The Business Model: Recent Developments and Future Research

doi:10.1177/0149206311406265

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The Business Model: Recent Developments and Future Research

Journal Article•DOI•

The Business Model: Recent Developments and Future Research

Christoph Zott¹, Raphael Amit², Lorenzo Massa¹•Institutions (2)

University of Navarra¹, University of Pennsylvania²

02 May 2011-Journal of Management (SAGE PublicationsSage CA: Los Angeles, CA)-Vol. 37, Iss: 4, pp 1019-1042

TL;DR: This article provided a broad and multifaceted review of the received literature on business models in which the authors examined the business model concept through multiple subject-matter lenses and found 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.

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About: This article is published in Journal of Management.The article was published on 2011-05-02 and is currently open access. It has received 3850 citations till now. The article focuses on the topics: New business development & Business transformation.

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Journal Article•DOI•

A literature and practice review to develop sustainable business model archetypes

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Nancy Bocken¹, Samuel W. Short¹, Padmakshi Rana¹, Steve Evans¹•Institutions (1)

University of Cambridge¹

15 Feb 2014-Journal of Cleaner Production

TL;DR: In this article, sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society, to drive and implement corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.

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2,360 citations

Cites background or result from "The Business Model: Recent Developm..."

...Business models and business model innovation have received substantial attention in literature and industry and it is increasingly suggested that business model innovation is a key to business success (Chesbrough, 2010; Lüdeke-Freund, 2010; Zott et al., 2011)....
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...The business model may be viewed as a new unit of analysis in business, which takes into account these collaborative ties (Zott et al., 2011; Beattie and Smith, 2013)....
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...This is in line with Beattie and Smith (2013) and Zott et al. (2011) who describe the business model as extending beyond the entity of the firm, its customers and shareholders, and also including value captured for key stakeholders (e.g. suppliers)....
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Posted Content•

Business Models for Sustainable Innovation: State of the Art and Steps Towards a Research Agenda

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Frank Boons¹, Florian Lüdeke-Freund², Florian Lüdeke-Freund³•Institutions (3)

Erasmus University Rotterdam¹, Lüneburg University², University of Hamburg³

14 Jun 2012-Social Science Research Network

TL;DR: In this paper, the authors review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations and propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations.

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Abstract: The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.

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1,477 citations

Journal Article•DOI•

Business Models for Sustainable Innovation: State-of-the-Art and Steps Towards a Research Agenda

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Frank Boons¹, Florian Lüdeke-Freund²•Institutions (2)

Erasmus University Rotterdam¹, Lüneburg University²

01 Apr 2013-Journal of Cleaner Production

TL;DR: In this article, the authors review the current literature on business models in the contexts of technological, organizational and social innovation and propose examples of normative requirements that business models should meet in order to support sustainable innovations.

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1,395 citations

Posted Content•

Leveraging External Sources of Innovation: A Review of Research on Open Innovation

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Joel West¹, Marcel Bogers², Marcel Bogers³, Marcel Bogers⁴•Institutions (4)

Keck Graduate Institute of Applied Life Sciences¹, Eindhoven University of Technology², University of California, Berkeley³, University of Copenhagen⁴

02 Jan 2013-Social Science Research Network

TL;DR: In this paper, an analysis of prior research on how firms leverage external sources of innovation is presented, which suggests a four-phase model in which a linear process of obtaining, integrating, integrating and commercializing external innovations is combined with interaction between the firm and its collaborators.

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Abstract: This article reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of Enkel et al. (2009). From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process — (1) obtaining, (2) integrating and (3) commercializing external innovations — is combined with (4) interaction between the firm and its collaborators. This model is used to classify papers taken from the top 25 innovation journals identified by Linton and Thongpapan (2004), complemented by highly cited work beyond those journals. A review of 291 open innovation-related publications from these sources shows that the majority of these articles indeed address elements of this inbound open innovation process model. Specifically, it finds that researchers have front-loaded their examination of the leveraging process, with an emphasis on obtaining innovations from external sources. However, there is a relative dearth of research related to integrating and commercializing these innovations.Research on obtaining innovations includes searching, enabling, filtering, and acquiring — each category with its own specific set of mechanisms and conditions. Integrating innovations has been mostly studied from an absorptive capacity perspective, with less attention given to the impact of competencies and culture (including not-invented-here). Commercializing innovations puts the most emphasis on how external innovations create value rather than how firms capture value from those innovations. Finally, the interaction phase considers both feedback for the linear process and reciprocal innovation processes such as co-creation, network collaboration and community innovation.This review and synthesis suggests several gaps in prior research. One is a tendency to ignore the importance of business models, despite their central role in distinguishing open innovation from earlier research on inter-organizational collaboration in innovation. Another gap is a tendency in open innovation to use “innovation” in a way inconsistent with earlier definitions in innovation management. The article concludes with recommendations for future research that include examining the end-to-end innovation commercialization process, and studying the moderators and limits of leveraging external sources of innovation.

