Article2019

Private-public interaction in public service innovation processes- business model challenges for a start-up EdTech firm

40 citations0/0 files storedJournal of Business and Industrial Marketing

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Innovative Approaches in Technology and Social Development Business Strategies and Innovation Service and Product Innovation

Abstract

Purpose Contemporary public service innovations to an important degree are initiated and enabled by digitalization. Digitalization stimulates entry of new firms (start-ups) based on innovative implementation of digital technology for public services. The interwoven digitalization and innovation processes involve interaction and interdependencies between private business actors and public service providing actors. In this paper, the authors take the perspective of a start-up business actor that tries to develop and implement a viable business model in the very dynamic context of digital transformation of public education. The purpose of this paper is to analyze how the instability of a startup firm’s business model during public service innovation can be explained. The research question is: “How can business modeling by a start-up firm be explained by tensions between its business model and public service provision models?” Design/methodology/approach Based on an abductive logic, the authors choose a single-case study of a start-up firm’s development in 2010-2018 and its interaction with public actors. Information about the firm acquired in the first phase of the study showed that it frequently changed its business model. A general analytical framework was developed to aid in efforts to answer the research question. Findings The case showed that a business model could be seen as a temporary outcome of a business modeling process, and that also concurrently public actors change their public actors’ service provisioning models. Public-private interaction reveals tensions that drive business modeling. Originality/value The study contributes to empirical knowledge about private-public interaction in the dynamic and complex context in which digital transformation in society drives public service innovations. The conceptual contribution rests more generally in the analytical framework and how it frames public actor’s “service provision modeling” as a driver of business modeling.

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References

2002Systematic combining: an abductive approach to case research 2011The Business Model: Recent Developments and Future Research 2005Clarifying Business Models: Origins, Present, and Future of the Concept 2004The entrepreneur's business model: toward a unified perspective 1991Better Stories, Not Better Constructs, to Generate Better Theory: A Rejoinder to Eisenhardt 1991Better Stories, Not Better Constructs, To Generate Better Theory: A Rejoinder to Eisenhardt 2005Innovation in Governance and Public Services: Past and Present 1972A General Model for Understanding Organizational Buying Behavior

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2023Leadership’s long arm: The positive influence of digital leadership on managing technology-driven change over a strengthened service innovation capacity 2020Gender differences and business model experimentation in European SMEs 2020Time-constrained interactions in public-private collaboration projects. The case of ENABLE 2024From business models for public actors to public service provision models: Extending the business model concept to the public sector 2023

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