Environmental entrepreneurship has tremendous potential to deliver radical and disruptive technology innovation that can safeguard our biosphere. However, we lack insights into how green ventures can cultivate dynamic capabilities that allow these ventures to thrive. The existing dynamic capability framework does not adequately capture the unique challenges and opportunities facing early-stage green ventures. Consequently, in this study we ask: what are the micro-foundations underpinning dynamic capabilities in early-stage green ventures? How are these dynamic capabilities cultivated? How do these dynamic capabilities correspond to and co-develop with external factors in flux when disruptive green innovation is commercialized? This paper is based on an exploratory case study of 14 ventures developing green innovations in the biofuel, bioenergy, biochemistry, and biomaterial sectors. Our study conceptualizes the micro-foundations of dynamic capabilities related to sensing, seizing, and reconfiguring capabilities. Moreover, it develops a detailed and comprehensive framework of dynamic capability building for early-stage green ventures, which links internal dynamic capability building processes with influential external factors in flux.

The global climate crisis and the substantial greenhouse gas emissions associated with the food industry necessitate the flourishing of green initiatives in this sector. As a response, new food sources (NFS) have emerged as a means to shift consumption behaviors and enhance sustainability. However, NFS companies, often characterized by limited resources and expansion challenges, face difficulties in achieving sustainable growth. This research has the purpose to investigate the necessary capabilities for successful sustainable expansion within the NFS sector and develop a comprehensive framework that maps these capabilities to different stages of expansion. Through a multiple case study approach, encompassing 21 interviews conducted within the NFS sector, this study identifies five stages of sustainability work that act as drivers for sustainable expansion. Moreover, eight categories of capabilities crucial for achieving sustainable expansion are identified and ranked in a progressive manner, from fundamental to competitive advantage. Subsequently, the study establishes a framework that links the five stages of sustainable expansion with the corresponding capabilities, providing a practical guide for NFS companies seeking to pursue sustainable growth. This research contributes to the understanding of the NFS sector by uncovering key success factors for sustainable expansion. The findings offer valuable insights for NFS companies and stakeholders, informing strategic decision-making and fostering sustainable practices in the food industry.

In the era of Industry 4.0, researchers have begun to more thoroughly examine digital maintenance, i.e., eMaintenance, as digitization is increasingly affecting today’s society. This area is particularly interesting in the case of long-life components such as those used in the mining and transport industries. With eMaintenance, the correct type of maintenance can be utilized and the frequency for device maintenance can be reduced through real-time diagnosis. This leads to reduced costs for companies that implement eMaintenance as well as environmental benefits through improved resource utilization. Advantages of eMaintenance have been described in the literature; however, the capabilities necessary to implement eMaintenance lack proper research. The purpose of this study is to develop a framework that presents the required capabilities and their connection when an organization wants to implement eMaintenance, as well as to identify the outcomes of the transition to eMaintenance. The study is based on an exploratory case study that includes 26 interviews with a digital railway maintenance development company and its main customer, the traffic agency. The study findings are presented in a framework, including five main capabilities for implementing eMaintenance and its relationship within the noted industries. The required capabilities are, namely, digital technology development, organizational development, change of work routines, compliance with regulations, and assuring information security. The framework also analyzes the outcomes of implementing digital maintenance, which demonstrate a variety of economic, environmental, and social benefits.

Purpose: The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs.

Design/methodology/approach: The present study has adopted an exploratory multiple case study, conducting a total of 40 interviews in a two-phased approach to data collection. The first phase consisted of exploratory interviews with twenty-six industrial SMEs connected to the manufacturing industry in Sweden and Finland. Then, six SMEs were selected in the second phase to participate in additional in-depth interviews.

Findings: First, this study identifies three gradual enabling phases concerned with the digital service maturity of SMEs consisting of digital awareness, digital service innovation and digital service mass customization. Second, the three interdependent phases of ecosystem knowledge synergy, ecosystem integration and ecosystem value co-creation were identified to improve ecosystem involvement. Finally, a process framework has been developed for SME internationalization consisting of a digital servitization innovation strategy, a digital servitization ecosystem strategy and a digital servitization scaling strategy.

