
This paper presents a set of techniques for modelling business in rich, tangible formats. These tangible formats were developed in companies and educational settings and have proven extraordinarily successful in initiating conversations about how to innovate business in cross-disciplinary and cross......-functional groups of participants. Our aim here is to provide an overview of the techniques and the state of our research rather than a detailed argument for each of them. This is still work in progress, but the results are so convincing that we offer to publish although some of the factors that contribute...
Rohrbeck, René; Günzel, Franziska; Uliyanova, Anastasia
In many industries, companies are faced with disruptions from emerging technologies, from the political and legislative environment, from alternative business models or from socio-cultural shifts. Research on strategic foresight (SF) has been aimed at investigating how companies achieve to identify......, anticipate and manage disruptions and prepare for an uncertain future. The research is based on the observation that strategic management in large companies is characterized by certain ignorance towards any changes occurring outside their current business area, and that to maintain a competitive position...
Naumenko, M.; Morozova, L.
Integrated business structure presented as complementary pool of its participants skills. The methodical approach to integrated business structure life cycle modeling proposed. Recommendations of enterprises life cycles stages correlate are submitted.
It appears that business model design might not always produce a design or model as the expected result. However when designers are involved, a visual model or artefact is produced. To assist strategic managers in thinking about how they can act, the designers challenge is to combine strategy and
Full Text Available The idea of cyclical movement of a system: be it political, economic, institutional, is one of the constants of critical thinking. In this sense, there is a natural cyclic movement that cannot be avoided (only amplified or diminished and is connected with the nature of these systems. The economy follows a cyclical movement; a period of growth follows a period of decline, and so on. So does popularity for political parties or leaders. In this paper, I explore the links between the business cycles and electoral cycles. For this purpose, I introduce the concept of electoral perception cycles. My hypothesis is that popularity of political parties and leaders follow a cyclical evolution, both on short and long term. I show how perception cycles can impact the “political business cycle theory”. There is great interest in political science literature for the factors that influence the fluctuations in Presidents’ popularity, especially from United States. However, very little has been said about Romania’s case. I investigate the hypothesis of electoral perception cycles looking at the popularity of former president Traian Basescu, over his two terms. The variable used to measure popularity is favorability, measured in national surveys, done face to face, on representative samplez, of around 1000 subjects. I’ve correlated the fluctuations in favorability over time, with key public events or political decisions taken by Traian Băsescu. The main findings are as follows. Firstly, there are significant short term fluctuations (short term perception cycles and they are correlated with major events on the agenda. I would point the following key moments: 1. The referendum for dismissal of the President in May 2007 – Traian Băsescu’s favorability increased by 7 percentage points; 2. The referendum for unicameral Parliament with 300 MPs in the fall of 2009. Coupled with victory in the presidential election, it lead to an increase of 10 percentage
Abuzeinab, Amal; Arif, Mohammed
PhD study Business models describe the business logic of a particular company and green business model is when a company changes part(s) of its business model and thereby both captures economic value and reduces the ecological footprint in a life-cycle perspective. In this paper, business model literature is reviewed with the intention of promoting learning to understand the economic complexity of environmental sustainability in the construction context. Although the green construction lit...
Full Text Available Authors in the Austrian tradition have made the credit expansion of a fractional reserve banking system as the prime cause of business cycles. Authors such as Selgin (1988 and White (1999 have argued that a solution to this problem would be a free banking system. They maintain that the competition between banks would limit the credit expansion effectively. Other authors such as Rothbard (1991 and Huerta de Soto (2006 have gone further and advocated a 100 percent reserve banking system ruling out credit expansion altogether. In this article it is argued that a 100 percent reserve system can still bring about business cycles through excessive maturity mismatching between deposits and loans.
Noce, Irapuan; Carvalho, João Álvaro
There is a growing interest in business modeling and architecture in the areas of management and information systems. One of the issues in the area is the lack of integration between the modeling techniques that are employed to support business development and those used for technology modeling. This paper proposes a modeling approach that is capable of integrating the modeling of the business and of the technology. By depicting the business model, the organization structure and the technolog...
Ackhurst, Trent B.; Peverelli, Romina P. [PIMS - Pipeline Integrity Management Specialists of London Ltd. (United Kingdom).
It is a best-practice Oil and Gas pipeline integrity and reliability technique to apply integrity management cycles. This is conforms to the business principles of continuous improvement. This paper examines the integrity management cycle - both goals and objectives and subsequent component steps - from a business perspective. Traits that businesses require, to glean maximum benefit from such a cycle, are highlighted. A case study focuses upon an integrity and reliability process developed to apply to pipeline operators. installations. This is compared and contrasted to the pipeline integrity management cycle to underline both cycles. consistency with the principles of continuous improvement. (author)
Full Text Available This paper examines the business cycle properties of Visegrad group countries. The main objective is to identify business cycles in these countries and to study the relationships between them. The author applies a modification of the Fourier analysis to estimate cycle amplitudes and frequencies. This allows for a more precise estimation of cycle characteristics than the traditional approach. The cross-spectral analysis of GDP cyclical components for the Czech Republic, Hungary, Poland and Slovakia makes it possible to assess the degree of business cycle synchronization between the countries.
Baden-Fuller, Charles; Haefliger, Stefan
Business models are fundamentally linked with technological innovation, yet the business model construct is essentially separable from technology. We define the business model as a system that solves the problem of identifying who is (or are) the customer(s), engaging with their needs, delivering satisfaction, and monetizing the value. The framework depicts the business model system as a model containing cause and effect relationships, and it provides a basis for classification. We formulate ...
Weihs, Claus; Garczarek, Ursula
We present a descriptive analysis of stylized facts for the German business cycle. We demonstrate that simple ad-hoc instructions for identifying univariate rules characterizing the German business cycle 1955-1994 lead to an error rate comparable to standard multivariate methods.
Alimi, Nabil; Garbaa, Radhouan
Using a panel of annual data for 29 ODCE countries over the period 1996 2010, we empirically examine if fiscal convergence make business cycles more closely linked. The results suggest that a reduction in fiscal divergence tend to raise the business cycle correlation between a pair of ODCE countries.
M. Hallerberg; L. Vinhas de Souza
textabstractThis paper considers whether political business cycles exist in Eastern European accession countries. Section I introduces the overall objectives of the work. Section II provides a short introduction to the political business cycle literature. It also considers the role of exchange
Sorescu, A.; Frambach, R.T.; Singh, J.; Rangaswamy, A.; Bridges, C.
A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations,
Rodríguez-López, Jesús; Marrero, Gustavo A; González, Rosa Marina; Leal-Linares, Teresa
This paper explores the causes behind the downturn in road accidents in Spain across the last decade. Possible causes are grouped into three categories: Institutional factors (a Penalty Point System, PPS, dating from 2006), technological factors (active safety and passive safety of vehicles), and macroeconomic factors (the Great recession starting in 2008, and an increase in fuel prices during the spring of 2008). The PPS has been blessed by incumbent authorities as responsible for the decline of road fatalities in Spain. Using cointegration techniques, the GDP growth rate, the fuel price, the PPS, and technological items embedded in motor vehicles appear to be statistically significantly related with accidents. Importantly, PPS is found to be significant in reducing fatal accidents. However, PPS is not significant for non-fatal accidents. In view of these results, we conclude that road accidents in Spain are very sensitive to the business cycle, and that the PPS influenced the severity (fatality) rather than the quantity of accidents in Spain. Importantly, technological items help explain a sizable fraction in accidents downturn, their effects dating back from the end of the nineties. Copyright © 2016 Elsevier Ltd. All rights reserved.
Bergman, Ulf Michael
This paper evaluates the decisions made by the Finnish government to join EMU and the Swedish government not to join EMU in the early 1990s. Focusing on the characteristics of business cycles during the postwar period, we find that output fluctuations in Sweden and Finland are correlated to two...... measures of the international business cycle, a European and a non-European cycle. The Finnish cycle has become more synchronized to the European cycle but less synchronized to the non-EU cycle after 1999. For Sweden we find the opposite result. The decision by the Finnish government to join EMU...
Levickaitė, Rasa; Reimeris, Ramojus
The article is based on literature review, theoretical insights, and deals with the topic of franchise business model. The objective of the paper is to analyse peculiarities of franchise business model and its developing conditions in Lithuania. The aim of the paper is to make an overview on franchise business model and its environment in Lithuanian business context. The overview is based on international and local theoretical insights. In terms of practical meaning, this article should be re...
Stelian Brad; Emilia Brad
Business model innovation is an important issue to keep business competitive and increase company’s profits. Due to many market attractors, identification of appropriate paths of business model evolution is a painful and risky process. To improve decision’s effectiveness in this process, an architectural construct of analysis and conceptualization for business model innovation that combines directed evolution and blue ocean concepts is proposed in this paper under the name o...
Kejser, Ulla Bøgvad
This deliverable discusses business models for digital curation. It helps organisations to understand the requirements and drivers for curation services from a supplier and demand side. We investigated existing services and have developed guidelines to address new business opportunities...
Full Text Available Selection and proper application of business process modeling methods and techniques have a significant impact on organizational improvement capabilities as well as proper understanding of functionality of information systems that shall support activity of the organization. A number of business process modeling notations were popularized in practice in recent decades. Most significant of the notations include Business Process Modeling Notation (OMG BPMN and several Unified Modeling Language (OMG UML extensions. In this paper, the assessment whether one of the most flexible and strictly standardized contemporary business process modeling notations, i.e. Rational UML Profile for Business Modeling, enable business analysts to prepare business models that are all-embracing and understandable by all the stakeholders. After the introduction, methodology of research is discussed. Section 2 presents selected case study results. The paper is concluded with a summary.
Cavalcante, Sergio Andre; Kesting, Peter; Ulhøi, John Parm
the impact of specific changes to a firm's business model. Such a tool would be particularly useful in identifying path dependencies and resistance at the process level, and would therefore allow a firm's management to take focused action on this in advance. Originality/value – The paper makes two main...... and specifies four different types of business model change: business model creation, extension, revision, and termination. Each type of business model change is associated with specific challenges. Practical implications – The proposed typology can serve as a basis for developing a management tool to evaluate......Purpose – This paper aims to discuss the need to dynamize the existing conceptualization of business model, and proposes a new typology to distinguish different types of business model change. Design/methodology/approach – The paper integrates basic insights of innovation, business process...
Antonova, A. O.; Reznik, S. N.; Todorov, M. D.
We study dynamics of the Goodwin nonlinear accelerator business cycle model with periodic forced autonomous investment I a (t) = a(1 – cos ωt), where a and ω are the amplitude and the frequency of investment. We give examples of the parameters a and ω when the chaotic oscillations of income are possible. We find the critical values of amplitude a cr (ω): if a > a cr (ω) the period of the income equals to the driving period T=2π/ω
Smith, Pernille; Cavalcante, Sérgio André; Kesting, Peter
This paper investigates the process whereby firms move from a closed to an open business model, and, in so doing it points to the relationship between a firm's innovation approach and its business model(s). The empirical setting of this qualitative investigation is a consortium of Danish....... A significant contribution of this paper is to show that adopting an open innovation model is unlikely to succeed without changing the underlying business model. ...
Full Text Available The aim of the paper is the presentation of theoretical foundations and the structure of original, 8-stage statics and dynamics model in the small business life cycle. Based on theoretical considerations, two hypotheses concerning the impact of dynamic and static nature of the life-cycle stages on selected determinants and effects of SMEs’ development were formulated. The hypotheses were verified based on the results of the survey conducted on a sample of 1,741 SMEs from 22 countries of the European Union. The results indicate that companies in the dynamic life-cycle stages are run by more enterprising owners, operate in more promising markets with a higher potential and make greater use of market niches thus limiting the level of competition. At the same time, such companies are characterised by higher levels of flexibility and involvement in innovative activities, which translates into obtaining a significantly higher level of business performance, in the area of quantitative as well as qualitative results.
Saebi, Tina; Foss, Nicolai Juul
Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies’ business models are not attuned to open strategies. Accordingly, we propose a contingency model o...... to the open innovation literature by specifying the conditions under which business models are conducive to the success of open innovation strategies.......Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies’ business models are not attuned to open strategies. Accordingly, we propose a contingency model...... of open business models by systematically linking open innovation strategies to core business model dimensions, notably the content, structure, governance of transactions. We further illustrate a continuum of open innovativeness, differentiating between four types of open business models. We contribute...
Saebi, Tina; Foss, Nicolai J.
Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies' business models are not attuned to open strategies. Accordingly, we propose a contingency model o...... to the open innovation literature by specifying the conditions under which business models are conducive to the success of open innovation strategies.......Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies' business models are not attuned to open strategies. Accordingly, we propose a contingency model...... of open business models by systematically linking open innovation strategies to core business model dimensions, notably the content, structure, governance of transactions. We further illustrate a continuum of open innovativeness, differentiating between four types of open business models. We contribute...
Gamingdom is a new start up venture that provides online gaming service utilising the latest cloud computing technology. The high demand, popularity and exponential growth in the number of gaming enthusiasts and the market have brought about this innovative idea. This new venture aims to provide an easy method of gaming through the internet without heavy expenses on hardware and software and also minimising the existing high rate of piracy. A business model is an essential tool for buildin...
Gabriel, Cle-Anne; Kirkwood, Jodyanne
Against the background of mounting research suggesting entrepreneurship as a means of increasing the uptake of renewable energy technologies (RETs) in developing countries, this paper presents the findings of an exploratory investigation into the business models used by renewable energy entrepreneurs in such countries. Forty-three entrepreneurs were interviewed in 28 developing countries and secondary information about country and regional conditions was analysed. We chose the Business Model Canvas as an analytical tool and the findings shed new light on established renewable energy business types. Three different types of businesses were identified – Consultants, Distributors, and Integrators; yet, there is also some overlap between these types. These business types appeared to parallel the life cycle progression of the business, but this requires further research. A key component of the study was to assess whether the types of businesses were related to country-level conditions to assess the impact of regional differences. These comparisons revealed consistencies between country-level characteristics and the entrepreneurs’ choice of business model. Conclusions suggest that different regions may support certain business models more than others due to differing levels of government interest in renewables, governance and policy support and the relative ease of doing business. - Highlights: •Business model canvas used to analyse renewable energy entrepreneurs’ businesses. •Consultants, distributors and integrators are the main business models used. •Business model characteristics are related to country and regional conditions. •Entrepreneurs in least favourable policy environments likely to be Consultants. •Energy entrepreneurship policy should focus on promoting specific business models.
Full Text Available The purpose of Business Process Model and Notation (BPMN is to provide easily understandable graphical representation of business process. Thus BPMN is widely used and applied in various areas one of them being a business process simulation. This paper addresses some BPMN model based business process simulation problems. The paper formulate requirements for business process and resource models in enabling their use for business process simulation.
Miyamoto, Wataru; Nguyen, Thuy Lan
Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods. We find that financial frictions are an important feature for not only developing countries but also small developed countries. Furthermore, business cycles in both groups of countries are marked with trend ...
Full Text Available The paper empirically investigates three different methods to construct factors and identifies some pitfalls that arise in the application of Fama-French’s three-factor model to the Pakistani stock returns. We find that the special features in Pakistan significantly affect size and value factors and also influence the explanatory power of the three-factor model. Additionally, the paper examines the ability of the three factors to predict the future growth of Pakistan’s economy. Using monthly data of both financial and non-financial companies between 2002 and 2016, the article empirically investigates and finds that: (1 size and book-to-market factors exist in the Pakistani stock market, two mimic portfolios SMB and HML generate a return of 9.15% and 12.27% per annum, respectively; (2 adding SMB and HML factors into the model meaningfully increases the explanatory power of the model; and (3 the model’s factors, except for value factor, predict future gross domestic product (GDP growth of Pakistan and remain robust. Our results are robust across sub-periods, risk regimes, and under three different methods of constructing the factors.
Gerdtham, Ulf-G; Johannesson, Magnus
We assess the relationship between business cycles and mortality risk using a large individual level data set on over 40,000 individuals in Sweden who were followed for 10-16 years (leading to over 500,000 person-year observations). We test the effect of six alternative business cycle indicators on the mortality risk: the unemployment rate, the notification rate, the deviation from the GDP trend, the GDP change, the industry capacity utilization, and the industry confidence indicator. For men we find a significant countercyclical relationship between the business cycle and the mortality risk for four of the indicators and a non-significant effect for the other two indicators. For women we cannot reject the null hypothesis of no effect for any of the business cycle indicators.
Bruno Alencar Pereira
Full Text Available The business models innovation in airlines can contribute to the creation of value, competitive advantage and profitability with new possibilities of action. The proposed paper aimed to identify the business models adopted by airlines and identify how the innovation occurs at these organizations. The methodology adopted is characterized as empirical, exploratory and descriptive research by multiple case study with three major Brazilian airlines. The results demonstrate that the search for paradigm breaks, related to the dichotomic traditional models of low-cost and full-service, toward hybrid business models occur linearly, as examples highlighted by companies, in which internal changes in business models are considered major organizational innovations.
Groth, Pernille; Nielsen, Christian
the quality of business model taxonomy studies in the future are identified. Originality/Value: The paper highlights the benefits and potential implications of designing business model taxonomy studies and makes the case for ensuring the quality of future studies relating to e.g. performance. Reviewing......Abstract Purpose: The paper proposes a research design recipe capable of leading to future business model taxonomies and discusses the potential benefits and implications of achieving this goal. Design/Methodology/Approach: The paper provides a review of relevant scholarly literature about business...... models to clarify the subject as well as highlighting the importance of past studies of business model classifications. In addition it reviews the scholarly literature on relevant methodological approaches, such as cluster analysis and latent class analysis, for constructing a business model taxonomy...
Saebi, Tina; Lien, Lasse B.; Foss, Nicolai Juul
Business models change as managers not only innovate business models, but also engage in more mundane adaptation in response to external changes, such as changes in the level or composition of demand. However, little is known about what causes such business model adaptation. We employ threat......-rigidity as well as prospect theory to examine business model adaptation in response to external threats and opportunities. Additionally, drawing on the behavioural theory of the firm, we argue that the past strategic orientation of a firm creates path dependencies that influence the propensity of the firm...... to adapt its business model. We test our hypotheses on a sample of 1196 Norwegian companies, and find that firms are more likely to adapt their business model under conditions of perceived threats than opportunities, and that strategic orientation geared towards market development is more conducive...
Johnson, Matthew T.
This paper adds to the understanding of student decisions about graduate school attendance by studying the magnitude of the effect of business cycle fluctuations on enrollment. I use data on graduate school enrollment from the Current Population Survey and statewide variation in unemployment rates across time to proxy for changes in business cycle…
The past 30 years have been witness to an inexorable change in the degree to which economies are connected internationally. At the same time, the 2007-2008 recession was the first ‘global recession’ in decades. This article explores how international trade and cross-border holdings financial assets impact the synchronization of business cycles internationally. The paper begins by producing chronologies of business cycle turning points for a group of 32 major economies covering 40 years of his...
Ayhan Kose; Eswar S Prasad; Marco Terrones
This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at best limited support for the conventional wisdom that globalization has increased the degree of synchronization of business cycles. The evidence that trade and financial integration enhance global spillovers of macroeconomic fluctuations is mostly limited to industrial countries. One striking resu...
Bunn, A R
Trends in Australian heart disease mortality were assessed for association with the business cycle. Correlation models of mortality and unemployment series were used to test for association. An indicator series of "national stress" was developed. The three series were analyzed in path models to quantify the links between unemployment, national stress, and heart disease. Ischemic heart disease (IHD) mortality and national stress were found to follow the business cycle. The two periods of accelerating IHD mortality coincided with economic recession. The proposed "wave hypothesis" links the trend in IHD mortality to the high unemployment of severe recession. The mortality trend describes a typical epidemic parabolic path from the Great Depression to 1975, with a smaller parabolic trend at the 1961 recession. These findings appear consistent with the hypothesis that heart disease is, to some degree, a point source epidemic arising with periods of severe economic recession. Forecasts under the hypothesis indicate a turning point in the mortality trend between 1976 and 1978. (Am J Public Health 69:772-781, 1979). PMID:453409
Full Text Available Business model innovation is an important issue to keep business competitive and increase company’s profits. Due to many market attractors, identification of appropriate paths of business model evolution is a painful and risky process. To improve decision’s effectiveness in this process, an architectural construct of analysis and conceptualization for business model innovation that combines directed evolution and blue ocean concepts is proposed in this paper under the name of directed innovation. It displays the key points where innovations would happen to direct adaptation of the business model towards sustainable competitiveness. Formulation of mature solutions is supported by inventive problem solving tools. The significance of the directed innovation approach is demonstrated in a case study dealing with business model innovation of a software company.
Heikkinen, A.-M. (Anne-Mari)
Abstract It is current phenomena that business environment has changed and has set new requirements for companies. Companies must adapt to the changes comes from outside its normal business environment and take into consideration wider business environment where it operates. These changes also have set new demands for company business model. Companies Business models need to be changed to match state of art business environ...
Meertens, Lucas Onno; Starreveld, Eelco; Iacob, Maria Eugenia; Nieuwenhuis, Lambertus Johannes Maria; Shishkov, Boris
Intuitively, business cases and business models are closely connected. However, a thorough literature review revealed no research on the combination of them. Besides that, little is written on the evaluation of business models at all. This makes it difficult to compare different business model
Holm, Anna B.; Günzel, Franziska; Ulhøi, John Parm
the recent developments in the Danish newspaper industry, especially how the Internet and related technology developments have disrupted the long-standing successful business model of the industry. Our findings suggest that a more nuanced understanding of the term ‘openness’ is needed since the opening......Literature on business model innovation portraits an open business model as a modern and lucrative approach to conducting business, and even as a way to engage in open innovation activities. Using archival data and interviews with key employees of the two largest media groups from Denmark, we show...... of business models during technological dynamics may have far more diverse consequences than it has been reported in the literature so far and can even become a major threat to business viability....
Full Text Available This paper first examines the relationship between ordinary least squares estimators of consumption and investment for 36 selected countries with their respective Gini indices. The analysis shows that income inequality is consistent with a smaller estimator of consumption and a greater estimator of investment. Second, the cycles of GDP, consumption and investment are dated separately to determine how the deepness and duration of cycles of those variables are correlated with the Gini indices of countries. The results show that income inequality leads to a deeper and longer decline of GDP, which causes a greater cumulative income loss of GDP during recession, and a somewhat faster speed of recovery during expansion. Likewise, the result of a correlation between Gini indices and the number of cycles in consumption, investment and GDP indicate that income inequality is associated with a greater number of cycles in consumption and GDP and a lower number of cycles in investment.
Kristoffersen, Mark Strøm
In the wake of the financial and economic crisis the discussion about social insurance and optimal stabilization policies has re-blossomed. This paper adds to the literature by studying the effects of a business cycle dependent level of unemployment benefits in a model with labor market matching......, wealth heterogeneity, precautionary savings, and aggregate fluctuations in productivity. The results are ambiguous: both procyclical and countercyclical unemployment benefits can increase welfare relative to business cycle invariant benefits. Procyclical benefits are beneficial due to countercyclicality...
