Session 443

Business Model Theory Development

Track A

Date: Monday, September 22, 2014


Time: 14:45 – 16:00


Room: Helsinki

Session Chair:

  • Charles Baden-Fuller, City University London

Title: Firms Do Not Choose Business Models: Business Models Choose Firms


  • Iain Rolfe, Macquarie Graduate School of Management
  • Kyle Bruce, Macquarie Graduate School of Management
  • Lars Groeger, Macquarie Graduate School of Management

Abstract: Operating business models are significantly larger than the firm itself and connect a large number of co-dependent actors in a system nested in a series of larger socioeconomic systems. The authors expand upon the adaptive systems' perspective originally lent to the business model concept and investigate whether business models are a type of complex adaptive system. Complex adaptive systems are open systems in which agents are independent decision makers. Through the aggregation of all agents’ decisions over time the business model chooses to operate with the firm. The relocation of control, management, and ownership of a business model leads to significant implications for the firm and mainstream strategy. In particular, the concept of strategic planning is challenged and the relevance of emergent strategy is enhanced.

Title: Network-Based Approach for Business Modelling


  • Rigo Tietz, FHS St.Gallen

Abstract: Innovative business models can be based on new or modified business model elements or on new or modified links between these elements. The conceptual framework introduced in this paper applies causal-loop diagrams and represents business models as networks with a set of basic elements and interactions that can easily be extended. Thus, the approach provides a dynamic and holistic perspective that enables highlighting specific innovative attributes and identifying virtuous cycles in a business model. The discussed examples demonstrate the practical application on firm or business unit level.

Title: The Role of Business Models in Resource-Based Theory: A Cognitive Perspective


  • Charles Baden-Fuller, City University London
  • Simone Santoni, City University London

Abstract: We situate business models as a moderator that unpacks relationships between key variables in mainstream strategy. Narrative reviews of the Resource Based Theory literature and meta-analyses suggest that despite strong overall support, the micro-organizational aspects underlying the relationship between resources and firm profitability have remained clouded. In particular we cannot properly explain why managers take different approaches to structuring, bundling, and leveraging a firm portfolio of resources. In an attempt to remedy this deficiency in the RBT literature, we focus on managers’ cognition of resource issues and assign a specific role to the configuration called the business model. Specifically, we propose a theoretical framework that conceptualizes business models as the key mechanism that situates managers’ cognition of resources issues, and influences the perceived usefulness and profitability of different combinations.

Title: Waiting Time in Platform Markets


  • M.Mahdi Tavalaei, IE Business School
  • Juan Santalo, IE Business School

Abstract: This paper is a study on the concept of waiting time as the time that users spend dealing with/within the platform markets. Even if one side users dislike this time, platforms have an incentive not to minimize it since they may get extra revenues from other side. Hence, it is argued that waiting time depends positively on the relative revenue that platforms get from other side of the market. This effect will be reinforced when the platform outsources management of these ‘other side’ revenues to third parties that have the mandate of maximizing them. Finally, waiting time depends negatively on the opportunity cost of user’s time. The hypotheses are tested with in the US airport industry that provides an excellent empirical context for the paper.

All Sessions in Track A...

Sun: 15:45 – 17:00
Session 444: Business Model innovations
Mon: 08:00 – 09:15
Session 442: Performance Implications of Business models
Mon: 11:00 – 12:15
Session 305: Business Model Design and Innovation in Different Institutional Environments
Mon: 14:45 – 16:00
Session 443: Business Model Theory Development
Mon: 16:30 – 17:45
Session 455: Selected topics on Business models
Tue: 08:00 – 09:15
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 11:00 – 12:15
Session 447: Business Model Design
Tue: 15:30 – 16:45
Session 449: Busienss Model Eco-systems

Strategic Management Society