Originality/value: The present research contributes to how digital servitization enables SME internationalization by demonstrating how the development of digital service offerings and ecosystem partnerships supports the internationalization process. This research extends the literature by proposing a process framework for the digital-servitization-enabled internationalization of SMEs. This process perspective provides a richer explanation of the complex interplay between servitization, digitalization and ecosystems choices, which supports the expansion into international markets.

Purpose: Digital servitization has shown to create a competitive advantage for manufacturing companies on the international market. However, companies, specifically SMEs, are struggling to make use of its benefits for their international activity. Therefore, the purpose of this study is to investigate how SMEs utilize digital servitization for their internationalization strategy by developing their ecosystem capabilities.

Design/Methodology/Approach: To achieve this purpose, this study has adopted an exploratory multiple case-study approach and conducted in-depth semi-structured interviews with 21 manufacturing SMEs.

Findings: In this study, a framework has been developed for SMEs to enable their international activities by strengthening their digital servitization capabilities, which include digital awareness, digital service innovation, and digital service customization. Ecosystem capabilities, including ecosystem knowledge synergy, ecosystem innovation appropriability, and ecosystem alignment, have been identified as the deciding factor for the successful adoption of internationalization strategies.

Originality/Value: Despite its potential, the implementation of digital servitization is still challenging for most of the manufacturing companies, especially SMEs that target international markets. These companies are dependent on ecosystems in the international atmosphere, but the capabilities needed to succeed requires further research. In this regard, the framework presented in this study helps SMEs to develop ecosystem capabilities for digital servitization in the international arena.

• Forskning visar att många av Norrlands småföretag är högspecialiserade och kan säkerställa framtida konkurrenskraft genom att utnyttja digitalisering och omvandling av affärsmodeller.

• Företag i alla branscher, men särskilt små och medelstora företag i perifera regioner är dåligt förberedda att dra nytta av digitaliseringens potential.

• Beslutsfattare, branschorganisationer och akademi behöver stödja små och medelstora företag att skapa, leverera och fånga värde genom digitalisering och avancerade tjänsteaffärsmodeller.

• Flertalet småföretag i Norrland kan komma att möta en ”digital paradox” på grund av omogenhet i att bygga digitaliseringsförmågor, samarbeta i industriella ekosystem och möta förändrade kundbehov.

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.

Manufacturing companies are increasingly focused on service-led growth to gain new revenue streams and achieve sustainable competitive advantages. In this regard, offering product-service systems (PSS) is proposed as an attractive solution for manufacturing companies to achieve economic, environmental, and social benefits. More specifically, through the integration of provider and customer operations, efficiency is increased because each party focuses on its core competencies, and operations are optimized. For example, prolonged product lifetimes and increased resource utilization are part of the sustainability achievements that can be achieved through successful PSS implementation.

Still, successful implementation of PSS is rare. The business model has become acommon unit of analysis in PSS and the crucial factor that may differentiate successful and unsuccessful PSS companies. Revising business models toward PSS provision and the implementation of the PSS business model is a challenging process that constitutes a major reason why companies struggle to increase the service degree of their offerings. This thesis suggests that a better understanding of tactics, risk management, service network adjustment, and activity alignment is associated with PSS business model implementation. Therefore, the purpose of this thesis is to advance the understanding of PSS business model implementation.

Comprised of a cover story and five separate but interrelated articles, this dissertation explores the implementation of product-service systems business models. The results are based on a systematic literature review and four case studies with Swedish manufacturing companies. The thesis is empirical based on 107 interviews with employees from four different manufacturing companies and eight distributers of one of the case companies.

This thesis contributes to the PSS literature by proposing a four-phase PSS business model implementation framework. The framework goes beyond selecting a PSS business model to also include the configuration of related tactical sets, risk identification and management, and adjustment of the delivery practices, along with activity alignment. All phases are crucial for PSS business model implementation and therefore make specific contributions by themselves. Furthermore, by applying agency theory to mitigate adverse customer behavior, this thesis contributes to the increased legitimacy of the PSS research field.

