Paper 1

Question 1

Common themes among scholars of business models

Answer 1

1) The business model is emerging as a new unit of analysis
2) Business models emphasize a system-level, holistic approach to explaining how firms “do Business”
3) Firm activities play an important role in the various conceptualizations of business models that have been proposed
4) Business models seek to explain how value is created, not just how its captured

1) The business model as a new unit of analysis
2) A holistic perspective on how firms do business
3) An emphasis on activities
4) An acknowledgement of the importance of value creation

Question 2

Main interest business model

Answer 2

1) e-business and the use of information technology in organizations
2) strategic issues, such as value creation and competitive advantage
3) innovation and technology management

Question 3

E-business

Answer 3

doing business electronically

• E-commerce
• E-markets
• Internet-based business

Question 4

E-business two streams

Answer 4

The first aims to describe generic e-business models and provide typologies*(a classification according to general type, especially in archaeology, psychology, or the social sciences.)

; the second focuses on the components of e-business models.

Question 5

Amit and Zott propose four potential sources of value creation through business models:

Answer 5

• Novelty
• Lock-in
• Complementarities
• Efficiency

Question 6

Other study on firm performance is the business model introduced as a variable moderating the effect of top management team composition and organizational performance.

Answer 6

• Business models that emphasize novelty and are coupled with either differentiation or cost leadership can have a positive impact on the firm’s performance
• Novelty-centered business models together with early entry into a market have a positive effect on performance

Question 7

Business model design and product market strategy are complements not substitutes
Two main differentiating:

Answer 7

• Traditional emphasis of strategy on competition, value capture, and competitive advantage, whereas the business model concept seems to focus more on cooperation, partnership, and joint value creation.
• Factor of interest to management scholars is the focus of the business model concept on the value proposition and a generalized emphasis on the role of the customer, which appears to be less pronounced elsewhere in the strategy literature.

Question 8

Strategy field three aspects:

Answer 8

• The networked nature of value creation
• The relationship between business models and firm performance
• The distinction between business model and other strategy concepts

Question 9

Collaborative entrepreneurship:

Answer 9

the creation of something of economic value based on new jointly generated ideas that emerge from the sharing of information and knowledge

Question 10

Open innovation

Answer 10

Open innovation requires the adaption of new, open business models designed for sharing or licensing technologies

Question 11

Novelty

Answer 11

Is creating a new standard of doing things and replacing the old way of doing things

Question 12

Lock-in?

Answer 12

: That entrepreneurs want to be free in what they do and that they can choose who they work with and who not

Question 13

Complementarities:

Answer 13

When two things support each other, and one gets better if the other is improved

Question 14

Three types of business model innovations

Answer 14

1. Industry models (innovations in industry supply chain)
2. Revenue models (innovations in how companies generate value)
3. Enterprise models (innovation in the role structure of an enterprise plays in new or existing value
   chains)

Question 15

In the strategy literature, research on business models has revolved mainly around three aspects:

Answer 15

1. The networked nature of value creation
2. The relationship between business models and firm performance
3. The distinction between the business model and other strategy concepts