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A business model describes the rationale of how an organization creates, delivers, and captures value. Research on business models has been sharply increasing in recent years. Following strong interest from managers and entrepreneurs, a consensus has been emerging among strategy and entrepreneurship scholars that business models are an important subject of academic inquiry.
Business models emphasize a system-level, holistic approach towards explaining how firms do business (not what, when or where). As such, they seek not only to explain the ways in which value is captured but also how it is created. Organizational activities play an important role in the various conceptualizations of business models that have been proposed. Although scholars have made progress in coming to grips with the business model as a concept, what is still less well understood are the links between relevant business model parameters -- such as the degree of its innovativeness -- and competitive advantage.
• What does it mean for a firm to adopt an innovative business model, and is it worth it?
• What are the costs and benefits of business model innovation?
• How does business model innovation relate to product and process innovation?
• How difficult is it for competitors to imitate a new business model, and what are the barriers to imitation?
• Under which circumstances does business model innovation create a competitive advantage?