Digital platforms are transforming almost every industry today and are expected to revolutionize future value creation. Digital platforms require collaboration, but this is challenging especially in the manufacturing industry where sensitive data need shared and high investments are required. Therefore, the purpose of this study is to enhance the understanding of how to successfully collaborate on digital platforms in the manufacturing industry by developing a contingency framework. The study is an explorative single case study of a digital platform. More specifically, the study examined the development process of a digital twin platform created by a large high-technological company and its collaborative actors. The results are based on 21 semi-structured interviews and reveals that actors on digital platforms can face five types of challenges that hinder a successful collaboration: disadvantages of dependency, uncertainty regarding data management, varying customer needs, insufficient work methods, and unsuitable payment models. The analysis also reveals four strategies that can be used to address the challenges: transparency strategy, incentive model strategy, servitization strategy, and control strategy. Moreover, these findings are summarized in a contingency framework that explains which types of challenges that can be addressed with which strategies based on the specific prerequisites of each collaboration.

Circular Business Models (CBMs) have been described by many as the instruments needed to help businesses and industries shift into a circular economy. In recent years, a large number of papers has been published on CBMs which provide insights on the transition towards CBMs but a synthesis of the process of CBM innovation is lacking. Thus, the purpose of this study is to conduct a systematic literature review to increase the understanding of the circular business model innovation process. The literature review gathers current knowledge on the process elements of CBM innovation, and the analysis proceeds to structure these insights into a conceptual framework. To identify the relevant literature for this study on CBMs, we conducted a systematic database search in Scopus with the search string TITLE-ABS-KEY “circular business model”. Limited to articles and reviews, this search provided an initial 317 articles. After reviewing the abstracts, 48 papers that provide insights into the CBM innovation process have been selected for a full-text analysis. The study develops a framework that shows activities and components of the CBM innovation process and provides suggestions for future research. This study contributes to the literature on CE transition and supports the CE-practice of optimizing resource use and eliminating waste. Managers can use this study to guide and evaluate their transition process towards CBMs.

To stay competitive and comply with government legislation, many global manufacturing companies try to diminish their environmental impact and avoid commoditization of their products by offering sustainable product–service systems (PSS). Offering PSS successfully is highly challenging, however, and significant interfirm heterogeneity exists with regard to successful PSS provision. Based on multiple case studies in two global manufacturing companies, the importance of the business model as an organizing device to align and coordinate key activities and scarce resources in PSS is highlight. The analysis provides insights into the underlying building blocks that will help firms implement a PSS business model and provides new implications for analyzing and improving PSS offers.

To stay competitive, manufacturing companies offer product–service systems (PSS) to avoid commoditization of their products. The potential to create value through PSS offerings lies in a company's ability to successfully implement the PSS business model. However, many companies are unable to realize the benefits because PSS represents significant changes to all the business model elements, which comprise value creation, value delivery, and value capture. This leads to misalignment among the business model elements, which is a topic of interest within PSS and business model literatures. This article aims to provide empirical insights into the business-model-element alignment problems and conceptualize their consequences, which manufacturing companies face during PSS implementation. This article utilizes an abductive multicase study of three Swedish manufacturing companies with long-term experience of PSS provision to provide novel insights by identifying six alignment problems that companies face as a consequence of the interaction among the three business model elements. Furthermore, we contribute to both the PSS and business model literature by conceptualizing the consequences of business model element alignment problems, explaining the three value leakages that occur as a result of inappropriate resource and capability utilization, unattractive offer configurations, and inefficient service network processes in PSS provision.

Manufacturing companies are increasingly offering add-on services and functional products (FPs) to secure their future competitiveness. For product oriented organizations, this represents a significant transition in their business models, leading to several risks and uncertainties. In this study, we attempt to identify and understand these potential risks that can hinder manufacturing companies from offering FPs. To reach the stated purpose, we have adopted a quantitative research approach and undertaken eighteen explorative interviews in two large Swedish manufacturing companies. Our results show ten potential risks that can negatively affect manufacturing companies. For example, contractual risks, breakdown or technical risk and inappropriate organizational structural risk were found to be the most prominent risks for FPs. These risks are categorized into three specific dimensions related to business models, namely value creation, value delivery and value capture. Thus, the study provides critical understanding towards how manufacturing companies can be better prepared for transforming into a successful FP provider through mitigating of identified FP risks.

