Digital business model innovation in metaverse: How to approach virtual economy opportunities

In recent times, continuous evolutions in digital technologies are triggering new business models (BMs) within virtual environments. This phenomenon is defining a new economy staging in so-called metaverses. Here, physical-world BMs are modified, virtual-world BMs are implemented, and combinations of physical-world and virtual-world BMs are performed. As a result, new mechanisms of value creation and value capture at the crossroads of physical and virtual econ-omies arise in the metaverse. This paper aims at understanding which are these value mechanisms and how organizations can develop them. To this aim, the paper analyzes the cases of four cross -industry incumbents (namely, Gucci, Samsung, Hyundai, and Nike), which are pivoting their BMs in the metaverse. A framework indicating how to innovate BMs in the metaverse is provided, by looking at both phygital transformations (i.e., transformations aimed at joining physical and digital worlds' realities) and completely virtual immersions shaping firms' internal processes and relationships with customers. In this way, the paper supports companies in turning the metaverse into value, while also extends the scant academic knowledge on the metaverse' impact on innovation of BMs.

Automated summary

In recent times, the development of digital technologies has led to the emergence of new business models in virtual environments. This paper examines the value creation and value capture mechanisms in the metaverse, where physical and virtual economies intersect. It analyzes the cases of four cross-industry incumbents, namely Gucci, Samsung, Hyundai, and Nike, to understand how they are adapting their business models in the metaverse. The paper provides a framework for BM innovation in the metaverse, considering both phygital transformations and virtual immersions.