Full Text Available This research is addressed for the construction of Synthesis between Keynesian, Monetarist and Real Business Cycle Model to the inflation and unemployment Data is used quarterly data 2000.1 - 2014.4, The result of this research with the Keynesian model is the aggregate demand gap has no significance effect to inflation rate and the unemployment rate. But when model of variable input mount the unemployment, exchange rate, wage and the aggregate demand gap of hence yielding elastic inflation elasticity finding of positive of equal to 2,48 to the unemployment rate, and the inflation elasticity to foreign exchange is inelastic positive significance of equal to 0,88. As for the influence of wages to inflation is significantly negative elastic of equal to – 1,89. Besides, in model is also shown by condition of significance of influence of variable of aggregate demand gap to inflation of equal to 0.31. Meanwhile, Inflation in perspective monetarist viewed as by a monetary phenomenon, where the inflation influenced by money supply of equal to 1.858. Besides, Monetarist also express of relation significance of between GDP summed ugly is money supply is inelastic positive significance of equal to 0.1247. The RBC Model shows that the investment elasticity to output is significance inelastic positive equal to 0.405467, that way also with the influence of the population to GDP is significance negative equal to - 1.259925 . The other side, is founded by of Unemployment elasticity to wage rate is significance positive of equal to 0.413. Meanwhile, with the model of synthesis Keynes-Monetarist and RBC lay open that output (GDP is influenced by the positive significance of equal to 0.206026 . The synthesis model is also expressed by that governmental fiscal governmental expenditure as a means of shows influence which significant to unemployment equal to 0.149. While component amount of money supply, affecting negativity significance to unemployment of equal to
Mosley, P.; Chiripanhura, B.
We seek to understand both the incidence and the impact of the African political business cycle in the light of a literature which has argued that, with major extensions of democracy since the 1990s, the cycle has both become more intense and has made African political systems more fragile. With the help of country-case studies, we argue, first, that the African political business cycle is not homogeneous, and is rarely encountered in so-called ‘dominant-party systems’ where a pre-election st...
Full Text Available During developing an information system is important to create clear models and choose suitable modeling languages. The article analyzes the SRML, SBVR, PRR, SWRL, OCL rules specifying language and UML, DFD, CPN, EPC and IDEF3 BPMN business process modeling language. The article presents business rules and business process modeling languages theoretical comparison. The article according to selected modeling aspects of the comparison between different business process modeling languages and business rules representation languages sets. Also, it is selected the best fit of language set for three layer framework for business rule based software modeling.
Saugstrup, Dan; Henten, Anders
The aim of the paper is to examine the issue of business modeling in relation to personal networks, PNs. The paper builds on research performed on business models in the EU 1ST MAGNET1 project (My personal Adaptive Global NET). The paper presents the Personal Network concept and briefly reports...
Cavalcante, Sergio Andre
The purpose of this paper is to investigate managers’ initiatives in the context of an emergent technology and their effect on the business models of firms. Building on four case studies of organizations interested in using an emergent technology for commercial purposes, this study applies...... a process-based framework of business model change. The main finding is that managers’ initiatives occur in the context of a “pre-stage” of potential business model change, which includes processes of experimenting and learning. The pre-stage finding gives a better understanding of when change initiatives...... affect a business model and when they do not, allowing managers to adopt a more proactive behaviour and guide their organizations towards effective business model change. The main contribution of this paper is to suggest the inclusion of the pre-stage idea in research and practice, since...
Krichene, Hazem; Chakraborty, Abhijit; Inoue, Hiroyasu; Fujiwara, Yoshi
This work aims to study and explain the business cycle correlations of the Japanese production network. We consider the supplier-customer network, which is a directed network representing the trading links between Japanese firms (links from suppliers to customers). The community structure of this network is determined by applying the Infomap algorithm. Each community is defined by its GDP and its associated business cycle. Business cycle correlations between communities are estimated based on copula theory. Then, based on firms' attributes and network topology, these correlations are explained through linear econometric models. The results show strong evidence of business cycle correlations in the Japanese production network. A significant systemic risk is found for high negative or positive shocks. These correlations are explained mainly by the sector and by geographic similarities. Moreover, our results highlight the higher vulnerability of small communities and small firms, which is explained by the disassortative mixing of the production network.
Nielsen, Christian; Lund, Morten
A business model is a sustainable way of doing business. Here sustainability stresses the ambition to survive over time and create a successful, perhaps even profitable, entity in the long run. The reason for this apparent ambiguity around the concept of profitability is, of course, that business...... models apply to many different settings than the profit-oriented company. The application of business models is much broader and is a meaningful concept both in relation to public-sector administration, NGO’s, schools and universities and us, as individuals. Whether, in the case of the privately owned...... company, profits are retained by the shareholders or distributed in some degree to a broader mass of stakeholders is not the focus here. Rather, it is the point of this book to illustrate how one may go about conceptualizing, analyzing or communicating the business model of a company, organisation...
Apostolos, S.; Asghar, S.
This paper investigates the basic stylised facts of natural gas price movements using data for the period that natural gas has been traded on an organised exchange and the methodology suggested by Kydland and Prescott (1990). Our results indicate that natural gas prices are procyclical and lag the cycle of industrial production. Moreover, natural gas prices are positively contemporaneously correlated with United States consumer prices and lead the cycle of consumer prices, raising the possibility that natural gas prices might be a useful guide for US monetary policy, like crude oil prices are, possibly serving as an important indicator variable. (author)
Frösén, Johanna; Jaakkola, Matti; Churakova, Iya; Tikkanen, Henrikki
Macroeconomic developments, such as the business cycle, have a remarkable influence on firms and their perfor- mance. In business-to-business (B-to-B) markets characterized by a strong emphasis on long-term customer relationships, market orientation (MO) provides a particularly important safeguard for firms against fluctuating market forces. Using panel data from an economic upturn and downturn, we examine the effectiveness of differ- ent forms of MO (i.e., customer orientation, competitor or...
de Haan, J.; Inklaar, R.; Jong-A-Pin, R.
This survey of business cycle synchronization in the European monetary union focuses on two issues: have business cycles become more similar, and which factors drive business cycle synchronization. We conclude that business cycles in the euro area have gone through periods of both convergence and
March-Chordà, I; Yagüe-Perales, R M
This article provides new insights into the different strategy paths or business models currently being implemented by Canadian biopharma companies. Through a case-study methodology, seven biopharma companies pertaining to three business models were analyzed, leading to a broad set of results emerging from the following areas: activity, business model and strategy; management and human resources; and R&D, technology and innovation strategy. The three business models represented were: model 1 (conventional biotech oriented to new drug development, radical innovation and search for discoveries); model 2 (development of a technology platform, usually in proteomics and bioinformatics); and model 3 (incremental innovation, with shorter and less risky development timelines). Copyright © 2011 Elsevier Ltd. All rights reserved.
For anyone who wants to communicate effectively in business, this is your complete reference guide for any form of written communication. Packed with over 500 sample documents, over 100 tips for better business writing and useful templates you can apply to your writing immediately, Model Business Letters will help you put the key rules of good business writing into action.
Gudiksen, Sune Klok
in a system, product or service for a particular end-user. In this dissertation, co-design and design games enter a new frontier - business models - and move towards being a part of a broader innovation agenda. The research deals with a double concern: First, the transfer of co-design and the subfield design...... games into business model experimentation to investigate how this might be useful in this new application domain. Second, investigate what can be added to the transferring field co-design, hereunder especially design games. The research into this double concern is conducted through an approach assembled...... of business cases and games are investigated through video interaction analysis, observations during the activities, and evaluation rounds. Central to the first concern in this research is that in innovation studies and in business practises the notion of business model experimentation is becoming...
M. Burak ONEMLI
Full Text Available This study investigates whether there is a political business cycle (PBC on the agricultural supports in the Turkish economy. In this respect, we investigate the policies of different Turkish governments for the agricultural supports measured by the producer support estimates for the period 1986-2011. To this end, first the series for the producer support estimates are filtered by the Hodrick-Prescott filter, and then an econometric model is employed to estimate the effects of a set of explanatory variables including the economic crisis, the opportunistic and the partisan characteristics of the incumbent parties. Our results provide limited support for the opportunistic type PBC. Moreover, it seems that some Turkish governments have created the partisanship type PBCs
Andrés Mauricio Gómez Sánchez
Full Text Available Through the Hodrick-Prescott methodology this paper presents a review about the relationship between the ex post risk premium of the stock market and business cycles observed in Colombia. Through quarterly information from the fourth quarter of 2001 to the third quarter of 2012, statistical evidence shows that the increase and decrease of ex post risk premium follow a countercyclical behavior in tune with existing research conducted about the United States and emerging economies, although with non-contemporary relationships with private consumption. In addition, it is found that in the last decade the Colombian risk premium follows a process of Auto Regressive Moving Average Models (ARMA, showing that there is no variation in at least two consecutive quarters and whose behavior is generated in part by external events at the domestic economic activity level experienced in near past periods.
Heikkila, M.; Bouwman, W.A.G.A.; Heikkila, J.; Solaimani, S.; Janssen, W.
Development of successful business models has become a necessity in turbulent business environments, but compared to research on business modeling tools, attention to the role of metrics in designing business models in literature is limited. Building on existing approaches to business models and
Gjerding, Allan Næs; Kringelum, Louise Tina Brøns
The present paper presents a novel generalization of business model innovation as an activity taking place across a development and an extension zone, where business model innovation occurs as minor, medium and major changes within both zones. The model explains the process of creating new activi......, and that there exists a dialec-tical relationship between sources of selection and sources of survival, which tend to re-inforce one another. This constitutes a new aspect of business model innovation.......The present paper presents a novel generalization of business model innovation as an activity taking place across a development and an extension zone, where business model innovation occurs as minor, medium and major changes within both zones. The model explains the process of creating new activity......-ered as a coherent system. The generalization is explicated in terms of different domi-nant market logics in which collaborative efforts can be positioned. Underlying this presentation, the paper argues that business model innovation involves uncertainty to the degree that innovation is based on cooperative efforts...
The business model concept is gaining traction in different disciplines but is still criticized for being fuzzy and vague and lacking consensus on its definition and compositional elements. In this paper we set out to advance our understanding of the business model concept by addressing three areas of foundational research: business model definitions, business model elements, and business model archetypes. We define a business model as a representation of the value logic of an organization in...
Knab, Sebastian; Rohrbeck, René
With this research we aim to enhance our understanding about how incumbents can explore emerging opportunities through business model innovation. Using a multiple-case, longitudinal research design spanning 2008 to 2014 we investigate exploration activities of the four largest German energy...... utilities in the emerging virtual power plant market. Based on the behavioral theory of the firm, we study how the cognitive and physical elements of an incumbent’s strategy can be changed and how these changes affect its business model innovation activities in the exploration process. Our preliminary...... findings suggest that the use of synergies and probing can lead to changing physical elements and primarily increase business model maturity. CEO change and structural separation can lead to changing cognitive elements and primarily increase business model sophistication....
Full Text Available Often, Business Intelligence Systems (BIS require historical data or data collected from var-ious sources. The solution is found in data warehouses, which are the main technology used to extract, transform, load and store data in the organizational Business Intelligence projects. The development cycle of a data warehouse involves lots of resources, time, high costs and above all, it is built only for some specific tasks. In this paper, we’ll present some of the aspects of the BI systems’ development such as: architecture, lifecycle, modeling techniques and finally, some evaluation criteria for the system’s performance.
This paper aims at presenting an in-depth review of the new economic relationships associated with the advent of e-commerce in the daily lives of consumers in Bulgaria, which greatly contributes to change and adapt to the modern business environment as well as to the new processes. In the paper are considered both - advantages and disadvantages of the current business models. I have tried to outline with short subsections each business model which is deployed in the market. There are some of ...
Reinhold, Stephan; Dolnicar, Sara
Peer-to-peer accommodation platforms create value by matching guests who search for tourist accommodation with hosts who make available unused private space for short-term rental. This chapter analyses what is new about the business model of platforms that enable and sustain peer-to-peer accommodation networks. Chapters 4 and 5 go on to analyse in detail the business model of Airbnb, the leading international peer-to-peer accommodation network facilitator.
Full Text Available In the September issue of the Open Source Business Resource, Patrick McNamara, president of the Open Hardware Foundation, gave a comprehensive introduction to the concept of open hardware, including some insights about the potential benefits for both companies and users. In this article, we present the topic from a different perspective, providing a classification of market offers from companies that are making money with open hardware.
In the September issue of the Open Source Business Resource, Patrick McNamara, president of the Open Hardware Foundation, gave a comprehensive introduction to the concept of open hardware, including some insights about the potential benefits for both companies and users. In this article, we present the topic from a different perspective, providing a classification of market offers from companies that are making money with open hardware.
Decker, Arnim; Riddle, Liesl; Lucas, Steven
Our paper investigates the modes of business model innovation (BMI) that transna-tional entrepreneurs pursue when operating in emerging economy context. Drawingon a sample of 32 African diaspora entrepreneurs, we investigate how entrepreneurs leverage transnational social networks to adapt business...... that there is a need for more empirical evidence with systematic samplings of relevant cases, in particular within the context of emerging economies. Second, to the best of our knowledge no research on business model creation and innovation from the perspective of transnational entrepreneur ship has yet been...... undertaken. Our investigation however indicates that transnational entrepreneurs operating in emerging economies engage in different forms of business model innovation and thus contribute in significant ways to economic development. In so far, our study opens up a new avenue of research....
Benk, S.; Gillman, M.; Kejak, Michal
-, E2005/14 (2005), s. 1-26 ISSN 1749-6101 Institutional research plan: CEZ:AV0Z70850503 Keywords : cash-in-advance * credit production * monetary business cycle Subject RIV: AH - Economics http://www.cardiff.ac.uk/carbs/econ/workingpapers/papers/2005_14.pdf
Dekimpe, Marnik; Deleersnyder, Barbara
Business cycles (BCs) may affect entire markets, and significantly alter many firms’ marketing activities and performance. Even though managers cannot prevent BCs from occurring, marketing research over the last 15 years has provided growing evidence that their impact on consumers, and hence on firm
Gijsenberg, Maarten; van Heerde, Harald; Dekimpe, Marnik G.; Steenkamp, Jan-Benedict E. M.
In this study, the authors conduct a systematic investigation on the evolution in the effectiveness of two important marketing mix instruments, advertising and price, over the business cycle. Analyses are based on 163 branded products in 37 mature CPG categories in the UK, and this for a period of
Messer, Dolores; Wolter, Stefan C.
This paper presents the results of an empirical investigation trying to explain individual time-to-degree variances with business cycle fluctuations. Assuming that students determine the optimum study length at university weighing up the cost of an additional semester against the consumption benefit of studying and not yet working, the general…
Kasarda, John D.; Irwin, Michael D.
Analysis of employment change data for 3,101 counties during recent national recession and recovery periods found that factors derived from human ecological theory (density, infrastructure age, unionization, labor force education, and crime rate) best predicted local competitive dynamics across all business-cycle phases. Contains 60 references.…
Heidari, F.; Loucopoulos, P.; Brazier, F.M.
Business process modelling languages facilitate presentation, communication and analysis of business processes with different stakeholders. This paper proposes an approach that drives specification and measurement of quality requirements and in doing so relies on business process models as
Narayan, Paresh Kumar
The goal of this paper is to examine the relative importance of permanent and transitory shocks in explaining variations in macroeconomic aggregates for the UK at business cycle horizons. Using the common trend-common cycle restrictions, we estimate a variance decomposition of shocks, and find that over short horizons the bulk of the variations in income and consumption were due to permanent shocks while transitory shocks explain the bulk of the variations in investment. Our findings for income and consumption are consistent with real business cycle models which emphasize the role of aggregate supply shocks, while our findings for investment are consistent with the Keynesian school of thought, which emphasizes the role of aggregate demand shocks in explaining business cycles.
This paper investigates the joint effects of manager–shareholder agency conflicts and macroeconomic risk on corporate policies and firm value. I first derive the implications of a structural model of a firm with assets in place and an investment opportunity, run by a self-interested manager who c...
This paper presents a simple efficiency wage model to explain the transmission from exogenous productivity shocks to levels of economic activity. Higher real wages and rising unemployment induce workers to increase their effort. The disciplining effect of unemployment on the effort level has an
Full Text Available This paper undertakes to explain the relationship between EU accession and the length of business cycles, focusing specifically on whether participation in a multinational organization has, or has not, altered the length of the cycle. Employing a sample of nine EU countries (Austria, Denmark, Finland, Greece, Ireland, Portugal, Spain, Sweden and the UK we focused initially on annual data for per capita growth in GDP over a period of 59 years (1950-2008. For each country the sample was divided into two parts, one covering the period preceding accession to the EU and one is covering the accession year and succeeding years. Then, eliminating the background noise with the use of a periodogram, we proceeded to examine their spectral density plots. The results indicated that in the first years following accession, the countries tended to experience shorter cycles than they had previously. In the second phase the cycles were of the same duration as previous cycles. Finally, after a period of some years, the length of the cycles increased, as suggested by the J-shaped curve. This J-shaped growth curve applies for the countries that have joined the EU, strongly suggesting a causal relationship between accession to the EU and these specific characterristics of the curve. We cross-checked with a set of four non-EU member countries (Iceland, Norway, Switzerland and Turkey and found no change in the length of the business cycle in these countries.
Full Text Available Business model describes how a business identifies and creates value for customers and how it organizes itself to capture some of this value in a profitable manner. Previous studies of business models in creative industries have only recently identified the unresolved issues in this field of research. The main objective of this article is to analyse the structure and diversity of business models and to deduce how these components interact or change in the context of micro and small businesses in creative services such as advertising, architecture and design. The article uses a qualitative approach. Case studies and semi-structured, in-depth interviews with six owners/managers of micro businesses in Croatia provide rich data. Structural coding in data analysis has been performed manually. The qualitative analysis has indicative relevance for the assessment and comparison of business models, however, it provides insights into which components of business models seem to be consolidated and which seem to contribute to the diversity of business models in creative industries. The article contributes to the advancement of empirical evidence and conceptual constructs that might lead to more advanced methodological approaches and proposition of the core typologies or classifications of business models in creative industries. In addition, a more detailed mapping of different choices available in managing value creation, value capturing or value networking might be a valuable help for owners/managers who want to change or cross-fertilize their business models.
Arnold, Marc; Hackbarth, Dirk; Puhan, Tatjana-Xenia
This paper analyzes the decision of firms to sell assets to fund investments (financing asset sales). For a sample of U.S. manufacturing firms during the 1971-2010 period, we document new stylized facts about financing asset sales that cannot be explained by traditional motives for selling assets, such as financial distress or financing constraints. Using a structural model of financing, investment, and macroeconomic risk, we show that financing asset sales attenuate the debt overhang problem...
Kamp-Roelands, N.; Balkenende, J.P.; Van Ommen, P.
The Dutch Sustainable Growth Coalition (DSGC) has the following objectives: The DSGC aims to pro-actively drive sustainable growth business models along three lines: (1) Shape. DSGC member companies aim to connect economic profitability with environmental and social progress on the basis of integrated sustainable growth business models; (2) Share. DSGC member companies aim for joint advocacy of sustainable growth business models both internationally and nationally; and (3) Stimulate. DSGC member companies aim to stimulate and influence the policy debate on enabling sustainable growth - with a view to finding solutions to the environmental and social challenges we are facing. This is their first report. The vision, actions and mission of DSGC are documented in the Manifesto in Chapter 2 of this publication. Chapter 3 contains an overview of key features of an integrated sustainable growth business model and the roadmap towards such a model. In Chapter 4, project examples of DSGC members are presented, providing insight into the hands-on reality of implementing the good practices. Chapter 5 offers an overview of how the Netherlands provides an enabling environment for sustainable growth business models. Chapter 6 offers the key conclusions.
Koopman, S.J.; Valle a Azevedo, J.
This paper investigates business cycle relations among different economies in the Euro area. Cyclical dynamics are explicitly modelled as part of a time series model. We introduce mechanisms that allow for increasing or diminishing phase shifts and for time-varying association patterns in different
Hadar, Ronen; Bilberg, Arne; Bogers, Marcel
Digital fabrication — including additive manufacturing (AM), rapid prototyping and 3D printing — has the potential to revolutionize the way in which products are produced and delivered to the customer. Therefore, it challenges companies to reinvent their business model — describing the logic...... of creating and capturing value. In this paper, we explore the implications that AM technologies have for manufacturing systems in the new business models that they enable. In particular, we consider how a consumer goods manufacturer can organize the operations of a more open business model when moving from...... a manufacturer-centric to a consumer-centric value logic. A major shift includes a move from centralized to decentralized supply chains, where consumer goods manufacturers can implement a “hybrid” approach with a focus on localization and accessibility or develop a fully personalized model where the consumer...
Recently a lot of big changes happened in the power sector: energy efficiency and renewable energy sources are quickly progressing, distributed or decentralised generation of electricity is expanding, climate change requires reduction of greenhouse gas emissions and price volatility and incertitude of fossil fuel supply is common. Those changes have led to obsolescence of vertically integrated business models which have dominated in energy utility organisations for a hundred years and new business models are being introduced. Those models take into account current changes in the power sector and enable a wider application of energy efficiency and renewable energy sources, especially for consumers, with the decentralisation of electricity generation and complying with the requirements of climate and environment preservation. New business models also solve the questions of financial compensations for utilities because of the reduction of centralised energy generation while contributing to local development and employment.(author).
Collaborative | NREL Business Models and Regulation Business Models and Regulation Subscribe to new business models and approaches. The growing role of distributed resources in the electricity system is leading to a shift in business models and regulation for electric utilities. These
This master thesis will investigate the freemium business model, raising on the questions: “Why is the freemium business model innovative and what are its success factors?” The aim is to analyse this business model by confronting theory and practice. Therefore, the document begins with a description discussion of the freemium business model. The literature review concludes by determining the success factors of the business model innovation and of the freemium model. The theory in this first p...
Ruiz, Francisco; Garcia, Felix; Calahorra, Luis; Llorente, César; Gonçalves, Luis; Daniel, Christel; Blobel, Bernd
The importance of the process point of view is not restricted to a specific enterprise sector. In the field of health, as a result of the nature of the service offered, health institutions' processes are also the basis for decision making which is focused on achieving their objective of providing quality medical assistance. In this chapter the application of business process modelling - using the Business Process Modelling Notation (BPMN) standard is described. Main challenges of business process modelling in healthcare are the definition of healthcare processes, the multi-disciplinary nature of healthcare, the flexibility and variability of the activities involved in health care processes, the need of interoperability between multiple information systems, and the continuous updating of scientific knowledge in healthcare.
Full Text Available This article examines differences in an impact of business cycle phases on innovation activity in medium-high and high technology industry in Poland. It is assumed that each business cycle phase influences innovation activity in the same fashion, but its impact varies and it depends on the firm’s innovation activity. The higher innovation activity the less impact of business cycle. The scope of the survey relates to innovation in MHT and HT industry in Poland. The data concerns the innovation at the firm level and the diffusion “new for the company”. Innovation activity is defined by the following activities: (1 expenditure on research and development and investments in fixed assets not used so far such as: abuildings, premises and land; b machinery and equipment, c computer software; (2 implementation of new products and technological processes and (3 innovation cooperation. The methodological part of the analysis includes a logit modeling. The survey includes 1355 companies. Business cycle has a great influence on innovation activity in MTH and HT industry in Poland. The influence of recovery phase is positive whereas both stagnation and recession phases decrease the probability of innovation activity. The character of influence depends on the propensity to take innovation activity. The higher level of innovation activity the enterprises present the less influence of business cycle they get.
In the social sciences, there is increasing evidence of the existence of power law distributions. The distribution of recessions in capitalist economies has recently been shown to follow such a distribution. The preferred explanation for this is self-organised criticality. Gene Stanley and colleagues propose an alternative, namely that power law scaling can arise from the interplay between random multiplicative growth and the complex structure of the units composing the system. This paper offers a parsimonious model of the US business cycle based on similar principles. The business cycle, along with long-term growth, is one of the two features which distinguishes capitalism from all previously existing societies. Yet, economics lacks a satisfactory theory of the cycle. The source of cycles is posited in economic theory to be a series of random shocks which are external to the system. In this model, the cycle is an internal feature of the system, arising from the level of industrial concentration of the agents and the interactions between them. The model-in contrast to existing economic theories of the cycle-accounts for the key features of output growth in the US business cycle in the 20th century.
