2.1 Sharing economy
No commonly accepted definition for the sharing economy exists as it is still a young phenomenon. Current research streams focus on framing the concept of the sharing economy (Arvidsson
2018; Bardhi & Eckhardt
2012; Belk
2014; Cheng
2016; Martin
2016), reasons and motivation for participation (Davidson et al.
2018; Hamari et al.
2016; Möhlmann
2015) and governing mechanisms (Ert et al.
2016). Recently, emerging research streams with in-depth sharing economy research questions on the internationalization process (Parente et al.
2018), industry specifics for example for apparel (Park and Armstrong
2017), hotel business (Zervas et al.
2017), or mobility (Cohen and Kietzmann
2014) outline the growing maturity and acceptance of the research field. The sharing economy can even be viewed as an entrepreneurial ecosystem of its own kind as it attracts new providers of shared goods (Liguori et al.
2019).
As we focus our research on sharing-based business models, we follow Hamari et al. (
2016, p. 2047) and define the sharing economy as “peer-to-peer-based activit[ies] of obtaining, giving, or sharing the access to goods and services, coordinated through community-based online services”. This definition allows us to include all forms of web-based sharing activities including incumbents that run sharing economy-like business models (Belk
2014; de Lange and Valliere
2020; Hamari et al.
2016). Web-based connectivity enables consumers to connect, exchange information, and coordinate sharing activities without restrictions of time and space, resulting in the development of novel business models (Afuah
2003). Web-based information and communication technologies enable enhanced value creation, as goods and services are shared only for the time needed (Belk
2014; Hamari et al.
2016). Therefore, the internet integrates or even generates markets, links their participants across boundaries and contributes to the emergence of globally unified markets (Pohjola
2002).
The collaborative consumption of goods and services (Hartl et al.
2016) changes consumers’ attitudes towards property and ownership. Customers focus on distinct access rights for using goods and services for the limited time span when their utilization rather than acquiring ownership or long-term property rights are needed (Bardhi and Eckhardt
2012; Belk
2014; Hartl et al.
2016). Ownership can especially be replaced by permanent access when customers are loyal to the sharing provider (Akhmedova and Marimon
2020; Jia et al.
2020). This trend also impacts B2B relations as technical improvements allow to ‘share’ production capacities and thus to integrate production capacities into sharing systems (Belk
2014; Brettel et al.
2014; Lee et al.
2015).
2.2 Business models, value creation and value capture
Even though business models have been in existence since mankind discovered trading (Teece
2010), the emergence of e-commerce and other internet-based products and services has massively intensified research on business models (Amit and Zott
2001,
2012; Demil et al.
2015; Foss and Saebi
2017; George and Bock
2011; Osterwalder
2004; Zott et al.
2011). For business models, many definitions exist (Zott et al.
2011). Especially in entrepreneurship, business models have become a popular perspective (Ferreira et al.
2019). Business models can be seen as architectures (Teece
2010; Timmers,
1998), blueprints (Osterwalder et al.
2005), designs (George and Bock
2011; Teece
2010), frameworks (Chesbrough and Rosenbloom
2002), or representations (Morris et al.
2005) of “how firms do business” (Zott et al.
2011, p. 1037). Business models comprise several components (Zott et al.
2011), dimensions (Osterwalder & Pigneur
2010) or elements (Baden-Fuller and Mangematin
2013). For example, Amit and Zott (
2001,
2010,
2012) distinguish content, structure and governance (Amit and Zott
2001,
2010,
2012). Content depicts the activities performed in the activity system, including the exchange of products, services and information between the various network partners as well as the capabilities required to enable the exchange. Structure describes the linkages and the sequencing of these activities, considering size, flexibility and adaptability of networks. Governance describes who performs which activities as well as the locus and nature of control of transactions within the activity system. Another structure is suggested by George and Bock (
2011) who, based on a survey among practitioners, distinguish a resource, transaction and value structure. Especially the business model canvas, as suggested by Osterwalder (2010) and Osterwalder and Pigneur (
2010), is well established among both scholars and managers. It defines nine dimensions of the business model structure: key partners, key activities, key resources, the value proposition, customer relationships, channels, customer segments, the cost structure, and revenue streams.
