Factors influencing the choice of solution-specific business models

Abstract

Services are receiving an increasing amount of attention in project-based firms. This has led project suppliers to employ new business models; the project supplier can offer services as an additional component of the project or take full responsibility for the operation and maintenance of the facility throughout its life-cycle. In this paper, we build on the idea that within the context of project-based firms, assessing business models requires a solution level of analysis which implies services as integral parts of project offering. We analyze business models in five solutions that were delivered by a power plant supplier firm. The evidence clearly demonstrates that there are variations in business models at the solution level. The paper further contributes to existing research by empirically identifying factors that influence the choice of business model for a particular solution. Finally, we formulate propositions on how these identified factors influence the choice of a business model for an individual solution.