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The business model concept: theoretical underpinnings and empirical illustrations

Hedman, Jonas LU and Kalling, Thomas LU (2003) In European Journal of Information Systems 12(1). p.49-59
Abstract
The business model concept is becoming increasingly popular within IS, management and strategy literature. It is used within many fields of research, including both traditional strategy theory and in the emergent body of literature on e-business. However, the concept is often used independently from theory, meaning model components and their interrelations are relatively obscure. Nonetheless, we believe that the business model concept is useful in explaining the relation between IS and strategy. This paper offers an outline for a conceptual business model, and proposes that it should include customers and competitors, the offering, activities and organisation, resources and factor market interactions. The causal inter-relations and the... (More)
The business model concept is becoming increasingly popular within IS, management and strategy literature. It is used within many fields of research, including both traditional strategy theory and in the emergent body of literature on e-business. However, the concept is often used independently from theory, meaning model components and their interrelations are relatively obscure. Nonetheless, we believe that the business model concept is useful in explaining the relation between IS and strategy. This paper offers an outline for a conceptual business model, and proposes that it should include customers and competitors, the offering, activities and organisation, resources and factor market interactions. The causal inter-relations and the longitudinal processes by which business models evolve should also be included. The model criticises yet draws on traditional strategy theory and on the literature that addresses business models directly. The business model is illustrated by an ERP implementation in a European multi-national company. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
European Journal of Information Systems
volume
12
issue
1
pages
49 - 59
publisher
Palgrave Macmillan
external identifiers
  • wos:000182030400006
  • scopus:0037357555
ISSN
0960-085X
DOI
10.1057/palgrave.ejis.3000446
language
English
LU publication?
yes
id
0ae43290-d6c1-4eb0-9d91-a1b685d3b37b (old id 314951)
date added to LUP
2007-09-13 08:02:45
date last changed
2018-02-18 03:33:31
@article{0ae43290-d6c1-4eb0-9d91-a1b685d3b37b,
  abstract     = {The business model concept is becoming increasingly popular within IS, management and strategy literature. It is used within many fields of research, including both traditional strategy theory and in the emergent body of literature on e-business. However, the concept is often used independently from theory, meaning model components and their interrelations are relatively obscure. Nonetheless, we believe that the business model concept is useful in explaining the relation between IS and strategy. This paper offers an outline for a conceptual business model, and proposes that it should include customers and competitors, the offering, activities and organisation, resources and factor market interactions. The causal inter-relations and the longitudinal processes by which business models evolve should also be included. The model criticises yet draws on traditional strategy theory and on the literature that addresses business models directly. The business model is illustrated by an ERP implementation in a European multi-national company.},
  author       = {Hedman, Jonas and Kalling, Thomas},
  issn         = {0960-085X},
  language     = {eng},
  number       = {1},
  pages        = {49--59},
  publisher    = {Palgrave Macmillan},
  series       = {European Journal of Information Systems},
  title        = {The business model concept: theoretical underpinnings and empirical illustrations},
  url          = {http://dx.doi.org/10.1057/palgrave.ejis.3000446},
  volume       = {12},
  year         = {2003},
}