Skip to main content
SpringerLink
Log in
Book cover

Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship pp 1–7Cite as

Business Model

  • Living reference work entry
  • First Online:

  • 311 Accesses

Synonyms

Economic model; Strategic system

Definition

A business model is the representation of a given firm’s market strategy which, in the image of a sketch, specifies how the firm organizes its human, physical, and financial resources to create, capture, and deliver value relative to the choice of stakeholders made. As to the “how tos” and the “whys” of organizing, a consensus emerges toward identifying four specific logics to be considered: “customers,” “expertise,” “network,” and “revenues.” Given this descriptive consensus, practitioners face five challenges throughout the business modeling process: namely, three strategic challenges of which one is teleological (the “for whom” to create value?) and two are praxeological (implying choice making) in nature linked to innovation and networking. The remaining two are operational challenges: “digitalization integration! and performing.”

The Concept

During the financial bubble of 2000, a proliferation of the term “business model” as...

This is a preview of subscription content, log in via an institution.

References

  • Abell DF. Defining the business: the starting point of strategic planning. Prentice-Hall Inc: Englewood Cliffs; 1980.

    Google Scholar 

  • Al-Debei MM, Avison D. Developing a unified framework of the business model concept. Eur J Inf Syst. 2010;19(3):359–76.

    Article  Google Scholar 

  • Allaire Y, Firsirotu M. L’entreprise stratégique: penser la stratégie. Boucherville: Gaëtan Morin; 1993.

    Google Scholar 

  • Allaire Y, Firsirotu M. Stratégie et Moteurs de Performance. Montréal/Québec: Chenelière McGraw-Hill; 2004.

    Google Scholar 

  • Allal-Chérif O, Favier M. Creating value through business model innovation. Sloan Manag Rev. 2012;53(3):40–50.

    Google Scholar 

  • Amit R, Zott C. Creating value through business model innovation. Sloan Manag Rev. 2012;53(3):40–50.

    Google Scholar 

  • Ansoff HI. Corporate strategy. New York: McGraw Hill; 1965.

    Google Scholar 

  • Ansoff HI. The new corporate strategy. New York: Wiley; 1987.

    Google Scholar 

  • Baumol W. The free-market innovation machine. Analysing the growth miracle of capitalism. Princeton: Princeton University Press; 2002.

    Book  Google Scholar 

  • Bellman C, et al. On the construction of a multi-stage, multi-person business game. Oper Res. 1957;5:469–503.

    Article  Google Scholar 

  • Bocken S, Padmakshi S, Evans RS. A value mapping tool for sustainable business modelling. Corp Gov. 2013;13(5):482–97.

    Article  Google Scholar 

  • Boons F, Ludeke-Freund F. Business models for sustainable innovation: state –of-the –art and steps towards a research agenda. J Clean Prod. 2013;45:9–19.

    Article  Google Scholar 

  • Bouwman H, Faber E, Haaker T, Kijl B, De Reuver M. conceptualizing the STOF model (chapter 2). In: Bauwman H, Devos H, Timber H, editors. Mobile service innovation and business model. Berlin: Springer; 2008. p. 31–70.

    Chapter  Google Scholar 

  • Buzzell RD. Market share: a key to profitability. Harv Bus Rev. 1975;53:97–106.

    Google Scholar 

  • Buzzell RD. Note as a reference source for the analysis of case studies involving issues of market definition and segmentation. Copyright, the President and Felloes of Harvard College. 9-579-083 Rev. February 27, 1987 (reprod.); 1978.

    Google Scholar 

  • Casadesus-Masanell R, Ricart JE. From strategy to business models and onto tactics. Long Range Plan. 2010;43(2–3):195–215.

    Article  Google Scholar 

  • Chanal V, Le Gall A. Comment l’enseignement du business model en école de design questionne l’identité professionnelle des designers. Humanisme et Entreprise. 2014;316:67–90.

    Article  Google Scholar 

  • Chesbrough HW. Open innovation: the new imperative for creating and profiting from technology. Boston: Harvard Business School Press; 2003.

    Google Scholar 

  • Chesbrough HW. Open business models: how to thrive in the new innovation landscape. Boston: Harvard Business School Press; 2006.

