Knowledge Tree
business model
Also known as: business models, BM, business model concept
synthesized from dimensionsA business model is fundamentally defined as an architecture of value creation, delivery, and capture architecture of value creation. It serves as a system of activities system of activities that bridges the gap between high-level business strategy and operational execution strategic-operational bridge. By explicating the core logic of how a firm functions core business logic, the business model acts as a boundary-spanning mechanism where coordinated actors—including employees, suppliers, partners, and customers—interact to exchange value boundary-spanning activity system.
While the term emerged prominently in the mid-1990s alongside the rise of the Internet Internet-era emergence, it has since become a central focus of strategic management. Scholars note that there are nearly as many definitions of a business model as there are models themselves many definitions exist, yet consensus holds that it is a dynamic entity rather than a static plan successful business models evolve. It represents the interdependence of a firm’s value proposition, supply chain, and customer interface interdependence between value proposition, serving as a critical tool for both creating and appropriating value mechanism for value appropriation.
In contemporary practice, firms increasingly compete through business model innovation rather than traditional product-market strategies competing on business models. This shift is driven by the need to defend against imitation difficult for imitators and to respond to evolving contingencies such as rising R&D costs, shortened product life cycles, and the influence of digital or open-source environments reconsidering traditional business models. Mature organizations often leverage business ecosystems and data analytics to create lock-in mechanisms that solidify their competitive advantage ecosystem-driven lock-in mechanisms.
A significant area of current research involves the integration of sustainability into business models. Sustainability is viewed as a matter of degree matter of degree, and while patterns and taxonomies can assist in design patterns for sustainability, simply combining economic, environmental, and social elements is not a sufficient condition for success necessary but not sufficient. True sustainability requires internal consistency across activities and the ability to adapt to the wider system in which the model is embedded three characteristics. Inconsistency often arises from tensions between these dimensions business model inconsistencies, and assessments must avoid narrow focuses to consider the "whole picture" of the system sustainability assessments should consider.
Ultimately, the business model is a reflection of a firm's realized strategy reflections of the realized strategy. Because it is subject to constant environmental and internal pressures, managers must be prepared to rethink, reinvent, or reorganize their models to remain competitive and sustainable rethink, reinvent, or reorganize. Whether through franchising, platform-based growth, or open-source integration, the business model remains the primary vehicle through which an organization translates its strategic intent into tangible economic and social outcomes.
Model Perspectives (6)
openrouter/google/gemini-3.1-flash-lite-preview definitive 100% confidence
A business model is defined as a system of activities system of activities that serves as a reflection of a firm's realized strategy reflections of the realized strategy. According to Casadesus-Masanell and Ricart (2010), the design and periodic redesign of these models are essential tasks for incumbents and entrepreneurs as they respond to evolving contingencies designing business models.
In contemporary practice, business models are increasingly categorized into groups such as economic, social, ecological, and integrative five primary groups. A major focus in current research is the pursuit of sustainability, which is viewed as a matter of degree rather than a binary state matter of degree. Research by Lüdeke-Freund et al. (2018b) suggests that leveraging patterns and taxonomies can assist developers in orienting their models toward sustainability modifying or creating new business models. However, simply combining economic, environmental, and social patterns is not a sufficient condition for achieving true sustainability necessary but not sufficient.
To be considered truly sustainable, a model must meet three criteria: it must demonstrate internal consistency across its activities, achieve sustainability within its wider system (considering boundaries like geography and user base), and remain adaptable to changing internal and external contingencies three characteristics. Inconsistency often arises from incompatible patterns or tensions between Triple Bottom Line dimensions business model inconsistencies. Furthermore, as noted by Searcy (2018) and others, sustainability assessments must avoid a narrow focus and instead consider the 'whole picture' of the systems in which these models are embedded sustainability assessments should consider. Finally, firms are increasingly forced to reconsider traditional models due to factors like rising competition, R&D costs, and shortened product life cycles reconsidering traditional business models.
openrouter/google/gemini-3.1-flash-lite-preview definitive 100% confidence
A business model is fundamentally defined as an architecture of value creation, delivery, and capture mechanisms architecture of value creation. It acts as a boundary-spanning activity system, where coordinated actors—including employees, suppliers, customers, and partners—interact through transaction mechanisms to exchange value boundary-spanning activity system executed by coordinated actors. According to Teece (2010), this mechanism is essential for a firm to both create and appropriate value mechanism for value appropriation.
Since emerging as a prominent research framework around 2000 emerged around 2000, the business model has become a strategic focal point. Research by Zott and Amit (2008) suggests that competing through business models rather than traditional product-market strategies serves as a defense against product imitation competing on business models. Historical cases, such as Dell's shift to a production-to-order model, illustrate both the competitive advantage gained through novel models and the risks of later imitation by competitors Dell's model innovation imitation leading to collapse. Similarly, Facebook leveraged indirect network effects at entry to sustain its position Facebook's novel model.
