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Value Composition in HGEs Business Models – Empirical Researches
What distinguishes some enterprises from others is the success they achieve. Given that HGEs have succeeded, it seems appropriate to analyze their BMs, which allows to find their common features. However, the analytical concept selected this way does not negate the individuality and originality of the BM implemented in a given business entity, but only refers to presenting components that were of key importance in the BM. It is important to be able to verify a BM proposed by a company, using performance measures. Testing how individual BM components affect the selected performance measures allows to determine which of them are significant for company value composition. The measurement of relations between elements highlighted in proposed BM was made on the basis of structural equation modelling (SEM). Tie choice of this method was determined by the complex structure of the model. Tie advantage of this method is therefore the possibility to test research hypotheses with great complexity of relations between variables, by including latent variables in addition to measured variables in the model.
Empirical research was conducted at the beginning of 2019 using a questionnaire survey on a group of 100 HGEs in Poland. HGEs were identified as those which increase in revenues from sales or the employment scored more than 20% on average annually over the consecutive three years. Enterprises that met one of the above conditions were included in the research.
Empirical research on value composition used the assumptions of BM construction proposed byj. Richardson (2008). Based on three main elements, that is, value proposition, value creation and delivery system, and value capture, three theoretical constructs were created, namely, value proposition, value creation and delivery system, and value capture. Each of these constructs is very complex and may be illustrated by various components. It was assumed that a given construct is made of a group of specific factors - variables (the so-called measured variables) related to a given value component. Factors included in individual theoretical constructs and their relations are presented in Figure 3.1.
Ten measured variables were distinguished in the group of value proposition. Some of them are related to the enterprise partners, that is, key customer, recipient, and supplier (xl-x5). Factors affecting the enterprise relation with the key supplier were also isolated (x6.1-x6.5). In the group of value creation and delivery system 32 measured variables were distinguished that may be classified into six groups: main products/services (yl.l-yl.5), resources from key suppliers (y2.1-y2.5), enterprise key activity (y3.1-y3.5), resource key categories (y4.1-y4.4), significant groups of intangible resources (y5.1-y5.7),
Figure 3.1 BM theoretical constructs and their factors.
and form of customer communication (y6.1-y6.6). Value capture group of variables is responsible for BM profitability, thus three variables were included: type of financial result (zl), increase in sales revenues (z2), and increase in employment (z3).
In the proposed model, the theoretical constructs (latent variables) value proposition and value creation and delivery system affect the theoretical construct (latent variable) value capture. This approach indicates that a properly constructed value proposition in a BM should contribute to value capture as well as a well-constructed value creation and delivery system should have a positive effect on value capture.
In the course of the research, the statistical significance of relations between the exogenous variables, distinguished in the model and the endogenous variable, considered from the perspective of BM value composition, was determined. The constructions were identified, where the relation of latent variables value proposition and value creation and delivery system to the latent variable value capture was statistically significant. The holistic nature of the research results from the allowance, after determining exogenous and endogenous variables, for all measured variables identified in survey questions.
Based on the research, key determinants for the construction of high-growth enterprises business models were indicated. Figure 3.2 presents the path model of the effect of latent variables value proposition and value creation and delivery system on the latent variable value capture including the effect of individual measured variables on latent variables for the examined research group.
Based on the above data, a statistically significant effect of theoretical constructs value proposition, value creation and delivery system on the theoretical construct value capture can be indicated. "Die strength of this relation can be described as positive and medium-level. Out of the ten measured variables identified in the study for the latent variable value proposition, five variables are statistically significant. In this case, the strongest positive effect on the theoretical construct value proposition is exerted by having a key customer - recipient (x4), by emphasizing the quality of production and services (хб.З), and by having regular recipients of products and services (x5). Directing products/ services to specific market segments (xl) and having regular suppliers of products/services (x3) were also important for value proposition. Thirty-two measured variables identified for the latent variable value
Figure 3.2 Path model of the effect of variables value proposition, value creation and delivery system, and value capture.
creation and delivery system, demonstrated 17 that were confirmed as statistically significant. The strongest positive effect was found for variables classified into the group of intangible resources, such as intellectual property (y5.3), relationships (y5.5), organizational capital (y5.2), and human capital (y5.1). Also, a high rank was given to factors from the group in the form of communication with customers. The factors having a significant effect such as business meetings and conferences for customers (уб.З), use of social media (y6.2), and websites (y6.1) should be highlighted. In addition, it is worth paying attention to following factors from the group of resources from key suppliers: licenses, trademarks, copyrights (y2.4), access to infrastructure and real estate (y2.3), and databases (y2.5). Therefore, it can be indicated that in the research sample, the increase in value creation and proposition factors favors the increase in value capture. All three measured variables being studied can be considered as statistically significant factors of value capture. The greatest effect is assigned to the measured variable zl, representing the appropriate (positive) financial result in over the longest possible time. The positive effect on value capture is also exerted by the measured variable z3 defined as the increase in employment exceeding 20% on average annually over the last three years. Finally, the negative effect on value capture was observed for the measured variable z2 reflecting the increase in sales revenues exceeding 20% on average annually over the last three years.
"Die effect of both latent variables value proposition (0.104) and value creation and delivery system (0.185) in surveyed enterprises proved to be weak, but statistically significant.