    Google Scholar 

  • Chesbrough H. Business models innovation: opportunities and barriers. Long Range Plan. 2010;43(2–3):354–63.

    Article  Google Scholar 

  • Dahan NM, Doh JP, Oetzel J, Yaziji M. Corporate-NGO collaboration: co-creating new business models for developing markets. Long Range Plan. 2010;43(2–3):326–42.

    Article  Google Scholar 

  • de Tocqueville A. De la démocratie en Amérique, 2 t, vol. 12 et 13. Paris: Gallimard; 1961–1840.

    Google Scholar 

  • De Reuver M, Haaker T. Designing viable business model for context-aware mobile service. Telematics Inform. 2009;26:240–8.

    Article  Google Scholar 

  • Demil B, Lecocq X. Business model evolution: in search of dynamic consistency. Long Range Plan. 2010;43(2–3):227–46.

    Article  Google Scholar 

  • Desmarteau RH, Saives AL. Opérationnaliser une définition systémique et dynamique du concept de modèle d’affaires: cas des entreprises de biotechnologie au Québec . In Actes de la XVIIe conférence internationale de management stratégique, AIMS. Nice, juin; 2008.

    Google Scholar 

  • Desmarteau RH, Saives AL. Le modèle d’affaires: de la quête d’une synthèse à la synthèse de l’enquête. Actes de la conference annuelle de l’Association Internationale de Management Stratégique (AIMS), Tunis, juin; 2016.

    Google Scholar 

  • Freeman RE. Strategic management: a stakeholder approach. Boston: Pitman; 1984.

    Google Scholar 

  • Friedman M. The social responsibility of business is to increase its profits. New York Times Magazine. 1970;33:122–6.

    Google Scholar 

  • Giesen E, Riddleberger E, Christner R, Bell R. Seizing the advantage. When and how to innovate your business model. IBM Institute for Business Value; 2009.

    Google Scholar 

  • Hall WK. SBUs: hot new topic in the management of diversification. Bus Horiz. 1978;21:17–25.

    Article  Google Scholar 

  • Hamel G. Leading the revolution: how to thrive in turbulent times by making innovation a way of life. Rev. and updated. Boston: Harvard Business School Press; 2002.

    Google Scholar 

  • Johnson MW, Christensen CM, Kagermann H. Reinventing your business model. Harv Bus Rev. 2008a;86(12):51–9.

    Google Scholar 

  • Johnson G, Scholes K, Whittington R, Fréry F. Stratégique. Montreuil: Pearson education. 8ème édition; 2008b.

    Google Scholar 

  • Jouison E, Verstraete T. Business model et création d’entreprise. Revue Française de Gestion, Février. 2008;34(181):175–97.

    Article  Google Scholar 

  • Lambert G, Schaeffer V. Innovation stratégique et mutations de l’architecture de valeur dans les modèles d’affaires. Rev Econ Ind. 2014;146:61–84.

    Google Scholar 

  • Le Moigne JL La théorie du système général, théorie de modélisation. 3e éd. rev. Paris: Presses universitaires de France; 1990–1977.

    Google Scholar 

  • Magretta J. Why business models matter. Harv Bus Rev. 2002;80(5):86–92.

    Google Scholar 

  • Mintzberg H. Rebalancing society: radical renewal beyond left, right and center. Oakland: BK Publishers; 2014.

    Google Scholar 

  • Morris M, Schindehutte M, Allen J. The entrepreneur’s business model: toward a unified perspective. J Bus Res. 2005;58(6):726–35.

    Article  Google Scholar 

  • Normann R. Management for growth. Chischester/New York: Wiley; 1977. Traduction of Skapande foretagsledning. Stockholm: Aldus; 1975.

    Google Scholar 

  • Normann R. Reframing business: when the map changes the landscape. Chichester: Wiley; 1983.

    Google Scholar 

  • Osterwalder A. The business model ontology: a proposition in a design science approach. Thesis HEC Lausanne, 172 p; 2004.

    Google Scholar 

  • Osterwalder A, Pigneur Y. Business model generation; 2010. Self published, BusinessModelGeneration.com. ISBN 978-8399-0617-3.

