Academic journal article International Journal of Business and Society

Managing the Actor's Network, Business Model and Business Model Innovation to Increase Value of the Multidimensional Value Networks

Academic journal article International Journal of Business and Society

Managing the Actor's Network, Business Model and Business Model Innovation to Increase Value of the Multidimensional Value Networks

Article excerpt

1.INTRODUCTION

The business landscape is changing worldwide, and many factors have fostered the changes, including the rapid use of internet and development of digital technology. The rapid development of the internet has brought positive and adverse effects to most industries. In most cases, the internet has triggered the cross group/actors value creation activity which requires actors in industry to change their business models (Leyshon, 2000). The new business models often require more partnership and collaborating actors which cause a value chain reconfiguration (Kartseva et al., 2004) and then form complex linkages that lead to the creation of a "value network" (Bovet and Martha, 2000). The value network is effective for increasing value in their business network (Nenonen and Storbacka, 2010), increasing efficiency,

increasing speed, and to provide ease for the services they offer (Palo and Tahtinen, 2011). The value network resulting from various actors' cooperation can also offer better cost-efficient products and services with shorter delivery terms (Möller and Halinen, 1999) since the value-creating networks can help them acquire access to complementary assets (Rasmussen, 2007), integrate resources and co-create markets (Vargo, 2007), and reduce the costs or risks of innovation activity (Rasmussen, 2007).

Actors from many industries in Indonesia strive to find various ways of adapting to this situation. They start by adapting the "internet" business model, then form a multidimensional value net. Multidimensional value nets (MDVNs) is one of the three types of strategic business nets (vertical value nets, horizontal value nets and multidimensional value nets) conceived by Möller et al. (2005). MDVNs comprise a hub organization that creates its market offering by integrating products and services required from a group of different types of suppliers and channel firms. In general, MDVNs are formed to create a new business concept with new technologies, which requires the hub organization to orchestrate various roles of actors to create new value activities. Multidimensional value nets was chosen as it offers the dynamics of different types of actors (Moller et al., 2005).

To gain significant value outcome from multidimensional value nets, many factors need to be analysed. First, since actors in this network come from different industries, it requires different arrangement and managerial capabilities to maintain the partnership (Moller et al., 2005). Thus, it is important to conduct analysis of the actor's behavior, government and structure in the network (Wu and Zhang, 2009). Second, comprehending clear resources and capability of each network member, including their business model and network ties, can significantly help actors in the network to innovate their business model (Nenonen and Storbacka, 2010; Lindgren et al., 2010). Third, after analysing each member's business model, the process of reconfiguring, connecting, integrating the business model's elements and identifying the most essential elements in future business is important to ensure the benefits of business model innovation activity (Fu et al., 2006; Palo and Tähtinen, 2011; Wu and Zhang, 2009).

Due to the increase for the need of value-creating networks study, research on this topic expanded (e.g Wu and Zhang, 2009; Nenonen and Storbacka, 2010; Bask et al., 2010; Palo and Tähtinen, 2011). This research intends to focus on that topic. Thus, this research will try to find the configuration on each element in the model in regards to the outcome of the value creation, value delivery and value capture based on data collection of three MDVNs from three different industries.

2.LITERATURE REVIEW

2.1. Actor's Network

This research focuses on strategic networks, which is defined as any restricted group of organizations or actors that are interconnected with the structures, governances, and unique behaviours that are strategically important to participating firms. …

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