Leading Business Model Research: The Seven Schools of Thought
This chapter examines how business model research has been addressed in the past by presenting the seven dominant schools of thought on business models. Each of their theoretical background particularly enables us to understand patterns, causal and logica
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Leading Business Model Research: The Seven Schools of Thought
Abstract This chapter examines how business model research has been addressed in the past by presenting the seven dominant schools of thought on business models. Each of their theoretical background particularly enables us to understand patterns, causal and logical relationships, as well as processes of business models. By analysing a case from the perspective of each school of thought, the schools are portrayed in a comprehensive manner. In addition, commonalities, overlaps, and differences such as their demarcation from strategy research are discussed. The chapter rounds off in building the bridge to the subsequent chapters of this book and highlighting the role of theories for explaining the phenomenon. Keywords Review of business model/business model innovation literature • Theoretical background • Realist view • Cognitive view on business models • Business model theories • Business models and strategy • Phenomenon-driven research • Theoretical paradigm shifts Business model research has been intensified significantly in the last decade. The field seems to have emerged into its own discipline, building on the established areas of strategic management on the one side, and technology and innovation management on the other side. The emergence of business model research into its own discipline can be viewed as an early phase in which different schools are developing and merging. We present a selection of seven research groups that have attained prominence because © The Editor(s) (if applicable) and the Author(s) 2016 O. Gassmann et al., Exploring the Field of Business Model Innovation, DOI 10.1007/978-3-319-41144-6_2
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of their innovative approaches or theoretical input on business models. Before providing a preliminary discussion on the leading business model research, an overview of the seven schools of thoughts is given.
2.1 Activity System School (IESE Business School and Wharton School of the University of Pennsylvania) A business model is a set of interdependent activities spanning firm boundaries The authors define a business model as ‘structure, content and governance of transactions’ (Zott & Amit, 2008, 2010). Content refers to the selection of activities that are performed to deliver the value proposition. The structure of an activity system refers to how these activities are delivered and interlinked, that is, how the required capabilities, activities, and processes add up to deliver and distribute the value proposition. This dimension thus primarily refers to the organization and architecture of the value chain activities, and ‘it also captures their importance for the business model, for example, in terms of their core, supporting or peripheral nature’ (p. 220). Ultimately, the activity system’s governance defines who performs which activities. Inherent to this approach, Amit and Zott (2001) undertake a first attempt to link economic theories to the value-creation activities of a business, namely transaction
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