Køhler Simonsen, Henrik
lenses: strategy, core competencies, innovation, business understanding and organizational inertia. By means of these lenses, the paper explores the business model of lexicography in Denmark, and it analyzes and discusses whether the Danish lexicographic industry understands the concept business model...... at all, and if so, to what extent it applies business model thinking. Furthermore, this paper discusses different categories of lexicographic business models, potential elements of a new lexicographic business model and finally it formulates six theses on a new, more viable lexicographic business model....
Full Text Available The business model concept is gaining traction in different disciplines but is still criticized for being fuzzy and vague and lacking consensus on its definition and compositional elements. In this paper we set out to advance our understanding of the business model concept by addressing three areas of foundational research: business model definitions, business model elements, and business model archetypes. We define a business model as a representation of the value logic of an organization in terms of how it creates and captures customer value. This abstract and generic definition is made more specific and operational by the compositional elements that need to address the customer, value proposition, organizational architecture (firm and network level and economics dimensions. Business model archetypes complement the definition and elements by providing a more concrete and empirical understanding of the business model concept. The main contributions of this paper are (1 explicitly including the customer value concept in the business model definition and focussing on value creation, (2 presenting four core dimensions that business model elements need to cover, (3 arguing for flexibility by adapting and extending business model elements to cater for different purposes and contexts (e.g. technology, innovation, strategy (4 stressing a more systematic approach to business model archetypes by using business model elements for their description, and (5 suggesting to use business model archetype research for the empirical exploration and testing of business model elements and their relationships.
Bronner, Fred; de Hoog, Robert
Economizing and spending priorities on different types of vacations are investigated during two periods: an economic downturn and returning prosperity. Two nation-wide samples of vacationers are used: one during a downturn, the other one at the start of the recovery period. Through comparing the results, conclusions can be drawn about symmetric or asymmetric tourist demand across the business cycle. The main summer holiday has an asymmetric profile: being fairly crisis-resistant during a recession and showing considerable growth during an expansion. This does not apply to short vacations and day trips, each having a symmetric profile: during a recession they experience substantial reductions and during expansion comparable growth. So when talking about tourist demand in general , one cannot say that it is symmetric or asymmetric across the business cycle: it depends on the type of vacation. Differences in tourist demand are best explained by the role of Quality-of-Life for vacationers.
Full Text Available This paper identifies the basic empirical characteristics and changes of the South African business cycle since 1960. As such, the paper examines changes in volatility as well as the co-movement between several national account variables and real GDP. To examine the co-movements the paper follows Kydland and Prescott, Gavin and Kydland as well as Bergman, Bordo and Jonung and uses correlation coefficients and Granger causality tests. Following Ramos, the paper extends the results of the Granger causality tests using variance decomposition analysis in the context of a VAR (vector auto regression to establish the contribution that selected national account variables make to the h-period-ahead forecast error variance of themselves and the other variables included in the VARs. The paper indicates that since 1994 volatility in the South African economy decreased significantly, while durable consumption appears to lead the business cycle.
Environmental sustainability creates both tremendous business opportunities and formidable threats to established companies across virtually all industry sectors. Yet many companies tackle the issue in a superficial or passive way through increased environmental reporting, the use of “greenspeak” in their corporate communication activities or isolated efforts to create green products or reduce pollution. In contrast, there are a small but increasing number of firms that employ a holistic approach to sustainability and consider fundamental changes to their existing business models. By ignoring the opportunities of Green Business Model Transformations, companies exclude themselves from a large variety of potential means to create economic value. In addition to ordinary product and process innovations, they can change “the rules of the game” within an industry towards environmental sustainability. This can facilitate the commercialisation of new green products that would not be competitive otherwise targ...
Jing Yang; Kostas Tsatsaronis
The returns on bank stocks rise and fall with the business cycle, making bank equity financing cheaper in the boom and dearer during a recession. This provides support for prudential tools that give incentives for banks to build capital buffers at times when the cost of equity is lower. In addition, banks with higher leverage face a higher cost of equity, which suggests that higher capital ratios are associated with lower funding costs.
James A. Kahn; Mark Bils
Manufacturers' finished goods inventories move less than shipments over the business cycle. We argue that this requires marginal cost to be more procyclical than is conventionally measured. We construct, for six manufacturing industries, alternative measures of marginal cost that attribute high-frequency productivity shocks to procyclical work effort, and find that they are much more successful in accounting for inventory behavior. The difference is attributable to cyclicality in the shadow p...
Burton A. Abrams; James L. Butkiewicz
Drawing from the personal tape recordings made during the presidency of Richard Nixon, we uncover and report in this paper new evidence that Nixon manipulated Arthur Burns and the Federal Reserve Bank into creating a political business cycle that helped secure Nixon’s reelection victory in 1972. Nixon understood the risks that his desired monetary policy imposed, but chose to trade longer-term economic costs to the economy for his own short-term political benefit.
This paper identifies the basic empirical characteristics and changes of the South African business cycle since 1960. As such, the paper examines changes in volatility as well as the co-movement between several national account variables and real GDP. To examine the co-movements the paper follows Kydland and Prescott, Gavin and Kydland as well as Bergman, Bordo and Jonung and uses correlation coefficients and Granger causality tests. Following Ramos, the paper extends the results of the Grang...
The empirical study of technology shocks is intensively conducted to evaluate plausibility of the technology-driven real business cycle hypothesis. A popular method is to identify technology shocks by the long-run restriction that those solely have permanent effects on labor productivity in the system consisting of labor productivity growth and hours worked. While it has an advantage of not using Solow residuals which tend to accompany measurement errors, it potentially misidentifies nontechn...
Ormerod, Paul; Mounfield, Craig
The degree of convergence of the business cycles of the economies of the European Union (EU) is a key policy issue. In particular, a substantial degree of convergence is needed if the European Central Bank is to be capable of setting a monetary policy which is appropriate to the stage of the cycle of the Euro zone economies. We consider the annual rates of real GDP growth on a quarterly basis in the large core economies of the EU (France, Germany and Italy, plus The Netherlands) over the period 1978Q1-2000Q3. An important empirical question is the degree to which the correlations between these growth rates contain true information rather than noise. The technique of random matrix theory is able to answer this question, and has been recently applied successfully in the physics journals to financial markets data. We find that the correlations between the growth rates of the core EU economies contain substantial amounts of true information, and exhibit considerable stability over time. Even in the late 1970s and early 1980s, these economies moved together closely over the course of the business cycle. There was a slight loosening at the time of German re-unification, but the economies are now, if anything, even more closely correlated. As a benchmark for comparison, we add a series to the EU core data set which by construction is uncorrelated with these business cycles. We then analyse the EU core plus Spain, a country which has attached great importance to greater integration with Europe. In the early part of the period examined, the results are very similar to those obtained with the data set of the EU core plus the random series. However, there is a clear trend in the results, which provide strong evidence to support the view that the Spanish economy has now become closely converged with the core EU economies in terms of its movements over the business cycle. In contrast, the results obtained with a data set of the EU core plus the UK show no such trend. In the
This paper explores the relationship between strategy and business models. I review major researches on strategy and business models to provide a viewpoint to consider the intersections between them. The theory of strategy shifts the focus from visible competitive advantage to its internal managerial resources. The concept of business models has been discussed because a business model is considered to be a combination of internal and external business processes; it clarifies how to effectivel...
Hofmann, Barbara; Kreyenfeld, Michaela; Uhlendorff, Arne
In this article, we investigate the impact of job displacement on women's first-birth rates as well as the variation in this effect over the business cycle. We use mass layoffs to estimate the causal effects of involuntary job loss on fertility in the short and medium term, up to five years after displacement. Our analysis is based on rich administrative data from Germany, with an observation period spanning more than 20 years. We apply inverse probability weighting (IPW) to flexibly control for the observed differences between women who were and were not displaced. To account for the differences in the composition of the women who were displaced in a downturn and the women who were displaced in an upswing, we use a double weighting estimator. Results show that the extent to which job displacement has adverse effects on fertility depends on the business cycle. The first-birth rates were much lower for women who were displaced in an economic downturn than for those who lost a job in an economic upturn. This result cannot be explained by changes in the observed characteristics of the displaced women over the business cycle.
Up until now, there has been little research on why people introduce errors in real-world business process models. In a more general context, Simon  points to the limitations of cognitive capabilities and concludes that humans act rationally only to a certain extent. Concerning modeling errors, this argument would imply that human modelers lose track of the interrelations of large and complex models due to their limited cognitive capabilities and introduce errors that they would not insert in a small model. A recent study by Mendling et al.  explores in how far certain complexity metrics of business process models have the potential to serve as error determinants. The authors conclude that complexity indeed appears to have an impact on error probability. Before we can test such a hypothesis in a more general setting, we have to establish an understanding of how we can define determinants that drive error probability and how we can measure them.
Ikeda, Yuichi; Iyetomi, Hiroshi; Aoyama, Hideaki; Yoshikawa, Hiroshi
Synchronization in business cycles has attracted economists and physicists as self-organization in the time domain. From a different point of view, international and domestic business cycles are also interesting as dynamics of a network of networks or a multi-level network. In this paper, we analyze the Indices of Industrial Production monthly time-series in Japan from January 1988 to December 2007 to develop a deeper understanding of domestic business cycles. The frequency entrainment and the partial phase locking were observed for the 16 sectors to be direct evidence of synchronization. We also showed that the information of the economic shock is carried by the phase time-series. The common shock and individual shocks are separated using phase time-series. The former dominates the economic recession in all of 1992, 1998 and 2001. In addition to the above analysis, we analyze the quarterly GDP time series for Australia, Canada, France, Italy, the United Kingdom, and the United States from Q2 1960 to Q1 2010 in order to clarify its origin. We find frequency entrainment and partial phase locking. Furthermore, a coupled limit-cycle oscillator model is developed to explain the mechanism of synchronization. In this model, the interaction due to international trade is interpreted as the origin of the synchronization. The obtained results suggest that the business cycle may be described as a dynamics of the multi-level coupled oscillators exposed to random individual shocks.
Bouwman, H.; Zhengjia, M.; Duin, P. van der; Limonard, S.
The final stage in the STOF method is an evaluation of the robustness of the design, for which the method provides some guidelines. For many innovative services, the future holds numerous uncertainties, which makes evaluating the robustness of a business model a difficult task. In this chapter, we
Lindgren, Peter; Saghaug, Kristin Margrethe
When practicing business model (BM) innovation releasing intellectual capital (IC) strategically from SME´s BMs through the innovation process can be extremely difficult and complex to carry out especially to small and medium size enterprises (SME). There are so many opportunities and resources...
Nielsen, Christian; Lund, Morten; Thomsen, Peter Poulsen
This article discusses the terms disruption, digital disruption, business models and business model scalability. It illustrates how managers should be using these terms for the benefit of their business by developing business models capable of achieving exponentially increasing returns to scale...... will seldom lead to business model scalability capable of competing with digital disruption(s)....... as a response to digital disruption. A series of case studies illustrate that besides frequent existing messages in the business literature relating to the importance of creating agile businesses, both in growing and declining economies, as well as hard to copy value propositions or value propositions that take...
Since Japan instituted the Atomic Energy Act in 1956, and organized the Atomic Energy Commission, as the fundamental policy of the peaceful use of atomic energy, the industrialization and establishment of fuel cycle technology have been advanced as well as the development of power reactors. The consistent and harmonious industrialization of uranium enrichment, fuel fabrication, reprocessing, the utilization of recovered plutonium and uranium, and the storage, treatment and disposal of wastes has been the target. As the nuclear power generation in Japan grew, the enhancement of the various factors of nuclear fuel cycle as the base of supporting nuclear power generation has become necessary. The effort of technical development has been continued in the fields of uranium enrichment, fuel reprocessing, plutonium fuel and waste treatment by the Power Reactor and Nuclear Fuel Development Corp., Japan Atomic Energy Research Institute and related industries. The plan and present status of nuclear fuel cycle business in Japan, the problems such as the roles of the government and private enterprises, technology transfer, the economy of nuclear fuel cycle business, the industrialization of mixed oxide fuel fabrication, nuclear nonproliferation policy and location are discussed. (Kako, I.)
Lindgren, Peter; Abdullah, Maizura Ailin
Too many businesses are being marginalized by blind "business model innovations (BMIs)" and simple "BMIs". As documented in previous research (Markides 2008, Lindgren 2012), most businesses perform BMIs at a reactive level i.e. perceiving what the market, customers and network partners might want...... rather than what they actually demand. Few businesses have the ability to proactively lead BMIs and on a strategic level lead BMIs to something that fits the business’s long term perspective (Hamel 2011). Apple, Ryanair, Facebook, Zappo are some businesses that have shown BMI Leadership (BMIL......) in a proactive way - and more importantly, as some examples of first level BMIL. The overall aim of the BMIL is to prevent businesses from being marginalized by the BMI and thereby to optimize the business’s total BMI investment. The literature research and case research we studied gave us some important...
Pinggera, J.; Soffer, P.; Zugal, S.; Weber, B.; Weidlich, M.; Fahland, D.; Reijers, H.A.; Mendling, J.; Bider, I.; Halpin, T.; Krogstie, J.; Nurcan, S.; Proper, E.; Schmidt, R.; Soffer, P.; Wrycza, S.
Research on quality issues of business process models has recently begun to explore the process of creating process models. As a consequence, the question arises whether different ways of creating process models exist. In this vein, we observed 115 students engaged in the act of modeling, recording
The recent surge in oil prices rakes up old fears and the spectre of stagflation hangs over worldwide economic growth's forecasts. After 30 years of research however analysts still disagree about the influence of oil prices on macro-economic variations and the estimations of the consequences of a costlier barrel differ. As to the United States for example, elasticities between real GDP and oil price form a wide spectrum stretching from a value close to -1% to -11,6%. In this context, we try to identify the potential sources of instability in the oil price-macro-economy relationship in order to explain the width of this range. First we draw attention to the distinction between the effects of an upward disequilibrium and of an upturn in the equilibrium in the oil price series. This distinction lets us share the range of published results in two parts: the elasticities of real American GDP with respect to an upward imbalance and with respect to a rise in the equilibrium price would lie approximately in the ranges extending, respectively, from -1% to -5,5% and from -5% to -11,6%. We direct our work towards the analysis of the consequences of short-run variations in the oil prices on the U.S. business cycle. We identify a set of influences which condition the vulnerability of an economy and then construct an econometric sectoral and non-linear model inspired from Marshall's theory. The simulations conducted let us explain the long-run weakening in the oil price-macro-economy relationship and highlight the prominent part played by imported inflation and monetary policy in the crisis of the 70's and 80's. According to the values of the structural factors in the model and to the shape of the oil price short-run disequilibrium, the elasticities evaluated cover the whole range of published elasticities. (author)
Henriques, I.; Sadorsky, P.
Fuel cells are expected to play a major role in a hydrogen powered world. They will provide power to homes, modes of transportation and appliances. Hydrogen is the most abundant element in nature, but it must be extracted in order to be usable. It can be produced from oil, natural gas and coal or from renewable sources such as biomass, thermal or nuclear reactions. Fuel cells running on hydrogen extracted from non renewable resources have an efficiency of 30 per cent, which is twice as efficient as an internal combustion engine. The greatest barrier to mass commercialization is the cost of making hydrogen-powered auto engines. Also, an infrastructure must be developed to refill hydrogen cars. One solution is to build a hydrogen highway using the existing natural gas grid to produce hydrogen and sell it at existing filling stations. The cost of building 12,000 refueling pumps in urban areas which will provide access to 70 per cent of America's population is estimated at $10 to $15 billion. This paper described the vector autoregression (VAR) model which empirically examines the relationship between financial performance of fuel cell companies and business cycles. It was used to measure how sensitive the financial performance of fuel cell companies are to changes in macroeconomic activity. A four variable VAR model was developed to examine the relationship between stock prices, oil prices and interest rates. It was shown that the stock prices of fuel cell companies are affected by shocks to technology stock prices and oil prices, with the former having a longer lasting impact. These results add to the growing literature that oil price movements are not as important as once thought. 15 refs., 3 tabs., 3 figs
Zoltners, Andris A; Sinha, Prabhakant; Lorimer, Sally E
Although companies devote considerable time and money to managing their sales forces, few focus much thought on how the structure of the sales force needs to change over the life cycle of a product or a business. However, the organization and goals of a sales operation have to evolve as businesses start up, grow, mature, and decline if a company wants to keep winning the race for customers. Specifically, firms must consider and alter four factors over time: the differing roles that internal salespeople and external selling partners should play, the size of the sales force, its degree of specialization, and how salespeople apportion their efforts among different customers, products, and activities. These variables are critical because they determine how quickly sales forces respond to market opportunities, they influence sales reps' performance, and they affect companies' revenues, costs, and profitability. In this article, the authors use timeseries data and cases to explain how, at each stage, firms can best tackle the relevant issues and get the most out of their sales forces. During start-up, smart companies focus on how big their sales staff should be and on whether they can depend upon selling partners. In the growth phase, they concentrate on getting the sales force's degree of specialization and size right. When businesses hit maturity, companies should better allocate existing resources and hire more general-purpose salespeople. Finally, as organizations go into decline, wise sales leaders reduce sales force size and use partners to keep the business afloat for as long as possible.
Full Text Available In e-business freemium business models have become legitiate. However, current research provides litte insight on how the free and premium offring should be employed to lead to growth and success in the long run. The presented research aims to fil this gap by investiatig how the property ‘free’ was employed in young entrepreneurial ventures’ business models in the initil life-cycle stages – opportunity recognitin, market entry, and market exploitatin. We fid that various forms of freemium business models are employed through the initil life-cycle stages of a new venture for reasons of trial-and-error, learning, exploratin, legitiizatin and resource acquisitin. A freemium business model can also serve as a nascent business model, though without a sustainable monetiatin component, for fiding a sustainable business model through a series of dynamic adjustments. With our fidings we contribute to the business model literature in three ways: First, our empirical fidings show the many-sidedness of the component ‘free’ in freemium business models. Free users are of importance for network building, exploratin and exploitatin and growth over tie. Moreover, free users enable directly and indirectly further resource acquisitin. Second, while previous literature has taken a stati perspectie, we contribute by illustratig the dynamic process of strategic business model design for growth. Finally, we introduce the concept of the nascent business model which is new to the literature.
Taran, Yariv; Boer, Harry; Lindgren, Peter
Companies today, in some industries more than others, invest more capital and resources just to stay competitive, develop more diverse solutions, and increasingly start thinking more radically when considering their business models. However, despite the understanding that business model (BM...
Holdford, David A
The objectives of this article are to define business models, contrast the business models in pharmacy schools, and discuss issues that can arise from misunderstandings about whom pharmacy schools serve and how they do so.
Johnson, Peter; Foss, Nicolai Juul
This study picks up on earlier suggestions that control theory may further the study of strategy. Strategy can be formally interpreted as an idealized path optimizing heterogeneous resource deployment to produce maximum financial gain. Using standard matrix methods to describe the firm Hamiltonia...... variable of firm path, suggesting in turn that the firm's business model is the codification of the application of investment resources used to control the strategic path of value realization....
CERN. Geneva; Bjørnshauge, Lars
Those setting up, or planning to set up, a digital repository may be interested to know more about what has gone before them. What is involved, what is the cost, how many people are needed, how have others made the case to their institution, and how do you get anything into it once it is built? I have recently undertaken a study of European repository business models for the DRIVER project and will present an overview of the findings.
Horielov Dmytro O.
Full Text Available The article is devoted to problems of organisation of the process of management of marketing activity of an enterprise. It specifies the model of services of a transport enterprise and provides levels of services and their structure: basic, real, expanded, expected and prospective. The article offers to differentiate planning and realisation of the transportation service by its levels, each of which would correspond with a separate business process of management. It reveals specific features of use of instruments of the traditional, internal and interactive marketing in the market of transportation services. It identifies the structure of the object when managing marketing activity of a transportation enterprise. The article uses the Deming cycle to formulate general principles of formation of business processes of management of marketing activity: “Motivation – Plan – Do – Check – Act”. The proposed cycle would ensure continuous improvement of the said business processes of an enterprise in accordance with international quality standards (ISO.
Hofmann, Barbara; Kreyenfeld, Michaela; Uhlendorff, Arne
In this article, we investigate the impact of job displacement on women?s first-birth rates as well as the variation in this effect over the business cycle. We use mass layoffs to estimate the causal effects of involuntary job loss on fertility in the short and medium term, up to five years after displacement. Our analysis is based on rich administrative data from Germany, with an observation period spanning more than 20 years. We apply inverse probability weighting (IPW) to flexibly control ...
The Japan Nuclear Fuel Co., Ltd. (JNF) develops five businesses on nuclear fuel cycle such as uranium concentration, storage and administration of high level radioactive wastes, disposition of low level radioactive wastes, used fuel reprocessing, MOX fuel, at Rokkasho-mura in Aomori prefecture. Here were introduced on outline, construction and operation in reprocessing and MOX fuel works, outline, present state and future subjects on technical development of uranium concentration, outline and safety of disposition center on low level radioactive wastes, and storage and administration of high level radioactive wastes. (G.K.)
Henciak, Bill; Fontaine, Christine; Fields, Keith; Parks, Stacy
Based on its experience with implementing a virtual central business office, UMMS recommends the following steps to ensure the success of such an initiative: Define the process flow for the organization's day-today revenue cycle operations prior to implementation. Then select best practices and milestones for managing accounts. Identify any possible technology issues that could arise during implementation prior to go live. Hold a midproject debriefing with staff. Develop an organizational chart that details who is responsible for handling issues that arise during implementation and afterward.
Barry T. Hirsch
Full Text Available Abstract About 5 % of US workers hold multiple jobs, which can exacerbate or mitigate employment changes over the business cycle. Theory is ambiguous and prior literature is not fully conclusive. We examine the relationship between multiple job holding and local unemployment rates using a large Current Population Survey data set of workers in urban labor markets during 1998–2013. Labor markets with high unemployment have moderately lower rates of multiple job holding. Yet no relationship between multiple job holding and unemployment is found within markets over time, with near-zero estimates being precisely estimated. Multiple job holding is largely acyclic. JEL Classification: J21
Neupane, Ganesh Prasad; Haugland, Sven A.
Drawing on literature on business model innovations and sustainability, this paper develops a framework for sustainable interorganizational business models. The aim of the framework is to enhance the sustainability of firms’ business models by enabling firms to create future value by taking into account environmental, social and economic factors. The paper discusses two themes: (1) application of the term sustainability to business model innovation, and (2) implications of integrating sustain...
Best practice examples of circular business models are presented in this report. The purpose is to inform and inspire interested readers, in particular companies that aspire to examine the potentials of the circular economy. Circular business models in two different sectors are examined, namely...... the textile and clothing sector as well as the durable goods sector. In order to appreciate the notion of circular business models, the basics of the circular economy are outlined along with three frameworks for categorizing the various types of circular business models. The frameworks take point of departure...... in resource loops, value bases and business model archetypes respectively, and they are applied for analysing and organizing the business models that are presented throughout the report. The investigations in the report show that circular business models are relevant to businesses because they hold...
Foss, Nicolai, J.; Saebi, Tina
We draw on the complementarity literature in economics and management research to dimensionalize business models innovations. Specifically, such innovation can be dimensionalized in terms of the depth and the breadth of the changes to the company’s business model that they imply. In turn, different business model innovations are associated with different management challenges and require different leadership interventions to become successful.
Günzel-Jensen, Franziska; Holm, Anna B.
directly and indirectly further resource acquisition. Second, while previous literature has taken a static perspective, we contribute by illustrating the dynamic process of strategic business model design for growth. Finally, we introduce the concept of the nascent business model which is new......In e-business freemium business models have become legitimate. However, current research provides little insight on how the free and premium offering should be employed to lead to growth and success in the long run. The presented research aims to fill this gap by investigating how the property...... ‘free’ was employed in young entrepreneurial ventures’ business models in the initial life-cycle stages – opportunity recognition, market entry, and market exploitation. We find that various forms of freemium business models are employed through the initial life-cycle stages of a new venture for reasons...