Circular and bio-economy represents a political and industrial initiative to ensure that our society can rely on renewable biological sources while achieving economic growth. However, there is a need to critical review how realistic and feasible such initiatives are towards fulfilling the promised benefits of this economy. The literature on bio-economy often discusses the importance of innovative business models and their role in a successful shift to a bio-economy. Still, much of the discussion that is related to circular business models is fragmented and immature. Therefore, the purpose of this study is to conduct a systematic literature review of circular business model activities and the barriers to a bio-economy. Further, this review provides future research directions for a shift to a bio-economy. This study is based on a systematic review of 42 scientific journal articles and book chapters on a forest-based bio-economy. The business model canvas is used to provide a structured aggregation of the existing circular business models activities being used by the forestry sector. In addition, we develop a framework that describes the barriers to bio-economy-based circular business models and suggest new directions for future research. The study highlights the need for alignment among the elements of a business model as a key condition for its successful implementation in a bio-economy

Providing product-service systems (PSS) entails increased risks for manufacturing companies as they shift from transaction to relational engagements with customers and assume operational responsibilities for customers’ processes. This study proposes a PSS risk management decision tool, which enables global manufacturing companies to more proficiently manage risks to offer PSS successfully. The results are based on a case study with a Swedish manufacturing company that has long-term experience with providing PSS. The study’s main findings include identifying and proposing an interconnection between risks associated with providing PSS, possible risk responses, and decision criteria that enable decision-makers to select appropriate risk management responses.

Purpose: Circular business models have a huge potential to lead to economic, social and environmental benefits. But in order to archive this it is crucial to reach global implementation. Therefore, the purpose of this paper is to investigate how firms can assess the potential and criteria for implementing circular business models in different global markets.

Design/Methodology/Approach: To reach the stated purpose, we have adopted a quantitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies and their global service network.

Findings: In this paper, a decision support tool to choose the appropriate circular business model for global implementation has been developed that facilitates the first steps towards circular business models implementation. It identifies eleven criteria that should be analysed to decide the appropriate circular business model.

Originality/Value: Circular business models have not yet reached wide implementation. One reason is that they are often presented as one fits all solutions but this is not appropriate for global implementation. Therefore, the decision tree that is developed in this paper helps companies to choose the circular business model that is most appropriate for a specific product in a specific market.

Purpose – The present study proposes a product-service systems (PSS) risk management decision-making framework for PSS operation, which can enable global manufacturing companies to offer PSS successfully. Thus, we aim to contribute primarily to developing the PSS literature by integrating insights from the literatures on risk management and decision making. Design/methodology/approach – This study is based on an exploratory, single case study with a Swedish manufacturing company that has long-term experience with providing PSS. In total, we conducted 25 semi-structured interviews with diverse respondents from different functional units. Findings – The study’s main findings include identifying and proposing an interconnection between the operational risks associated with providing PSS, possible risk management responses, and decision criteria, all of which enable decision makers to select an appropriate risk management response. Research limitations/implications – Our study contributes to the literature in three ways. First, we classify PSS operational risks into three categories related to delivery competence risks, technical risks, and behavioural risks. Second, we explain conditions under which each risk can be mitigated using different risk management strategies (avoidance, reduction, sharing/transfer, and retention). Finally, we combine different risk categorizations, decision criteria, and risk responses into an integrated decision framework of PSS risk management.Originality/value – Our novel contribution is developing a PSS risk management decision support framework, which holds theoretical and practical value.

Studies on Product–Service Systems (PSS) are emerging as a growing body of literature driven by the desire to combine economic prosperity and sustainable resource management. However, knowledge about how companies can adopt and implement PSS has remained limited. In this study, a systematic literature review is conducted related to understanding implementation of PSS business models and five sets of tactical practices. Based on an in-depth analysis of 67 articles, it was found that PSS is increasing rapidly as a research field, which is spread across a variety of disciplines and research domains. More specifically, research findings were accumulated from the field to present a framework supporting the implementation of well-established categories of PSS business models, that is, product-oriented, use-oriented, and result-oriented business models. Each business model category is linked to five operational-level tactics that ensure the model can be implemented successfully and subsequently generates value. These tactical sets include 1) contracts, 2) marketing, 3) networks, 4) product and service design, and 5) sustainability operational practices. This study concludes by proposing suggestions for future research.

Product- Service Systems (PSS) and business model share the emphasis on value creation. Still PSS literature uses the term business models vaguely without being clearly understood. Therefore, the purpose of the study is to develop a framework that structures and integrates the various ways the term business model is used in PSS literature by pointing out the connection to strategy and tactics. This is done by conducting a systematic literature review. The findings are aggregated in a framework that proposes that a business model is chosen based on the strategy and that tactics are the residual choice after the business model is chosen. Four tactical sets, contract, marketing, network and product design, have been identified from the literature to be most relevant for PSS business models. The analysis of the tactics relates them to the PSS categories.