Contemporary research increasingly views business models through the lens of sustainability and innovation. Scholars emphasize that integrating ecological or social sustainability into a model does not necessarily hinder economic success sustainability and economic success. Furthermore, business models are now analyzed for their resilience to contingencies resilience of business models and their ability to adapt to digital and open-source environments open source influences. Despite its importance, the concept has been criticized for being "murky" and challenging to study over the last 25 years murky concept criticism.
openrouter/google/gemini-3.1-flash-lite-preview definitive 100% confidence
A business model represents how a firm addresses decision variables in strategy, architecture, and economics to create competitive advantage concise representation of how. It is fundamentally defined by the interdependence of a firm's value proposition, supply chain, and customer interface interdependence between value proposition, serving as the mechanism by which a company creates, delivers, and captures value way of doing business.
Successful business models are dynamic entities that evolve over time successful business models evolve. While new entrants often focus on novelty and efficiency to attract stakeholders activate novelty and efficiency, mature strategies increasingly rely on building business ecosystems to activate lock-in mechanisms ecosystem-driven lock-in mechanisms. This lock-in strategy creates barriers for imitators and new entrants difficult for imitators, and can be further bolstered by integrating artificial intelligence and data analytics integrate data analytics.
Beyond economic performance, there is a growing imperative to integrate sustainability into these models. Scholars such as Lüdeke-Freund emphasize that true sustainability requires a full alignment of economic, environmental, and social dimensions comprehensive alignment of dimensions. However, companies often treat sustainability as an add-on rather than a core component improperly integrated component. Firms like Patagonia, IKEA, and Unilever exemplify the challenges of this transition, as their models face varying levels of legacy constraints and operational limitations identified as companies at. Ultimately, managers must view the business model not as a static plan, but as an evolving strategy that must be rethought if the business is to remain competitive and sustainable rethink, reinvent, or reorganize.
openrouter/google/gemini-3.1-flash-lite-preview 100% confidence
A business model serves as a conceptual bridge between higher-order strategy and operational execution bridging strategy and operations, essentially detailing how an organization creates, delivers, and captures value explaining core business logic. While the term gained prominence in the mid-1990s alongside the rise of the Internet emergence in mid-1990s, the field remains vast and fragmented, with Teece (2018) noting that definitions of business models are nearly as numerous as the models themselves Teece on definition variety.
Research has increasingly focused on the intersection of business models and open-source software Information Systems potential for open source. Scholars such as Seppänen and Helander (2014) have examined value creation in this context value creation in open source, while others emphasize that leveraging open-source communities requires granular planning of value networks compared to traditional frameworks planning for value networks. Practical applications demonstrate diverse strategies, ranging from explicitly open-source approaches to proprietary-like models—such as the one employed by JunoEMR—where the underlying open-source nature is obscured in licensing JunoEMR proprietary-like model.
Methodologically, researchers have developed various tools to categorize these models, including taxonomies for specific industries like carsharing Remane et al. carsharing taxonomy and comprehensive frameworks like the Value Finance meta-dimension, which addresses costing, pricing, and revenue value finance meta-dimension.
openrouter/x-ai/grok-4.1-fast definitive 88% confidence
A business model explicates a firm’s core logic for creating, delivering, and capturing value while generating revenue, as per standard definitions in the literature core business logic. It bridges strategic and operational concepts, facilitating alignment in research strategic-operational bridge. Firms compete via both product market strategies and business models competition via strategy, with the terminology emerging in the mid-1990s alongside the Internet Internet-era emergence. Osterwalder, Pigneur, and Tucci (2005) traced its origins and future in their seminal work origins by Osterwalder. Recent research, including a Scopus search yielding 274 articles on sustainability patterns Scopus sustainability search, emphasizes sustainable business models (SBMs), where patterns stimulate innovation but risk inconsistencies if combining economic, environmental, and social foci sustainability pattern risks. Kranich and Wald (2018) developed a consistency measure consistency measure, while Lüdeke-Freund et al. (2018b) advocate patterns for sustainability-oriented design patterns for sustainability. In open-source contexts, accessible code enables innovative models requiring granular value network planning open-source opportunities. Frameworks include a three-dimensional one for digital sustainability with 12 types digital sustainability framework and analyses of platforms where actor entries can degrade sustainability platform sustainability risks. Challenges involve predicting impacts pre-launch and system-level tradeoffs impact prediction limits. Key scholars like Teece (2010, 2018) link it to strategy and capabilities Teece on strategy.
openrouter/x-ai/grok-4.1-fast definitive 78% confidence
A business model bridges the gap between higher-order business strategy and operational business concepts, as outlined in Springer publications serves to bridge strategy gap. However, Teece (2018) highlights the diversity of definitions, stating there are 'almost as many definitions of a BM as there are BMs' many definitions exist. Academic works emphasize business models' role in innovation across sectors; for instance, Frontiers sources note that energy sector innovation includes new business models alongside technologies energy innovation models, and maximizing renewables requires effective models renewables business models. Firms increasingly innovate via business models rather than products, per Foss and Saebi (2017) and Haftor and Costa (2023) business model innovation trend. Examples include McDonald's franchising model prioritizing economics McDonald's franchising, Bettervest aligning financial and environmental gains Bettervest alignment, and open source hardware models like charging for products or services open hardware models. Springer references discuss applications in sustainability, such as Gassmann, Frankenberger, and Csik (2014) identifying 55 revolutionary models 55 business models, and frameworks via Scopus searches on 'business model' and 'sustainab*' SBM patterns search. System thinking analyzes business model performance within larger systems system thinking analysis, while analytical models assess alignment via parameters like sustainability and innovation organizational alignment model. Overall, business models enable value creation, as in Beattie and Smith (2013)'s intellectual capital discussion value creation relation, and adapt to contexts like open source or circular economies.
