Integrating New Technologies in International Business

Opportunities and Challenges

Gurinder Singh, Alka Maurya, Richa Goel

• Publisher: Apple Academic Press
• Year: 2022
• eBook ISBN: 9781000291520
• Edition: 1
• Topic: Business
• Subtopic: Information Management
• Index: Business

The international business sector has been completely revolutionized due to shifts in global economy, digitization, and the Internet. Integrating New Technologies in International Business: Opportunities and Challenges explores the rapid changes in technology that have affected businesses and social environments that are offering new challenges and opportunities for small to mid-size enterprises (SMEs) and start-ups. It highlights how businesses in emerging economies are implementing the new technological innovations to compete in the global market.

The chapters in the volume provide valuable insight on many cutting-edge topics on new technology in the business environment and the new digital world, or Industry 4.0, including:

• Internet of Things (IoT) and customer relationship management
• Cross-cultural management
• Artificial intelligence
• Social media advertising
• Multichannel banking
• Digital payment technology
• Blockchain technology
• Augmented reality
• Eye-tracking analysis

This book will be a valuable resource for business leaders and managers, industry professionals, business scholars, regulatory stakeholders, policymakers, faculty and students, and those who are interested in the current trends in the state of global digitization in industrial markets. The information provided here will help readers find the most appropriate approaches for taking advantage of these new technologies.

CHAPTER 1 Wealth and Welfare Business: A Sustainable Business Model

MD. MASHIUR RAHMAN

Senior Executive Officer, Risk Management (CRM) Division, Bank Asia Ltd., Dhaka, Bangladesh

ABSTRACT

The aim of this study is to explore to what extent this business model (BM) can support a sustainable business strategy (BS). The course has been guided by the objectives to assess the present-day businesses’ problems, the necessity of this new BM, a description of the model, its benefits, and the limitation of the proposed model. For the purpose of the study, a descriptive research has been focused on selected businesses, which were in operation at the time of the study and formed in a capitalistic way. Data have been collected mainly through in-depth interviews of entrepreneurs, employees, and customers. Secondary data have also been used by reviewing bulletins, newspapers, and articles from national and international journals. A sample has been selected by using the stratified random sampling method.

The findings of the study have shown that only money cannot give happiness and ensure sustainable development. Moreover, the economy is dominated by a system of interest-based borrowing. However, an interest-based borrowing system has several problems, like the certainty of expenditure by a business against the uncertainty of its profit. The purpose of a business should not be only profit maximization but also welfare. The employees should be treated as family members of a business enterprise. Corporate social responsibility (CSR) should be carried out in a structured way. The business house should maintain fair distribution and taxation policies. The study concludes that the proposed BM will help to develop a sustainable business structure.

1.1 INTRODUCTION

1.1.1 BACKGROUND OF THE STUDY

As per a report of BBC Bangla (2017), the wealth of only eight rich people of the world accounts for that of half of the world population. This shows there is massive inequality in the world as a few institutions and individuals mostly enjoy wealth. The report shows that inequality between the rich and the poor is increasing rapidly, and the inequality is far higher than imagined. Such a vast inequality will reduce the purchasing power of common people that will ultimately threaten businesses’ sustainability. Besides, a report published in the daily Ittefaq (March 2018) mentioned that the happiest country in the world was Finland, and then after Norway comes Denmark, Iceland, and Switzerland. On the other hand, the world’s highest displeased countries are Burundi, Central African Republic, South Sudan, Tanzania, and Yemen. The report also said that the USA was not among the top ten happiest countries earliest and now its position is 18^th although most of the richest people are living in the USA. Under the above circumstances, to build a better world, people need wealth, but not at the cost of welfare, as welfare makes people happy, and happy people can make the economy sustainable. Welfare is lost when the environment and human attitude go against humanity. Moreover, the environment has multiple effects on sustainable business, which ensures economic growth, development, and happiness.

