Peter M. Krysta, Janina Jauch-Degenkolb and Dominik K. Kanbach
Facing increased asset prices and growing competition, private equity firms needed to innovate their established business model and shift from focusing on financial engineering to…
Abstract
Purpose
Facing increased asset prices and growing competition, private equity firms needed to innovate their established business model and shift from focusing on financial engineering to creating operating value. Yet, the authors understand little about how private equity firms increase the value of companies in their portfolios. This paper aims to shed light on organizational strategies, activities and governance principles that private equity firms use to create value.
Design/methodology/approach
This investigation combines several qualitative research approaches. Using in-depth interviews with executives in 35 private equity firms, the authors define industry-specific design principles for value creation using a Gioia methodology. They then use the Eisenhardt methodology to make in-depth case comparisons among sample firms.
Findings
Private equity firms employ one of four strategies – labeled “Infiltrator,” “Consultant,” “Organizer” or “Investor” – to create value in portfolio companies, each with a different organizational structure, level of cooperation between investor and portfolio firm and specific configuration of design elements.
Originality/value
To the best of the authors’ knowledge, this study is the first to focus on private equity value creation strategies from an organizational perspective. To their knowledge, no other publication has tapped this deeply into the interface between the private equity firm and the portfolio company to define the exact approach taken by the firm. This study contributes to the emerging discussion around the nonfinancial inputs to value creation. In addition, this qualitative research design is underrepresented in private equity research.
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Sascha Kraus, Dominik K. Kanbach, Peter M. Krysta, Maurice M. Steinhoff and Nino Tomini
In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that…
Abstract
Purpose
In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that appears poised to become the future center of gravity for online social interactions. At first glance, the communicated change signals a radically new business model (BM) based on an unprecedented configuration of the three following components: value creation, value proposition and value capture. The purpose of this paper is to analyze Facebook’s announced changes in its BM to clarify whether the change is as radical as communicated or rather represents an incremental transformation of the current BM.
Design/methodology/approach
This investigation adopted an in-depth case study research method. The process included using a structured approach to collect 153 data points, including academic studies and publicly available information, followed by qualitative content analysis.
Findings
The results of our analysis of Facebook’s entrepreneurial journey indicate that the communicated strategic refocusing does not correspond to a radical BM innovation pattern. Even though Facebook’s BM might evolve into the innovation phase, as the current changes appear very futuristic, the authors estimate that the core elements of the BM will change incrementally. The investigation indicates that the underlying logic of the straightforward communicative efforts primarily serves two purposes: to improve the external perception of the company and to disseminate an internal change signal within the organization.
Originality/value
This paper is the first study that takes an entrepreneurship and BM perspective in analyzing Facebook’s approach in rebranding to Meta and refocusing its strategy on building the metaverse. The academic and practical relevance, as well as the potential future impact on business and society, makes the investigation of this case an intriguing prospect. Additionally, the study illuminates the difference between the communicated vision and the real impact on the business, suggesting critical questions about future large-scale rebranding efforts and their effects.
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Francie Lange, Anna Peters, Dominik K. Kanbach and Sascha Kraus
This study aims to investigate different types of platform providers (PPs) to gain a deeper understanding of the characteristics and underlying logic of this group within…
Abstract
Purpose
This study aims to investigate different types of platform providers (PPs) to gain a deeper understanding of the characteristics and underlying logic of this group within collaborative consumption (CC). As CC occurs with three groups of actors (PP, peer service provider and customer) and is predominantly viewed from the customer perspective, this study offers insights from the under-researched PP perspective.
Design/methodology/approach
This research applies a multiple case study approach and analyzes descriptively and thematically 92 cases of CC PPs gathered through the Crunchbase database.
Findings
The authors derive four archetypes of CC PPs, namely, the hedonist, functionalist, environmentalist and connector, that differ in their offered values, dominating motives and activities across industries.
Research limitations/implications
The authors conceptualize CC by clearly describing the four archetypes and their characteristics. However, further research would benefit from including databases other than Crunchbase.
Practical implications
PPs need to understand their value offerings and customer preferences to develop convincing value propositions and offer engaging activities. PPs would benefit from a more active social media presence to build strong relations with customers and peer service providers to effectively communicate their values.
Originality/value
The paper is pioneering as it encompasses the perspective of CC PPs and operationalizes the concept of CC. The authors address the lack of research on CC by conducting an extensive case study.
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Jawaher Abdulrahman Alomar and Fatmah Mohmmad Alatawi
Although several papers have been published over the past decade on various aspects of digital entrepreneurship, nothing has hitherto been written on the theme of digital…
Abstract
Purpose
Although several papers have been published over the past decade on various aspects of digital entrepreneurship, nothing has hitherto been written on the theme of digital entrepreneurship in the metaverse. This paper, therefore, aims to explore the key challenges of digital entrepreneurship in the metaverse, with a view to developing a model to address these challenges.
Design/methodology/approach
The Decision Making Trial and Evaluation Laboratory approach was adopted in this study to rank the selected challenges in order of importance and establish a cause-and-effect relationship between them. The data were gathered from 10 experts from Saudi Arabia who deploy augmented reality, virtual reality and other immersive technologies in the course of their business.
Findings
Three challenges, namely, “Market fragmentation (C3)”, “Technical complexity (C1)” and “Monetisation and revenue models (C5)” were highlighted in the findings as the main factors of influence in the Cause group, whereas the remaining five challenges, “Infrastructure and connectivity (C2)”, “Social and ethical considerations (C8)”, “User adoption and engagement (C6)”, “Privacy and security (C7)” and “Intellectual property protection (C4)”, were categorised in the Effect group, being significantly influenced by the challenges in the Cause group.
Originality/value
To the best of the authors’ knowledge, this is the first study to explore the challenges of metaverse-enabled digital entrepreneurship and classify the identified challenges into groups of Cause and Effect.
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Lauren Celentano, Kristina Brenisin and Kieran C. Breen
The COVID-19 pandemic has actively changed the face of all medical disciplines, including mental health practices. In a matter of days from the introduction of the lockdown…
Abstract
Purpose
The COVID-19 pandemic has actively changed the face of all medical disciplines, including mental health practices. In a matter of days from the introduction of the lockdown, clinicians have to adapt to new working models with many changing the consultation methods clinicians have utilized for years. To best understand the wider clinical impact, a limited study was carried out to assess the effect of coronavirus disease 2019 (COVID-19) on psychiatric clinical practice.
Design/methodology/approach
A qualitative study was performed to analyze the impact of COVID-19 on clinician practice at a UK secure care mental health facility. A four-question free-text survey was distributed online to all physicians and seven responses were analyzed using thematic analysis.
Findings
Four key themes were identified – use of technology, the importance of face-to-face contact, work/life balance and mental well-being.
Practical implications
Overall, the results of the study reported that although some negative changes to the traditional work–life balance were identified, the clinicians found remote working within a secure care setting cultivated a more efficient working environment while allowing for more effective social distance practices.
Originality/value
This study highlighted some of the challenges faced by clinicians employed in a secure care mental health setting following the introduction of lockdown measures in the UK associated with the COVID-19 pandemic. The study will also inform future work practices, including the potential of longer term remote working in this sector.