Nathan McLellan; Robert A Buckle; Kunhong Kim
This paper uses the open economy structural VAR model developed in Buckle, Kim, Kirkham, McLellan and Sharma (2002) to evaluate the impact of monetary policy on New Zealand business cycles and inflation variability and the output/inflation variability trade-off. The model includes a forward-looking Taylor Rule to identify monetary policy and the impact of monetary policy is evaluated by deriving a monetary policy index using a procedure suggested by Dungey and Pagan (2000). Monetary policy ha...
Full Text Available Purpose: The role of entrants and exits has enlarged indisputably over recent years. The basic explanation is connected to the deepening of innovation's influence on industrial growth. Furthermore, new businesses have to be more effective, and based on products, technological or organizational innovations, and exits have to be ineffective (respectively unprofitable, based on denoted products or technology. Design/methodology/approach: According to the above-mentioned prerequisites, policymakers need to manage the role (respectively the impact that entrants (new start-up companies and exits play in industrial growth. Nevertheless, this impact is not a cornerstone of the Bulgarian National Strategy, or the Europe 2020 Strategy. Findings: The paper tries to answer the following two questions: 1 Do new start-up companies and exits have any role and influence on economic growth in Bulgaria? and 2 Does the role (respectively the impact of entrants and exits in industrial growth change according to economic cycle? Research limitations/implications: In addition, according to the Lisbon Strategy, as well as the European Union's (EU Strategy 2020, the current economic policy supports entrepreneurship and innovations. Thus, the establishment of innovative companies, as well as the development of innovative, incumbent business are core issues of EU economic policy for the past decade. Originality/value: The paper builds on the industrial dynamic methodology and on the understanding of how business decisions (entrepreneurship, innovations, and R&D on micro level correspond to macro level (GDP growth and innovation policy.
Nielsen, Christian; Lund, Morten
The problem – as well as the prospect – with business models is that they are concerned with being different; as business in general thrives on some sort of unique selling point. So the bundle of indicators on value creation, business models, strategy, intellectual capital, and so on, which will be relevant to analyze or communicate about will differ from firm to firm. Therefore, this chapter focuses on the business model as the integrating concept for reporting and analysis of strategic type...
There is a rapidly expanding literature on the application of complex networks in economics that focused mostly on stock markets. In this paper, we discuss an application of complex networks to study international business cycles. We construct complex networks based on GDP data from two data sets on G7 and OECD economies. Besides the well-known correlation-based networks, we also use a specific tool for presenting causality in economics, the Granger causality. We consider different filtering methods to derive the stationary component of the GDP series for each of the countries in the samples. The networks were found to be sensitive to the detrending method. While the correlation networks provide information on comovement between the national economies, the Granger causality networks can better predict fluctuations in countries' GDP. By using them, we can obtain directed networks allows us to determine the relative influence of different countries on the global economy network. The US appears as the key player for both the G7 and OECD samples. The use of complex networks is valuable for understanding the business cycle comovements at an international level.
Full Text Available BACKGROUND: There is a rapidly expanding literature on the application of complex networks in economics that focused mostly on stock markets. In this paper, we discuss an application of complex networks to study international business cycles. METHODOLOGY/PRINCIPAL FINDINGS: We construct complex networks based on GDP data from two data sets on G7 and OECD economies. Besides the well-known correlation-based networks, we also use a specific tool for presenting causality in economics, the Granger causality. We consider different filtering methods to derive the stationary component of the GDP series for each of the countries in the samples. The networks were found to be sensitive to the detrending method. While the correlation networks provide information on comovement between the national economies, the Granger causality networks can better predict fluctuations in countries' GDP. By using them, we can obtain directed networks allows us to determine the relative influence of different countries on the global economy network. The US appears as the key player for both the G7 and OECD samples. CONCLUSION: The use of complex networks is valuable for understanding the business cycle comovements at an international level.
Japan Nuclear Fuel Industries and local governments signed the safety agreement, and the work began to initiate the operation of a uranium enrichment plant. In this way, the national Rokkashomura project to be constructed with the total cost of 1.2 trillion yen marked the debut of nuclear fuel cycle business in Japan. The public hearing concerning the low level radioactive waste storage facility was finished. However, a fuel reprocessing plant has not advanced since the national government did not clarify the policy for the management of high level rad-waste from the plant. Gubernatorial election was the best thing to happen for the public acceptance, and the local opposition movement lost steam. The operation of the uranium enrichment plant is to begin next January, and the construction of the low level waste storage facility proceeds on schedule. Regarding the fuel reprocessing plant, the public hearing is to be held in autumn, but it faces difficulties. The siting of nuclear fuel cycle facilities has already produced benefits for the local economy. 18 business establishments representing 15 firms have so far decided to open in Aomori Prefecture. JNFI and JNFS began the specific study for merger. (K.I.)
Full Text Available We explore numerically a three-dimensional discrete-time Kaldorian macrodynamic model in an open economy with fixed exchange rates, focusing on the effects of variation of the model parameters, the speed of adjustment of the goods market α, and the degree of capital mobility β on the stability of equilibrium and on the existence of business cycles. We determine the stability region in the parameter space and find that increase of α destabilizes the equilibrium more quickly than increase of β. We determine the Hopf-Neimark bifurcation curve along which business cycles are generated, and discuss briefly the occurrence of Arnold tongues. Bifurcation and Lyapunov exponent diagrams are computed providing information on the emergence, persistence, and amplitude of the cycles and illustrating the complex dynamics involved. Examples of cycles and other attractors are presented. Finally, we discuss a two-dimensional variation of the model related to a “wealth effect,” called model 2, and show that in this case, α does not destabilize the equilibrium more quickly than β, and that a Hopf-Neimark bifurcation curve does not exist in the parameter space, therefore model 2 does not produce cycles.
Chen, Shengnan; Cheng, Alice; Mehta, Khanjan
Telemedicine has become an increasingly popular option for long-distance/virtual medical care and education, but many telemedicine ventures fail to grow beyond the initial pilot stage. Studying the business models of successful telemedicine ventures can help develop business strategies for upcoming ventures. This article describes business models of eight telemedicine ventures from different regions of the world using Osterwalder's "Business Model Canvas." The ventures are chosen on the basis of their apparent success and their diverse value chains. The business models are compared to draw inferences and lessons regarding their business strategy and contextual factors that influenced it. Key differences between telemedicine business practices in developing and developed countries are also discussed. The purpose of this article is to inform and inspire the business strategy of the next generation of telemedicine ventures to be economically sustainable and to successfully address local healthcare challenges.
The degree of convergence of the business cycles of the economies of the European Union is a key policy issue. In particular, a substantial degree of convergence is needed if the European Central Bank is to be capable of setting a monetary policy which is appropriate to the stage of the cycle of the Euro zone economies. I consider the annual rates of real GDP growth on a quarterly basis in the main economies of the EU (France, Germany, Italy, UK, Spain, Belgium and the Netherlands) over the period 1980Q1--2004Q4. An important empirical question is the degree to which the correlations between these growth rates contain true information rather than noise. The technique of random matrix theory is able to answer this question, and has been applied successfully in the physics journals to financial markets data. I find that the correlations between the growth rates of most of the core EU economies contain substantial amounts of true information, and exhibit considerable stability over time. Even in the late 1970s and early 1980s, these economies moved together closely over the course of the business cycle. There was a slight loosening at the time of German re-unification, but the economies have moved back into close synchronisation. The same result holds when Spain is added to the group of core EU countries. However, the problems of the German economy which arose from the early 1990s onwards has led to Germany becoming increasingly less synchronised with the rest of the core EU. Further, the results obtained with a data set of the converged EU core plus the UK show no real convergence between the UK and this group of economies.
Okkonen, Lasse [North Karelia University of Applied Sciences, Yliopistokatu 6, FI-80100 Joensuu (Finland); Suhonen, Niko [University of Eastern Finland, Department of Law, P.O. Box 111, FI-80101 Joensuu (Finland)
This paper presents the business models of small-scale heat energy production in Finland. Firstly, the development of heat entrepreneurship in the country is presented, including the remarkable growth of small and medium size enterprises (SMEs) in the last 15 years. Secondly, the concept of business model (business architecture of product/service flows and earning logics) is modified to the framework of wood heat production. The business model concept, and its sub-concepts, is applied in a brief review of current heat energy businesses in Finland. We arrive at a business model of heat entrepreneurships that are public companies/utilities, public-private partnerships, private companies and cooperatives, Energy Saving Company (ESCO), network model of large enterprise and franchising. Descriptive cases of these models are presented. Finally, the paper concludes with a discussion on the applicability of the business models in different operational environments and geographical contexts. (author)
Okkonen, Lasse; Suhonen, Niko
This paper presents the business models of small-scale heat energy production in Finland. Firstly, the development of heat entrepreneurship in the country is presented, including the remarkable growth of small and medium size enterprises (SMEs) in the last 15 years. Secondly, the concept of business model (business architecture of product/service flows and earning logics) is modified to the framework of wood heat production. The business model concept, and its sub-concepts, is applied in a brief review of current heat energy businesses in Finland. We arrive at a business model of heat entrepreneurships that are public companies/utilities, public-private partnerships, private companies and cooperatives, Energy Saving Company (ESCO), network model of large enterprise and franchising. Descriptive cases of these models are presented. Finally, the paper concludes with a discussion on the applicability of the business models in different operational environments and geographical contexts.
Dr. Rasananda Panda; Dr. Bijal Mehta; Ms. Anushree Karani
Internet and Social Media have made a significant impact on all spheres including individual, corporate and businesses. Given the current scenario, the nature of the business sector is changing rapidly. Globalization and digitization has revolutionized the business practices. This change is evident in all types of business ventures from small scale to large scale. Role of social media is considered as a crucial aspect in today’s global business environment (Abuhashesh, 2014). Hence, busines...
Meertens, Lucas Onno
This thesis proposes a methodology for creating business models, evaluating them, and relating them to enterprise architecture. The methodology consists of several steps, leading from an organization’s current situation to a target situation, via business models and enterprise architecture. Currently, increasing amounts of businesses rely on IT systems to do their business. However, success rates of IT implementations projects are low. Difficulties exist in aligning existing IT systems with b...
BENJAMIN AMSHOFF; CHRISTIAN DÜLME; JULIAN ECHTERFELD; JÜRGEN GAUSEMEIER
Companies nowadays face a myriad of business opportunities as a direct consequence of manifold disruptive technology developments. As a basic characteristic, disruptive technologies lead to a severe shift in value-creation networks giving rise to new market segments. One of the key challenges is to anticipate the business logics within these nascent and formerly unknown markets. Business model patterns promise to tackle this challenge. They can be interpreted as proven business model elements...
The speaker will share his experience in starting high-tech companies using a low-risk startup model. Most technical people can use this approach to start a company that begins with a modest initial goal and grows the business over time. As the company builds infrastructure and the individuals gain experience, the ability to pursue big opportunities comes naturally. The result is more likely to be a company with a long-term vision, and with the management team retaining more of the ownership.
Full Text Available Political business cycle studies have arisen as alternatives to pure business cycle studies. The studies in the political business cycle area mainly try to answer the question that whether the voters are manipulated in election periods or not. Also, the methods which the politicians use to be re-elected are uncovered. In this paper, we ask the question whether there are opportunistic political business cycles in Turkey or not. Our study focuses on the fiscal policies to discover the Turkish case. We use simple but powerful time series models in ARMA context to discover the relationships between political business cycles and fiscal variables. Empirical results show that there are quite perfect opportunistic political business cycles in Turkey.
Friis, Jesper Deleuran; Lueg, Rainer; Mayanja, Remmy
There is an ongoing debate on how the concepts of strategy and business models relate to each other. Specifically, it is a puzzle whether business models determine strategies, or whether strategies precede business models (Seddon et al., 2004). Based on recent conceptual considerations (Cavalcante...... et al., 2011), the authors attempt to solve this puzzle by considering their mutual influence at different stages of the company’s business lifecycle. For that, the auhors use Scandinavian Software Company (SSC) as a case study. The initial idea of a business model is shown to shape SSC’s strategy...... in the birth phase. It is then argued that this relationship changed as SSC entered its growth phase and met competition, and the product market strategy determined the change in the business model. The researchers contribute to the currently underexplored dynamic relationship of business models and strategies...
Orta, Elena; Ruiz, Mercedes; Toro, Miguel
Service Oriented Architecture (SOA) holds promise for business agility since it allows business process to change to meet new customer demands or market needs without causing a cascade effect of changes in the underlying IT systems. Business rules are the instrument chosen to help business and IT to collaborate. In this paper, we propose the utilization of simulation models to model and simulate strategic business rules that are then disaggregated at different levels of an SOA architecture. Our proposal is aimed to help find a good configuration for strategic business objectives and IT parameters. The paper includes a case study where a simulation model is built to help business decision-making in a context where finding a good configuration for different business parameters and performance is too complex to analyze by trial and error.
O, Y.L.; Gordijn, Jaap; Akkermans, Hans
In e-business, knowledge can be extracted from the recorded information by intelligent data analysis and then utilised in the business transaction. E-knowledge is a foundation for e-business. E-business can be supported by an intelligent information system that provides intelligent business process
Deidda, Luca Gabriele; Fattouh, Bassam
This paper develops an overlapping generation model with asymmetric information in the credit market such that the interplay between relationship finance supplied by investors who monitor investment decisions ex-ante and market finance supplied by investors who relay on public information can be the source of endogenous business fluctuations. Monitoring helps reducing the inefficiency caused by moral hazard. However, the incentives of entrepreneurs to demand relationship finance to induce mon...
Business plays a key role for the sustainable development of the society. However, business models of today do not have a sustainable perspective, indicating that they do not balance the three dimensions of sustainability; the social, environmental and economical dimension. A change at the business model level is therefore required for sustainable business models to become the new business models of tomorrow. The purpose of this study is to increase the knowledge of how companies can con...
Vorbach, Stefan; Wipfler, Harald; Schimpf, Sven
This contribution addresses the impact of disruptive technologies on business model innovation. While such technologies have the potential to significantly alter the way in which businesses operate, business model inertia hinders companies from adopting the new technological possibilities. Little research has focused on the difficulties incumbents face when innovating their business models. By reviewing current literature on business model innovation, this paper summarizes challenges companie...
Chen , Yurong; Perez , Yannick
International audience; Electric vehicle (EV) industry is still in the introduction stage in product life cycle, and dominant design remains unclear. EV companies, both incumbent from the car industry and new comers, have long taken numerous endeavors to promote EV in the niche market by providing innovative products and business models. While most carmakers still take 'business as usual' approach for developing their EV production and offers, Tesla Motors, an EV entrepreneurial firm, stands ...
Andersen, Maj Munch
The literature on ‘green business models’ is rapidly developing these years. This paper suggests that much existing work on green business models lacks a deeper theoretical understanding of eco-innovation and the green economy. The paper forwards an evolutionary economic perspective on green...... business models. This perspective departs in important ways from other approaches to green business models the implications of which are sought clarified and discussed in the paper. The paper argues for the need to link up green business model innovation to aggregate green economic change. The paper posits...... that the greening of the economy has reached such a stage of maturity where a generic ‘green business model’ is apparent. The paper points to eight characteristics of eco-innovation on the basis of which key changes to the business model are identified and schematised for the different stages of the green economic...
Ahrensbach Rasmussen, Klement; Foss, Nicolai Juul
of experimenting with business model. We distinguish between three ideal types, namely a traditionalist model (exemplified by Novo Nordisk), the full-blown service-oriented model (UCB Pharma) and the in-between model (LEO Pharma). We describe the changes to the organizational design and management processes...... that accompany the ongoing process of changing business models in these firms....
Empirical research suggests that financial globalization has insignificant effects on business cycles. Based on standard theoretical models it might be conjectured that the effects should be significant. I show that this conjecture is wrong. Theoretical effects of financial globalization can be determined to any level of precision by expanding the underlying artificial samples. In contrast, in the data the effects are imprecisely estimated because of short samples. I show that if the conclusi...
The study investigates the business cycle dynamics in the euro area using an empirical framework which comprises common global and euro area shocks as well as allows bilateral spillovers of country-specific shocks across the member economies. Three core questions lie at the heart of the analysis: (i) To what extent are the business cycles of the euro area countries driven by common and spillover shocks? (ii) What are the extent and sources of business cycle heterogeneity in the euro area? (ii...
This paper examines the synchronization of business cycles across the G7 countries during US recessions since the 1870's. Using a dynamic measure of business cycle synchronization, results depend on the globalisation period under consideration. On average, US recessions have significantly positive effects on business cycle co-movements only in the period following the breakdown of the Bretton Woods system of fixed exchange rates, while strongly decoupling effects among the G7 econ...
Full Text Available Purpose: In this paper, we investigate the development, the current state, and the potential of business model disclosures to illustrate where, why and how organizations might want to disclose their business models to their stakeholders. The description of the business model may be relevant to stakeholders if it helps them to comprehend the company ‘story’ and increase understanding of other provided data (i.e. financial statements, risk exposure, sustainability of operations. It can also aid stakeholders in the assessment of sustainability of business models and the whole company. To realize these goals, business model descriptions should fulfil requirements of users suggested by various guidelines. Design/Methodology/Approach: First, we review and analyse literature on business model disclosure and some of its antecedents, including voluntary disclosure of intellectual capital. We also discuss business model reporting incentives from the viewpoint of shareholders, stakeholders and legitimacy theory. Second, we compare and discuss reporting guidelines on strategic reports, intellectual capital reports, and integrated reports through the lens of their requirements for business model disclosure and the consequences of their use for corporate report users. Third, we present, analyse and compare examples of good corporate practices in business model reporting. Findings: In the examined reporting guidelines, we find similarities, e.g. mostly structural but also qualitative attributes, in their presented information: materiality, completeness, connectivity, future orientation and conciseness. We also identify important differences between their frameworks concerning the target audience of the reports, business model definitions and business model disclosure requirements. Discontinuation of intellectual capital reporting conforming to DATI guidelines provides important warnings for the proponents of voluntary disclosure – especially for
During more than 10 years of its existence business process modeling became a regular part of organization management practice. It is mostly regarded. as a part of information system development or even as a way to implement some supporting technology (for instance workflow system). Although I do not agree with such reduction of the real meaning of a business process, it is necessary to admit that information technologies play an essential role in business processes (see  for more information), Consequently, an information system is inseparable from a business process itself because it is a cornerstone of the general basic infrastructure of a business. This fact impacts on all dimensions of business process management. One of these dimensions is the methodology that postulates that the information systems development provide the business process management with exact methods and tools for modeling business processes. Also the methodology underlying the approach presented in this paper has its roots in the information systems development methodology.
Hee, van K.M.; Sidorova, N.; Werf, van der J.M.E.M.; Jensen, K.; Aalst, van der W.M.P.; Balbo, G.; Koutny, M.; Wolf, K.
Business process modeling has become a standard activity in many organizations. We start with going back into the history and explain why this activity appeared and became of such importance for organizations to achieve their business targets. We discuss the context in which business process
Prendeville, S.M.; Bocken, N.M.P.
In the face of growing sustainability challenges, pressure on businesses to decouple environmental impacts from growth is mounting. New sustainable business models can be a systemic driver for change in industry and the wider business innovation literature suggests that strategic design approaches
Enzmann, Dieter R; Schomer, Donald F
As health care moves to value orientation, radiology's traditional business model faces challenges to adapt. The authors describe a strategic value framework that radiology practices can use to best position themselves in their environments. This simplified construct encourages practices to define their dominant value propositions. There are 3 main value propositions that form a conceptual triangle, whose vertices represent the low-cost provider, the product leader, and the customer intimacy models. Each vertex has been a valid market position, but each demands specific capabilities and trade-offs. The underlying concepts help practices select value propositions they can successfully deliver in their competitive environments. Copyright © 2013 American College of Radiology. Published by Elsevier Inc. All rights reserved.
Morcous Massoud Yassa; Fatama A Omara; Hesham A Hassan
Within the context of virtual business collaboration modeling, many pervious works have been accepted to consider some essential virtual business collaborative models. A practical dynamic virtual organization may be a combination of those models and some other elemental features with some modifications to meet the business opportunity requirements. Therefore, some guidelines and rules are needed to help in constructing a practical collaboration model. This work aims to determine the essential...
Collaborative business models are often equated with disruptive commercial endeavors, epitomised by a handful large global sharing platforms. They represent a certain archetype of business model, extracting profit from market-mediated peer exchanges. A narrow focus on for-profit models obstructs...... coming to terms with the full scope of the collaborative economy phenomena, driven by purposes and actors beyond commercial market domains. This chapter attempts to broaden this perspective by reviewing alternative value creation mechanisms and presents emerging business model archetypes....
Indulska, Marta; Green, Peter; Recker, Jan; Rosemann, Michael
The process-centered design of organizations and information systems is globally seen as an appropriate response to the increased economic pressure on organizations. At the methodological core of process-centered management is process modeling. However, business process modeling in large initiatives can be a time-consuming and costly exercise, making it potentially difficult to convince executive management of its benefits. To date, and despite substantial interest and research in the area of process modeling, the understanding of the actual benefits of process modeling in academia and practice is limited. To address this gap, this paper explores the perception of benefits derived from process modeling initiatives, as reported through a global Delphi study. The study incorporates the views of three groups of stakeholders - academics, practitioners and vendors. Our findings lead to the first identification and ranking of 19 unique benefits associated with process modeling. The study in particular found that process modeling benefits vary significantly between practitioners and academics. We argue that the variations may point to a disconnect between research projects and practical demands.
Svee , Eric-Oluf; Giannoulis , Constantinos; Zdravkovic , Jelena
Part 3: Business Modeling; International audience; Business strategy lays out the plan of an enterprise to achieve its vision by providing value to its customers. Typically, business strategy focuses on economic value and its relevant exchanges with customers and does not directly address consumer values. However, consumer values drive customers’ choices and decisions to use a product or service, and therefore should have a direct impact on business strategy. This paper explores whether and h...
Chapagain, B. (Bimala)
Abstract With the advent of internet and e-commerce, the way of carrying out business and transactions has changed to a great extent. Consumers are continuously changing the way they do shopping and this has forced retail business to transform their traditional brick and mortar into adopting multi-channel business models. Retailing is one of the most dynamic and competitive areas of business organization. Effective marketin...
Lundgaard, Morten Raahauge; Ma, Zheng; Jørgensen, Bo Nørregaard
This paper tries to investigate the ecosystem based business model in a smart grid infrastructure and the potential of value capture in the highly complex macro infrastructure such as smart grid. This paper proposes an alternative perspective to study the smart grid business ecosystem to support the infrastructural challenges, such as the interoperability of business components for smart grid. So far little research has explored the business ecosystem in the smart grid concept. The study on t...
Full Text Available Business and credit cycles have an impact on credit insurance, as they do on other businesses. Nevertheless, in credit insurance, the impact of the systemic risk is even more important and can lead to major losses during a crisis. Because of this, the insurer surveils and manages policies almost continuously. The management actions it takes limit the consequences of a downturning cycle. However, the traditional modeling of economic capital does not take into account this important feature of credit insurance. This paper proposes a model aiming to estimate future losses of a credit insurance portfolio, while taking into account the insurer’s management actions. The model considers the capacity of the credit insurer to take on less risk in the case of a cycle downturn, but also the inverse, in the case of a cycle upturn; so, losses are predicted with a more dynamic perspective. According to our results, the economic capital is over-estimated when not considering the management actions of the insurer.
Frederico de Andrade Gabrich
Full Text Available There is no idea, business or company, private or public control, which does not require an appropriate legal strategy to be implemented as efficiently as possible. Therefore, there is no way actually know the areas of law that are directly related to the business organization, without analysis of the planning logic and implementation of ideas generally used by companies. More than that, the combination of modeling and business planning is essential, with appropriate legal and related strategic planning of business objectives. So it’s the need and the importance of developing a Legal Business Model that can be used in combination with Canvas.