Offering product-service systems (PSS) is argued to result in significant benefits to economic, environmental and social sustainability but also entails a significant challenges related to relational dynamics between the manufacturer and the service providers belonging to the distributer network. As most large manufacturing companies operate globally, their delivery network partners also tend to be globally distributed. This adds to heterogeneity within the global distribution network, where products and services sales largely relay upon readiness and willingness of their distributers to sell PSS innovations successfully. Thus, firms must actively manage the resistance in the distributer network to adopt and implement PSS business model innovations. Therefore, the purpose of this paper is to investigate how manufacturing companies can facilitate adoption of PSS business model innovations among their global distributer network. In a single case study we interviewed 23 respondents from the headquarter, regional managers and distributer network which resulted in unique insides about the challenges, needs and expectations of the different functions and how they differ from each other. The data clearly reveals that the distributer network varies significantly in terms of their readiness and ability to offer advanced services. The distributers can be classified based on the PSS business models that they are currently offer or based on certain characteristics that influence their possibility to offer advanced services (e.g. customer characteristics, market characteristics and distributer capabilities). Based on this classification and the individual challenges of the distributers, support mechanisms for managing PSS adoption in a global distributer network were identified. The mechanisms differ based on the maturity of the distributer and based on whether they support the value creation, value delivery or value capture (business model elements). The findings show that the distributers need to be treated differently based on their maturity level in order to adopt PSS successfully and that the manufacturer need to be actively involved in the development of all distributors.

Abstract

The circular economy is a systematic approach to economic development design that benefits business, society, and the environment. In comparison to the ‘take-make-waste’ linear economy, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources. The goal of the circular economy is to eliminate resource waste by providing various opportunities and solutions to keep materials and products in use for as long as possible (Korhonen et al., 2018).  In particular, the food industry can substantially gain from effective resource utilization and optimization throughout its value-chain activities to achieve a more sustainable production and consumption of food.

Circular business models can be defined as a business model in which a focal company, together with partners, uses innovation to create, deliver and capture value to improve resource efficiency by extending the lifespan of products and parts, thereby realising environmental, social and economic benefits (Frishammar and Parida, 2019). In addition, circular business models help to describe, analyse, manage, and communicate the company’s sustainable value proposition to its customers, and all other stakeholders, while maintaining or regenerating natural, social, and economic capital beyond its organizational boundaries (Schaltegger et al., 2016). 

But moving to more circular operations require close collaboration with existing and new business ecosystem partners. Understanding of the business ecosystem is critical when deciding how to go ahead with the transformation towards circular business models. Therefore, the purpose of this study is to identify and understand circular business model development strategies based on the analysis of the ecosystem. The study is based on a case study with 30 interviews with SMEs from the food processing industry. 

Our results show that the dominant dimensions that determine the circular business model ecosystem are the ecosystem roles and the state of ecosystem evolution. The ecosystem roles are divided into ecosystem leaders and ecosystem complementors. The ecosystem evolution describes the state of the formation of the ecosystem can be divided into emerging ecosystems that are still developing and established ecosystems that are well-functioning and only refinements are needed. This study develops a framework that presents strategies for circular business model development that depend on the role and evolution of the ecosystem. The four types of circular business model development strategies are Adventurer strategy, Circular Hero strategy, Explorer strategy and Sustainability Enabler strategy.  The choice of strategy has large impact on the economic and sustainable value generated. 

The circular economy holds the promise of a systematic approach to delivering economic, social, and environmental benefits. But moving to more circular operations requires close collaboration with existing and new ecosystem partners. Thus, the readiness of business ecosystems to accept circular business models is a deciding factor in commercial success and advancing towards greater circularity.

Circular business models (CBMs) have huge potential to deliver economic, social, and environmental benefits, but CBMs have yet to be implemented widely in industrial settings. One reason is that they are often presented as one-size-fits-all solutions, but this is misplaced because product-specific criteria and company capabilities determine the correct choice and implementation of CBMs. Therefore, the purpose of this paper is to investigate how CBM selection and capability development facilitates the implementation of CBMs. For this purpose, we have adopted a qualitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies. In this paper, a CBM implementation framework consisting of two parts has been developed. The first part addresses the choice of the appropriate CBM based on tactical configurations. The second part provides a capability development path by explicating underlying routines that need to be progressively developed in order to move smoothly to more advanced CBMs. 

