Design of an Innovative Business Model for Mobile Virtual Network Operators
Abstract
Purpose: The article studies a possible innovative business model for sustainable competitive advantage in current communication technologies.
Methodology/Approach: This ethnographic approach consists of contextual interviews with company managers and specialists. Scientific observation and comparison took preference over other methods for the evaluation of results. Comparison methods were used for comparing price levels of telecommunication services within OECD countries and used for characterizing virtual operators.
This method of modelling was applied to both corporate process-design and functions.
Findings: This paper proposes a normative model as the foundation for a virtual operator that would be generally applicable by any potential newcomer to the budding virtual telecommunication market.
Research Limitation: Business model innovation in the virtual mobile operator area is a quite new concept, which is still under development. For that reason the validation of the model has not been fully completed until now.
Originality/Value of paper: The paper demonstrates this quite new approach to business model development and its possible application in the area of virtual mobile operators.
Full text article
References
Abraham, S., 2013. Will business model innovation replace strategic analysis? Strategy and Leadership, 41(2), pp.31-38.
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan Management Review, 53(3), pp.40-49.
Baden-Fuller, C., Mangematin, V., 2013. Business models: A challenging agenda. Strategic Organization, 11(4), pp.418-427.
Balon, M. and Liau, B., 2012. Mobile Virtual Network Operator Architecture Evolution and Economic Stakes. In: Proceedings from the 15th International Telecommunications network Strategy Symposium (NETWORKS), Rome, Italy, October, pp. 15-18.
Bocken, N.M.P., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, pp.42-56.
Boote, D.N. and Beile, P., 2005. Scholars before Researchers: On the Centrality of the Dissertation Literature Review in Research Preparation. Educational Researcher, 34(6), pp. 3-15.
Bourreau, M., Gensollen, M. and Moreau, F., 2012. The impact of a radical innovation on business models: Incremental adjustments or big bang? Industry and Innovation, 19(5), pp.415-435.
Brynjolfsson, E. and Hitt, L., 2004. Intangible Assets and the Economic Impact of Computers. In:, W. Dutton, B. Kahin, R. O´Callaghan and A.W. Wyckoff eds. Transforming Enterprise. Cambridge, Massachusetts: MIT Pres, pp.27-48.
Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business Model Innovation as Lever of Organizational Sustainability. The Journal of Technology Transfer, 40(1), pp.85-104.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto tactics. Long Range Planning, 43(2-3), pp.195-215.
Český telekomunika?ní úřad (ČTÚ), 2016. Seznam poskytovatelů mobilních služeb. [online] Available at: http://www.apms.cz/pro-spotrebitele/seznamposkytovatelu-mobilnich-sluzeb.
Chesbrough, H., 2010. Business model innovation: Opportunities and barriers. Long Range Planning, 43(2-3), pp.354-363.
Chesbrough, H. and Rosenbloom, R.S., 2002. The role of the business model in capturing value from innovation evidence from Xerox Corporation. Industrial and corporate change, 11(3), pp.529-555.
Christensen, C., Raynor, M.E. and McDonald R., 2015. What is Disruptive Innovation? Harvard Business Review, December, pp.44-53.
Davila, T., Epstein, M.J. and Shelton, R., 2006. Making innovation work: how to manage it, measure it, and profit from it. Upper Saddle River: Wharton School Publishing, XXVI, ISBN 01-314-9786-3.
Demil, B. and Lecocq, X., 2010. Business model evolution. In search of dynamic consistency. Long range planning, 43(2-3), pp.227-246.
Dey, C., 2002. Methodological issues: The use of critical ethnography as an active research methodology. Accounting, Auditing & Accountability Journal, 15(1), pp.106-121.
Dimov, D. P., 2007. Beyond the single-person, single insight attribution in understanding entrepreneurial opportunities. Entrepreneurship Theory and Practice, 31(5), pp.713-731.
Euchner, J. and Ganguly, A., 2014. Business model innovation in Practice. Research-Technology Management, 57(6), pp.33-39.
Evans, J. D. and Johnson, R. O., 2013. Tools for managing early–stage business model innovation. Research-Technology Management, 56(5), pp.52-56.
Fotr, J., Švecová, L., Dědina, J., Hrůzová, H. and Richter, J., 2006. Manažerské rozhodování [Managerial decision making]. Praha: Ekopress s.r.o, ISBN 80-86929-15-9.
Fotr, J., Vacík, E., Sou?ek, I., Špa?ek, M. and Hájek, S., 2012. Tvorba strategie a strategické plánování: teorie a praxe [Creating a strategy and Strategic Planning: Theory and Practice] 1st. Edition. Praha: Grada Publishing.
Giesen, E. Berman, S., Bell, R. and Blitz, A., 2007. Three ways to successfully innovate your business model. Strategy and Leadership, 35(6), pp.27-33.
Goebble, M.M., 2014. Business Model Innovation. Research-Technology Management, 57(6), pp.58-60.
