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.

A marketing perspective on business models

“…The marketing discipline is underrepresented in the strong stream of over a thousand scholarly articles focused on business models (Coombes and Nicholson 2013;Zott et al 2011). However, a closer look at this research stream reveals that many authors emphasize that the purpose of the business model is to articulate a firm's value proposition and to propose a Bviable structure of revenues and costs for the enterprise delivering that value^ (Teece 2010, p.178).…”

“…Several recent reviews highlight the scope of this literature, which ranges from attempts to define and provide structure for the concept of business model, to examinations of specific types of business models (Coombes and Nicholson 2013;Foss and Saebi 2017;Massa et al 2017;Zott et al 2011). The majority of these articles, however, can be found in management journals.…”

Audience Commodification: A Source of Innovation in Business Models

“…Any behaviour is contingent on a perceptual filter that influences a customer's behaviour as well as other resources (Falkinger, 2008). A sustainable and durable business model should be based on this perception from value (Chesbrough & Rosenbloom, 2002;Dubosson-Torbay et al, 2002;Hedman & Kalling, 2003;Osterwalder, 2004;Rappa, 2004;Week, 2000;Zott et al, 2011). …”

Governed by history: institutional analysis of a contested biofuel innovation system in Tanzania

“…A large number of definitions of the business model concept are now available. Based on a survey of the literature, Zott et al (2011a) argue that 'business model' is not one, but rather many concepts. The dominant conceptualisation views a business model as the logic of how a business creates value while meeting its customers' needs and "the architecture of revenues, costs, and profits associated with the business enterprise delivering that value [to its customers]."…”

“…(Teece, 2010: 173; see also Chesbrough and Rosenbloom, 2002). Studies adopting such a definition of business model generally analyse how a focal firm exploits technological or organizational innovations (Zott et al, 2011a). Even though it is noted that a focal firm cannot create or exploit value without its suppliers and buyers, the business model concept remains centred on the firm and its revenue flows.…”