Offering product-service systems (PSS) arguably results in economic, environmental and social benefits but also entails significant challenges related to relational dynamics between the provider and the customer. Although prior studies suggest that adverse customer behaviour during PSS provision is likely, they provide a limited theoretical understanding of the conceptualization of such relational problems and, more importantly, offer few possible ways to address these problems. By applying the lens of agency theory, this study examines PSS provider-customer relational problems and solutions. Therefore, the purpose of this study is to identify agency problems and propose mechanisms to mitigate adverse customer behaviour in PSS provision. Based on a multiple case study approach involving two manufacturing companies, several results are presented. First, we identify and describe two underlying reasons for adverse customer behaviour. These reasons are associated with goal differentiation and monitoring challenges. Second, different agency mechanisms (i.e. sharing, monitoring and trust) are presented as approaches to mitigate the likelihood of adverse customer behaviour. The matching of agency problems with agency mechanisms to mitigate these problems lays the groundwork for developing a framework for agency situation evaluation during the formation and ongoing phases of the PSS agreement. In addition, the choice of agency mechanism is found to be correlated with the maturity and type of customer relationship and can change over time as new customers become known and then become loyal. The proposed framework has major theoretical implications for the PSS literature as well as managerial implications for large manufacturing companies engaged in PSS provision.

Servitization is a rising trend across manufacturing companies, but it is not achievable without the corresponding transition of the manufacturers’ service network. Despite the key role of service network actors, their servitization pathways are not widely understood. Thus, the purpose of this paper is to understand how diverse service network actors approach servitization under varying conditions. Findings are derived from an exploratory case study of eight service network actors for a global construction equipment manufacturer. The analysis reveals that service network actors face major capability-(lack of service provision capabilities, lack of service provision vision) and market-related challenges (unfavorable local conditions, low customer service readiness) that hinder their transformation. The analysis also reveals four unique servitization strategies (service extension, service benchmarking, digitalization, customer co-creation) that service network actors implement. A contingency framework is proposed to explain which challenges can be matched with which servitization strategies to achieve service network servitization. 

Offering industrial product-services is argued to result in a significant change in the relational dynamics between provider and customer. The increased service content inherently leads to more co-creation of value with customers but may also increases the risks of opportunistic behaviour from customers. Such behaviour is hard to predict and therefore, understanding how provider can effectively manage such new behavioural challenges when offering industrial product-services is an important research question. The emerging Product-Service Systems (PSS) literature recognizes two ways to mitigate behavioural uncertainly, namely trust and control. However, these two concepts are not clearly understood in relation to managing provider and customer relationship in PSS. Therefore, the purpose of this study is to examine which conditions influence whether the provider should rely on trust or control to mitigate behavioural uncertainty. From a case study in a Swedish manufacturing company four factors where identified which include the history of the relationship, the customer’s culture, the market and the characteristics of the product.

Offering functional products (FP) are beginning to emerge as a growing trend within industrial firms driven by the desire to achieve economic performance and sustainable resource management goals. Nevertheless, our knowledge about how companies can adopt and implement FP has remained limited. In this study, we conduct a systematic literature review related to FP business models and tactical practices to advance the understanding regarding FP implementation. Based on the in-depth analysis of 48 articles, we develop a framework that proposes a link between FP business models and tactics. We further link FP business models to five operational level tactics, which can ensure the degree of their implementation and value generation. The identified tactical sets are contract, marketing, network, product design, and sustainability aspects.

Many SMEs aim for business development by diversifying their offerings to fit global markets. However, internationalization has consequences for all aspects of a company's business model. Even though internationalization poses many business model challenges, the recent development of digital technology is a key enabler of resource-efficient internationalization and business development, an innovation that SMEs find accommodating. Thus, the purpose of this paper is to analyze how digitalization can help to surmount the business model challenges associated with SME internationalization. This paper builds on an exploratory case study of 29 SMEs who have an internationalization strategy and are from sparsely populated areas in Finland and Sweden. For the data analysis, the first-order codes of different business model challenges of SME internationalization have been merged into second-order themes. The final step of the analysis involved ascertaining the overarching dimensions of these business model challenges. This paper identifies business model challenges related to value creation, delivery, and capture throughout the internationalization process. In addition, a framework is developed that matches digitalization activities with the business model challenges. Because there is no “one fits all” solution, this study matches specific digitalization activities with business model challenges that SMEs face when attempting to operate in international markets. These findings are important because they dissect digitalization into executable activities that SMEs find manageable.

