Business model innovation in the age of metaverse

Abstract

The rapid evolution of the metaverse is transforming economic landscapes and introducing a toolbox for business model innovation (BMI)—a topic that has yet to gain substantial academic focus. Adopting a conceptual development approach, we propose that metaverse business model innovation (MBMI) refers to one in which natural human beings, virtual digital humans, and physically simulated robotics configure decentralized material and virtual resources and conduct scenario-based value-creation activities in a fusion world. Unlike traditional and digital BMI, the metaverse has transformed two broad implications—the amorphous nature of metaspace subjects (actors) and the fusion of virtual and reality (resources and contexts). We categorize the MBMI based on the combination of focal context and focal actors into four types: digital twin interaction, duplicate interaction, mirroring interaction, and immersive interaction models. Each model requires organizations to develop specific capabilities for configuring resources to respond to the dynamic environment. We further illustrate that the digital twin interaction model employs realistic simulation; the duplicate interaction model leverages virtual consumption; the mirroring interaction model benefits from virtual sensemaking; and the immersive interaction model utilizes embodied experience to respond to the dynamic environment. This work lays a foundation for future work in MBMI.