Facts (199)
Sources
Does the combination of sustainable business model patterns lead ... link.springer.com Feb 20, 2023 67 facts
claimCombining economic, environmental, and socially focused patterns into a single business model can result in an unsustainable or 'seemingly sustainable' model that fails to achieve full sustainability potential.
measurementA search of the Scopus database conducted on July 28th, 2022, for articles containing "business model" and "sustainab*" combined with "pattern" or "archetype" yielded 274 articles.
claimKranich and Wald (2018) developed a measure to evaluate the consistency level of business models.
claimA firm's business model may shift from a sustainable to an unsustainable state or a lower level of sustainability when internal or external contingency factors change over time, requiring adaptations to maintain high sustainability performance.
referenceLaukkanen M and Tura N investigated the potential of sharing economy business models for sustainable value creation in a 2020 article in the Journal of Cleaner Production.
referenceSystem thinking involves analyzing how the performance of a business model as a system is affected by the larger system in which it is embedded.
claimThe sustainability performance of a platform can decrease if new actors enter the system and introduce excessive, underutilized capacities in pursuit of financial gain, even if the platform's initial business model remains unchanged.
claimA business model can enable a firm’s sustainability orientation.
procedureThe procedure for identifying relevant literature on business model contingencies in the study by Abdelkafi et al. (2023) involved the following steps: (1) Execute a search query in the Scopus database for 'business model' and 'contingenc' (the term 'sustainab' was removed to broaden the initial results to 160 papers). (2) Two authors independently scrutinized the articles. (3) If the title seemed relevant, the article was included. (4) If the title was not clearly relevant, the abstract was read to decide on inclusion. (5) If doubts persisted, the full article was scanned. (6) Results were compared between the two researchers, and disagreements were resolved through discussion to finalize the sample of 25 articles.
claimWhen a platform firm invests in its own equipment to provide as a service alongside third-party owners, it integrates a new activity into its business model, which can negatively impact sustainability by increasing total unused capacities in the wider system.
referenceAccording to Abdelkafi et al. (2022) and Pero et al. (2021), business models that sell used printers to developing countries may serve a social mission by providing affordable access to technology, but they are not ecologically sustainable when the system boundary is extended from local to global.
quoteConsistency is “…represented by the distance between values of variables suspected to score similarly, [and] high consistency is thus expressed by small distances between pairs of item values, where each measures different BM elements”
claimThe authors identified three critical levels of analysis for evaluating business models, derived theoretically from contingency and system theories.
claimSustainability in business models is a matter of degree or level rather than a binary state.
claimWhen one dimension of sustainability is emphasized in a business model, the implications for other sustainability dimensions must also be addressed.
quoteLüdeke-Freund et al. (2018b) state: '…patterns and taxonomy are meant to help corporate leaders, entrepreneurs, organisation designers, and business model developers in modifying or creating new business models with a stronger orientation towards sustainability issues.'
referenceIncumbents and entrepreneurs must make choices when designing a new business model, according to Casadesus-Masanell and Ricart (2010).
claimDetermining the sustainability effectiveness of a business model depends on how the boundaries of the larger system are defined.
referenceDemir and Angwin (2021) explored the concept of multidexterity, which involves combining competing business models in transforming economies, in their article 'Multidexterity: combining competing business models in transforming economies'.
claimA business model that is sustainable at its inception is not necessarily sustainable forever, as adaptations are required to respond to changes.
claimThree levels of analysis define the boundary conditions impacting the sustainability level of business model pattern combinations: (i) the business model system level, (ii) the wider system in which the business model is embedded, and (iii) the internal and external contingencies related to the business model and the wider system.
claimBusiness model designers often cannot predict many sustainability impacts or identify the corresponding indicators before the business model is launched.
claimTradeoffs between natural and produced capital in business models can be managed by decoupling sustainability dimensions or by adopting advanced technologies that reconcile previously inconsistent business model patterns, such as combining sharing economy and pay-per-use patterns through technological platforms.
claimBusiness model patterns can be combined to stimulate entrepreneurial creativity and support the design of innovative business models for sustainability.
referenceThe authors identify three critical levels for analyzing whether a business model is truly sustainable: the business model as an inherent system, the larger system in which the business model is embedded, and the contingency factors impacting sustainability effectiveness over time.
quoteCasadesus-Masanell and Ricart (2010) define business models as "reflections of the realized strategy" and state that "strategy entails designing business models (and redesigning them as contingencies occur)."
claimThe authors pose the research question: 'How can entrepreneurs and managers improve the sustainability of developed business models based on frameworks of SBM patterns?'
claimA business model is considered truly sustainable if it satisfies three characteristics: activities resulting from the combination of sustainable business model patterns foster all dimensions of the Triple Bottom Line (inherent consistency), the business model is sustainable within the wider system-of-interest (sustainability at system level), and the business model adapts over time to accommodate changes in contingencies that might degrade its sustainability performance (contingencies of sustainable business models).