1.1.2 JUSTIFICATION OF THE STUDY

We find that the unequal distribution of wealth and dissatisfaction of the wealthy and the poor leads to economic uncertainty as unequal distribution of wealth reduces the majority’s purchasing power, causing a recession in the economy. Dissatisfied people will concentrate less on work, which causes productivity loss and inefficiency of a labor force. As we discussed above, there is inequality and dissatisfaction in the business we do in the present-day world. It will threaten sustainability in the future. Therefore, it is essential to develop a business model (BM) which will be free from inequality and dissatisfaction. As such, a sustainable BM is essentially important for the benefit of an economy as well as humanity.

1.1.3 PURPOSE OF THE STUDY

The purpose of this study is to explore a BM for an enterprise that can ensure its sustainable growth.

1.1.4 OBJECTIVE OF THE STUDY

In general, the objective of the study is to identify the major factors that will help develop sustainable BM. Specifically, the study attempts to achieve the following specific objectives:

1. To determine the major principles for forming a business and characteristics of an entrepreneur for developing a sustainable BM.
2. To determine the independent variables that substantially affect the dependent variables, i.e., the sustainable BM.

1.2 LITERATURE REVIEW

Frank Boons et al. (2013) had conducted a study on sustainable innovation, BMs, and economic performance: an overview. The study has revealed that sustainable development needs radical and systemic innovations, which can be more effectively created and studied while building on BMs’ concept. The sustainable concept gives firms a holistic framework of how to put in place sustainable innovations. The BM concept offers a connection of an individual firm with a greater production and consumption system in which it runs.

Tolkamp et al. (2018) also conducted a study on a user-centered sustainable BM design: the case of energy efficiency services in the Netherlands. The study finds that the firms hold interactions with their users in three stages: during designing, marketing, and the use-phase. For these separate phases, they also found an involvement loop consisting of four stages: design of involvement, facilitation of involvement, extraction of lessons learned, and finally, BM adaptation. Moreover, different types of involvement of users were found. They ranged from sending and receiving information to co-producing and co-innovating the BM. Involving users requires the scope for interaction on multiple components of the BM. It can lead to both incremental and radical BM innovation.

Bocken et al. (2015) conducted a study on value mapping for sustainable business thinking. The study finds that sustainable business necessitates companies to follow a systemic approach that considers three dimensions of sustainability-social, environmental, and economical in a way that creates shared value for all stakeholders, including the environment and society. The BM concept suggests a framework for system-level innovation for sustainability. It also provides the conceptual link with a firm’s activities such as design, production, supply chains, partnership, and distribution channels. This study explores the use of value mapping for broader sustainable business thinking through reflection on its use in workshop settings.

Alexandre and Laymond (2016) carried out a study on the triple-layered BM canvas: A tool to design more sustainable BMs. The study reveals that the three layers make more evident how an organization creates multiple types of value, namely economic, environmental, and social value. Visually representing a BM through this canvas tool helps develop and communicate a more integrated view of a BM. It also leads to two new dynamics for analysis: horizontal coherence and vertical coherence.

Stefan Schaltegger (2016) conducted a study on BMs for Sustainability: A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation. The study finds that the BMs of sustainable niche market pioneers were identified in earlier research too, but little was known about the dynamics of the BMs in sustainable entrepreneurship processes targeting ecologically and socially beneficial niche models or sustainability upgradation of conventional mass-market players. The core processes of BM variation, selection, retention, and evolutionary pathways support structured analyses of dynamics involving BM innovation and the sustainability transformation of markets.

1.3 METHODOLOGY

1.3.1 INTRODUCTION

This study highlights the type of research design that has been used, the study population, the sample size, sampling procedures, data collection instruments, and procedure for data analysis.

1.3.2 RESEARCH DESIGN

The study contains diverse methods and tools that are relevant to achieve the desired research outcome. Accordingly, the research strategy has focused on the qualitative approach.