In contrast to traditional strategic management which focuses on competitors, the business model approach focuses more strongly on customers (Demil et al.
2015; Zott et al.
2011). However, superior configurations of business models can generate competitive advantages (Markides and Charitou
2004). But with its strong customer orientation, a business model’s predominant dimension is its value proposition (Chesbrough and Rosenbloom
2002; Morris et al.
2005). More specifically, the firm has to define how it will create (and deliver) this offered value to the customers. Business models in the sharing economy do not necessarily have to offer innovative content but often only the flexibility or the details of content increase in comparison to traditional business models. The predominant role of the value proposition becomes particularly apparent in Teece’s (
2010, p. 172) definition of business models as a “design or architecture of the value creation, delivery, and capture mechanisms”. Therefore, business models refer to the creation and capture of value from the combination of activities (e.g., IT and operations) into solutions, especially when acting in networks (Bouncken and Fredrich
2016). In exchange for the expected or experienced value (i.e., use or benefit) of the firm’s offering, the customers pay for it generating revenue and profit for the firm. Therefore, for a firm to maximize its extent of value capture, it has to offer a value proposition in a way the customer is willing to pay most. These notions are not only valid for individual firms in a market but also for decentralized business models in the shared economy. They relate to the network of the focal firm, key partners and customers because value creation is dependent on the firm’s resources and external property. Value delivery depends on providing these external goods or services to the customers. The value captured has to be split among the participants. Activities exceed the mere use of technologies (Chesbrough
2007) and cross the boundaries of single firms that are often embedded in networks (Amit and Zott
2001). Thus, the business model approach is well suited for explaining value creation in the sharing economy. Sharing economy business models can be based on platform business models (Clauss et al.
2019; Muzellec et al.
2015; Täuscher and Laudien
2018). The match between supply and demand of shared goods occurs on platforms for which technology plays a constituting role as facilitator for self-linking processes among participants (Thuong and Monideepa
2009). However, while regular platforms deliver digital goods which hardly cause any storage or delivery costs or waiting time for customers, many sharing-oriented business models involve the storage and time-consuming delivery of physical goods that can not only be coordinated digitally.
Business model innovation is associated with the agile and radical redesign of extant business models that is based on dynamic capabilities (Heider et al.
2020; Semke and Tiberius
2020) and aims at fostering growth, firm performance, and the development of a competitive advantage (Amit and Zott
2012; Bouncken et al.
2016; Bouncken et al.
2019; Brand et al.
2019; Breier et al.
2021; Kraus et al.
2020c; Tiberius et al.
2020a). Apart from radical business model innovation, firms also implement incremental business model reconfigurations (Clauss et al.
2020). In both respects, sharing-based business models of both start-ups and incumbents have to be considered as innovative business models. Innovative business models as novel combinations of their components result in value creation, delivery, and capture forms that are new to a market (Teece
2010). Unique or novel value propositions allow new ways of value creation through new products or services and of value capture by, for example, new payment models such as membership fees or transaction-based payment.
Firms that do not yet participate in the sharing economy but consider doing so can add an innovative business model to their current one(s). For example, while car manufacturers Daimler and BMW, which usually focus on selling cars, have been offering their car sharing providers car2go and DriveNow (that have recently merged to their mutual provider Share Now) for several years, Volkswagen is only about to enter the sharing economy. Apart from sharing the firm’s own goods, firms can also cooperate with several partners, which contribute complementary goods or services to increase heterogeneity and extend the activity and customer base, like in the case of Flinkster, also a car sharing provider, which integrates further complementary transportation services into the sharing network and to provide a comprehensive mobility portfolio. Flinkster is a remarkable role model for sharing economy business models that considerably extend firms’ traditional scope of action by providing the opportunity to access new markets and customers. Other firms like Share Now use social networks to access their customer base, create lock-in effects and improve marketing. This form of horizontal integration offers additional synergetic advantages. For example, embedding car sharing communities in or connecting them with social networks can optimize occupancy, create marketing effects or facilitate the development of additional services.