referenceSearcy (2018) argues that sustainability assessments should consider the 'whole picture' of the larger system with which a business model interacts, rather than just the activity system of the business model itself.
claimBusiness model design and implementation should account for system-level economic implications, including taxes, costs, and intellectual property rights.
claimCompanies require a respectable base of customers to achieve a high level of diffusion and meet necessary economic targets.
perspectiveIntegrating economic, environmental, and social patterns into a single business model does not guarantee that the resulting business model is unconditionally sustainable, as combining patterns is a necessary but not sufficient condition for sustainability.
claimCombining 'integrator' and 'orchestrator' patterns into a single business model leads to inconsistencies because their underlying logics do not match.
referenceNiemimaa, Järveläinen, Heikkilä, and Heikkilä (2019) evaluated the resilience of business models for contingencies in the International Journal of Information Management.
accountBetter Place attempted to implement a business model in the automotive industry by analogy to the telecommunication industry, where users paid for battery usage based on distance driven, similar to how mobile phone users pay for calls per unit of time.
claimA business model that fails to sustain itself in a changing environment cannot be considered truly sustainable, even if it appeared sustainable at the beginning.
claimBusiness model inconsistencies typically arise from a lack of internal fit among business model elements, such as combining incompatible patterns like the razor and blade model with its reverse, or from tensions between the three dimensions of the Triple Bottom Line (TBL).
claimProfessional printer firms' business models are not truly sustainable because these firms neglect the system boundary when assessing sustainability performance.
claimThe authors propose a framework for checking business model patterns in a specific sequence to help entrepreneurs and managers improve the sustainability of their business models, as merely combining patterns is insufficient for true sustainability.
referenceLüdeke-Freund F provided an integrative framework and propositions for future research regarding sustainable entrepreneurship, innovation, and business models in a 2020 article in Business Strategy and the Environment.
referenceBradley, Parry, and O’Regan (2020) proposed a framework to explore the functioning and sustainability of business models in their article 'A framework to explore the functioning and sustainability of business models'.
referenceMassa, Viscusi, and Tucci (2018) explored the relationship between business models and complexity in the Journal of Business Models.
claimGiesen et al. (2010) define business model consistency as a state where all elements of a business model are in agreement with each other.
referenceBusiness models can be categorized into five primary groups: economic, social-economic, social, mainly ecological, and integrative.
perspectiveCasadesus-Masanell and Ricart (2010) argue that designing inherently consistent business models is extremely relevant because of the reinforcing loops created within the model.
referenceAccording to Pati et al. (2018), contingency categories for business models are divided into internal and external factors: internal contingencies include strategy, long-term entrepreneurial/managerial orientation, and organizational resources (tangible and intangible); external contingencies include the competitive environment, the firm's stakeholders, and the value-adding network.
claimMcDonald's utilizes franchising as its dominant business model, which is primarily economically driven, with environmental and social patterns having a lower priority.
referenceA business model is defined as a system of activities, as stated by Zott and Amit (2010).
claimIncluding economic, environmental, and social business model patterns in a single business model is a necessary but not sufficient condition for achieving true sustainability.
referenceGassmann, Frankenberger, and Csik (2014) identified 55 business models intended to revolutionize business practices.
referenceInternal contingencies relate to the firm's activity system, which Zott and Amit (2010) define as the business model, while external contingencies relate to the larger system in which the business model is embedded.
referenceFraccascia, Giannoccaro, and Albino (2019) created a taxonomy for business models in industrial symbiosis, specifically focusing on the form of governance.
procedureThe authors identified frameworks for sustainable business model (SBM) patterns by performing a search query on the Scopus database using the keywords "business model" and "sustainab*" combined with "pattern" or "archetype".
perspectiveBlüher et al. (2020) argue that the current debate on 'service and performance' (servitization) business models lacks a systemic approach, which leads them to question the environmental efficiency of these models.
referenceReinhold, Zach, Krizaj, and Reinhold (2017) conducted a review and research agenda regarding business models in the tourism industry, published in Tourism Review.
claimNewlight Technologies' business model demonstrates internal consistency between economic and environmental objectives despite potential tensions between them.
claimBettervest's business model aligns financial gain with environmental benefit, such that increased sales of its value proposition result in both higher revenue and greater environmental impact.
referenceInherent consistency in business models examines whether the business model patterns are not contradictory and can be productively combined within one single business model.
claimWhen defining system boundaries for a business model, two critical characteristics are the system of users or clients the business model aims to serve and the geographical coverage of the business model.
claimBusiness models depend on the strategic, long-term orientation of a firm, which is related to the entrepreneur's mindset.
claimBusiness models that appear sustainable within a limited system boundary may prove to be environmentally and socially unsustainable when the system boundary is enlarged to include a broader range of stakeholders and interactions.
referenceDe Kluyver (2010) outlined the fundamentals of global strategy using a business model approach in the book 'Fundamentals of global strategy: a business model approach'.
referencePatzelt, Zu Knyphausen-Aufseß, and Nikol (2008) utilized an upper echelon perspective to study top management teams, business models, and performance of biotechnology ventures in the British Journal of Management.
referenceBrenk et al. (2019) established that contingency factors depend on a system's internal and external boundaries and can change over time, potentially rendering a business model less sustainable or unsustainable and necessitating adaptation to the new context.
referenceAccording to Value-Belief-Norm (VBN) Theory, sustainable entrepreneurs continuously adapt their beliefs regarding the natural environment, which results in business model updates, sometimes with a delay.
referenceCasadesus-Masanell and Ricart (2010) discussed the progression from strategy to business models and tactics in their article 'From strategy to business models and onto tactics'.
referenceSystem contingencies are context factors that affect a business model and can be categorized as either internal or external, as defined by Pati et al. (2018).
