Social manufacturing and business model innovation

Jesse Karjalainen, Gang Xiong

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

4 Citations (Scopus)


We have witnessed the emergence of a new set of corporations that have been able to grow faster than the competition with fewer resources. Corporations such as Uber and AirBnb have grown to become one of the largest of their kind in less than ten years: Uber was established in 2009 and is currently the world's biggest taxi company. Interestingly, it does not own any vehicles. Similarly, AirBnb was established in 2008 and is currently is the world's largest accommodation provider. Again, interestingly, it does not own any real estate. What is happening here, and more importantly, what kind of business model innovation has taken place, if any? This paper aims to shed light on these questions by analyzing the business models of these companies and contrasting them with those of their respective industry incumbents. The results highlight the importance of software in automatizing and outsourcing otherwise capital and labor intensive activities as well as enabling the business model to build upon logical resources composed of decentralized, transient slack resources of individuals and companies.

Original languageEnglish
Title of host publicationProceedings - 2016 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2016
Number of pages6
ISBN (Electronic)9781509029273
Publication statusPublished - 24 Aug 2016
MoE publication typeA4 Article in a conference publication
EventInternational Conference on Service Operations and Logistics, and Informatics - Beijing, China
Duration: 10 Jul 201612 Jul 2016


ConferenceInternational Conference on Service Operations and Logistics, and Informatics
Abbreviated titleSOLI

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