Business model innovation in the sharing economy: the case of SMEs in developing economies
Sharing economy (SE) is the system of transactions that utilize digital platforms (DPs) to enable peer-to-peer (P2P) sharing of goods and services. Recently, it has received scholarly interest. It opens the door for an incredible opportunity to start new businesses that utilize from accessing to under-utilized resources, such as parking spaces, extra rooms, office spaces, skills, and householder tools. According to Time magazine, SE is one of “the ten ideas that will change the world”. Driven by the rapid growth and global success of SE, more incumbents and start-ups have been transformed or emerged to exploit this opportunity. Unfortunately, the majority fail to sustain, grow, and innovate after adopting the business model of the ‘unicorn’ such as Uber.
Scholars prove that focusing on the large digital platform enterprises do not reflect the whole story and digital platform SMEs DPSMEs are constantly at risk of missing the right time to innovate. Indeed, the environments, opportunities, and resource limitations encountered by DPSMEs and DP large enterprises are different. Recent research provides a limited understanding of this dynamic, and how DPSMEs innovate their BM to survive is still unknown.
This research aims to fill this gap by adopting qualitative multiple-case study to explore business model innovation BMI in eight DPSMEs in developing countries.
Strategy and International Business