International Telecommunication Union (ITU), 2011. Regulatory Treatment of Mobile VNOs. April 4. [online] Available at: http://www.itu.int/osg/spu/ni/3G/resources/MVNO/index.html.
Kaplan, S., 2012. The Business Model Innovation Factory: How to Stay Relevant When the World is Changing. John Wiley & Sons.
Keeley, L., Pikkel, R., Quinn, B. and Walters, H., 2013. Ten types of Innovation: The Discipline of Building Breakthroughs. Hoboken, NJ: John Wiley & Sons.
Laukkanen, M. and Patala, S., 2014. Analysing barriers to sustainable business model innovations: Innovation system approach. In: XXV ISPIM Conference Innovation for Sustainable Economy & Society, Dublin, Ireland. Retrieved from www.ispim.org.
Le Cadre, H. and Bouhtou, M., 2012. Modelling MNO and MVNO´s dynamic interconnection relation: is cooperative content investment profitable for both providers? Telecommunication Systems, 51(2-3), pp. 193-217.
Nelson, R. R. and Nelson, K., 2002. Technology, institutions, and innovation systems. Research Policy, 31(2), pp. 265-272.
Nokia Siemens Networks (NSN). Mobile Virtual Network Operator, 2004. [online] Available at: http://www.mvnodynamics.com/wpcontent/uploads/2011/05/MVNO_A4_2106.pdf.
Ofcom, 2004. The Communications Market. Telecommunications, October. [online] Available at: www.ofcom.org.uk/research/cm/cmpdf/telecoms.pdf.
O´Reilly, C.A. and Tushman, M.L., 2013. Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives, 27(4), pp.324-338.
Osterwalder, A. and Pignneur, Y., 2010. Business Model Generation. A Handbook for Visionaries, Game Changers, and Challengers. New Jersey: John Wiley & Sons.
Ringier Axel Springer (RAS), 2012. Presentation of the project BLESKmobil. [online] Available at: http://www.ringieraxelspringer.cz/system/files/article/2012/10/cs1274.pdf?download=1.
Shin, D.,H., 2008. Overlay networks in the West and the East: a technoeconomic analysis of mobile virtual network operators. Telecommunication Systems, 37(4), pp.157-168.
Slywotzky, A., 2002. The Art of Profitability. New York: Warner Books.
Smith, W.K., Binns, A. and Tushman, M.L., 2010. Complex business models: Managing strategic paradoxes simultaneously. Long Range Planning, 443(2-3), pp.448-461.
Sosna, M., Trevinyo-Rodriguez, R.N. and Velamuri, S.R., 2010. Business model innovation through trial-and-error learning: The Naturhouse Case. Long Range Planning, 43(2-3), pp.383-407.
Singh, R., 2001. A comment on developing the field of entrepreneurship through the study of opportunity recognition and exploitation. Academy of Management Review, 26(1), pp.10-12.
Sydow, J., Schreyögg, G. and Koch, J., 2009. Organizational path dependence: Opening the black box. Academy of Management Review, 34(4), pp.689-709.
Špa?ek, M. and Štěpán, M., 2013. Designing New Business Model As A Breakthrough Innovation For Competitive Advantage Creation. In: Proceedings International Days of Statistics and Economics (MSED). [CD-ROM]. VŠE, September, 2013, pp.1400-1410. [online] Available at: https://msed.vse.cz/files/2013/18-Spacek-Miroslav-paper.pdf.
Tang, J., Kacmar, K.M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of new opportunities. Journal of Business Venturing, 27(1), pp.77-94.
Teece, D. J., 2010. Business models business strategy and innovation. Long Range Planning, 43 (2-3), pp.172-194.
Tidd, J., Bessant, J. and Pavitt, K., 2007. Řízení inovací: zavádění technologických, tržních a organiza?ních změn [Innovation management: the introduction of technological, market and organizational changes]. 1st. edition, Brno: Computer Press. ISBN 978-80-251-1466-7.
Zhao, S., Zhu, Q. and Zhu, H., 2012. Optimal Price Strategy Selection for MVNO in Spectrum sparing: An Evolutionary Game Approach. KSII Transactions on Internet and Information Systems, 6(12), pp.3133-3151.
Zott, C. and Amit, R., 2007. Business model design and the performance of entrepreneurial firms. Organization Science, 18(2), pp. 181-199.
Zott, C., Amit, R. and Massa, L., 2010. Business model design: an activity system perspective. Long range planning, 43(2-3), pp.216-226.
Zott, C., Amit, R. and Massa, L., 2011. The business model: Recent developments and future research. Journal of Management, 37(4), pp.1019-1042.
Authors
This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author. This is in accordance with the BOAI definition of open access. This journal is licensed under a Creative Commons Attribution 4.0 License - http://creativecommons.org/licenses/by/4.0.
Authors who publish with the Quality Innovation Prosperity agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.