Tangkawarow, I. R. H. T.; Waworuntu, J.
In this era, there is a lot of business process modeling techniques. This article is the research about differences of business process modeling techniques. For each technique will explain about the definition and the structure. This paper presents a comparative analysis of some popular business process modelling techniques. The comparative framework is based on 2 criteria: notation and how it works when implemented in Somerleyton Animal Park. Each technique will end with the advantages and disadvantages. The final conclusion will give recommend of business process modeling techniques that easy to use and serve the basis for evaluating further modelling techniques.
Sund, Kristian J.; Villarroel, Juan Andrei; Bogers, Marcel
in their environment. Our empirical setting focuses on national postal operators in the European postal industry. Using an inductive case study we distinguish between two stages within business model innovation: namely, business model exploration and business model exploitation. Focusing on the former, our findings......Organizations are often challenged to find new ways of creating and capturing value to compete with new entrants and disruptive technologies. Several studies have addressed some of the organizational barriers that incumbents face when developing new business models, but our understanding...... of the organizational (re)design aspects inherent to business model innovation is still very incomplete. In this study, we investigate the organizational (re)design challenges for incumbent organizations in mature industries when they need to reinvent their business model in reaction to disruptive changes...
Sund, Kristian; Bogers, Marcel; Villarroel, Juan Andrei
Organizations are often challenged to find new ways of creating and capturing value to compete with new entrants and disruptive technologies. Several studies have addressed some of the organizational barriers that incumbents face when developing new business models, but our understanding...... of the organizational (re)design aspects inherent to business model innovation is still very incomplete. In this study, we investigate the organizational (re)design challenges for incumbent organizations in mature industries when they need to reinvent their business model in reaction to disruptive changes...... in their environment. Our empirical setting focuses on national postal operators in the European postal industry. Using an inductive case study we distinguish between two stages within business model innovation: namely, business model exploration and business model exploitation. Focusing on the former, our findings...
Holm, Anna B.; Günzel, Franziska; Ulhøi, John Parm
models in the newspaper industry. Based on interviews with key informants from the two largest media groups in Denmark, together with archival data from 2002 to 2011, we show how the internet and related technology developments have disrupted the long-standing successful business model of the industry......The literature on open innovation portrays open business models as a contemporary and extremely useful tool, which can be used by companies to create and capture value in collaboration with external partners. This paper takes the discussion a step further by examining the effect of opening business....... Our findings suggest that a more nuanced view and balanced understanding of the term ‘openness’ as regards business models is needed, since open business models may have other manifestations and implications for business model viability than have been reported in the literature so far....
For educational purposes it is highly desirable to provide simple yet realistic models for fuel cycle and fuel economy. In particular, a lumped model without recourse to detailed spatial calculations would be very helpful in providing the student with a proper understanding of the purposes of fuel cycle calculations. A teaching model for fuel cycle studies based on a lumped model assuming the summability of partial reactivities with a linear dependence of reactivity usefully illustrates fuel utilization concepts. The linear burnup model does not satisfactorily represent natural enrichment reactors. A better model, showing the trend of initial plutonium production before subsequent fuel burnup and fission product generation, is a quadratic fit. The study of M-batch cycles, reloading 1/Mth of the core at end of cycle, is now complicated by nonlinear equations. A complete account of the asymptotic cycle for any order of M-batch refueling can be given and compared with the linear model. A complete account of the transient cycle can be obtained readily in the two-batch model and this exact solution would be useful in verifying numerical marching models. It is convenient to treat the parabolic fit rho = 1 - tau 2 as a special case of the general quadratic fit rho = 1 - C/sub tau/ - (1 - C)tau 2 in suitably normalized reactivity and cycle time units. The parabolic results are given in this paper
Hvass, Kerli Kant
The issue of business model innovation for sustainability is becoming increasingly relevant for fashion companies. This paper investigates how the resell of a fashion brand's own product can facilitate business model adaption towards sustainability. Based on a single revelatory case study...... the article highlights a premium fashion brand's endeavours in prolonging their products life through resell activities and the main issues, challenges and opportunities the brand can encounter in integrating this strategy into its existing business model....
Seidel, Johannes; Barquet, Ana-Paula; Seliger, Günther; Kohl, Holger
In order to achieve systematic change in pursuit of sustainable manufacturing, both a strategic long-term perspective employing methods from future studies and a concrete implementation of the knowledge gained in sustainable business models are necessary. In this chapter, the concepts and exemplary methods for sustainable business model innovation are introduced with a special focus on sustainable manufacturing. Circular Economy-based business models and Product Service Systems are explained ...
Hashemi Nekoo, Ali Reza; Ashourizadeh, Shayegheh; Zarei, Behrouz
Survival on dynamic environment is not achieved without a map. Scanning and monitoring of the market show business models as a fruitful tool. But scholars believe that old-fashioned business models are dead; as they are not included the effect of internet and network in themselves. This paper...... is going to propose e-business model ontology from the network point of view and its application in real world. The suggested ontology for network-based businesses is composed of individuals` characteristics and what kind of resources they own. also, their connections and pre-conceptions of connections...... such as shared-mental model and trust. However, it mostly covers previous business model elements. To confirm the applicability of this ontology, it has been implemented in business angel network and showed how it works....
This paper deals with the Gaz De France Group position in the e-business context. In terms of e-business, all is done to put Internet at the marketing service. Three examples of Internet sites realization and the future policy are presented. (A.L.B.)
Reijers, H.A.; Freytag, T.; Mendling, J.; Eckleder, A.
Sense-making of process models is an important task in various phases of business process management initiatives. Despite this, there is currently hardly any support in business process modeling tools to adequately support model comprehension. In this paper we adapt the concept of syntax
R. Narasimhan (Krishtel eMaging) 1461 1996 Oct 15 13:05:22
learning. We present a detailed example of an e-business market to show the ... to auction based models and §6 is devoted to game theoretic models. ..... Machine learning models: An e-business market provides a rich playground for online.
Full Text Available Purpose: The purpose of this paper is to enhance the knowledge of business modeling in the early phases by exploring its core components and the management of those components. This will be achieved by answering the following exploratory questions: What aspects of business model components do entrepreneurs process in the early stages? How do entrepreneurs process those aspects? Design/Methodology/Approach: In this qualitative study, data was collected during semi-structured inter- views with six entrepreneurs. Findings: The findings support the argument that when studying the early stages of business model manage- ment, to gain a richer understanding of the entrepreneurial process, acknowledging the resource activities is important. Our findings highlight that cash and competence appear to be essential focus in managing busi- ness model components in early stage. We also found that entrepreneurs may create resource slack that al- lows businesses to carve out a competitive position in the marketplace by focusing on business model design and management. Originality/Value: Although business model research is developing rapidly, one prominent gap in the field is how entrepreneurs manage their business models in the early start-up stages. In particular, there is a lack of knowledge about what entrepreneurs focus on in their business model management in early start-up stages and how they manage these aspects, an area to which this research contributes.
Lund, Morten; Nielsen, Christian
-term pro table business. However, the main message of this article is that while providing a good value proposition may help the rm ‘get by’, the really successful businesses of today are those able to reach the sweet-spot of business model scalability. Design/Methodology/Approach: The article is based...... on a ve-year longitudinal action research project of over 90 companies that participated in the International Center for Innovation project aimed at building 10 global network-based business models. Findings: This article introduces and discusses the term scalability from a company-level perspective......Purpose: The purpose of the article is to de ne what scalable business models are. Central to the contemporary understanding of business models is the value proposition towards the customer and the hypotheses generated about delivering value to the customer which become a good foundation for a long...
Nielsen, Christian; Lund, Morten
The power of business models lies in their ability to visualize and clarify how firms’ may configure their value creation processes. Among the key aspects of business model thinking are a focus on what the customer values, how this value is best delivered to the customer and how strategic partners...... are leveraged in this value creation, delivery and realization exercise. Central to the mainstream understanding of business models is the value proposition towards the customer and the hypothesis generated is that if the firm delivers to the customer what he/she requires, then there is a good foundation...... for a long-term profitable business. However, the message conveyed in this article is that while providing a good value proposition may help the firm ‘get by’, the really successful businesses of today are those able to reach the sweet-spot of business model scalability. This article introduces and discusses...
Full Text Available Value creation and value capture are central to technology entrepreneurship. The ways in which a particular firm creates and captures value are the foundation of that firm's business model, which is an explanation of how the business delivers value to a set of customers at attractive profits. Despite the deep conceptual link between business models and technology entrepreneurship, little is known about the processes by which technology entrepreneurs produce successful business models. This article makes three contributions to partially address this knowledge gap. First, it argues that business model discovery by technology entrepreneurs can be, and often should be, disciplined by both intention and structure. Second, it provides a tool for disciplined business model discovery that includes an actionable process and a worksheet for describing a business model in a form that is both concise and explicit. Third, it shares preliminary results and lessons learned from six technology entrepreneurs applying a disciplined process to strengthen or reinvent the business models of their own nascent technology businesses.
Nielsen, Christian; Lund, Morten
will be relevant to analyze or communicate about will differ from firm to firm. Therefore, this chapter focuses on the business model as the integrating concept for reporting and analysis of strategic types of information on e.g. management strategies, critical success factors, risk factors and value drivers.......The problem – as well as the prospect – with business models is that they are concerned with being different; as business in general thrives on some sort of unique selling point. So the bundle of indicators on value creation, business models, strategy, intellectual capital, and so on, which...
Julio César Chamorro Futinico
Full Text Available The business cycle was one of the most important issues in the economic agendafrom the late 19th Century to the mid 20th Century. The importance of the studylay in the priority of finding the causes and duration of economic crisis, and tobe able to determine or predict how often they would happen. Currently, and with the recent financial crisis in the United States (2008 and in Colombia(1998-2009, among others, this study has gained importance once more. Thispaper presents a number of points of view on the matter and focuses on an approach that has been given very little consideration: Michal Kalecki’s theory,which provides a basis for analyzing the Colombian business cycle from 1980to 2005, and thus compare the model estimated through the Three-Stage LeastSquares (3SLS method with the behavior of the remuneration to capital during the same period. Based on this, a close relation is found between the latter, the decision to invest and, therefore, the declining phase of the business cycle.
Full Text Available In the aftermath of the global financial turmoil the negative market sentiment and the challenging macroeconomic environment in Greece have severely affected the banking sector, which faces funding and liquidity challenges, deteriorating asset quality, and weakening profitability. This paper aims to investigate how banks’ liquidity interacted with solvency and the business cycle during the period 2004-2010. To this end a panel of 17 Greek banks is utilized which, in conjunction with cointegrating techniques and one-way static and dynamic panel models, explores the presence and the strength of the relationship between banks’ liquidity and the business cycle, while allowing for the role of banks’ solvency. Addressing the liquidity risk of the Greek banking sector and the liquidity-solvency nexus remains largely an uncharted area. The results generated provide clear-cut evidence on the linkages between banks’ market liquidity and the business cycle, as reflected in the real GDP and the effective exchange rate. Yet the results display a transmission channel that runs from banks’ solvency to liquidity and from country risk to bank risk.
Skersys, Tomas; Butleris, Rimantas; Kapocius, Kestutis
Approaches for the analysis and specification of business vocabularies and rules are very relevant topics in both Business Process Management and Information Systems Development disciplines. However, in common practice of Information Systems Development, the Business modeling activities still are of mostly empiric nature. In this paper, basic aspects of the approach for business vocabularies' semi-automated extraction from business process models are presented. The approach is based on novel business modeling-level OMG standards "Business Process Model and Notation" (BPMN) and "Semantics for Business Vocabularies and Business Rules" (SBVR), thus contributing to OMG's vision about Model-Driven Architecture (MDA) and to model-driven development in general.
Creating long-duration, high-powered lasers, for satellites, that can withstand the type of optical misalignment and damage dished out by the unforgiving environment of space, is work that is unique to NASA. It is complicated, specific work, where each step forward is into uncharted territory. In the 1990s, as this technology was first being created, NASA gave free reign to a group of "laser jocks" to develop their own business model and supply the Space Agency with the technology it needed. It was still to be a part of NASA as a division of Goddard Space Flight Center, but would operate independently out of a remote office. The idea for this satellite laboratory was based on the Skunk Works concept at Lockheed Martin Corporation. Formerly known as the Lockheed Corporation, in 1943, the aerospace firm, realizing that the type of advanced research it needed done could not be performed within the confines of a larger company, allowed a group of researchers and engineers to essentially run their own microbusiness without the corporate oversight. The Skunk Works project, in Burbank, California, produced America s first jet fighter, the world s most successful spy plane (U-2), the first 3-times-the-speed-of-sound surveillance aircraft, and the F-117A Nighthawk Stealth Fighter. Boeing followed suit with its Phantom Works, an advanced research and development branch of the company that operates independent of the larger unit and is responsible for a great deal of its most cutting-edge research. NASA s version of this advanced business model was the Space Lidar Technology Center (SLTC), just south of Goddard, in College Park, Maryland. Established in 1998 under a Cooperative Agreement between Goddard and the University of Maryland s A. James Clark School of Engineering, it was a high-tech laser shop where a small group of specialists, never more than 20 employees, worked all hours of the day and night to create the cutting- edge technology the Agency required of them. Drs
Monarch High School in Boulder, Colorado, is one of 25 schools piloting the High School of Business program, an accelerated business administration program developed by Columbus, Ohio-based MBA"Research" and Curriculum Center. This article describes the program which uses a heavily project-based pedagogy to teach a curriculum modeled…
Achmad Arief Wicaksono
Full Text Available The magnitude of opportunities and project values of electricity system in Indonesia encourages PT. XYZ to develop its business in electrical sector which requires business development strategies. This study aims to identify company's business model using Business Model Canvas approach, formulate business development strategy alternatives, and determine the prioritized business development strategy which is appropriate to the manufacturing business model for PT. XYZ. This study utilized a descriptive approach and the nine elements of the Business Model Canvas. Alternative formulation and priority determination of the strategies were obtained by using Strengths, Weaknesses, Opportunities, Threats (SWOT analysis and pairwise comparison. The results of this study are the improvement of Business Model Canvas on the elements of key resources, key activities, key partners and customer segment. In terms of SWOT analysis on the nine elements of the Business Model Canvas for the first business development, the results show an expansion on the power plant construction project as the main contractor, an increase in sales in its core business in supporting equipment industry of oil and gas, a development in the second business i.e. an investment in the electricity sector as an independent renewable emery-based power producer. On its first business development, PT. XYZ selected three Business Model Canvas elements which become the priorities of the company i.e. key resources weighing 0.252, key activities weighing 0.240, and key partners weighing 0.231. On its second business development, the company selected three elements to become their the priorities i.e. key partners weighing 0.225, customer segments weighing 0.217, and key resources weighing 0.215.Keywords: business model canvas, SWOT, pairwise comparison, business model
Lundgaard, Morten Raahauge; Ma, Zheng; Jørgensen, Bo Nørregaard
This paper tries to investigate the ecosystem based business model in a smart grid infrastructure and the potential of value capture in the highly complex macro infrastructure such as smart grid. This paper proposes an alternative perspective to study the smart grid business ecosystem to support...... the infrastructural challenges, such as the interoperability of business components for smart grid. So far little research has explored the business ecosystem in the smart grid concept. The study on the smart grid with the theory of business ecosystem may open opportunities to understand market catalysts. This study...... contributes an understanding of business ecosystem applicable for smart grid. Smart grid infrastructure is an intricate business ecosystem, which have several intentions to deliver the value proposition and what it should be. The findings help to identify and capture value from markets....
Haaker, T.I.; Bouwman, W.A.G.A.; Janssen, W; de Reuver, G.A.
Business models and business model innovation are increasingly gaining attention in practice as well as in academic literature. However, the robustness of business models (BM) is seldom tested vis-à-vis the fast and unpredictable changes in digital technologies, regulation and markets. The
Full Text Available Companies constantly reconsider and reconfigure their business models in order to create value and generate growth. They also reassess the price-performance correlation and new levels of capital efficiency. The new business models are frequently needed to provide goods at affordable prices through the adaptation of packaging strategies, pricing strategies, the product itself, and by helping to sustain financially the demand. In the context of current financial and economic difficulties, it reveals the inclusive business models that provide goods and services to poor people and also create employment. The paper tries to emphasize ways in which business models are evolving, and how to determine the right model for companies. In the same time, it also seeks to highlight trends in the development of new business models in the European countries which creates basic economic activities, giving people facing social and economic problems access to products and services that meet their needs.
Full Text Available The essence of process-oriented enterprise management has been examined in the article. The content and types of information technology have been analyzed in the article, due to the complexity and differentiation of existing methods, as well as the specificity of language, terminology of the enterprise business processes modeling. The theoretical aspects of business processes modeling have been reviewed and the modern traditional modeling techniques received practical application in the visualization model of retailers activity have been studied in the article. In the process of theoretical analysis of the modeling methods found that UFO-toolkit method that has been developed by Ukrainian scientists due to it systemology integrated opportunities, is the most suitable for structural and object analysis of retailers business processes. It was designed visualized simulation model of the business process "sales" as is" of retailers using a combination UFO-elements with the aim of the further practical formalization and optimization of a given business process.
of a large-scale business simulation model as a vehicle for doing research in management controls. The major results of the program were the...development of the Mark I business simulation model and the Simulation Package (SIMPAC). SIMPAC is a method and set of programs facilitating the construction...of large simulation models. The object of this document is to describe the Mark I Corporation model, state why parts of the business were modeled as they were, and indicate the research applications of the model. (Author)
As organizations increasingly work in process-oriented manner, the number of business process models that they develop and have to maintain increases. As a consequence, it has become common for organizations to have collections of hundreds or even thousands of business process models. When a
Open Business Models: New Compensation Mechanisms for Creativity and Inclusion ... This research aims to explore important new business models in the networked society ... Linking research to urban planning at the ICLEI World Congress 2018 ... In partnership with UNESCO's Organization for Women in Science for the ...
Turcan, Romeo V.
This ethnographic research explores the process of business model design in the context of an NGO internationalizing to an emerging market. It contributes to the business model literature by investigating how this NGO - targeting multiple key stakeholders - was experimenting (1) with value...
Xu, Yudi; Jansen, Slinger; España, Sergio; Zhang, Dong; Gao, Xuesong
Business modeling is becoming a foundational process in the information technology industry. Many ICT companies are constructing their business models to stay competitive on the cutting edge of the technology world. However, when comes to new technologies or emerging markets, it remains difficult
DataCite provides persitent identifiers, especially DOIs for research data. What is the Business Model for DataCite and it's members? How to run international research infrastructures?......DataCite provides persitent identifiers, especially DOIs for research data. What is the Business Model for DataCite and it's members? How to run international research infrastructures?...
Koschmider, A.; Song, M.S.; Reijers, H.A.
Formal models of business processes are used for a variety of purposes. But where the elicitation of the characteristics of a business process usually takes place in a collaborative fashion, the building of the final, formal process model is done mostly by a single person. This article presents the
Dijkman, R.M.; Dumas, M.; Reichert, M.; Shan, M.-C.
This paper presents a technique to diagnose differences between business process models in the EPC notation. The diagnosis returns the exact position of a difference in the business process models and diagnoses the type of a difference, using a typology of differences developed in previous work.
Meertens, Lucas Onno
This thesis proposes a methodology for creating business models, evaluating them, and relating them to enterprise architecture. The methodology consists of several steps, leading from an organization’s current situation to a target situation, via business models and enterprise architecture.
Colman, Gregory; Dave, Dhaval
Shifts in time and income constraints over economic expansions and contractions would be expected to affect individuals' behaviors. We explore the impact of the business cycle on individuals' exercise, time use, and total physical exertion, utilizing information on 112,000 individual records from the 2003-2010 American Time Use Surveys. In doing so, we test a key causal link that has been hypothesized in the relation between unemployment and health, but not heretofore assessed. Using more precise measures of exercise (and other activities) than previous studies, we find that as work-time decreases during a recession, recreational exercise, TV-watching, sleeping, childcare, and housework increase. This, however, does not compensate for the decrease in work-related exertion due to job-loss, and total physical exertion declines. These effects are strongest among low-educated men, which is validating given that employment in the Great Recession has declined most within manufacturing, mining, and construction. We also find evidence of intra-household spillover effects, wherein individuals respond to shifts in spousal employment conditional on their own labor supply. The decrease in total physical activity during recessions is especially problematic for vulnerable populations concentrated in boom-and-bust industries, and may have longer-term effects on obesity and related health outcomes. Copyright © 2013 Elsevier Ltd. All rights reserved.
Full Text Available Addressing discrimination within the professional sphere is becoming ever more important in French public debate in both the legal and managerial fields. A number of the 18 grounds of discrimination recognised under French law such as gender and ethnicity have been widely discussed in the scientific literature. However, unlike studies undertaken in English-speaking countries, few French-speaking researchers have explored age discrimination. This issue warrants analysis insofar as the actual economic context has forced governments to encourage more people to remain in the labour market. This objective, however, has proven difficult to achieve. A critical question is whether age-related labour market participation gaps depend on individual characteristics. If not, other factors might come into play, including possible discrimination. First, we review the employment of older workers over time. We then use econometric methods to assess the nature of labour market participation gaps and analyse their relationship with business cycles. With regard to the latter point, our findings reveal differences between men and women.
Brem, Alexander; Trapp, Martin; Voigt, Kai-Ingo
or a specific product innovation. From a body of extant literature, we develop a BMI identification tool which is then tested by senior managers from four large European corporations to assess whether innovation efforts represent BMI. The tool operationalises BMI and offers straightforward criteria......Business model innovation (BMI) is the process of integrating a new logic of doing business into an established firm to improve profitability or to capitalise on new business opportunities. However, existing research offers only limited clarity on BMI compared to business model upgrades...
Frederico de Andrade Gabrich
There is no idea, business or company, private or public control, which does not require an appropriate legal strategy to be implemented as efficiently as possible. Therefore, there is no way actually know the areas of law that are directly related to the business organization, without analysis of the planning logic and implementation of ideas generally used by companies. More than that, the combination of modeling and business planning is essential, with appropriate legal and related strateg...
Грахов, А. А.; Зубаха, Е. Н.
This article highlights the main definition " Crowdsourcing " . The classification of existing types crowdsourcing , crowdsourcing examples of activities of production companies , as well as the existing crowdsourcing platform. Obtained in the practice of crowdsourcing industrial business.
Rigatos, G.; Siano, P.; Ghosh, T.; Sarno, D.
Stabilization of the business cycles of interconnected finance agents is performed with the use of a new nonlinear optimal control method. First, the dynamics of the interacting finance agents and of the associated business cycles is described by a modeled of coupled nonlinear oscillators. Next, this dynamic model undergoes approximate linearization round a temporary operating point which is defined by the present value of the system's state vector and the last value of the control inputs vector that was exerted on it. The linearization procedure is based on Taylor series expansion of the dynamic model and on the computation of Jacobian matrices. The modelling error, which is due to the truncation of higher-order terms in the Taylor series expansion is considered as a disturbance which is compensated by the robustness of the control loop. Next, for the linearized model of the interacting finance agents, an H-infinity feedback controller is designed. The computation of the feedback control gain requires the solution of an algebraic Riccati equation at each iteration of the control algorithm. Through Lyapunov stability analysis it is proven that the control scheme satisfies an H-infinity tracking performance criterion, which signifies elevated robustness against modelling uncertainty and external perturbations. Moreover, under moderate conditions the global asymptotic stability features of the control loop are proven.
Iliadi, Vasiliki; Ηλιάδη, Βασιλική
In the context of the present thesis, we will be studying core principles of Business Process Management, and how we can take advantage of them in combination with Project Management Methodologies and modeling tools in the context of Software as a Service businesses and their development. Initially we provide the reader with an introduction to Business Process Management, how it can be used, and how the life cycle is structured. We further define the first three phases of the life cycle to...
