Let $C$ be the category of algebraic structures of a certain type and let us denote by $|~|$ the underlying functor $C \to \mathsf{Set}$. For $M,N \in C$ we have a functor $\mathrm{BiHom}(M,N;-) : C \to \mathsf{Set}$ which sends an object $K \in C$ to the set of bihomomorphisms $M \times N \to K$, where this is defined to be a map $|M| \times |N| \to |K|$ which is a homomorphism in each variable when the other one is fixed. Then one can show as usual that $\mathrm{BiHom}(M,N;-)$ is representable and call the universal bihomomorphism $M \times N \to M \otimes N$ the tensor product of $M,N$. This is a straight forward generalization of the well-known case $C=\mathsf{Mod}(R)$ for a commutative ring $R$.
Question. Has this tensor product of arbitrary algebraic structures already been studied or used in the literature?
Here are some examples: For $C=\mathsf{Set}$ the tensor product equals the usual cartesian product. This is also true for $C=\mathsf{Set}_*$. For $C=\mathsf{Grp}$ we get $G \otimes H \cong G^{\mathsf{ab}} \otimes_{\mathbb{Z}} H^{\mathsf{ab}}$ using some Eckmann-Hilton argument. In particular this yields nothing new (and differs from the tensor product of groups which is known in the literature). The case $C=\mathsf{CMon}$ is very similar to the well-known case $C=\mathsf{Ab}$ and is spelled out here; namely, we have internal homs and therefore a hom-tensor-adjunction. The same is true for $C=\mathsf{Mod}(\Lambda)$ for a generalized ring $\Lambda$ (i.e. a commutative algebraic monad) in the sense of Durov (see here, Section 5.3).
But what about, say, $C=\mathsf{Mon}$?
Question. Do you know other interesting special cases of this tensor product?
Note that the tensor product is commutative, and that it commutes with filtered colimits in each variable. However, the case $C=\mathsf{Grp}$ shows that it does not have to commute with coproducts. In other words, the tensor product is no left adjoint. Also, the free object on one generator is not a unit in general. For example, for $C=\mathsf{Mon}$ we have
$\mathbb{N} \otimes M = M / \{ (mn)^p = m^p n^p \}_{m,n \in M, p \in \mathbb{N}}$
The usual proof of the associativity of the tensor product breaks down: There is a map $\beta : M \times (N \otimes K) \to (M \otimes N) \otimes K$ mapping $(m, n \otimes k) \mapsto (m \otimes n) \otimes k$, which is a homomorphism in the second variable. But what about the first variable? The equation $\beta(mm',t) = \beta(m,t) \beta(m',t)$ is clear if $t \in N \otimes K$ is a pure tensor. But for $t=(n \otimes k) (n' \otimes k')$ we end up with the unlikely equation
$((m \otimes n) \otimes k) ((m' \otimes n) \otimes k) ((m \otimes n') \otimes k') ((m' \otimes n') \otimes k')$ $=((m \otimes n) \otimes k) ((m \otimes n') \otimes k') ((m' \otimes n) \otimes k) ((m' \otimes n') \otimes k')$
Question. Do you know a specific example which demonstrates that the tensor product of algebraic structures (for example, of monoids) is not associative?