The Business Model: Recent Developments and Future Research

Abstract

This article provides a broad and multifaceted review of the received literature on business models in which the authors examine the business model concept through multiple subject-matter lenses. The review reveals that scholars do not agree on what a business model is and that the literature is developing largely in silos, according to the phenomena of interest of the respective researchers. However, the authors also found emerging common themes among scholars of business models. Specifically, (1) the business model is emerging as a new unit of analysis; (2) business models emphasize a system-level, holistic approach to explaining how firms "do business"; (3) firm activities play an important role in the various conceptualizations of business models that have been proposed; and (4) business models seek to explain how value is created, not just how it is captured. These emerging themes could serve as catalysts for a more unified study of business models. Disciplines Business Administration, Management, and OperationsThis journal article is available at ScholarlyCommons: http://repository.upenn.edu/mgmt_papers/74Electronic copy available at: http://ssrn.com/abstract=1674384 The authors gratefully acknowledge the very helpful comments and suggestions of the Editor and of two anonymous reviewers on earlier drafts of this paper. Chris Zott and Lorenzo Massa acknowledge the support of IESE in sponsoring this research. Raffi Amit is grateful to the Wharton eBusiness Initiative and to the Robert B. Goergen Chair for financial support of this research.Electronic copy available at: http://ssrn.com/abstract=1674384Business Model/2 THE BUSINESS MODEL: RECENT DEVELOPMENTS AND FUTURE RESEARCH AbstractThe paper provides a broad and multifaceted review of the received literature on business models in which we examine the business model concept through multiple subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found emerging common themes among scholars of business models. Specifically, 1) the business model is emerging as a new unit of analysis; 2) business models emphasize a system-level, holistic approach towards explaining how firms "do business"; 3) firm activities play an important role in the various conceptualizations of business models that have been proposed; and 4) business models seek to explain how value is created, not just how it is captured. These emerging themes could serve as catalysts towards a more unified study of business models.

Knowing your boundaries: Integration opportunities in international professional service firms

“…Based on these observations, Devinney et al (2000) suggest that the IR framework must incorporate the concept of 'transactional completeness', which they define as the condition when 'all the characteristics of the transaction can be priced as if on an open market' (Devinney et al, 2000, p. 682). This concept is similar to the understanding of a business model, which concerns how value is captured in a market (Zott, Amit, & Massa, 2011).…”

“…Some clients may prefer to cooperate with specific employees because they have established relationships over time involving high degrees of trust (Løwendahl, 1997). To satisfy these different needs, IPSFs have developed multiple coexisting business models (Amit & Zott, 2001;Morris, Schindehutte, & Allen, 2005;Osterwalder, 2004;Osterwalder & Pigneur, 2009;Osterwalder, Pigneur, & Tucci, 2005;Zott & Amit, 2007;Zott & Amit, 2008;Zott, et al, 2011).…”

Effect of Business Model Complexity on Supply Chain Management: A Case Study of Apparel Value Networks

“…BM also inherits a systemic view since it is the architecture of strategic choices of a firm or a value network [6], [7]. Thus, BM of a value network should create complexity as a result of the choices made in order to deliver and appropriate value.…”

Applying Enterprise Architecture to Business Networks

“…The concept gathered momentum to such an extent that traditional business models are being changed to networked business model. The networked nature of business is taken into account in the business model and business model innovation literature [Zott et al, 2011]. Examples include a business model canvas [Osterwalder and Pigneur, 2010], value networks [Allee, 2008], and resources and capabilities across organizational boundaries [Bouty, 2000].…”

“…In this setting, one must consider the whole network and capture the interplay between the various components of the network, where each component can potentially be facilitated by a distinct business partner. Previous research has shown the cross-boundary nature of the business model operation [Zott et al, 2011], in which certain activities of a focal organization are performed by other business partners, suppliers or associates. This allows for the use of resources and capabilities available in the network through different operation arrangements such as outsourcing, and co-sourcing.…”