  • Porter ME, Kramer MR. Creating shared value. Harv Bus Rev. 2011;89(1–2):62–77.

    Google Scholar 

  • Rhodes J, Bergstrom B, Lok P, Cheng V. A framework for stakeholder engagement and sustainable development in MNCs. Journal of Global Responsibility. 2014;5(1):82–103.

    Article  Google Scholar 

  • Rothschild WE. Putting it all together: a guide to strategic thinking. New York: Amacom; 1976.

    Google Scholar 

  • Saives A-L, Desmarteau RH, Schieb-Bienfait N. Après une décennie de Buzz, quelle pertinence pour le concept de modèle d’affaires en stratégie ? Montréal: JFD Éditions; 2012.

    Google Scholar 

  • Saives A-L, Desmarteau RH, Schieb-Bienfait N, Emin S. La pratique du modèle d’affaires. Montréal: Éditions JFD; 2013.

    Google Scholar 

  • Saives A-L, Desmarteau RH, Schieb-Bienfait N, Emin S. Le processus de construction du modèle d’affaires. Montréal: Éditions JFD; 2014.

    Google Scholar 

  • Schoeffler S, Buzzell RD, Heany DF. Impact of strategic planning on profit performance. Harv Bus Rev. 1974;52:137–45.

    Google Scholar 

  • Schumpeter JA. Capitalism, socialism, and democracy. New York/London: Harper & Brothers; 1942.

    Google Scholar 

  • Stewart III GB. The quest for value. New York: HarperCollins; 1991.

    Google Scholar 

  • Teece JD. Business models, business strategy and innovation. Long Range Plan. 2010;43:172–94.

    Article  Google Scholar 

  • Thompson Jr AA, Stickland III AJ. Strategy formulation and implementation tasks of the general manager. Plano: Business Publication Inc; 1983.

    Google Scholar 

  • Verstraete T. GRP lab: d’une théorie du business model à la réalisation d’une plateforme numérique de sensibilisation, formation et accompagnement à l’entrepreneuriat. Revue internationale PME. 2015;28(3–4):17–26.

    Article  Google Scholar 

  • Verstraete T, Jouison-Laffite E. A conventionalist theory of the business model in the context of business creation for understanding organizational impetus. Manag Int. 2011;15(2):109–23.

    Article  Google Scholar 

  • Verstraete T, Jouison-Lafitte E. Business model pour entreprendre. Bruxelles: De Boeck; 2009.

    Google Scholar 

  • Yunus M, Moingeon B, Lehmann-Ortega L. Building social business models: lessons from the grameen experience. Long Range Plan. 2010;43(2–3):308–25.

    Article  Google Scholar 

  • Zook C, Allen J. The great repeatable business model. Harv Bus Rev. 2011;89(11):106–14.

    Google Scholar 

  • Zott C, Amit R. Business model design: an activity system perspective. Long Range Plan. 2010;43(2–3):216–26.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Département de stratégie, responsabilité sociale et environnementale, École des Sciences de la gestion, Université du Québec à Montréal, 320 Ste-Catherine, Est, Local DS-2965, Second Floor, Montréal, Québec, Canada

    Robert H. Desmarteau

  2. Département management et technologie, École des Sciences de la gestion, Université du Québec à Montréal, 315 Ste-Catherine, Est, Local R-3570, 3rd Floor, Montréal, Québec, Canada

    Anne-Laure Saives & W. David Holford

Authors
  1. Robert H. Desmarteau
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Anne-Laure Saives
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. W. David Holford
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Robert H. Desmarteau .

Section Editor information

  1. Decision Support Systems Laboratory, School of Production Engineering and Management, Technical University of Crete, University Campus, Kounoupidiana, 73100, Chania, Greece

    Evangelos (Vangelis) Grigoroudis

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Science+Business Media LLC

About this entry

Cite this entry

Desmarteau, R.H., Saives, AL., Holford, W.D. (2017). Business Model. In: Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6616-1_197-2

Download citation

  • DOI: https://doi.org/10.1007/978-1-4614-6616-1_197-2

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, New York, NY

  • Print ISBN: 978-1-4614-6616-1

  • Online ISBN: 978-1-4614-6616-1

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation