Business Models and Technological Innovation

Article English OPEN
Baden-Fuller, Charles ; Haefliger, Stefan (2013)
  • Publisher: Elsevier BV
  • Journal: Long Range Planning, volume 46, issue 6, pages 419-426 (issn: 0024-6301)
  • Related identifiers: doi: 10.1016/j.lrp.2013.08.023
  • Subject: HD28 | Geography, Planning and Development | Strategy and Management | Finance

Business models are fundamentally linked with technological innovation, yet the business model construct is essentially separable from technology. We define the business model as a system that solves the problem of identifying who is (or are) the customer(s), engaging with their needs, delivering satisfaction, and monetizing the value. The framework depicts the business model system as a model containing cause and effect relationships, and it provides a basis for classification. We formulate the business model relationship with technology in a two-way manner. First, business models mediate the link between technology and firm performance. Secondly, developing the right technology is a matter of a business model decision regarding openness and user engagement. We suggest research questions both for technology management and innovation, as well as strategy.
  • References (81)
    81 references, page 1 of 9

    Alexander, C., 1964. Notes on the Synthesis of Form. Harvard University Press, Cambridge, MA.

    Amit, R., Zott, C., 2001. Value creation in e-Business. Strategic Management Journal 22, 493-520.

    Argyres, N.S., 1999. The impact of information technology on coordination: evidence from the B-2. Organization Science 10 (2), 162-180.

    Arora, A., Fosfuri, A., Gambardella, A., 2001. Markets for technology and their implications for corporate strategy. Industrial and Corporate Change 10 (2), 419-451.

    Baden-Fuller, C., Morgan, M., 2010. Business models. Long Range Planning 43, 156-171.

    Baden-Fuller, C., Mangematin, V., 2013-08-16. Business Models: a Challenging Agenda. Cass Business School. Strategic Organization, SO!apbox (forthcoming).

    Baldwin, C.Y., Clark, K.B., 2000. Design Rules. In: The Power of Modularity, vol. 1. MIT Press, Cambridge, MA.

    Baldwin, C., Hienerth, C., Von Hippel, E., 2006. How user innovations become commercial products: a theoretical investigation and case study. Research Policy 35 (9), 1291-1313.

    Baldwin, C., Clark, K., 2006. The architecture of participation: does code architecture mitigate free riding in the open source development model? Management Science 52 (7), 1116-1127.

    Bierly, P., Chakrabarti, A., 1996. Generic knowledge strategies in the US pharmaceutical industry. Strategic Management Journal 17, 123-135.

  • Metrics
    0
    views in OpenAIRE
    0
    views in local repository
    984
    downloads in local repository

    The information is available from the following content providers:

    From Number Of Views Number Of Downloads
    City Research Online - IRUS-UK 0 984
Share - Bookmark