Journal of Business Research
Journal of Business Research 58 (2005) 726 – 735
The entrepreneur’s business model: toward a unified perspective
Michael Morrisa,*, Minet Schindehutteb, Jeffrey Allenc a Witting Chair in Entrepreneurship, Syracuse University, Syracuse, NY 13244, USA b Miami University, Oxford, OH 45056, USA c University of Central Florida, Orlando, FL 32816, USA Received 29 September 2002; accepted 6 November 2003
Abstract Highly emphasized in entrepreneurial practice, business models have received limited attention from researchers. No consensus exists regarding the definition, nature, structure, and evolution of business models. Still, the business model holds promise as a unifying unit of analysis that can facilitate theory development in entrepreneurship. This article synthesizes the literature and draws conclusions regarding a number of these core issues. Theoretical underpinnings of a firm’s business model are explored. A six-component framework is proposed for characterizing a business model, regardless of venture type. These components are applied at three different levels. The framework is illustrated using a successful mainstream company. Suggestions are made regarding the manner in which business models might be expected to emerge and evolve over time. D 2003 Elsevier Inc. All rights reserved.
Keywords: Activity sets; Architecture; Business model; Strategy; Model dynamics
1. Introduction Ventures fail despite the presence of market opportunities, novel business ideas, adequate resources, and talented entrepreneurs. A possible cause is the underlying model driving the business. Surprisingly, little attention has been given to business models by researchers, with much of the published work focusing on Internet-based models. The available research tends to be descriptive in nature, examining approaches to model construction, noting standard model types, citing examples of failed and successful models, and discussing the need for new models as conditions
The entrepreneur’s business model: toward a unified perspective
Michael Morrisa,*, Minet Schindehutteb, Jeffrey Allenc a Witting Chair in Entrepreneurship, Syracuse University, Syracuse, NY 13244, USA b Miami University, Oxford, OH 45056, USA c University of Central Florida, Orlando, FL 32816, USA Received 29 September 2002; accepted 6 November 2003
Abstract Highly emphasized in entrepreneurial practice, business models have received limited attention from researchers. No consensus exists regarding the definition, nature, structure, and evolution of business models. Still, the business model holds promise as a unifying unit of analysis that can facilitate theory development in entrepreneurship. This article synthesizes the literature and draws conclusions regarding a number of these core issues. Theoretical underpinnings of a firm’s business model are explored. A six-component framework is proposed for characterizing a business model, regardless of venture type. These components are applied at three different levels. The framework is illustrated using a successful mainstream company. Suggestions are made regarding the manner in which business models might be expected to emerge and evolve over time. D 2003 Elsevier Inc. All rights reserved.
Keywords: Activity sets; Architecture; Business model; Strategy; Model dynamics
1. Introduction Ventures fail despite the presence of market opportunities, novel business ideas, adequate resources, and talented entrepreneurs. A possible cause is the underlying model driving the business. Surprisingly, little attention has been given to business models by researchers, with much of the published work focusing on Internet-based models. The available research tends to be descriptive in nature, examining approaches to model construction, noting standard model types, citing examples of failed and successful models, and discussing the need for new models as conditions