Digital entrepreneurship: The impact of digitalisation on business model innovation in the Finnish property technology startups

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Journal Title

Journal ISSN

Volume Title

School of Business | Master's thesis

Authors

Date

2023

Department

Johtamisen laitos

Major/Subject

Mcode

Degree programme

Entrepreneurship and Innovation Management

Language

en

Pages

96+4

Series

Abstract

Digital transformation and sustainability are two main drivers changing real estate and construction industries, both creating challenges to transform and opportunities to develop novel business model innovations. Yet, often disruptive technology-oriented startups focusing on creating impact through novel mechanisms of value have received relatively little attention in academic research, due the fact that property technology has emerged within the past decade. In turn, the traditional property industry, globally as one of the biggest asset classes, has been moderate in identifying avenues and technologies for novel value creation and for growth. Lagging on gaining efficiencies compared to other more recently digitalised industries, and by not actively creating new solutions, has generated a major opportunity to entrepreneurial and innovative PropTech startups. Digitalisation and technology enabling digital activity has progressed even further through ecosystems, technology platforms, software and applications which has severely disrupted through novel business model innovations traditional industries. The purpose of this study is to examine the impact of digitalisation on business model innovation in the property technology startups in Finland. The objective is to gain knowledge of property technology startups' ability and innovativeness to design and develop novel business models and -logics, as well as to deliver stakeholder value for viable business. Exploring the Finnish PropTech startup-scene, will provide insights, how startup business model innovation has evolved both from strategic and operational perspectives and which has been design choices, drivers, and trade-offs. The study was conducted as a qualitative multiple case study to gain in-depth knowledge of the studied phenomena. Due to novelty of the topic the object of the case study was startups which have identified product-market fit, released first digital products, and gained customer traction. The qualitative data was collected through individual semi-structured interviews of seven (co-)founders at the case startups in the capital region of Helsinki. The qualitative data was analysed through thematic content and cross-case analysis. The results of the study indicate that digital transformation, and sustainability are key drivers to transform and identify opportunities for novel value creation through business model innovation is apparent in the case startups. PropTechs are utilising platform business model strategy and -innovations, through technology-based and data-driven platforms, customer centric multi-sided digital transformation and co-creation -approach, and full-stack combination of technology and capabilities. These may disrupt status quo value chains, changing the value creation logic towards facilitating interactions and value creation on exchange between customer and producers. Conse-quently, the findings illustrate that digitalisation creates a major impact on business model innovation on property technology startups, turning concept as the new source of innovation.

Description

Thesis advisor

Shulist, Patrcik

Keywords

digitalisation, digital transformation, business model innovation, startup, property technology

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202305143102

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[gradu] Kauppakorkeakoulu / BIZ