COMPARATIVE ANALYSIS OF BIO-BUSINESS MODELS AND JUSTIFICATION OF THEIR MANAGEMENT IMPROVEMENT

Authors

  • Judita Astrovienė Vytautas Magnus University
  • Jolita Greblikaitė Vytautas Magnus University

DOI:

https://doi.org/10.15544/RD.2021.054

Keywords:

biobusines, biobusines model, high-added value

Abstract

The management models and concepts that the business applies in its activities determine the decision-making process, work of organization, and other operating principles. In businesses whose activities are complex or specific, i.e. in high value-added bio-businesses, traditional management models are not suitable in some cases - For example Forgo (2004) says that only organizations that are able to turn ideas into products and sell them in a short period of time can develop effectively. In the case of bio-business development, research may take time, but this does not necessarily mean that the company will not develop efficiently.The aim of this study is to perform a comparative analysis of bio-business models and to substantiate the need for their  improvement - the management model must be adapted to the size of the company, the nature of economic activity, the external environment. Today’s biotechnology industry also needs to take a more disciplined approach to management processes that go beyond traditional organizational boundaries. The research is based on the analysis, synthesis, systematization and comparison of scientific literature, statistical data and documents. The study found that while there are sufficient prospects for using bio-waste as bio-raw materials and developing bio-businesses in rural areas, existing models may be difficult to adapt from a managerial point of view and should be improved. The most obvious of the issues examined is that there is still a lack of solutions for a more fluent flow of business processes, especially for the adequate use of bio-waste, i.e. so that high added value is obtained from them. It has been found that the use of bio-raw materials for the manufacture of products would not only create high economic added value, but also would build jobs in rural areas. Because the development of a bio-business from idea to final product is a long process that can take decades, such processes require appropriate business models and their management.

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Published

2022-01-25

Issue

Section

Social Innovations for Rural Development