Pinggera, J.; Soffer, P.; Fahland, D.; Weidlich, M.; Zugal, S.; Weber, B.; Reijers, H.A.; Mendling, J.
Business process models are an important means to design, analyze, implement, and control business processes. As with every type of conceptual model, a business process model has to meet certain syntactic, semantic, and pragmatic quality requirements to be of value. For many years, such quality
Popovič, Aleš; Turk, Tomaž; Jaklič, Jurij
With advances in the business intelligence area, there is an increasing interest for the introduction of business intelligence systems into organizations. Although the opinion about business intelligence and its creation of business value is generally accepted, economic justification of investments into business intelligence systems is not always clear. Measuring the business value of business intelligence in practice is often not carried out due to the lack of measurement methods and resourc...
Full Text Available The purpose of the paper is to work out and characterize bank business models that are formed in Ukraine. Methodology. Our research we will spend among banks that are functioning on the Ukrainian financial market and are not on the stage of liquidation, so the sample under study in our work is comprised of 131 banks which are different in their ownership structure and size. The core of the methodology is a statistical clustering algorithm that allows identifying the groups of banks (clusters with similar business models as banks with similar business model strategies have made similar choices regarding the composition of their assets and liabilities. The cluster analyses were taken on the base of seven chosen indicators: bank loans, bank liabilities, enterprise loans, enterprise liabilities, household loans, household liabilities and trading assets. Results. The traditional business model of bank is worked out. The bank business models that are functioning in Ukraine are identified on the base of cluster analyses using balance sheet characteristics of 131 Ukrainian banks. We find that in Ukraine were formed three types of bank business models: “Focused retail”, “Diversified retail” and “Corporative retail”. The description of each model is given. Practical implications. More detailed research of distinguished models allows not only to find out the main advantages and disadvantages of each bank model, but also the main problems that follow the development of Ukrainian banking sector. Identifying of bank models and their studying simplifies searching and elaboration of regulatory instruments as there is a two-way causation between regulation and bank business models. This implies a symbiotic relationship between regulation and bank business models: business models respond to regulation which in turn responds to the evolution of new business models. Value/originality. Such survey is conducted at the first time among Ukrainian banks. The
An applied and concise treatment of statistical regression techniques for business students and professionals who have little or no background in calculusRegression analysis is an invaluable statistical methodology in business settings and is vital to model the relationship between a response variable and one or more predictor variables, as well as the prediction of a response value given values of the predictors. In view of the inherent uncertainty of business processes, such as the volatility of consumer spending and the presence of market uncertainty, business professionals use regression a
Full Text Available BPMN represents an industrial standard created to offer a common and user friendly notation to all the participants to a business process. The present paper aims to briefly present the main features of this notation as well as an interpretation of some of the main patterns characterizing a business process modeled by the working fluxes.
dr. Martijn Zoet; Eline de Haan; Koen Smit
Research, advisory companies, consultants and system integrators all predict that a lot of money will be earned with decision management (business rules, algorithms and analytics). But how can you actually make money with decision management or in other words: Which business models are exactly
Full Text Available The mechanisms of the network paradigm increasingly affecting the operation of companies form a new dimension of strategic management today. This applies also to the look at the design and operationalization of business models. Business models that become a source of competitive advantage in the market should have such a configuration that will provide the company with the capability to develop and grow in value. Innovation in particular determines this capability, which is the basis for the ability to create technologically new products and services. An interesting issue, not fully examined yet, is defining the principles of the design and operationalization of such business models in which technology determines their efficiency and effectiveness. These models may be technological business models. The aim of this paper is to discuss the important areas related to the design and operationalization of technological business models in the network environment and to present conclusions that are the basis for further research in this area. The author argues that in today’s, increasingly virtual reality effective and efficient tools for generating new value proposition for customers is the skillful design and use of technological business models developed by companies’ participation in the network environment. It is materialized in the form of achieving superior business results by the company.
互联网企业的商业模式具有较强的可塑性，企业应在发展过程中根据内外部环境的变化对商业模式进行创新。本文运用商业模式“3—4～8”理论，以腾讯公司为目标企业，对该公司在生命周期三个阶段的商业模式创新及演变进行案例研究。研究表明，腾讯在创业期、成长期和成熟期不同发展阶段，商业模式表现出独特的演变路径和鲜明的特征，商业模式的创新提升了公司的价值和竞争力，其成功经验为我国互联网企业提供了启示与借鉴。%Internet enterprise business model has strong plasticity, entrepreneurs should innovate the business model according to the change of internal and external environment. Business model is an architectural structure that organization position and integrate its value, strategy and operation system into a organic integrity, and through offering a series of products or services to realize its goal. By reviewing the papers, we can find that related research of business model is in the ascendant in recent 10 years. In the thesis, We adopted case study method, based on 3 -4 -8 business model theory, chose a iconic internet company Tencent Holding Co. Ltd（ short for Tencent） as the object. From the enterprise life cycle perspective, We explored the innovation of Tencent＇s business model, induction conditions, characteristic, and the evolution path in different period. Concluded innovation type of business model, and summarized the inspirations that internet enterprises should follow when innovating their business model. Our research was carried out by three steps： Firstly, we reviewed the existing theories at home and abroad, summarize the definition of business model, and presented my definition. Then, used＂3 -4 -8＂ business model architectural structures for reference, followed the modular deconstruction thinking, investigated and executed data analysis on 23 modular indexes. On the basis
Bardina, Jorge E.; Thirumalainambi, Rajkumar; Davis, Rodney D.
long-term benefits in support of the NASA objectives for simulation based acquisition, will improve the ability to assess architectural options verses safety/risk for future exploration systems, and will facilitate incorporation of operability as a systems design consideration, reducing overall life cycle cost for future systems. The future of business intelligence of space exploration will focus on the intelligent system-of-systems real-time enterprise. In present business intelligence, a number of technologies that are most relevant to space exploration are experiencing the greatest change. Emerging patterns of set of processes rather than organizational units leading to end-to-end automation is becoming a major objective of enterprise information technology. The cost element is a leading factor of future exploration systems.
Bardina, Jorge E.; Thirumalainambi, Rajkumar; Davis, Rodney D.
The future of business intelligence in space exploration will focus on the intelligent system-of-systems real-time enterprise. In present business intelligence, a number of technologies that are most relevant to space exploration are experiencing the greatest change. Emerging patterns of set of processes rather than organizational units leading to end-to-end automation is becoming a major objective of enterprise information technology. The cost element is a leading factor of future exploration systems. This technology project is to advance an integrated Planning and Management Simulation Model for evaluation of risks, costs, and reliability of launch systems from Earth to Orbit for Space Exploration. The approach builds on research done in the NASA ARC/KSC developed Virtual Test Bed (VTB) to integrate architectural, operations process, and mission simulations for the purpose of evaluating enterprise level strategies to reduce cost, improve systems operability, and reduce mission risks. The objectives are to understand the interdependency of architecture and process on recurring launch cost of operations, provide management a tool for assessing systems safety and dependability versus cost, and leverage lessons learned and empirical models from Shuttle and International Space Station to validate models applied to Exploration. The systems-of-systems concept is built to balance the conflicting objectives of safety, reliability, and process strategy in order to achieve long term sustainability. A planning and analysis test bed is needed for evaluation of enterprise level options and strategies for transit and launch systems as well as surface and orbital systems. This environment can also support agency simulation based acquisition process objectives. The technology development approach is based on the collaborative effort set forth in the VTB's integrating operations, process models, systems and environment models, and cost models as a comprehensive disciplined
Business model is relatively a new term that emerged in 1990s together with the mushroom of e-business. Conceptually business model is therefore still in infancy. Despite this fact however it does matter (Magretta, 2002). Business model which is conceived as the logic of doing business, a construct, a mental model or a business paradigm, is considered a guide on how to do every day's business. Based on the above mentioned understanding, this paper based on action research study, discus...
Full Text Available Business process modelling and analysing is undoubtedly one of the most important parts of Applied (Business Informatics. Quality of business process models (diagrams is crucial for any purpose in this area. The goal of a process analyst’s work is to create generally understandable, explicit and error free models. If a process is properly described, created models can be used as an input into deep analysis and optimization. It can be assumed that properly designed business process models (similarly as in the case of correctly written algorithms contain characteristics that can be mathematically described. Besides it will be possible to create a tool that will help process analysts to design proper models. As part of this review will be conducted systematic literature review in order to find and analyse business process model’s design and business process model’s quality measures. It was found that mentioned area had already been the subject of research investigation in the past. Thirty-three suitable scietific publications and twenty-two quality measures were found. Analysed scientific publications and existing quality measures do not reflect all important attributes of business process model’s clarity, simplicity and completeness. Therefore it would be appropriate to add new measures of quality.
Turcan, Romeo V.
resources and behavioral patterns. Two sources could be identified that effect these tensions, namely strategic experimentation and business model experimentation. For example, entrepreneurs are trying to ease the tensions in the organizational gestalt as a result of a change in the business model...... and growth path. To internationalize, international new ventures have to develop a product-led business model as services do not travel. Opting to attract venture capital, entrepreneurs are to deal with dyadic tensions that are the result of differences in entrepreneurs’ and VCs’ goals and measures...
Gudiksen, Sune Klok; Smed, Søren Graakjær; Poulsen, Søren Bolvig
Through the last decade the experience economy has found solid ground and manifested itself as a parameter where business and organizations can differentiate from competitors. The fundamental premise is the one found in Pine & Gilmores model from 1999 over 'the progression of economic value' where...... produced, designed or staged experience that gains the most profit or creates return of investment. It becomes more obvious that other parameters in the future can be a vital part of the experience economy and one of these is business model innovation. Business model innovation is about continuous...
Reime, Erlend Vihovde
This thesis is exploring the Freemium business model, answering how a Freemium model is defined and how it works in real-life. It discusses the original definition by Fred Wilson, and present the context where the Freemium business model is used, Internet services in the Web 2.0. It also looks at how customers react to free services and the Internet. After this, the three main directions within business strategy theory are explored: Industry-based competition, Firm-specific Resources and Capa...
Disclosure of information on strategies, business models, critical success factors, risk factors and value drivers in general has gained importance in recent years. Both policy makers and academics have argued that the demand for external communication of new types of value drivers is rising...... as companies increasingly base their competitive strengths and thus the value of the company on know-how, patents, skilled employees and other intangibles. In parallel with the focus on disclosure of value drivers, the concept of business models has gained popularity. However, business models in terms of “ways...
Gjerding, Allan Næs; Kringelum, Louise Tina Brøns
The present paper focuses on collaboration as a source of hybridization of the market in the case of business model innovation. The basic argument is that while hybridization economizes on transaction costs, it also gives rise to transaction costs. In effect, transaction costs appears...... as a dialectical phenomenon. The argument is illustrated by a narrative of a case of radical business model innovation. The narrative shows how collaborators economize on transaction costs by developing a mutual understanding and shared interpretation of business model innovation, but at the same time gives rise...
Groskovs, Sergejs; Vemula, Sreekanth
We propose a digital maturity assessment model as an instrument for researchers and a strategic tool for managers. Existing literature lacks a conceptually clear way to measure the construct of digital maturity at the level of the firms business model. Our proposed instrument thus opens avenues...... for research into questions related to antecedents, process, and performance outcomes of the digitalization of business activities. The assessment follows the logic of first decomposing the business model into the underlying value creation activities and then evaluating the levels of automation...
Chang, Victor; Bacigalupo, David; Wills, Gary; De Roure, David
This paper reviews current cloud computing business models and presents proposals on how organisations can achieve sustainability by adopting appropriate models. We classify cloud computing business models into eight types: (1) Service Provider and Service Orientation; (2) Support and Services Contracts; (3) In-House Private Clouds; (4) All-In-One Enterprise Cloud; (5) One-Stop Resources and Services; (6) Government funding; (7) Venture Capitals; and (8) Entertainment and Social Networking. U...
Neergaard, Peter; Gjerdrum Pedersen, Esben Rahbek
Most of the Fortune 500 companies address Corporate Social Responsibility (CSR) on their websites. However, CSR remains a fluffy concept difficult to implement in organization. The European Business Excellence Model has since the introduction in 1992 served as a powerful tool for integrating...... European Award winning company has used the model to integrate CSR. The company adapted the Business Excellence model to improve performance, stimulate innovation and consensus....
The e¡èects of gasoline prices on the U.S. business cycles are investigated. In order to distinguish between gasoline supply and gasoline demand shocks, the price of gasoline is endogenously determined through a transportation sector that uses gasoline as an input of production. The model is estimated for the U.S. economy using five macroeconomic time series, including data on transport costs and gasoline prices. The results show that although standard shocks in the literature (e.g., technolo...
Stephane Pallage; Michel Robe
Economic fluctuations are much stronger in developing countries than in the United States. Yet, while a large literature debates what constitutes a reasonable estimate of the welfare cost of business cycles in the US, it remains an open question how large that cost is in developing countries. Using several model economies, we provide such a measure for a large number of low--income countries. Our first main result is that the welfare cost of output fluctuations per se is far from trivial in t...
Guzel Isayevna Gumerova; Elmira Shamilevna Shaimieva
Objective to define the notion of ldquohightech businessrdquo to elaborate classification of hightech businesses to elaborate the business model for hightech business management. Methods general scientific methods of theoretical and empirical cognition. Results the research presents a business model of hightech businesses management basing on the trends of explicit and explicit knowledge market with the dominating implicit knowledge market classification of hightech business...
D'Souza, Austin; Velthuijsen, Hugo; Wortmann, J.C.; Huitema, George
Purpose: To facilitate the design of viable business models by proposing a novel business model design framework for viability. Design: A design science research method is adopted to develop a business model design framework for viability. The business model design framework for viability is
Full Text Available This paper, based on 28 interviews from a range of business leaders and practitioners, examines the current state of big data use in business, as well as the main opportunities and challenges presented by big data. It begins with an account of the current landscape and what is meant by big data. Next, it draws distinctions between the ways organisations use data and provides a taxonomy of big data business models. We observe a variety of different business models, depending not only on sector, but also on whether the main advantages derive from analytics capabilities or from having ready access to valuable data sources. Some major challenges emerge from this account, including data quality and protectiveness about sharing data. The conclusion discusses these challenges, and points to the tensions and differing perceptions about how data should be governed as between business practitioners, the promoters of open data, and the wider public.
Nielsen, Christian; Roslender, Robin
This chapter provides in a chronological fashion an introduction to six frameworks that one can apply to describing, understanding and also potentially innovating business models. These six frameworks have been chosen carefully as they represent six very different perspectives on business models...... and in this manner “complement” each other. There are a multitude of varying frameworks that could be chosen from and we urge the reader to search and trial these for themselves. The six chosen models (year of release in parenthesis) are: • Service-Profit Chain (1994) • Strategic Systems Auditing (1997) • Strategy...... Maps (2001) • Intellectual Capital Statements (2003) • Chesbrough’s framework for Open Business Models (2006) • Business Model Canvas (2008)...
Full Text Available There’s a story behind every business success and every business failure, sometimes the story of a great idea; sometimes one that failed. Sometimes it’s a story of insightful management, or management that failed. But almost always it’s a story about change. Change in the market; change in the economy; change in a particular product or service that transformed a failure into a success, or vice versa. Hidden behind many of these changes, or sometimes as a result of them, there is change in what customers experience, and as a result, a change in their perceptions and attitudes, and then in their buying habits. Companies soar, or collapse, as a consequence. While we study the stories to learn about the specific changes, events, insights, and breakdowns in each case, we also look for broader and deeper explanations that show how change applies across industries and the whole of the economy. The broader patterns are often Business Model Innovations, the subject of this white paper. Here we propose a specific model explaining how large companies create and sustain market leadership in today’s market, or the traps that they fall into that prevent them from doing so.
Suratno, B.; Grefen, P.; Turetken, O.
The new trend of service-dominant business which produces so-called value-in-use as a competitive advantage demands rapidly changing business models and collaboration of organizations in a cross-organizational business network. As information technology nowadays largely contributes to the way of
Full Text Available By exploring the competitiveness of industries and companies, we could identify the factors whose importance is likely to generate competitive advantage. An inventory of content elements of the business model summarizes the clearest opportunities and prospects. The objectives developed throughout the paper want to identify the pillars of a renewable business model and to describe the strategic dimensions of their capitalisation in regional and national energy entrepreneurship. The trend of increasing the renewable energy business volume is driven by the entrepreneurs and company’s availability to try new markets, with many unpredictable implications and the willingness of these players or their creditors to spend their savings, in various forms, for the concerned projects. There is no alternative to intensive investment strategies, given that the small projects are not able to create high value and competitiveness for interested entrepreneurs. For this reason, the international practice shows that the business models in energy production are supported by partnerships and networks of entrepreneurs who are involved in the development of large projects. The most important feature of renewable business initiatives is on attracting the latest clean emerging technologies, and obviously the investors who can assume the risk of such great projects. The benefits of a well developed business model recommend a prudent approach in the launching in the investment strategies, because the competitive contexts hide always some dissatisfaction of the partners that endanger the business concept’s success. The small firms can develop a profitable business model by exploring the opportunity of the alliances, namely the particular joint ventures (association between Romanian and foreign firms. The advantages of joint venture's partners are considerable; they include access to expertise, resources and other assets that the partners could not achieve on their own
Resource Based View, Value Chain Analysis and Business Model Canvas. Finding suggests SMEs to have business model innovation derived from value proposition. SMEs should build their own brand awareness. Moreover, as garment and fashion industry, design can be a particularly important part of the Value Proposition. SMEs could communicate its value propositions and inform their service through its official websites and other social media. Since the intangible resources include brand and design, thus SMEs should build brand image and innovate year by year. SMEs must hire designers and launch a series of new products offers under the signature of their own brands. Ideation to strengthen strategies derives from value proposition building block as a starting point. Moreover, Business Model Canvas makes strategy more focused and measurable. Business model innovation is expected to increase overall performance of SMEs.
Bogataj, Kristina; Pucihar, Andreja; Sudzina, Frantisek
The paper presents a proposed research framework for identification of business model elements impacting Cloud Computing Adoption. We provide a definition of main Cloud Computing characteristics, discuss previous findings on factors impacting Cloud Computing Adoption, and investigate technology a...
Ma, Zheng; Lundgaard, Morten; Jørgensen, Bo Nørregaard
Viewing the smart grid with the theory of business models may open opportunities in understanding and capturing values in new markets. This study tries to discover and map the smart grid ecosystem-based business model framework with two different environments (sub-Saharan Africa and Denmark......), and identifies the parameters for the smart grid solutions to the emerging markets. This study develops a triple-layer business model including the organizational (Niche), environmental (Intermediate), and global (Dominators) factors. The result uncovers an interface of market factors and stakeholders...... in a generic smart grid constellation. The findings contribute the transferability potential of the smart grid solutions between countries, and indicate the potential to export and import smart grid solutions based on the business modeling....
News publishers in the industrialized world are experiencing a fundamental challenge to their business models because of the changing modes of consumption, competition, and production of their offerings that are associated with the emergence of the networked information society. The erosion...... of the traditional business models poses an existential threat to news publishing and has given rise to a continuing struggle among news publishers to design digital business models that will be sustainable in the future. This dissertation argues that a central and underresearched aspect of digital news publishing...... business models concerns the production networks that support the co-production of digital news offerings. To fill this knowledge gap, this dissertation explores the strategic design of the digital news publishing production networks that are associated with HTML-based news offerings on the open Web...
Johannes Sang Un Chae; Jonas Hedman
Purpose: The purpose of the paper is to develop a business model framework for NFC based mobile payment solutions consisting of four mutually interdepended components: the value service, value network, value architecture, and value finance. Design: Using a comparative case study method, the paper investigates Google Wallet and ISIS Mobile Wallet and their underlying business models. Findings: Google Wallet and ISIS Mobile Wallet are focusing on providing an enhanced customer experienc...
Ayadi, Rym; De Groen, Willem Pieter
CEPS and the International Observatory on Financial Services Cooperatives (IOFSC) at HEC Montreal have initiated an annual monitoring exercise on banking business models in the EU. Based on their balance sheet structures, 147 European banks that account for more than 80% of the industry assets were categorised in four business models. The Monitor emphasises the ownership structures and assesses the financial and economic performance, resilience and robustness, before, during and after the fin...
The paper work analyses some aspects regarding the implementation of IFRS 9, the relationship between the business model approach and the assets classification and measurement. It does not discuss the cash flows characteristics, another important aspect of assets classification, or the reclassifications. The business model is related to some characteristics of the banks (opaqueness, leverage ratio, compliance to capital, sound liquidity requirements and risk management) and to Special Purpose...
By exploring the competitiveness of industries and companies, we could identify the factors whose importance is likely to generate competitive advantage. An inventory of content elements of the business model summarizes the clearest opportunities and prospects. The objectives developed throughout the paper want to identify the pillars of a renewable business model and to describe the strategic dimensions of their capitalisation in regional and national energy entrepreneurship. The trend of in...
Mohsen Shafiei Nikabadi; Laya Olfat; Ahmad Jafarian; Hassan Alibabaei Khamene
The main goal of this article is to survey effects of necessary factors for deploying e-business models on business performance in automotive industry. Today, application of information technology and internet in business is turned to a critical tool to gain competitive advantages in business. The impact of e-businesses is so that changed competitive approach between companies from traditional to modern models. In this study, first, necessary key factors of implementing e-business in automoti...
Jerman, Damjana; Završnik, Bruno
Much of the research into marketing communications has focused on the consumer market with little regard to date for the business-to-business market. This paper focuses on a development and testing of a model of marketing communication effectiveness in the business-to-business market. Building on past research from the marketing communications and business-to-business marketing literature, the model (which incorporates facets of the marketing communication objectives, bidirectional communicat...
Peers, Y.; van Heerde, H.J.; Dekimpe, Marnik
A key conundrum facing organizations is how to adjust marketing budgets in response to the business cycle. While most firms use procyclical spending (spending less during economic contractions), academic studies often recommend countercyclical spending (spending more during contractions), which begs
Kniesner, Thomas J.; And Others
Illustrates that the business cycle does indeed disturb relative Black/White rates of return to schooling. Blacks fare relatively poorly in times of high unemployment. Data tables and formulas are presented to support the argument. (CT)
Full Text Available This paper provides empirical evidence about the degree of business cycle synchronization between the euro area countries and eight new European Union member states. We analyze the direct and indirect effects of similarity of economic structures and trade intensity on the co-movement of fluctuations of economic activity across these countries and find that bilateral similarity of economic structures and trade intensity were positively and significantly associated with business cycle correlations. This result is robust to different estimation techniques. Similarity of economic structures had an additional indirect positive effect on business cycle synchronization via its positive effect on trade intensity. The bilateral business cycle correlations are found to be endogenous with respect to bilateral similarity of economic structures and bilateral trade intensity suggesting that the new European Union countries will better satisfy the Optimum Currency Area criteria after the adoption of the euro.
Antonakakis, Nikolaos; Gogas, Periklis; Papadimitriou, Theophilos; Sarantitis, Georgios Antonios
In this study, we examine the issue of business cycle synchronization from a historical perspective in 27 developed and developing countries. Based on a novel complex network approach, the Threshold-Minimum Dominating Set (T-MDS), our results reveal heterogeneous patterns of international business cycle synchronization during fundamental globalization periods since the 1870s. In particular, the proposed methodology reveals that worldwide business cycles de-coupled during the Gold Standard, though they were synchronized during the Great Depression. The Bretton Woods era was associated with a lower degree of synchronization as compared to that during the Great Depression, while worldwide business cycle synchronization increased to unprecedented levels during the latest period of floating exchange rates and the Great Recession.
