The purpose of this paper is to investigate how new technology-based firms (NTBFs) overcome established notions of scale and scope through business model innovation, leveraging…
Abstract
Purpose
The purpose of this paper is to investigate how new technology-based firms (NTBFs) overcome established notions of scale and scope through business model innovation, leveraging the value from digitalization.
Design/methodology/approach
The study adopts an exploratory research design, drawing on a novel data set of 50 publicly available interviews with vertical farming (VF) industry leaders and insiders who represent 36 different organizations from North America and Europe.
Findings
The study develops a framework showing how NTBFs leverage the value from digitalization via a paradoxical approach combining both efficiency and novelty value drivers.
Originality/value
The study extends current theorizing on the desirability of a combined business model approach leveraging both efficiency and novelty from digitalization. Furthermore, the study is among the first to investigate the unique and highly technological context of VF.
Details
Keywords
Temitayo Seyi Abiodun, Giselle Rampersad and Russell Brinkworth
The internationalization of business has grown the production value chains and created performance challenges for industrial production. Industry 4.0, the digital transformation…
Abstract
Purpose
The internationalization of business has grown the production value chains and created performance challenges for industrial production. Industry 4.0, the digital transformation of industrial processes, promises to deliver performance improvements through smart functionalities. This study investigates how digital transformation translates to performance gain by adopting a systems perspective to drive smartness.
Design/methodology/approach
This study uses qualitative research to collect data on the lived experiences of digital transformation practitioners for theory development. It uses semi-structured interviews with industry experts and applies the Gioia methodology for analysis.
Findings
The study determined that enterprise smartness is an organizational capability developed by digital transformation, it is a function of integration and the enabler of organizational performance gains in the Industry 4.0 context. The study determined that performance gains are experienced in productivity, sustainability, safety and customer experience, which represents performance metrics for Industry 4.0.
Research limitations/implications
This study contributes a model that inserts smartness in the linkage between digital transformation and organizational outcomes to the digital transformation and production management literature.
Practical implications
The study indicates that digital transformation programs should focus on developing smartness rather than technology implementations, which must be considered an enabling activity.
Originality/value
Existing studies recognized the positive impact of technology on performance in industrial production. The study addresses a missing link in the Industry 4.0 value creation process. It adopts a systems perspective to establish the role of smartness in translating technology use to performance outcomes. Smart capabilities have been the critical missing link in the literature on harnessing digital transformation in organizations. The study advances theory development by contributing an Industry 4.0 value model that establishes a link between digital technologies, smartness and organizational performance.