Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship

2013 Edition
| Editors: Elias G. Carayannis

Business Model

  • Robert H. Desmarteau
  • Anne-Laure Saives
  • W. David Holford
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-3858-8_197

Synonyms

Definition

A business model is the representation of a given firm’s competitive strategy which, in the image of a sketch, determines how the firm organizes its human, physical, and financial resources to create, capture, and share value. As to the “how to’s” of organizing, a consensus emerges toward identifying four elements or specific logics to be considered: “customers,” “expertise,” “network,” and “revenues, economic value-added.”

The Concept

During the financial bubble of 2000, a proliferation of the term “business model” as symbolized by “start-ups.com” first found its origins within an accounting dissertation published by Bellman in 1957 (Bellman et al. 1957). This up-until-recently forgotten or orphaned notion is best characterized by its conspicuous absence within the classical literature, or as Teece (2010) recently stated, “The concept of Business Model has no established theoretical grounding in economics or in business studies.”...

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Copyright information

© Springer Science+Business Media LLC 2013

Authors and Affiliations

  • Robert H. Desmarteau
    • 1
  • Anne-Laure Saives
    • 2
  • W. David Holford
    • 2
  1. 1.Department of Strategy, Social and Environmental Responsabilities, School of Management Sciences (ESG)University of Quebec at Montreal (UQAM)MontrealCanada
  2. 2.Department of Management and Technology, School of Management Sciences (ESG)University of Quebec at Montreal (UQAM)MontrealCanada