Full Text Available Organizations inform stakeholders about their current and future activities, processes, created value, strategic intentions, and other information that may influence the established relationships. Organizations choose to communicate with stakeholders by different means and in varied ways. The annual report represents a way of communicating between companies and their stakeholders, and it is offering comprehensive information about how companies operates and creates value. The business model is an emerging concept in management literature and practice. The concept describes the logic by which a organization creates, maintains and delivers value for its stakeholders. Through annual reports organisations can communicate to stakeholders information about their business models.We investigated how information about business models is explicitly communicated through annual reports, and how this information is reffering to stakeholders. Our paper aims to reveal which stakeholders are more often mentioned when organizations are communicating about business models through annual reports. This approach shows the attention degree given by organizations to stakeholders. We perceived this from a strategic point of view, as a strategic signal. Thus, we considered if the stakeholder is mentioned more frequent in the communicated message it has a greater role in communication strategy about business model. We conducted an exploratory research and have realized a content analysis.The analysed data consist in over a thousand annual reports from 96 organizations. We analysed the informations transmitted by organizations through annual reports. The annual reports were for a time period of 12 years. Most of the selected companies are multi-business, and are operating in different industries. The results show the stakeholder’s hierarchy based on how often they were mentioned in the communicated messages about business models through annual reports. Based on our
Saebi, Tina; Foss, Nicolai Juul
-This is the author's version of the article:"Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions", European Management Journal, Volume 33, Issue 3, June 2015, Pages 201–213 Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies' business models are not attuned to open strategies. Ac...
Bashir, Jibran; Afzal, Sara
Purpose: The Purpose of this paper is to introduce a concept, whereby extending the Dave Ulrich’s HR business partner model by adding fifth Role – The HR Intrapreneur Role – in the existing model. This will be done by combining two separate concepts “Four Roles HR Business Partner Model” and “Intrapreneurial HR”, resulting in a five roles HR Business Partner Model. Design/methodology/approach: This paper is introducing a new concept through theoretical research. Findings: H...
Dekimpe, Marnik; Peers, Yuri; van Heerde, H.J.
For service providers, it is essential to understand how their business is affected by the macroeconomy. This is especially pressing for the tourism sector, the world’s largest export service, because the number of incoming visitors is likely to be strongly determined by the business cycles in the
The purpose of this study was to investigate the effects of engaging students in Kolb's experiential learning cycle on facilitating students' simulation game performance and knowledge application skills in learning with a business simulation game. A sample was drawn from a population of business-major undergraduate students at the School of…
Ha, B.H.; Reijers, H.A.; Bae, J.; Bae, H.; Eder, J.; Dustdar, S
The accurate prediction of business process performance during its design phase can facilitate the assessment of existing processes and the generation of alternatives. In this paper, an approximation method to estimate the cycle time of a business process is introduced. First, we propose a process
Chai, Soo H.; Lim, Joon S.
This study presents a forecasting model of cyclical fluctuations of the economy based on the time delay coordinate embedding method. The model uses a neuro-fuzzy network called neural network with weighted fuzzy membership functions (NEWFM). The preprocessed time series of the leading composite index using the time delay coordinate embedding method are used as input data to the NEWFM to forecast the business cycle. A comparative study is conducted using other methods based on wavelet transform and Principal Component Analysis for the performance comparison. The forecasting results are tested using a linear regression analysis to compare the approximation of the input data against the target class, gross domestic product (GDP). The chaos based model captures nonlinear dynamics and interactions within the system, which other two models ignore. The test results demonstrated that chaos based method significantly improved the prediction capability, thereby demonstrating superior performance to the other methods.
Full Text Available The main purpose of this article is to briefly present the Keynesian explanation of business cycle, economic fluctuation and crises, and also the solutions proposed from Keynesian perspective to the economic problems that characterize the bust phases of the business cycles (unemployment, recessions. In the fourth section of the article some criticisms of the Keynesian theoretical approach of the economic crises are considered and summarized.
Katharine L. Bradbury
This public policy brief examines labor force participation rates in this recession and recovery and compares them with the cyclical patterns in earlier business cycles. Measured relative to the business cycle peak in March 2001, labor force participation rates almost four years later have not recovered as much as usual, and the discrepancies are large. ; Among age-by-sex groups, the participation shortfall is especially pronounced at young and prime ages: Only for men and women age 55 and ol...
The interdependence between business cycles of different countries has grown in recent decades. Many factors act as conductors of cyclical fluctuations between countries. In this context, the influence of trade flows in the global transmission of business cycles is examined. The author aims to identify empirically the line of causality of international cyclical movements as suggested by trade flows, presenting an estimate of the quantitive importance of trade flows as transmission channel.
Zhao, Guangling; Ravn Nielsen, Eva
(SymbioFCell) and other stakeholders, the business model is developed within the 1st year of the project. The cost analysis of this project considers the life cycle of hydrogen starting from the hydrogen production, transportation, and consumption. The cost includes the fixed cost for equipment...... at a refuelling station to fuel a fleet of up to 10 electric-hydrogen range extended vans. The present business model report includes a financial analysis of the demonstration project and should provide an early warning if there is anything that would require the project to be altered (for example, to negotiate...... system boundary includes the hydrogen production process, hydrogen transportation, and hydrogen consumption. At each stage, the data has been collected from the project partners and equipment suppliers/manufacturers. The cost of hydrogen is calculated through the life cycle of hydrogen production...
Dore, Mohammed H I; Singh, Ragiv G
This paper reviews three nonlinear dynamical business cycle theories of which only one (The Goodwin model) reflects the stylized facts of observed business cycles and has a plausible turning point mechanism. The paper then examines the US (and now global) financial crisis of 2008 and the accompanying downturn in the US. The paper argues that a skewed income distribution could not sustain effective demand and that over the 2001-2006 expansion demand was maintained through massive amounts of credit, with more than 50 percent of sales in the US being maintained through credit. A vector autoregression model confirms the crucial role played by credit. However legislative changes that dismantled the restrictions placed on the financial sector after the crash of 1929 and the consequent structural changes in the financial sector after 1980 enabled the growth of new debt instruments and credit. But overexpansion of credit when profits and house prices were declining in 2005/06 led to a nonlinear shift due to a new realization of the poor quality of some of this debt, namely mortgage backed securities. Bankruptcies, followed by retrenchment at the banks, then led to the bursting of the credit bubble, with the possibility of a severe recession.
Full Text Available related business model is described. A business model describes the value proposition, market segment, and cost structure, position in the network of competitors, the competitive advantage and the infrastructure of a business entity. This research started...
Maier-Reimer, E.; Heinze, C.
The carbon cycle model calculates the prognostic fields of oceanic geochemical carbon cycle tracers making use of a 'frozen' velocity field provided by a run of the LSG oceanic circulation model (see the corresponding manual, LSG=Large Scale Geostrophic). The carbon cycle model includes a crude approximation of interactions between sediment and bottom layer water. A simple (meridionally diffusive) one layer atmosphere model allows to calculate the CO 2 airborne fraction resulting from the oceanic biogeochemical interactions. (orig.)
Full Text Available Synchronization of business cycle is one of the main criteria for creation of a monetary union. With increasing synchronization of business cycle, a probability of occurrence of demand and supply shocks, which are asymmetric, decreases. The aim of this contribution is to evaluate synchronicity of business cycle in the euro area and some potential monetary unions. There are MERCOSUR (i.e. Argentina, Brazil, Paraguay, Uruguay and Venezuela, NAFTA (Canada, Mexico and the United States of America. For this aim, correlation analysis and two indexes of cyclical components of GDP are used. The cyclical components of GDP are obtained due to the Hodrick-Prescott filter. The results indicate a high degree of business cycles synchronization among states of the euro area (especially in countries of so called core of the euro area and states of NAFTA. In opposite, a lower degree of business cycles synchronization was reached among states of MERCOSUR. According to the criterion of business cycle synchronization, NAFTA is more appropriate candidate than MERCOSUR for creation monetary area.
de Langen, Frank
The economic proverb "There is no such thing such as a free lunch" applies also to open educational resources (OER). In recent years, several authors have used revenue models and business models to analyse the different sources of possible funding for OER. In this article the business models of Osterwalder and Chesbrough are combined…
Wang, Wei; Indulska, Marta; Sadiq, Shazia
Business process models are widely used in organizations by information systems analysts to represent complex business requirements and by business users to understand business operations and constraints. This understanding is extracted from graphical process models as well as business rules. Prior...
Laurentia Elena SCURTU
Full Text Available In the attempt to draw a definition to the business topics of the current period, we report to a string of descriptive key words, which appeal to a growing amount of assets, other than the physical/tangible ones. Thus, the most used words/keywords are: knowledge, skills/abilities or talents and the successful leaders that can use/exploit them productively, to achieve competitive advantage, become the key individuals in the business organizations. This is partly due to the "promise" that "the world of intangibles" guarantee to the modern corporate success. Thus, knowledge has become valuable resources in the current competitive chaos. The issue of this paper focuses on how knowledge are used in business organizations, where they can be located within the organization domain and which is their shelf life/their term of validity comparing to the one of those tangible/physical.
Dongen, van B.F.; Dijkman, R.M.; Mendling, J.
Quality aspects become increasingly important when business process modeling is used in a large-scale enterprise setting. In order to facilitate a storage without redundancy and an efficient retrieval of relevant process models in model databases it is required to develop a theoretical understanding
La Rosa, M.; Dumas, M.; Hofstede, ter A.H.M.; Mendling, J.
A configurable process model provides a consolidated view of a family of business processes. It promotes the reuse of proven practices by providing analysts with a generic modeling artifact from which to derive individual process models. Unfortunately, the scope of existing notations for
Nielsen, Christian; Lund, Morten; Bukh, Per Nikolaj
The field of business models has, as is the case with all emerging fields of practice, slowly matured through the development of frameworks, models, concepts and ideas over the last 15 years. New concepts, theories and models typically transcend a series of maturity phases. For the concept of Bus...
Manoilov, G.; Deliiska, B.
The activities which constitute business process management (BPM) can be grouped into five categories: design, modeling, execution, monitoring and optimization. Dedicated software packets for business process management system (BPMS) are available on the market. But the efficiency of its exploitation depends on used ontological model in the development time and run time of the system. In the article an ontological model of BPMS in area of software industry is investigated. The model building is preceded by conceptualization of the domain and taxonomy of BPMS development. On the base of the taxonomy an simple online thesaurus is created.
Interest for business models and business modeling has increased rapidly since the mid-1990‘s and there are numerous approaches used to create business models. The business model concept has many definitions which can lead to confusion and slower progress in the research and development of business models. A business model ontology (BMO) was created in 2004 where the business model concept was conceptualized based on an analysis of existing literature. A few years later the Business Model Can...
Seidenstricker, Sven; Scheuerle, Stefan; Linder, Christian
Practice has shown that new businesses have managed to change the structure of market sectors and to open positions of power by business model innovation. Often, the origin was new technological possibilities, innovative products, changes in the supply chain management, optimized cost structures or unique resources. Regarding strategic marketing and innovation management, it now is interesting how such potentials can be unlocked and implemented in business model innovations. Here, development...
Zinser, Brian; Brunswick, Gary
The rate of textbook revision cycles is examined in light of the recent trend towards more rapid revisions (and adoptions of textbooks). The authors conduct background research to better understand the context for textbook revision cycles and the environmental forces that have been influencing what appears to be more rapid textbook revisions. A…
Søndergaard, Morten Karnøe; Lindgren, Peter; Veirum, Niels Einar
Recently, there has been growing interest in research on Big Data since more and more information is becoming available to us every day. This is caused by the concurrent rise of new smart technologies (mobile phones, tracking devices, sensors etc.) and social networks, which allow us to virtually...... share everything, with everybody, everywhere - and anytime. These smart technologies might also be used to persuade human beings to change their behavior. The following article aims at presenting an easily understandable way to approach these new developments. Since Big Data can be used to measure...... specific behavior, this results to the ability of designing for specific changes. Businesses use different persuasive technologies to persuade users, customers and network partners to change behavior. Operating more than one value proposition, both tangible and intangible value proposition, in combination...
Job creation and destruction rates fall with a firm's age, young businesses have higher exit rates, conditional on survival they grow faster and given their employment shares they create relatively more jobs than older firms. In fact, recent studies show that the well established negative
Full Text Available Network security processors are critical components of high-performance systems built for cybersecurity. Development of a network security processor requires multi-domain experience in semiconductors and complex software security applications, and multiple iterations of both software and hardware implementations. Limited by the business models in use today, such an arduous task can be undertaken only by large incumbent companies and government organizations. Neither the “fabless semiconductor” models nor the silicon intellectual-property licensing (“IP-licensing” models allow small technology companies to successfully compete. This article describes an alternative approach that produces an ongoing stream of novel network security processors for niche markets through continuous innovation by both large and small companies. This approach, referred to here as the "business ecosystem model for network security processors", includes a flexible and reconfigurable technology platform, a “keystone” business model for the company that maintains the platform architecture, and an extended ecosystem of companies that both contribute and share in the value created by innovation. New opportunities for business model innovation by participating companies are made possible by the ecosystem model. This ecosystem model builds on: i the lessons learned from the experience of the first author as a senior integrated circuit architect for providers of public-key cryptography solutions and as the owner of a semiconductor startup, and ii the latest scholarly research on technology entrepreneurship, business models, platforms, and business ecosystems. This article will be of interest to all technology entrepreneurs, but it will be of particular interest to owners of small companies that provide security solutions and to specialized security professionals seeking to launch their own companies.
This paper contains a short history of business cycle theory. It is argued that in the course of time the emphasis shifted from a mainly exogenous to a mainly endogenous explanation of the cycle. After the integration of the two approaches in the so-called impulse and propagation theory, the balance
Enterprise modeling is an abstract definition of processes running in enterprise using process, value, data and resource models. There are two perspectives of business modeling: process perspective and value chain perspective. Both have some advantages and disadvantages. This paper proposes a combination of both perspectives into one generic model. The model takes also social part or the enterprise system into consideration and pays attention to disturbances influencing the enterprise system....
Kijl, Björn; Nieuwenhuis, Lambert J M; Huis in 't Veld, Rianne M H A; Hermens, Hermie J; Vollenbroek-Hutten, Miriam M R
We designed a business model for deploying a myofeedback-based teletreatment service. An iterative and combined qualitative and quantitative action design approach was used for developing the business model and the related value network. Insights from surveys, desk research, expert interviews, workshops and quantitative modelling were combined to produce the first business model and then to refine it in three design cycles. The business model engineering strategy provided important insights which led to an improved, more viable and feasible business model and related value network design. Based on this experience, we conclude that the process of early stage business model engineering reduces risk and produces substantial savings in costs and resources related to service deployment.
The New Global Business model (NEWGIBM) book describes the background, theory references, case studies, results and learning imparted by the NEWGIBM project, which is supported by ICT, to a research group during the period from 2005-2011. The book is a result of the efforts and the collaborative ...... The NEWGIBM Cases Show? The Strategy Concept in Light of the Increased Importance of Innovative Business Models Successful Implementation of Global BM Innovation Globalisation Of ICT Based Business Models: Today And In 2020......The New Global Business model (NEWGIBM) book describes the background, theory references, case studies, results and learning imparted by the NEWGIBM project, which is supported by ICT, to a research group during the period from 2005-2011. The book is a result of the efforts and the collaborative....... The NEWGIBM book serves as a part of the final evaluation and documentation of the NEWGIBM project and is supported by results from the following projects: M-commerce, Global Innovation, Global Ebusiness & M-commerce, The Blue Ocean project, International Center for Innovation and Women in Business, NEFFICS...
Groskovs, Sergejs; Vemula, Sreekanth
We propose a digital maturity assessment model as an instrument for researchers and a strategic tool for managers. Existing literature lacks a conceptually clear way to measure the construct of digital maturity at the level of the firms business model. Our proposed instrument thus opens avenues f...
Krink, Thiemo; Løvbjerg, Morten
genetic algorithms (GAs), particle swarm optimisation (PSOs), and stochastic hill climbing to create a generally well-performing search heuristics. In the LifeCycle model, we consider candidate solutions and their fitness as individuals, which, based on their recent search progress, can decide to become...... either a GA individual, a particle of a PSO, or a single stochastic hill climber. First results from a comparison of our new approach with the single search algorithms indicate a generally good performance in numerical optimization....
Barnes, Christopher M; Lefter, Alexandru M; Bhave, Devasheesh P; Wagner, David T
Recent management research has indicated the importance of family, sleep, and recreation as nonwork activities of employees. Drawing from entrainment theory, we develop an expanded model of work-life conflict to contend that macrolevel business cycles influence the amount of time employees spend on both work and nonwork activities. Focusing solely on working adults, we test this model in a large nationally representative dataset from the Bureau of Labor Statistics that spans an 8-year period, which includes the "Great Recession" from 2007 through 2009. We find that during economic booms, employees work more and therefore spend less time with family, sleeping, and recreating. In contrast, in recessionary economies, employees spend less time working and therefore more time with family, sleeping, and recreating. Thus, we extend the theory on time-based work-to-family conflict, showing that there are potential personal and relational benefits for employees in recessionary economies. (c) 2016 APA, all rights reserved).
Johannes Sang Un Chae
Full Text Available Purpose: The purpose of the paper is to develop a business model framework for NFC based mobile payment solutions consisting of four mutually interdepended components: the value service, value network, value architecture, and value finance. Design: Using a comparative case study method, the paper investigates Google Wallet and ISIS Mobile Wallet and their underlying business models. Findings: Google Wallet and ISIS Mobile Wallet are focusing on providing an enhanced customer experience with their mobile wallet through a multifaceted value proposition. The delivery of its offering requires cooperation from multiple stakeholders and the creation of an ecosystem. Furthermore, they focus on the scalability of their value propositions. Originality / value: The paper offers an applicable business model framework that allows practitioners and academics to study current and future mobile payment approaches.
Full Text Available Building on the analogy of data packets within the Digital Internet, the Physical Internet is a concept that dramatically transforms how physical objects are designed, manufactured, and distributed. This approach is open, efficient, and sustainable beyond traditional proprietary logistical solutions, which are often plagued by inefficiencies. The Physical Internet redefines supply chain configurations, business models, and value-creation patterns. Firms are bound to be less dependent on operational scale and scope trade-offs because they will be in a position to offer novel hybrid products and services that would otherwise destroy value. Finally, logistical chains become flexible and reconfigurable in real time, thus becoming better in tune with firm strategic choices. This article focuses on the potential impact of the Physical Internet on business model innovation, both from the perspectives of Physical-Internet enabled and enabling business models.
Chae, Johannes Sang-Un; Hedman, Jonas
Purpose: The purpose of the paper is to develop a business model framework for NFC based mobile payment solutions consisting of four mutually interdepended components: the value service, value network, value architecture, and value finance. Design: Using a comparative case study method, the paper...... investigates Google Wallet and ISIS Mobile Wallet and their underlying business models. Findings: Google Wallet and ISIS Mobile Wallet are focusing on providing an enhanced customer experience with their mobile wallet through a multifaceted value proposition. The delivery of its offering requires cooperation...... from multiple stakeholders and the creation of an ecosystem. Furthermore, they focus on the scalability of their value propositions. Originality / value: The paper offers an applicable business model framework that allows practitioners and academics to study current and future mobile payment approaches....
Job creation and destruction rates fall with a firm's age, young businesses have higher exit rates, conditional on survival they grow faster and given their employment shares they create relatively more jobs than older firms. In fact, recent studies show that the well established negative relationship between a firm's size and its growth rate vanishes once its age is taken into account. I extend these findings by showing that, compared to old firms, employment growth in young firms is more vo...
Purpose: To bring to the fore the scientific significance of classification and its role in business model theory building. To propose a method by which existing classifications of business models can be analyzed and new ones developed. Design/Methodology/Approach: A review of the scholarly literature relevant to classifications of business models is presented along with a brief overview of classification theory applicable to business model research. Existing business model classification...
Goumagias, Nik; Fernandes, Kiran; Cabras, Ignazio; Li, Feng; Shao, Jianhao; Devlin, Sam; Hodge, Victoria Jane; Cowling, Peter Ivan; Kudenko, Daniel
In this paper we introduce an environmentally driven conceptual framework of Business Model change. Business models acquired substantial momentum in academic literature during the past decade. Several studies focused on what exactly constitutes a Business Model (role model, recipe, architecture etc.) triggering a theoretical debate about the Business Model’s components and their corresponding dynamics and relationships. In this paper, we argue that for Business Models as cognitive structures,...
Sharan, Alok D; Schroeder, Gregory D; West, Michael E; Vaccaro, Alexander R
The increasing focus on the costs of care is forcing health care organizations to critically look at their basic set of processes and activities, to determine what type of value they can deliver. A business model describes the resources, processes, and cost assumptions that an organization makes that will lead to the delivery of a unique value proposition to a customer. As health care organizations are beginning to transform their structure in preparation for a value-based delivery system, understanding business model theory can help in the redesign process.
Uliyanova, Anastasia; Holm, Anna B.; Nielsen, Anne Ellerup
In the strategic management literature, the customer requirements and the opportunity to satisfy a real customer who needs a job to be done are considered to be the main instigators driving the company to initiate a business model change. However, an extensive search in peer-reviewed media...... management literature on triggers of business model change reveals that the literature is sparse in describing the change in young consumers1’ requirements of value of news put in a broader context of postmodernity; neither does it put focus on understanding of young consumers’ alternating and fragmented...
Full Text Available Monitoring and predicting economic cycles have returned to the awareness of economists with the impact of the economic crisis in 2007/2008. To determine the current and future state of the country’s economic cycle, Composite Leading Indicators (CLI can be used. Their structure is being dealt with by institutions at the national and international level (OECD, Eurostat. Correct predictions of public finance development and the entrepreneurship sphere are very important for competitiveness of the country. The aim of the paper is to propose a new Composite Leading Indicator (CLI to monitor and predict the German economy. The analysis of 140 quantitative and qualitative indicators of industry, services, retail, construction, foreign trade, labor market, money aggregates, stock indices, confidence indicators, consumer expectations was performed for the needs of the indicator. As the reference series represents the German economic cycle, the GDP indicator is selected at constant prices for 2010. All selected quarterly time series are applied with seasonal index methods, the Hodrick-Prescott filter (HP filter in the R program, cross-correlation with time shifts, methods selection and scoring, data standardization, identification of the same and different data and the subsequent construction of the CLI of the German economic cycle. The generated CLI can predict the German economy cycle two quarters ahead with a cross-correlation value of 0.867. The forecasting capabilities of the assembled indicator were better than the prediction capabilities of OECD, Eurostat and IFO indicator.
Asfaw, Abay; Pana-Cryan, Regina; Rosa, Roger
The current study explored the association between the business cycle and the incidence of workplace injuries to identify cyclically sensitive industries and the relative contribution of physical capital and labor utilization within industries. Bureau of Labor Statistics nonfatal injury rates from 1976 through 2007 were examined across five industry sectors with respect to several macroeconomic indicators. Within industries, injury associations with utilization of labor and physical capital over time were tested using time series regression methods. Pro-cyclical associations between business cycle indicators and injury incidence were observed in mining, construction, and manufacturing but not in agriculture or trade. Physical capital utilization was the highest potential contributor to injuries in mining while labor utilization was the highest potential contributor in construction. In manufacturing each effect had a similar association with injuries. The incidence of workplace injury is associated with the business cycle. However, the degree of association and the mechanisms through with the business cycle affects the incidence of workplace injuries was not the same across industries. The results suggest that firms in the construction, manufacturing, and mining industries should take additional precautionary safety measures during cyclical upturns. Potential differences among industries in the mechanisms through which the business cycle affects injury incidence suggest different protective strategies for those industries. For example, in construction, additional efforts might be undertaken to ensure workers are adequately trained and not excessively fatigued, while safety procedures continue to be followed even during boom times. Published by Elsevier Ltd.
