Abstract
This paper proposes to clarify the concept of business model, its usage and how it can contribute to the firm’s value creation. The literature review shows a board diversity of definitions and application complexity in the firm. The paper identifies the emergence of the business model and how it evolves to the “e-Business model” with commercial development of Internet. Then, it exposes the general typology, roles and the evolution of business model in recent years, whether in quantity or quality studies. Finally, the connection between the business model concept and the company’s performance is explained by the analysis of some recent studies. We also illustrated this relationship through comparing the business model of internet banks and the business model of the traditional banks.
Highlights
The term “Business Model” is widespread and it is becoming commonly used
We suggest another illustration of the relationship between business model and firms’ performance in the context of the comparison between the business model” (BM) and the e-business model provided in the article written by DeYoung (2001) on banking
We have shown in this paper that the concept of business model has been shaped by successive additions and sedimentation through many contributions that helped to clarify its meaning over time
Summary
The term “Business Model” is widespread and it is becoming commonly used. using the Google search engine to explain the exact phrase “business model”, Chesbrough and Rosenbloom have identified 107.000 occurrences in May 2000, while Warnier et al (2004) have found out 1.26 million hits in January 2004 and we recorded 2.16 million hits in September 2004 and 30.2 million hints in March 2007. The mutations that were responsible for its development are technological, but there are economic factors such as searching for shareholder value creation and regulatory factors, especially the deregulation of the telecom sector, which had a significant influence and led to the emergence of new businesses, creating revenue models, and complexity of inter-firm relations (Redis, 2007). These changes have required new analytical frameworks and concepts including the Business model so as to better understand them and integrate them into the strategy of firms.
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