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1,306 citations

Cites background from "The Business Model: Recent Developm..."

...The research in the sample has consistently established the value creation potential of external sources of innovation—perhaps due to a broader pattern of firm and 6 While management researchers in general have found inconsistent use of the business model concept (Seddon, Lewis, Freeman, and Shanks, 2004; Zott et al., 2011), the concept seems more consistently used in open innovation....
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...…external sources of innovation—perhaps due to a broader pattern of firm and 6 While management researchers in general have found inconsistent use of the business model concept (Seddon, Lewis, Freeman, and Shanks, 2004; Zott et al., 2011), the concept seems more consistently used in open innovation....
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...Articles in the sample rarely mentioned a “business model”: the phrase appears in only about 30% of the final sample of articles, and (as Joyce and Winch, 2004, and Zott et al., 2011, found more generally) many were merely passing references....
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Journal Article•DOI•

Leveraging External Sources of Innovation: A Review of Research on Open Innovation

[...]

Joel West¹, Marcel Bogers•Institutions (1)

Keck Graduate Institute of Applied Life Sciences¹

01 Jul 2014-Journal of Product Innovation Management

TL;DR: In this article, the authors present a four-phase model in which a linear process of obtaining, integrating, integrating and commercializing external innovations is combined with interaction between the firm and its collaborators.

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1,211 citations

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References

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Open Access

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Competitive advantage: creating and sustaining superior performance

[...]

M.E. Ponter

01 Jan 1998

TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.

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Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.

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17,979 citations

Book•

Competitive Advantage: Creating and Sustaining Superior Performance

[...]

Michael E. Porter

01 Jan 1985

TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as mentioned in this paper, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.

...read moreread less

13,593 citations

Journal Article•DOI•

Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance

[...]

David J. Teece¹•Institutions (1)

University of California, Berkeley¹

01 Dec 2007-Strategic Management Journal

TL;DR: In this paper, the authors draw on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability.

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Abstract: This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long- run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise-level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long-run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright  2007 John Wiley & Sons, Ltd.

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9,400 citations

Book•

Open Innovation: The New Imperative for Creating and Profiting from Technology

[...]

Henry Chesbrough¹•Institutions (1)

Dartmouth College¹

01 Mar 2003

TL;DR: Open Innovation: The New Imperative for Creating and Profiting From Technology as discussed by the authors is a book by Henry Chesbrough, which discusses the importance of open innovation for creating and profiting from technology.

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Abstract: The article reviews the book “Open Innovation: The New Imperative for Creating and Profiting From Technology,” by Henry Chesbrough.

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8,644 citations

Journal Article•DOI•

Business Models, Business Strategy and Innovation

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David J. Teece

01 Apr 2010-Long Range Planning

TL;DR: In this paper, the authors explore the significance of business models and explore their connections with business strategy, innovation management, and economic theory, and understand how the enterprise can organize to best meet customers' needs, get paid for doing so, and make a profit.

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6,242 citations

"The Business Model: Recent Developm..." refers background in this paper

...Hurt, 2008; Baden-Fuller & Morgan, 2010 Teece, 2010 “A business model articulates the logic, the data and other evidence that support a value proposition for the customer, and a viable structure of revenues and costs for the enterprise delivering that value” (p. 179)....
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...The business model is conceptually placed between a firm’s input resources and market outcomes, and it “embodies nothing less than the organizational and financial ‘architecture’ of the business” (Teece, 2010: 173)....
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...& Amit, 2007, 2008) • Advantageous cost structures (Teece, 2007) • Schumpeterian innovation (Teece, 2010) • Connection of technology with customers (Chesbrough, & Rosenbloom, 2002) • Network plays (Calia et al....
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...Third, many scholars include activities, performed either by a focal firm or by its suppliers, partners, or customers, as part of their conceptualization (McGrath, 2010; Teece, 2010; Zott & Amit, 2010)....
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...Although business models have been integral to trading and economic behavior since pre-classical times (Teece, 2010), the business model concept became prevalent with the advent of the Internet in the mid-1990s, and it has been gathering momentum since then....
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