THE BUSINESS MODEL. FROM TAXONOMY TO MODULARITY

Abstract

ABSTRACT There are almost as many definitions of a business model as there are business models (Teece 2018). This heterogeneity is not helpful for managers and practitioners to improve their business. Nor is it useful to scholars themselves to enhance literature streams being that vague. Building on a stream of business model or creating an empirical paper, is troublesome as it would be very subjective the choice of referring to a precise theoretical background, thus delivering debatable findings. After a brief history of the “business model” construct, the strategy and business model “overlap” issue will be analyzed, addressing possible ways to untangle those streams. Shifting from a taxonomical view to a knowledge-based view of business model, facing issues of business model practical applications (Porter 2001, Baden-Fuller & Morgan 2010), this paper aims to provide a clear definition of “Business Model” to be readily interpreted and applied. Building on the modularity approach (Schon 2012), the advantages and limitations of the Business model maps are underlined, also reviewing Osterwalder (2010) model and Andreassen et al. (2018) modification. Lastly, an enhanced model of the canvas is proposed, explaining how it should overcome the limitations of the previous models (Chesbrough 2010). Keywords Business Model; Modularity; Canvas; Dynamic Capabilities; Knowledge Management