Single- or multi-sided business models: how does time perception influence business model choice

Abstract

Various cognitive factors can influence managerial decisions about business models; in particular, this article reveals how time representation affects entrepreneurs' business model choices over time. By studying four start-ups pursuing emerging internet of things applications in real-life contexts, this article reveals that when the entrepreneurs perceive time urgency, they rely on information and knowledge from their personal backgrounds and adopt single-sided business models. Conversely, when no perceived time urgency exists, entrepreneurs devote more time to exploring their environments and can develop alternative business model configurations. This research contributes to debates about the relationship between technology and business models and reveals that the type of technology affects an entrepreneur's time perception, which influences business model choice. The findings then can help entrepreneurs select a business model by acknowledging how their unconscious mental representation of time influences their choice.