Business ecosystems as a way to activate lock-in in business models link.springer.com Mar 28, 2025 48 facts
referenceFirms compete using both their product market strategy and their business model.
claimFirms can enhance ecosystem-driven lock-in effects by integrating data analytics and AI into their business models.
claimThe article 'Business ecosystems as a way to activate lock-in in business models: a theoretical integration' by D.M. Haftor, R.C. Climent, and A. Kallmuenzer is licensed under a Creative Commons Attribution 4.0 International License.
claimSpotify's initial business model was innovative in the music distribution industry by offering greater efficiency than iTunes or CDs (Rayna & Striukova, 2016).
claimeBay's business model exemplifies an efficiency-oriented theme because selling low-valued items requires fewer resources for marketing and sales compared to pre-existing auction business models, according to Comberg & Velamuri (2017).
claimThe business model concept accounts for value creation on both the supply side (cost of production and unit delivery) and the demand side.
claimA firm's business model is defined as the architecture of value creation, delivery, and capture mechanisms.
claimThe concept of the business model has faced criticism for being 'murky' and difficult to study over 25 years of research.
referenceComberg and Velamuri analyzed the introduction of a competing business model using the case of eBay in a 2017 study.
claimBusiness models that activate novelty and efficiency using new technologies like artificial intelligence may be copied by imitators that apply similar business model architectures and themes.
perspectiveManagers should view a successful business model as an evolving entity that transitions from an initial market-entry strategy to a mature strategy rooted in ecosystem-driven lock-in mechanisms.
claimThe initiation of any of the four value creation themes in a business model is not a simple binary yes or no decision.
claimFirms can simultaneously operate one or more business models that manifest varying degrees of interdependence.
claimNovelty in a business model may be relative to the firm pursuing it, the firm's industry, or the world itself.
accountFacebook's business model was novel at market entry because it offered a more efficient form of information exchange, and it utilized indirect network effects by attracting users who acted as both producers and consumers of content, which discouraged migration to other providers.
claimNespresso's business model provides efficiency for consumers by allowing them to make coffee faster than previous methods.
claimCasadesus-Masanell and Tarziján argue that operating more than one business model simultaneously can be a successful strategy, citing the example of LAN Airlines managing three business models at once.
claimActivating the lock-in theme in a business model makes it more difficult for imitators to copy the pioneering firm and for new entrants to enter the marketplace.
referenceSohl, Vroom, and Fitza published the article 'How much does business model matter for firm performance? A variance decomposition analysis' in Academy of Management Discoveries in 2020.
claimThe introduction of any product requires the simultaneous introduction of a business model.
claimThe integration of business ecosystem theory with business model theory enhances the potency of the business model concept.
referenceFjeldstad and Snow (2018) examined the relationship between business models and organization design.
claimPioneering firms can discourage stakeholders, including customers, employees, suppliers, partners, and owners, from leaving their business model by increasing switching costs, a strategy dependent on the firm's market share.
referenceLeppänen, P., George, G., & Alexy, O. (2023) published 'When do novel business models lead to high performance? A configurational approach to value drivers, competitive strategy, and firm environment' in the Academy of Management Journal, 66(1), 164–194.
claimCompeting on business models rather than product market strategies is a proposed response to the ease of product imitation, as suggested by Zott and Amit (2008).
referenceReim, Parida, and Örtqvist published the article 'Product–Service systems (PSS) business models and tactics–a systematic literature review' in the Journal of Cleaner Production in 2015.
claimThe architecture of a business model refers to the functional relations among value creation, delivery, and capture mechanisms and the underlying activities.
claimNew market entrants should activate novelty and efficiency business model themes to attract necessary stakeholders, including customers, vendors, forwarders, employees, and owners.
referenceAmit and Zott (2001) define business models as boundary-spanning activity systems executed by multiple actors linked together through transaction mechanisms.
referenceThe article 'Refining and extending the business model with information technology: Dell Computer Corporation' was published in The Information Society, 16(1), 5–21.
referenceDaSilva and Trkman defined and clarified the concept of a business model in a 2014 study.
claimA firm's business model is a boundary-spanning activity system that includes both internal and external actors, such as employees, owners, suppliers, vendors, customers, forwarders, and partners.
referenceGeorge and Bock (2011) explored the business model in practice and its implications for entrepreneurship research.
claimManagers of pioneer firms must plan for the long-term deployment of their business models, which evolves from novelty and efficiency to the simultaneous activation of lock-in and complementarity.
referenceTeece (2010) defines a business model as the mechanism for how a firm creates and appropriates value.
claimThe concept of the business model emerged around the year 2000 as a framework to explain variations in firm performance levels, as noted by Raphael Amit and Christoph Zott (2001) and Timo Sohl et al. (2020).
claimA firm's business model accounts for immediate stakeholders, including but not limited to customers and shareholders.
claimThe article 'Business ecosystems as a way to activate lock-in in business models' introduces a conceptualization of a business model that activates the lock-in theme by establishing a business ecosystem.
accountCompetitors imitated and improved upon Dell's business model, which led Dell to near collapse according to Kraemer et al. (2000).
accountDell's market entry in the mid-1990s challenged the established computer industry business model by replacing the production-to-stock and ship-to-outlet model with a production-to-order and ship-to-customer model.
claimOpen access funding for the article 'Business ecosystems as a way to activate lock-in in business models: a theoretical integration' was provided by Uppsala University.
claimThe concept of a business ecosystem emerged toward the end of the 1900s, developing in parallel to but separately from the concept of the business model, as noted by Iansiti & Levien (2004) and Moore (1993).
claimA business model is executed by a set of coordinated actors that operate the business model's activity system.
claimSuccessful business models evolve over time, transitioning from an initial market-entry strategy to a mature strategy based on ecosystem-driven lock-in mechanisms.
claimEmerging technology-based startups often innovated business models by utilizing internet and mobile technologies, as noted by Afuah and Tucci (2001).
claimActors participating in a firm's business model must exchange value to maintain their motivation and participation.
claimFirms use digital technologies to establish novel transaction mechanisms and to automate certain activities within their business models.
claimFirms are increasingly innovating with their business models rather than their products, a trend noted by Foss and Saebi (2017) and Haftor and Costa (2023).
Business Model Innovation: a Framework for Assessing Corporate ... link.springer.com Apr 18, 2025 33 facts
referenceThe study's analytical model evaluates organizational alignment by considering four parameters (embodied sustainability, ecosystem, impact, and innovation), each analyzed through a 'steering' driver (the emerged element) and an 'anchor' benefit (the business-as-usual benefit), with the goal of assessing long-term alignment between the business model and the promoted impact.
claimIntegrating innovation into a broken business model will not save the business; companies must first understand the essence of their business models to gain an extensive understanding of innovation.
referenceMorris M, Schindehutte M, and Allen J authored 'The entrepreneur’s business model: toward a unified perspective', published in the Journal of Business Research in 2005, volume 58, pages 726–735.
claimCompanies often treat sustainability and corporate social responsibility as an additional, improperly integrated component of their business models rather than reconfiguring their economically sustainable business models around the Sustainable Development Goals (SDGs).
claimPatagonia’s business model prioritizes external benefits, whereas IKEA’s model prioritizes operational integration.
claimPatagonia, IKEA, and Unilever are identified as companies at the forefront of integrating sustainability into their business models, though their levels of embodiment vary.
claimDe Giacomo MR and Bleischwitz R (2020) identified contemporary shortcomings and perspectives regarding business models for environmental sustainability, published in Business Strategy and the Environment.
claimBusiness models can integrate 'traditional green' technologies to facilitate the development of sustainable-oriented innovation.
claimAssessing the impact of a new business model is complex and context-dependent, requiring a case-by-case evaluation.
quoteMichael H. Morris defines a business model as "a concise representation of how an interrelated set of decision variables in the areas of venture strategy, architecture, and economics are addressed to create sustainable competitive advantage in defined markets."
claimIKEA's business model ties it to operational constraints, which hinders deeper embodiment of ecosystem and impact goals.
measurementUnilever demonstrates a 38% steered focus in its business model, reflecting contextual influences.
procedureThe research paper employs a 4-step process to develop an analysis grid: (1) review the interdependence between sustainability and profitability, (2) investigate the dependency between business models and sustainability, (3) consider the relationship between innovation and business models, and (4) reflect on the coexistence of innovation and sustainability.
referenceVan Loon P, Diener D, and Harris S authored 'Circular products and business models and environmental impact reductions: current knowledge and knowledge gaps', published in the Journal of Cleaner Production in 2021, volume 288, issue 125627.
claimBoons F, Montalvo C, Quist J, and Wagner M (2013) provide an overview of the relationship between sustainable innovation, business models, and economic performance, published in the Journal of Cleaner Production.
claimFrom an internal perspective, companies can innovate their business models by understanding the status quo, identifying the need for change, and choosing to rethink, reinvent, or reorganize the model.
claimCompanies must prioritize stakeholder involvement and take an active role in reshaping their business models to benefit sustainable development.
claimSteve Evans defines business models as the way of doing business and creating, delivering, and capturing value for a company.
claimIkea's lack of modularity in product design represents a weak link in the alignment of sustainability and business models, as the company's bio-based glue initiative does not address broader design challenges.
referenceRaith M. G and Siebold N authored 'Building business models around sustainable development goals', published in the Journal of Business Models in 2018, volume 6, issue 2, pages 71–77.
claimA business model can be defined as the interdependence between value proposition, supply chain, and customer interface.
claimLüdeke-Freund claims that embedding sustainability within business models requires a comprehensive alignment of economic, environmental, and social dimensions.
procedureThe literature review search process identified 'business model,' 'sustainability,' and 'innovation' as key search terms.
claimA study in Europe found that companies that adapt their business models toward sustainability using innovations experience improvements in overall performance.
claimFrom an external perspective, firms can innovate their business models by identifying and satisfying market needs, introducing new technologies, products, or services, improving the market context, or creating entirely new types of businesses.
claimManagers must identify key economic arguments to drive corporate sustainability management internally to improve sustainability levels in business models.
claimIntegrating innovation into a business model requires a change of mindset for management and employees because it affects future products and services.
claimFor a business model to improve a firm's environmental sustainability, the economic, environmental, and social dimensions must be fully integrated.
referenceAldowaish A, Kokuryo J, Almazyad O, and Goi HC (2022) conducted a literature review and research agenda on environmental, social, and governance (ESG) integration into the business model.
claimUnilever's anchored innovation highlights the challenges of overcoming legacy constraints in traditional industries regarding the alignment of sustainability and business models.
procedureThe authors of the paper utilized the Gioia et al. method to develop a new framework for analyzing the interdependence between business models and sustainability.
referenceFreudenreich, Lüdeke-Freund, and Schaltegger (2020) applied a stakeholder theory perspective to business models to examine value creation for sustainability in their paper 'A stakeholder theory perspective on business models: value creation for sustainability' published in the Journal of Business Ethics.
claimBeattie V and Smith SJ (2013) discuss the relationship between value creation and business models, specifically focusing on the intellectual capital debate in the British Accounting Review.
Archetypes of open-source business models | Electronic Markets link.springer.com Jun 14, 2022 18 facts
claimBusiness models bridge the gap between strategic and operational concepts, and research benefits from aligning these two topics through the lens of business models.
claimThe article 'Archetypes of open-source business models' identifies 'Business models', 'Open source', 'Open-source business models', 'Strategic open source', 'Platforms', 'Archetypes', and 'Taxonomy' as key topics.
claimThe open-source paradigm provides opportunities for innovative business models because the underlying codebase is accessible and extendable by external developers.
claimFirms need to carefully plan their value network to benefit the most from the open-source community, often requiring more granular planning than traditional business models.
claimA business model aims to explicate a firm’s core business logic by describing how an organization creates, delivers, and captures value while generating revenue.
referenceRemane et al. (2016) created a taxonomy of business models specifically for carsharing services.
claimSeppänen and Helander (2014) explored how organizations create value through business models in the context of open source software.
referenceThe meta-dimension Value Finance (MD4) encompasses all aspects of costing, pricing, and revenue breakdown within business models, as defined by Al-Debei & Avison (2010).
claimFirms are increasingly reconsidering traditional business models due to rising global competition, increasing R&D costs, and shortening product life cycles.
referenceDavid J. Teece published 'Business models and dynamic capabilities' in Long Range Planning in 2018, volume 51, issue 1, pages 40–49.
referenceOkoli and Nguyen (2015) conducted a Delphi study to gain insights into business models for free and open source software, presented at the 21st Americas Conference on Information Systems.
claimThe terminology of business models emerged with the advent of the Internet in the mid-1990s and has been an intensively investigated field of research since that time.
claimA business model serves to bridge the gap between higher-order business strategy and the operational business concept.
referenceThe paper 'Setting up shop: The business of open-source software' by Hecker (1999) explores the early business models associated with open source software.
referenceGassmann, Frankenberger, and Choudury (2014) identified 55 business models in their book 'The business model navigator: 55 models that will revolutionise your business', published by Pearson.
quoteTeece (2018) stated: "there are almost as many definitions of a BM as there are BMs."
claimInformation Systems scholars highlight the potential of open source for creating new business models.
claimJunoEMR operates a patient management platform based on the OSCAR McMaster EMR open-source software, but employs a proprietary-like business model where the open-source nature of the software is obscured in the license agreement.
Sustainable Business Models | Springer Nature Link link.springer.com Nov 8, 2020 6 facts
referenceOsterwalder, Pigneur, and Tucci (2005) examined the origins and future of the business model concept in 'Clarifying business models: origins, present, and future of the concept'.
referenceMcGrath (2010) proposed a discovery-driven approach to business models in the article 'Business models: a discovery driven approach'.
referenceTeece (2010) published 'Business models, business strategy and innovation' in the journal Long Range Planning.
referenceBoons and Lüdeke-Freund (2013) published the research article 'Business models for sustainable innovation: state-of-the-art and steps towards a research agenda' in the Journal of Cleaner Production.
referenceMagretta (2002) argues that business models are a critical component of business strategy in the article 'Why business models matter'.
referenceSarasini and Linder (2018) integrated a business model perspective into transition theory using new mobility services as an example in 'Integrating a business model perspective into transition theory: the example of new mobility services'.
Unknown source 5 facts
claimThe business model is considered a central initiative component of corporate sustainability.
referenceThe working paper 'Toward a Better Understanding of Open Ecosystems' by Zhu and Cennamo examines the intricate nature of ecosystem openness and its relationship to business models.
claimThe business model has recently been the focus of research.
claimThe article 'ECONOMIC PARADIGMS AND BUSINESS MODELS TO ACHIEVE THE SUSTAINABILITY OF COMPANIES' posits that business models within the lean economy, green economy, and circular economy paradigms are capable of achieving company sustainability.
claimThe authors of the paper "An eco-critical perspective on business models: the value triangle as..." explore the conventional understanding of business models by analyzing the language applied to them.
An annotated analytic review of biosynthetic polymers and circular ... link.springer.com Mar 7, 2026 3 facts
referenceRichardson (2005) authored 'The business model: an integrative framework for strategy execution', which provides a framework for business model strategy.
referenceHolgado and Aminoff (2019) published 'Closed-loop supply chains in circular economy business models' in the proceedings of the International Conference on Sustainable Design and Manufacturing, discussing supply chain integration in circular economies.
referenceNussholz (2018) published 'A circular business model mapping tool for creating value from prolonged product lifetime and closed material loops' in the Journal of Cleaner Production, introducing a tool for circular economy business models.
Sustainable Energy Transition for Renewable and Low Carbon Grid ... frontiersin.org Mar 23, 2022 3 facts
claimInnovation in the energy sector encompasses more than just technology research and development; it includes new approaches to existing energy systems and markets, as well as the development of new technical and business models.
claimMaximizing renewable energy contribution necessitates the development of effective business models, policies, modern innovative energy technologies, system operational flexibility, and efficiency through continuous research and development.
claimThe development of new energy technologies, business models, and policy priorities requires new market participation models, control models, rules, regulations, governance, and institutional design.
Business models for digital sustainability - ScienceDirect.com sciencedirect.com 2 facts
claimThe authors of the paper 'Business models for digital sustainability' developed a three-dimensional framework of business models for digital sustainability.
claimThe three-dimensional framework of business models for digital sustainability, developed in the paper 'Business models for digital sustainability', comprises 12 theoretically possible business model types.
[PDF] THEORETICAL ROOTS, RECENT DEVELOPMENTS, AND FUTURE ... media.iese.edu 2 facts
https://scholar.google.com/citations?view_op=view_... scholar.google.com 2 facts
claimEsben Rahbek Gjerdrum Pedersen, Florian Lüdeke-Freund, Irene Henriques, and M May Seitanidi observe that sustainable alternatives to conventional business models tend to adopt a more holistic perspective of business.
perspectiveEsben Rahbek Gjerdrum Pedersen, Florian Lüdeke-Freund, Irene Henriques, and M May Seitanidi argue that cross-sector collaboration is important for the transition to new, sustainability-driven business models because an organization's value creation, delivery, and capture are linked to its collaborative ties with stakeholders.
[PDF] Business Models for Sustainability - Diva-portal.org diva-portal.org Jun 23, 2021 1 fact
claimThematic analysis conducted as part of a case study revealed the perceived business model and social impacts of new start-up ecolodges.
https://scholar.google.com/citations?view_op=view_... scholar.google.com 1 fact
referenceThe collection 'Perspectives on Free and Open Source Software' explores economic and business models that reflect changing relationships between users and firms, technical communities and firms, and between competitors.
The Impact of Open Source Software on the Tech Industry gianmatteocostanza.net Aug 7, 2023 1 fact
claimThe success and popularity of open source projects have influenced the development and business models of proprietary software companies, leading many to incorporate open source elements or adopt open source practices to stay competitive.
[PDF] Open-Source Economics and Business Models: tau.edu.ng 1 fact
claimCompanies can build successful business ventures around openly available code using innovative business models.
Why organisations must embrace the 'open source' paradigm blogs.lse.ac.uk Jan 5, 2024 1 fact
procedurePrivate sector organizations should distinguish between algorithmic technologies and data that are core to their intellectual property and business model, and secondary assets that support those core functions.
(PDF) ECONOMIC PARADIGMS AND BUSINESS MODELS TO ... researchgate.net Nov 19, 2025 1 fact
referenceThe article titled 'ECONOMIC PARADIGMS AND BUSINESS MODELS TO ACHIEVE THE SUSTAINABILITY OF COMPANIES' aims to describe the diversity of three economic paradigms: the lean economy, the green economy, and the circular economy.
Sustainability through business model innovation and climate ... nature.com Jan 20, 2025 1 fact
referenceHuang and Ichikohji (2023) assert that companies can identify new opportunities for value creation while minimizing negative environmental impacts and maximizing positive social outcomes by reimagining traditional business models.
Using digital technology to integrate ecological sustainability into the ... onlinelibrary.wiley.com Apr 2, 2023 1 fact
claimA new wave of start-ups demonstrates that integrating ecological sustainability into a business model does not compromise economic success.
Open-source hardware - Wikipedia, the free encyclopedia smoothieware.github.io Apr 15, 2016 1 fact
claimOpen hardware companies are experimenting with different business models.
Open Source Hardware - Devopedia devopedia.org Jun 3, 2019 1 fact
claimBusiness models for open source hardware include charging for products made from open designs, providing technical support, maintenance, upgrades, training, and creating innovative services or online marketplaces around the designs.