University of Oulu

How to develop scalable business model? : a study on the scalability of business model in Finnish ICT & software industry

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Author: Nguyen, Hang1
Organizations: 1University of Oulu, Oulu Business School, Department of Management and International Business, International Business
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.5 MB)
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Language: English
Published: Oulu : H. Nguyen, 2014
Publish Date: 2014-12-08
Thesis type: Master's thesis
Tutor: Ahokangas, Petri
Reviewer: Juntunen, Marko
Ahokangas, Petri
The revolution of Information Communication Technology (ICT) and globalization leverages the business model concept to become more popular in order to support the firm to achieve competitive advantage in dynamic business environment. The start up is not restrict in their size and their novelty but able to be agile by efficiently and effectively exploiting business opportunity through business model innovation. Given these points, the study want to find an optimal combination and fit between the different business model elements and scalability phenomenon in order to build the scalable business model. Based on a comprehensive literature review and empirical research, the study developed a framework that support to answer the research question “How to develop scalable business model for ICT and software business”. The research use the Explorative Model of Business Model Scalability (EMBMS) of Stampfl, Prügl and Osterloh (2013) to examines the factors that take an effect on the scalability of ICT and software business from business perspective. The findings of the research support the proposed model regarding the key elements impacts on the scalability of the business. However, the application of the EMBMS to great extent in some elements whilst some elements is not revealed in the empirical research or proposed in a different way. Research findings shows that Network Effect and Management are disclosed as the most important mechanisms take an effect on the scalable of the firm operating in ICT and Software industry. It is necessary for the new venture to generate kinds of scalable revenue streams in other to attain sustain accelerated growth. In additions, location take an extremely impact on the scalable of the business, not only regarding the legal regimes or human perspective but also to a greater extent compare to the original EMBMS. The opportunity exploration and exploitation process are emphasizing in order to build the scalable business model. For this reason, it seems seamless between the business model conceptualization and business model realization which is partitioned in the EMBMS. Since most of the prior research emphasize on technological side of scalability concept. This study is considered as a major step forward by contributing to the existing literature regarding the scalability in term of business perspective. In additions, descriptive framework proposed in this study support the business practitioners to utilize the business model concept to scale up their company’s business.
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Copyright information: © Hang Nguyen, 2014. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.