BUSINESS MODEL INNOVATION WITH VALUE CREATION APPROACH IN B2B E-COMMERCE

• Main Author: Andira Barmana, Muhamad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71201
• Institution: Institut Teknologi Bandung

The rapid development of the digital era accompanied by the COVID-19 pandemic has made many business owners switch from selling offline to selling online. The emergence of the online Business to Business (B2B) marketplace is expected to experience exponential growth in the next couple years. However, Untung Lancar Aman (ULA) as B2B e-commerce experienced decreasing trend for the last 6 months from Gross Merchandise Value (GMV) and active store. This research is aimed to identify B2B e-commerce challenges and propose business model innovation to create sustainable growth for ULA with value creation approach. This research will use primary data which gathered through qualitative interviews and company internal data. The researcher conducted interviews with stall owners and compared the results of the interviews with the C-Level of ULA. All data will be analyzed by using business model analysis from Afuah (2014) to identify the root cause of slow growth of ULA in the recent months and using value creation approach from Amit and Zott (2001) to propose business model innovation. There are four source of value creation in e-business; efficiency, lock-in, complementarities, and novelty, which are coherent with ULA as B2B e-commerce. The results of this study stated that customer segment and value proposition of ULA had wrong positioned and are the cause of the decline in business performance. ULA B2B-commerce should focus on implementing business model innovation to overcome these problems by leveraging the four sources of value creation especially novelty and lock-in. This strategy can be implemented by providing workshops by all stakeholders and creating unique value for small retailers to improve their economy.