The purpose of this study’s qualitative aspect is to seek information that can be generalized about the association between existing business and socially responsible sustainable BMs. The study is based on in-depth interviews and document analysis. The purpose of the qualitative study is to obtain a clear understanding of the business, employees, and customers as well as all other stakeholders, for which we have conducted detailed interviews of them. The study helps build a sustainable BM.

1.3.3 TARGET POPULATION AND SAMPLE

The study population involved entrepreneurs, customers, and employees of different locations. The target populations were selected purposively, and the survey was conducted in March 2019.

1.3.4 DATA COLLECTION INSTRUMENTS

Primary and secondary data were used; questionnaires were used to gather primary information from the field level. Open-ended questions were set and used. The open-ended questions were used to encourage the interviewees to provide extensive answers. Their comments and suggestions were also included. Secondary data was obtained through the website and external sources. Expert opinions were also taken from Senior Entrepreneurs, University Professors, and Senior Bankers.

1.3.5 METHOD OF DATA ANALYSIS

Qualitative data were collected, and a BM was formed comprising the five stages, such as:

1. Present business and their problem;
2. Necessity of new business model;
3. Description of the new business model;
4. Benefits of a new model, and finally; and
5. Limitation of the proposed model.

Finally, the BM was presented using graphics and a description of graphs.

1.4 FINDINGS/BUSINESS MODEL (BM)

1.4.1 DEMOGRAPHIC CHARACTERISTICS

According to the results obtained from the data, out of a total of 100 expert respondents, 20 were Entrepreneurs, 30 employees, and 50 customers. Of them, 90.50% were males and 9.50% females. Among the respondents, the age of 46 was above 40, while 28 were aged between 36 and 40. A total of 26 were aged between 31 and 35.

1.4.2 WEALTH AND WELFARE BUSINESS MODEL (BM)

1. Present Business and Their Problem_ From different reports, we find that wealth is unequally distributed, wealthy persons are not happy, and the poor are struggling to meet their basic needs. In this connection, the then head of the IMF (Daily Ittefaq, June 2018) thought a black hole in the economic sky. Some models are wrongly described, which drives humans in the wrong direction with the worst results. It is like the capital-structured theory of M. Millar, where it is mentioned that due to taxation, the interest-based capital structure is better than equity-based capital structure, but interest is an expenditure which is certain while profit is uncertain. This certain payment of interest can make an enterprise bankrupt, as was the recession in the USA in 2007–2008 due to over-financing. Moreover, there is no struct...

Table of contents

• Cover Page
• Half Title Page
• Title Page
• Copyright Page
• Table of Contents
• Contributors
• Abbreviations
• Acknowledgments
• Preface
• 1. Wealth and Welfare Business: A Sustainable Business Model
• 2. An Impact of Adoption of the Internet of Things (IoT) on Customer Relationship Management (CRM) in the Banking Sector of India
• 3. Cross-Cultural Management: Opportunities and Challenges
• 4. Exploring the Relationship Between Personality and Work-Life Balance
• 5. Artificial Intelligence as Disruptive Technology: A Boon or a Bane in the Global Business Scenario
• 6. Understanding Consumer Responses Towards Social Media Advertising and Purchase Intention Towards Luxury Products
• 7. Multichannel Banking and Customer Experience: A Literature Review of Channels as a Moderator
• 8. Center of Main Interest (COMI): Perspectives and Challenges
• 9. Digitalizing Business Innovation
• 10. Digital Payment: A Robust Face of Modern India
• 11. The Emerging Smart Supply Solutions in Fresh Fruits: India Matching the International Business Standards, New Formats, and New Technologies
• 12. Conceptual Integration of International Marketing in India
• 13. Blockchain Technology and Its Utilization in Tracking Milk Process
• 14. Impact of New Technology on Business
• 15. Impact of Augmented Reality in Sales and Marketing
• 16. Theoretical Perspective of Role of Technology on Business Environment
• 17. Social Media Marketing and Purchase Behavior of Millennials: A Systematic Literature Review
• 18. Eye-Tracking Analysis of Chosen Tourist Offers
• Index