The evolution of facility management business models in supplier-client relationships

Giulia Nardelli, Risto Rajala

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client relationships in facilities management (FM) services. Design/methodology/approach: This study of FM services in Denmark consists of an explorative case study and three case studies of FM clients. Both phases, related and overlapping, involved collection and analysis of in-depth, semi-structured interviews and archive data. Findings: Findings show that business model innovation entails interorganisational collaboration across different phases of the innovation process. The research demonstrates that external orientation within FM service ecosystems involves both a reaction to changes in the external environment and the proactive involvement of stakeholders throughout business model innovation. Research limitations/implications: The selection of business model innovation processes was limited to the Danish context. The sample, although heterogeneous and representative, represented only a fraction of the total population, which may have excluded processes of business model innovation that contradict the research. Practical implications: This paper suggests that by observing the business models of the value network over time, organisations could learn from the interdependencies between intra- and interorganisational stakeholders, thereby supporting the monitoring of risks and uncertainties as well as the anticipation of potential consequences of changes in the ecosystem. Originality/value: This paper introduces new thinking on the subject of business model innovation to the context of FM. It presents the external orientation of FM business models as a way to combine planned and emergent business model innovation through interorganisational collaboration and value creation in FM ecosystems.
Original languageEnglish
Pages (from-to)38-53
Number of pages15
JournalJournal of Facilities Management
Volume16
Issue number1
DOIs
Publication statusPublished - 29 Jan 2018
MoE publication typeA1 Journal article-refereed

Keywords

  • Innovation
  • Process
  • Services
  • Facilities management
  • Value creation
  • Business mode

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