Full Text Available Testing circular economy business models is crucial in understanding Circular Economy features across various industries. This paper analyses Circular Economy perceptions in Romanian SMEs by investigating entrepreneurs from PVC joinery industry. Using a multidimensional framework, ReSOLVE, as a conceptual model, and Lewandowski systematization, we measured 6 business actions and their relations with Value creation. The results of our survey can be described as mixed. Of the 6 business actions of ReSOLVE framework, for half of them (Regenerate, Optimize and Exchange we can definitely conclude that these are correlated with Circular Economy in terms of Value Creation, while for a fourth there are variables significantly correlated without being able to conclude its overall contribution in terms of Value creation. Our empirical investigation contributes to literature development on Circular Economy research in SMEs and a step forward to shape future research initiatives.
Khalifa, Ahmed; Caporin, Massimiliano; Hammoudeh, Shawkat
This study constructs a theoretical volatility transmission model for petroleum and FX markets, taking into account major stylized facts and uncertainty measures and the interactions between them under stages of the business cycle. It examines the impacts of those different specifications and economic factors on the spillovers between those considered markets. The results show that the impacts of the “own” shocks (petroleum on petroleum and currency on currency) are statistically significant and positive in almost all cases as expected for the models of natural gas and WTI oil, irrespectively of the currency considered. The asymmetry effect is stronger in the oil than in the natural gas markets. There is stronger and significant evidence that uncertainty affects volatility much more the mean. For the WTI oil, almost all policy and other uncertainty measures lead to an increase in the conditional variance. For currencies, coefficients are commonly significant independent of the presence of petroleum commodities in the bivariate model. The striking result for natural gas is the limited statistical relevance of the economic policy and other uncertainty measures due to the long contracts that characterize this market. Finally, common macroeconomic forces associated with the business cycle can drive these petroleum and currency markets and may cause jumps and co-jumps in the volatility of these markets. The conclusion provides policy implications of the paper’s results. - Highlights: • Examine the impacts of uncertainty measures on energy and currency interaction. • Examine the impacts of asymmetry on energy and currency interactions. • There is stronger asymmetry in oil compared to natural gas. • Uncertainty measures have an impact on volatility dynamics for oil and currencies. • Uncertainty measures do not have an impact on natural gas.
Full Text Available Most of the Fortune 500 companies address Corporate Social Responsibility (CSR on their websites. However, CSR remains a fluffy concept difficult to implement in organization. The European Business Excellence Model has since the introduction in 1992 served as a powerful tool for integrating quality in organizations. CSR was first introduced in the model in 2002. From 2004 the European Foundation for Quality Management (EFQM has been eager to promote the model as an effective tool for implementing CSR.. The article discusses the potentials of the model for this end and illustrates how a 2006 European Award winning company has used the model to integrate CSR. The company adapted the Business Excellence model to improve performance, stimulate innovation and consensus.
Fragnart, Jean-Francois; Licandro, Omar; Portier, Franck
thus hides a diversity of microeconomic situations. The variablity of the capacity utilization allows for a good description of some of the main stylized facts of the busines cycle, propagates and magnifies aggregate technological shocks and generates endogenous persistence (i.e., the output growth...
Bohnsack, R.; Pinkse, J.; Kolk, A.
Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and
Estañol Lamarca, Montserrat; Castro, Manuel; Díaz-Montenegro, Sylvia; Teniente López, Ernest
This paper presents the Kopernik methodology for modeling business processes for digital customers. These processes require a high degree of flexibility in the execution of their tasks or actions. We achieve this by using the artifact-centric approach to process modeling and the use of condition-action rules. The processes modeled following Kopernik can then be implemented in an existing commercial tool, Balandra.
Bouman, M. [Department of Economics, Faculty of Economics and Econometrics, University of Amsterdam, Amsterdam (Netherlands); Hofkes, M.W. [Department of Economics, Faculty of Economics and Econometrics, Vrije Universiteit Amsterdam, Amsterdam (Netherlands)
A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs.
Helbing, Dirk; Lämmer, Stefen; Witt, Ulrich; Brenner, Thomas
Network theory is rapidly changing our understanding of complex systems, but the relevance of topological features for the dynamic behavior of metabolic networks, food webs, production systems, information networks, or cascade failures of power grids remains to be explored. Based on a simple model of supply networks, we offer an interpretation of instabilities and oscillations observed in biological, ecological, economic, and engineering systems. We find that most supply networks display damped oscillations, even when their units—and linear chains of these units—behave in a nonoscillatory way. Moreover, networks of damped oscillators tend to produce growing oscillations. This surprising behavior offers, for example, a different interpretation of business cycles and of oscillating or pulsating processes. The network structure of material flows itself turns out to be a source of instability, and cyclical variations are an inherent feature of decentralized adjustments.
Bouman, M.; Hofkes, M.W.
A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs
Jellison, Holly M., Ed.
Nine successful community college programs for small business management training are described in this report in terms of their college and economic context, purpose, offerings, delivery modes, operating and marketing strategies, community outreach, support services, faculty and staff, evaluation, and future directions. The model programs are…
Boscan, Luis; Poudineh, Rahmatallah
As intermittent, renewable resources gain more share in the generation mix, the need for power system flexibility increases more than ever. Parallel to this, technological change and the emergence of new players bringing about innovative solutions are boosting the development of flexibility...... business models will play an important role in ensuring sufficiency and efficiency of flexibility services....
Bouwman, W.A.G.A.; Nikou, Shahrokh; Molina-Castillo, Francisco Jose; de Reuver, G.A.
Purpose: This paper aims to explore how digital technologies have forced small- to medium-sized enterprises (SMEs) to reconsider and experiment with their business models (BMs) and how this contributes to their innovativeness and performance. Design/methodology/approach: An empirical study has
Peter J. Ince; Ted Bilek; Mark A. Dietenberger
Biomass gasification is an approach to producing energy and/or biofuels that could be integrated into existing forest product production facilities, particularly at pulp mills. Existing process heat and power loads tend to favor integration at existing pulp mills. This paper describes a generic modeling system for evaluating integrated biomass gasification business...
Full Text Available The present paper is devoted to analyze the appropriate recommendations to increase the effectiveness of technology transfer organizations (centers from ReNITT, by using the specific instruments of Business Model Canvas, associated to the technological transfer value chain for the value added services addressed to their clients and according to a continuously improved competitive strategy over competition analysis.
Thom, Lucineia Heloisa; Lochpe, Cirano; Reichert, M.U.
For its reuse advantages, workflow patterns (e.g., control flow patterns, data patterns, resource patterns) are increasingly attracting the interest of both researchers and vendors. Frequently, business process or workflow models can be assembeled out of a set of recurrent process fragments (or
Purpose: The author sets out the basis for a new research programme designed to demonstrate that by encouraging managers of small to medium-sized businesses (SMEs ) to take a positive approach to social and environmental risks, embedding and operationalising their responses into their business
Govindarajan, Vijay; Trimble, Chris
Fending off new competitors is a perennial struggle for established companies. Govindarajan and Trimble, of Dartmouth's Tuck School of Business, explain why: Many corporations become too comfortable with their existing business models and neglect the necessary work of radically reinventing them. The authors map out an alternative in their "three boxes" framework. They argue that while a CEO manages the present (box 1), he or she must also selectively forget the past (box 2) in order to create the future (box 3). Infosys chairman N.R. Narayana Murthy mastered the three boxes to reinvigorate his company and greatly increased its changes of enduring for generations.
Madsen, Svend Ole; Brink, Tove
The purpose of this article is to reveal how small and medium sized enterprises (SMEs) can enable sustainable business model innovation (BMI) in the offshore wind turbine industry. A longitudinal empirical research on 10 SMEs within the wind turbine industry provides data for the findings....... The findings reveal interesting opportunities for BMI both within the SMEs, the SME network and in wider industrial context to increase awareness on business opportunities to act and hereby increase sustainable value. However, also boundaries occur for BMI, which can be difficult to crisscross. It is revealed...
Salema, José Frederico Bettencourt
A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics Prego Gourmet is a fast food restaurant which sells refined versions of a traditional Portuguese dish inside shopping centers in the area of Lisbon. The company is at the beginning of its expansion strategy. This work project is a prospective analysis on what the company should do to in order to optimize its business model and grow in Portug...
Business model is relatively a new term that emerged in 1990s together with the mushroom of e-business. Conceptually business model is therefore still in infancy. Despite this fact however it does matter (Magretta, 2002). Business model which is conceived as the logic of doing business, a construct, a mental model or a business paradigm, is considered a guide on how to do every day’s business. Based on the above mentioned understanding, this paper based on action research study...
Full Text Available The growing concern about the development of sustainable production systems leads organizations to seek the support of management tools for decision-making. Considering the whole life cycle of the product, the Life Cycle Assessment (LCA has an important role in this scenario. The objective of this paper is to present, through the theoretical discussion, the role of LCA in strategic planning of the organization. It showed the enormous potential for decision making on the environmental aspect, but also the critical factor in the development shares in the competitive context. The use of LCA can reduce the environmental impacts of the system under study (primary purpose and guide the range of advantages in the fields of marketing, legislation and environmental labeling, competitive strategies, efficiency use of resources and others.
The doctoral thesis addresses the existing gap between business process models and states of business objects. Existing modelling methods such as BPMN and ArchiMate lack an explicitly declarative approach for capturing states of business objects and laws of state transitions. This gap hinders the compliance of business process models with regulations imposed internally or externally, and can result in potential legal problems for organizations. Also this g...
Lüftenegger, E.R.; Comuzzi, M.; Grefen, P.W.P.J.; Weisleder, C.A.
Existing approaches on business model tools are constrained by the goods dominant way of doing business. Nowadays, the shift from goods based approaches towards a service dominant strategy requires novel business model tools specially focused for service business. In this report we present the
Jensen, Henrik; Sund, Kristian J.
models. We find evidence for the existence of three separate stages in this innovation process, which we call business model innovation awareness, business model exploration, and business model exploitation. We furthermore find and document how different building blocks act, and interact as enablers...... or facilitators of innovation in each stage of the business model innovation process....... chain. Based on secondary data and in-depth interviews with 11 Danish media agency CEOs, and using the nine building blocks suggested in the business model canvas framework of Osterwalder and Pigneur (2010), we develop a grounded process model describing how these agencies have altered their business...
Fábio Luiz Zandoval Bonazzi
Full Text Available Unlike the past, currently, thinking about innovation refers to a reflection of value cocreation through strategic alliances, customer approach and adoption of different business models. Thus, this study analyzed and described the innovation process of company DSM, connecting it to concepts of organizational development strategies and the theory of business model. This is a basic interpretive qualitative research, developed by means of a single case study conducted through interviews and documentary analysis. This study enabled us to categorize the company business model as an open, unbundled and innovative model, which makes innovation a dependent variable of this internal configuration of value creation and value capture. As a theoretical contribution, we highlight the convergence and complementarity of the “Business Model Canvas” tool and “Innovation Funnel,” used here, to analyze the empirical case.
Full Text Available The establishment of service orientation in industry determines the need for efficient engineering technologies that properly support the whole life cycle of service provision and consumption. A central challenge is adequate support for the efficient employment of komplex services in their individual application context. This becomes particularly important for large-scale enterprise technologies where generic services are designed for reuse in several business scenarios. In this article we complement our work regarding Service Variability Modelling presented in a previous publication. There we presented an approach for the customization of services for individual application contexts by creating simplified variants, based on model-driven variability management. That work presents our revised service variability metamodel, new features of the variability tools and an applicability study, which reveals that substantial improvements on the efficiency of standard business service consumption under both usability and economic aspects can be achieved.
Ritschl, Albrecht; Sarferaz, Samad; Uebele, Martin
We estimate a Stock/Watson index of economic activity to assess U.S. business cycle volatility since 1867. We replicate the Great Moderation of the 1980s and 1990s and find exceptionally low volatility also in the Golden Age of the 1960s. Postwar moderation relative to pre-1914 occurs under constant but not time-varying factor loadings, suggesting structural change toward more volatile sectors. For comparable series, the U.S. postwar business cycle was as volatile overall as under the Classic...
Beck, T.H.L.; Degryse, H.A.; de Haas, R.; van Horen, N.
Using a novel way to identify relationship and transaction banks, we study how banksâ€™ lending techniques affect funding to SMEs over the business cycle. For 21 countries we link the lending techniques that banks use in the direct vicinity of firms to these firmsâ€™ credit constraints at two contrasting points of the business cycle. We show that relationship lending alleviates credit constraints during a cyclical downturn but not during a boom period. The positive impact of relationship lend...
Full Text Available The paper deals with the correlation of the business cycles between the Eurozone member states in the period 1957–2003. The analysed period is divided into the four parts (1959–1972, 1973–1985, 1986–1994, 1995–2003, which correspond to integration waves and relate approximately to the European integration process. The empirical analysis is based on the time series correlation. The authors discuss the impact of the EC enlargements on the business cycles correlation as well as on qualitative changes in the interaction between the states.
Full Text Available This paper focuses on explaining the economic fluctuations in Bulgaria after the introduction of the currency board arrangement in 1997, the period of macroeconomic stability that ensued, the EU accession, and the episode of the recent global financial crisis. This paper follows Chari et al. (2002, 2007 and performs business cycle accounting (BCA for Bulgaria during the period 1999-2014. As in Cavalcanti (2007, who studies the Portuguese business cycles, most of the volatility in output per capita in Bulgaria over the period is due to variations in the efficiency and labor wedges.
Sala, Enric; Costello, Christopher; Dougherty, Dawn; Heal, Geoffrey; Kelleher, Kieran; Murray, Jason H.; Rosenberg, Andrew A.; Sumaila, Rashid
Marine reserves are an effective tool for protecting biodiversity locally, with potential economic benefits including enhancement of local fisheries, increased tourism, and maintenance of ecosystem services. However, fishing communities often fear short-term income losses associated with closures, and thus may oppose marine reserves. Here we review empirical data and develop bioeconomic models to show that the value of marine reserves (enhanced adjacent fishing + tourism) may often exceed the pre-reserve value, and that economic benefits can offset the costs in as little as five years. These results suggest the need for a new business model for creating and managing reserves, which could pay for themselves and turn a profit for stakeholder groups. Our model could be expanded to include ecosystem services and other benefits, and it provides a general framework to estimate costs and benefits of reserves and to develop such business models. PMID:23573192
Full Text Available The proposed study aims to use asyncretic and synthetic approach of two elements that have an intrinsic efficiency value: business models and electric vehicles. Our approach seeks to circumscribe more widespread concerns globally - on the one hand, to oil shortages and climate change - and on the other hand, economic efficiency to business models customized to new types of mobility. New “electric” cars projects besiege the traditional position of the conventional car. In the current economy context the concept of efficiency of business models is quite different from what it meant in a traditional sense, particularly because of new technological fields. The arguments put forward by us will be both factual and emotional. Therefore, we rely on interviews and questionnaires designed to fit significantly to the point of the study. Research in the field of new propulsion systems for vehicles has been exploring various possibilities lately, such as: electricity, hydrogen, compressed air, biogas, etc. Theoretically or in principle, it is possible for tomorrow’s vehicles to be driven by the widest variety if resources. A primary goal of our study would be to theoretically reconsider some of the contemporary entrepreneurship coordinates and secondly to provide minimum guidance for decision-making of businesses that will operate in the field of electric mobility. To achieve this, we shall specifically analyze an electric mobility system but in parallel we will address business models that lend themselves effectively on aspects of this field. With a methodology based on questionnaires that had to overcome the conventional mechanism using some of the most unusual ingredients, we hope that the results of our research will successfully constitute a contribution to the goals and especially as a means of managerial orientation for entrepreneurs in the Romanian market.
New nuclear development will require new business models that ensure maximum risk mitigation for the plant owner and rate payers. To deliver this model, AECL has joined with leading members of the nuclear industry to form Team CANDU. This presentation will introduce contracting structures that have been used by Team CANDU members to reduce plant delivery risk in an ongoing record of successful project completions over the last decade. (author)
Hvass, Kristian Anders
Research in business model innovation has identified its significance in creating a sustainable competitive advantage for a firm, yet there are few empirical studies identifying which combination of business model activities lead to success and therefore deserve innovative attention. This study...... analyzes the business models of North America low-cost carriers from 2001 to 2010 using a Boolean minimization algorithm to identify which combinations of business model activities lead to operational profitability. The research aim is threefold: complement airline literature in the realm of business model...... innovation, introduce Boolean minimization methods to the field, and propose alternative business model activities to North American carriers striving for positive operating results....
Alberts, Berend Thomas; Meertens, Lucas Onno; Iacob, Maria Eugenia; Nieuwenhuis, Lambertus Johannes Maria; Shishkov, Boris
The business model field of research is a young and emerging discipline that finds itself confronted with the need for a common language, lack of conceptual consolidation, and without adequate theoretical development. This not only slows down research, but also undermines business model’s usefulness
Erlyana, Yana; Hartono, Henny
The advancement of technology has huge impact on commerce world, especially in the marketplace that has shifted from brick-and-mortar to digital/online marketplace. Grasping the opportunity, ABC joined venture with DEF to create a new online venture namely XYZ Online Shop - an e-commerce website that has large segmentations. The objective of this research is to analyze the business model conducted by XYZ Online Shop by utilizing Business Model Canvas Framework and SWOT analysis. The results obtained from the research are that the business model conducted by XYZ Online Shop excels in customer relationship block and still needs to improve key partner and key activities blocks. Business Model Canvas along with SWOT analysis describes how XYZ Online Shop creates, delivers, and captures value based on its internal and external environments.
The development of IT will lead to the integration of computers and networks, and IT will become more function oriented service and result in an indispensable part of the social infrastructure. This means that the critical point will shift from prioritizing “ownership of IS (Information Systems) before anything else” to “how IT will be utilized.” By reaching this technology level, Western origin non-discretion oriented management concept where IT is used as an enabler and IT-based business tools can be flexible enough to accommodate highly discretion oriented practices in Japanese organizations. In other words, IT can finally be utilized in a Japanese way. Taking account of the technological development trend, there is a need to take a macro look at the meaning of the concept of business models, something that has become viewed in the “micro” as patent-related issues. Under such trends, the greater freedom in business design the multipurpose use of IT functions is providing, the more critical a capability in the design of an elaborate business model is becoming.
Pereira , Sergio; Medina , Franciele; Gonçalves , Rodrigo ,; Silva , Márcia
Part 10: Collaborative Systems; International audience; The purpose of this research is to reduce the existing gap between the abstraction of the real world and business modeling. For that, we combine two solutions: the soft systems methodology (SSM) and business model canvas (BMC). The first step is to introduce the theoretical concepts of both. The second step is the application of each methodology separately. Moreover, the final stage is to feed the BMC with the outputs of SSM. Was verifie...
The legally required financial security is provided by the insurance business by way of liability insurance systems. Insurance coverage is given for the obligation to pay damages in compliance with section 13 Atomic Energy Act, which refers to all objects of legal protection also defined in section 823, sub-sec. (1) BGB. The legal provisions valid in the F.R.G. are very similar to the provisions in most western countries. They comply with the Paris Convention which determines the legal bases of the international third party liability system which have been supplemented by the Brussels Convention. The reactor accident at Chernobyl has induced discussions and changes in the insurance sector. A major conclusion was that liability criteria must have unambiguous definition and delimitation. A compensation system is feasible only on the basis of clear-cut definitions. A first step in this direction has been done by issuing maximum permissible limits for foodstuffs. Another major instrument for coping with a nuclear accident is the distribution scheme defined in section 35 Atomic Energy Act. (orig./HSCH) [de
Segers, Jean Pierre
The purpose of this paper is to identify a selection of key business models - “typology” - applied in the biotechnology industry. The focus is on the differences between traditional/closed or stand-alone business models opposed to open or networked business models. A number of illustrative case studies and good practices are presented to show that new biotechnology firms are gradually adopting a “best of both worlds” strategy, with both closed business models and open, networked models as ...
Varner, Carson H., Jr.; Whitcomb, Richard O.
This model combines in a team-taught course the study of business and a foreign language. The objective is to give business students a foreign language experience in a relatively brief time and also to offer them a business-oriented introduction to a culture other than their own. Students in business courses are preparing for a career in…
Mannching Sherry Ku
Full Text Available The recent rise of specialty pharma is attributed to its flexible, versatile, and open business model while the traditional big pharma is facing a challenging time with patent cliff, generic threat, and low research and development (R&D productivity. These multinational pharmaceutical companies, facing a difficult time, have been systematically externalizing R&D and some even establish their own corporate venture capital so as to diversify with more shots on goal, with the hope of achieving a higher success rate in their compound pipeline. Biologics and clinical Phase II proof-of-concept (POC compounds are the preferred licensing and collaboration targets. Biologics enjoys a high success rate with a low generic biosimilar threat, while the need is high for clinical Phase II POC compounds, due to its high attrition/low success rate. Repurposing of big pharma leftover compounds is a popular strategy but with limitations. Most old compounds come with baggage either in lackluster clinical performance or short in patent life. Orphan drugs is another area which has gained popularity in recent years. The shorter and less costly regulatory pathway provides incentives, especially for smaller specialty pharma. However, clinical studies on orphan drugs require a large network of clinical operations in many countries in order to recruit enough patients. Big pharma is also working on orphan drugs starting with a small indication, with the hope of expanding the indication into a blockbuster status. Specialty medicine, including orphan drugs, has become the growth engine in the pharmaceutical industry worldwide. Big pharma is also keen on in-licensing technology or projects from specialty pharma to extend product life cycles, in order to protect their blockbuster drug franchises. Ample opportunities exist for smaller players, even in the emerging countries, to collaborate with multinational pharmaceutical companies provided that the technology platforms or
Ku, Mannching Sherry
The recent rise of specialty pharma is attributed to its flexible, versatile, and open business model while the traditional big pharma is facing a challenging time with patent cliff, generic threat, and low research and development (R&D) productivity. These multinational pharmaceutical companies, facing a difficult time, have been systematically externalizing R&D and some even establish their own corporate venture capital so as to diversify with more shots on goal, with the hope of achieving a higher success rate in their compound pipeline. Biologics and clinical Phase II proof-of-concept (POC) compounds are the preferred licensing and collaboration targets. Biologics enjoys a high success rate with a low generic biosimilar threat, while the need is high for clinical Phase II POC compounds, due to its high attrition/low success rate. Repurposing of big pharma leftover compounds is a popular strategy but with limitations. Most old compounds come with baggage either in lackluster clinical performance or short in patent life. Orphan drugs is another area which has gained popularity in recent years. The shorter and less costly regulatory pathway provides incentives, especially for smaller specialty pharma. However, clinical studies on orphan drugs require a large network of clinical operations in many countries in order to recruit enough patients. Big pharma is also working on orphan drugs starting with a small indication, with the hope of expanding the indication into a blockbuster status. Specialty medicine, including orphan drugs, has become the growth engine in the pharmaceutical industry worldwide. Big pharma is also keen on in-licensing technology or projects from specialty pharma to extend product life cycles, in order to protect their blockbuster drug franchises. Ample opportunities exist for smaller players, even in the emerging countries, to collaborate with multinational pharmaceutical companies provided that the technology platforms or specialty medicinal
Holm, Anna; Ulhøi, John Parm
by leading newspapers. More specifically, we review how changes introduced during the on-going development of digital platforms have affected the dominant business model and its key components at the leading newspaper industry players in Denmark, and whether those changes have improved their situation......The newspaper industry is presently under pressure in at least two important ways. First, their previous business models, based on paper-based newspapers, subscription fees and sales of advertising space are threatened by new internet-based technologies. Second, the hitherto monopoly held...... by the traditional profession behind the production of news – the journalists – is challenged by the emergence of new social movements providing fast and free news, often available directly in the making. This paper discusses the emergence of online publication of news and associated innovation activities undertaken...