Technical advancements within the subject of artificial intelligence (AI) leads towards development of human-like machines, able to operate autonomously and mimic our cognitive behavior. The progress and interest among managers, academics and the public has created a hype among many industries, and many firms are investing heavily to capitalize on the technology through business model innovation. However, managers are left with little support from academia when aiming to implement AI in their firm's operations, which leads to an increased risk of project failure and unwanted results. This paper aims to provide a deeper understanding of AI and how it can be used as a catalyst for business model innovation. Due to the increasing range and variety of the available published material, a literature review has been performed to gather current knowledge within AI business model innovation. The results are presented in a roadmap to guide the implementation of AI to firm's operations. Our presented findings suggest four steps when implementing AI: (1) understand AI and organizational capabilities needed for digital transformation; (2) understand current BM, potential for BMI, and business ecosystem role; (3) develop and refine capabilities needed to implement AI; and (4) reach organizational acceptance and develop internal competencies.

Purpose: The purpose of this study is to explore capabilities needed to deploy a use-oriented business model (UOBM) for consumer durables with low utilization rate. The study seeks to uncover activities needed to realize business model capabilities and the impact on business performance.

Design/Methodology/Approach: The study was conducted with an explorative single case study research approach, investigating an incumbent original equipment manufacturing (OEM) firm of consumer durables based in Sweden.

Findings: The study results in a framework which illustrates 13 key capabilities within the three dimensions of the business model (value creation, delivery, and capture) needed to successfully deploy a UOBM in a consumer market.

Originality/Value: The study contributes to the previous research of Product-Service Systems (PSS) in a consumer context through empirically developing the PSS B2C business model research. We have found both organizational-wide prerequisites and business model specific capabilities needed for the provider to undertake to mitigate the challenges, prevent risks, and ensure business performance.

This study examines the capabilities of technology provider ecosystems within smart manufacturing implementation projects. Whilst the study of capabilities for technology implementation is well acknowledged, the existing literature lacks a focused analysis on the dynamic capabilities required from ecosystems of technology providers engaging with adopter firms for the development of smart manufacturing solutions. More specifically, research has overlooked how such provider capabilities address the adopter's requirements and facilitate the related innovation outcomes for the adopter firm. Thus, our findings provide several contributions to the literature. Firstly, by examining two smart manufacturing projects within Pharmaceutical and Semi-conductor manufacturing contexts, we provide an in-depth analysis of the complexity of adopter requirements. Secondly, we uncover the nature of three main technology provider dynamic ecosystem capabilities. These reflect comprehensive skills in technology search and learning, project implementation, and knowledge transfer capabilities supporting the development of solutions for decision-making and predictive maintenance. Thirdly, we reveal how provider ecosystems build on these capabilities to address the complex requirements of the adopter firm and facilitate different types of process innovation outcomes. Respectively linked to performance, sustainability and evolving process sustainability.

The rise of AI technologies is generating novel opportunities for companies to create additional value for their customers by applying a proactive approach, managing uncertainty, and thus improving cost efficiency and increasing revenue. However, AI technology capabilities are not enough—companies need to understand how the technology can be commercialized through appropriate AI business model innovation. When emerging technologies are introduced, business-model concepts often need to be significantly altered. This is necessary to fully capitalize on disruptive technologies because it is just as important to innovate the business model as it is to build advanced technology solutions. Therefore, the purpose of this study is to explain how AI providers align value-creation and value-capture dimensions in order to develop commercially viable AI business models. To fulfill our stated purpose, this study has adopted an inductive and exploratory single case-study approach centered on a market-leading provider of AI-related services. The findings are consolidated into a process framework that explicitly illustrates the key activities that companies need to perform concerning value creation and value capture for AI business model innovation and commercialization. The framework explains that AI providers need to follow three phases—namely, identifying prerequisites for AI value creation, matching value capture mechanisms, and developing AI business model offer. We also find that AI providers need to test and develop multiple AI business models and operate them simultaneously to ensure commercial success.