Abstract

This paper aims to enhance the knowledge of business models in the mobile service sector by exploring their key mechanisms and underlying components. By combining the business model literature with empirical interview-based case studies of 69 business models in the mobile service sector, it illustrates the findings of a longitudinal case study of a business model design attached to an iPhone application. A model for managing business model design in an open innovation context of mobile services is proposed. The model extends earlier frameworks by adding contingency aspects and the view of core resources for addressing logics in the dynamic sector. Findings highlight the importance of ventures in the mobile service sector continually managing the business model design in order to support the sustainability of their business models.

Highlights

  • In the last few decades, new market conditions and technological advances have contributed to an increasing number of ventures being international from their inception, or being “born global” [1], and to a dynamic environment that challenges traditional views on ventures’ business models

  • We develop a model for business model design for mobile services in an open innovation context

  • We focus on the simple business models as our analyses outline mobile applications exploited through mobile service platforms such as iPhone and Android, all of which have simple business models and the mobile platforms have opened up the mobile service market, market structure provides new logics for business endeavours

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Summary

Introduction

In the last few decades, new market conditions and technological advances have contributed to an increasing number of ventures being international from their inception, or being “born global” [1], and to a dynamic environment that challenges traditional views on ventures’ business models. As the Internet and related technologies have changed the way business is done, interest in business models has grown among managers and scholars. For ventures launching business models linked to a more open innovation context of the Internet, the nature of business model logics is still in its infancy. This has caused an uncertainty in the business model design and management. Research in the service sciences indicates the need to develop sustainable business models [3]

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