Network Logics and Societal Challenges: An Extended Framework for Business Model Innovation

Abstract

We argue that ICT offers significant contributions to solving societal challenges if organizations couple ICT with business models that fit heterogeneous or, sometimes, competing logics. Therefore, we suggest that IT-enabled business models for societal challenges are embedded into combinations of institutional logics that arise on the level of value creation networks, e.g. what we coin network logics. We draw this insight from an inductive, interpretive case study of business model innovation for treating chronic diseases. Contributions arise in three areas: first, our argument shows that IT-enabled business model innovation for societal challenges is best understood by integrating research on IT-enabled business models with institutional theory. Second, we suggest that the institutional logics literature holds the currency to enhance the idea of “value creation logics”, which is prominent in business model research. Third, our study sug-gests that information systems research and organization theory need to be further aligned.