A framework for business model development in technology-driven start-ups

Abstract

We propose a framework to explain how business models develop in technology-driven start-up companies using a case study from Scandinavia. We suggest that existing frameworks assume a linear decision process that ignores the company’s course of experimenting under environmental uncertainty. Our proposed framework acknowledges how a start-up makes several iterative and path-dependent decisions to create several business model prototypes before eventually making the irreversible strategic choice of which one to implement.