concept

Business model patterns

Also known as: business model pattern

Facts (32)

Sources

Does the combination of sustainable business model patterns lead ... link.springer.com Springer Feb 20, 2023 31 facts

claimWhen firms integrate a combination of business model patterns, they implicitly make choices regarding policies, assets, and governance structures.

quoteA business model pattern is defined as 'the relationship between a certain context or environment, a recurring problem and the core of its solution'.

referenceEchterhoff et al. (2017) developed a consistency matrix designed for the pairwise consistency check of business model patterns, which facilitates the evaluation of business model designs.

claimBusiness model patterns leverage analogical and combinatorial thinking to nurture creativity during the design of innovative business models for sustainability.

perspectiveThe authors of the article propose evaluating the combination of business model patterns and sustainability patterns at the business model design stage, which differs from the sustainability assessment literature (e.g., Süß et al. 2021) that focuses on evaluating business model sustainability after implementation.

referenceGassmann et al. (2014) identify 'integrator' and 'orchestrator' as two business model patterns that induce different, mismatched logics.

claimAn 'integrator' business model pattern aims to integrate as many activities as possible, whereas an 'orchestrator' business model pattern coordinates the activities of independent actors to deliver a value proposition to customers.

referenceContingency theory, as described by Donaldson (2001), predicts that the sustainability performance of a business model pattern or combination of patterns depends on internal and external contextual factors.

claimBusiness model patterns are typically applied in combination rather than as stand-alone elements because individual patterns usually address only a single aspect of a business model, such as value proposition, value creation, or value capture.

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 patterns can be combined to stimulate entrepreneurial creativity and support the design of innovative business models for sustainability.

claimCombining business model patterns can result in a rebound effect, where the positive output of higher efficiency from one pattern is outweighed by another pattern triggering increased customer consumption.

referenceEchterhoff, Koldwey, and Gausemeier (2017) developed a method for pattern-based business model development, which includes the identification, structuring, and application of business model patterns.

claimAbdelkafi et al. (2013) and Abdelkafi and Hansen (2018) argue that the discovery of business model patterns is an essential endeavor in business model innovation research because these patterns support business model design and development.

claimBusiness model patterns can inspire business model innovation.

claimCompanies may combine different business model patterns to generate additional revenue streams and overcome value capture challenges, such as limited market segments, as demonstrated by the Fairphone case.

referenceThe identification of business model patterns is an important cornerstone in business model research, according to Abdelkafi and Hansen (2018).

referenceCurtis (2021) analyzed business model patterns within the sharing economy in the article 'Business model patterns in the sharing economy'.

referenceZott and Amit (2010) assert that a business model pattern cannot be leveraged without specific activities that enable it.

claimThe contribution of business model patterns to sustainability is not absolute; it depends on the inherent characteristics of the pattern itself or the actions undertaken by management.

referenceJohnson (2018) identifies 'razor and blades' and 'reverse razor and blades' as business model patterns that are opposite by design.

referenceAmshoff, Dülme, Echterfeld, and Gausemeier (2015) published 'Business model patterns for disruptive technologies' in the International Journal of Innovation Management, volume 19, issue 3, article 1540002.

procedureEchterhoff et al. (2017) proposed a matrix tool to evaluate the pairwise consistency of business model patterns, using an evaluation scheme that ranges from 1 (complete inconsistency) to 5 (strong mutual assistance).

claimThe sustainability of a business model pattern or a combination of patterns depends on where the boundaries of the larger system are placed.

referenceInherent consistency in business models examines whether the business model patterns are not contradictory and can be productively combined within one single business model.

procedureThe validation process for sustainable business model (SBM) designs consists of three steps: (i) eliminate inconsistencies within the business model activity system by checking the compatibility of selected business model patterns; (ii) demarcate system boundaries to verify that sustainability targets are achieved within those boundaries; and (iii) develop awareness for internal and external contingency factors that exert forces on the business model, allowing for continuous adaptation to maintain high sustainability performance.

claimAn 'orchestrator' business model pattern coordinates many external activities, which may result in low direct environmental impact for the orchestrator, while suppliers and service providers perform manufacturing and logistics activities that may have high detrimental effects on environmental and social sustainability.

claimSystem theory, as proposed by Bertalanffy (1968), is relevant to research on the relationship between business model pattern combinations and sustainability performance.

claimBusiness model patterns possess communicative power because they describe the essential dynamics of value creation, value delivery, and value capture.

referenceLüdeke-Freund et al. (2018b) and Tukker (2004) claim that business model patterns related to 'service and performance' (servitization) drive economic value and eco-efficiency.

claimThe authors propose that researchers could simplify the validation of business model patterns by grouping them into clusters based on shared principles—such as economic principles (network effects, lock-in effects, economies of scale) and sustainability principles (value from waste, product longevity)—rather than checking individual pattern combinations.

Sustainable Business Models | Springer Nature Link link.springer.com Springer Nov 8, 2020 1 fact

referenceLüdeke-Freund, Gold, and Bocken (2018b) developed a typology of circular economy business model patterns in their article 'A review and typology of circular economy business model patterns'.