An analysis of the interplay among the dimensions of the business model and their effects on performance

Abstract

he main research issue raised in this paper is the relationship between business model conduct and performance. We have in this paper developed and discussed a business model framework based on a literature review of business model frameworks published in the years 2001 – 2011. From this review, a four dimensional framework emerges where each dimension represents major conduct variables such as what value to offer the customer; how to approach these customers; how to create this value; and how to capture firm value. In addition, the purpose of this paper is to enhance our understanding of the complex interplay between these four dimensions, and to point out that specific decisions in one dimension may impact several other dimensions. To study these interactions, we have proposed a research model and developed a set of propositions. The framing of the propositions highlights some important consequences of making certain decisions in one dimension, and the consequences of this decision on other dimensions.