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The business model concept: theoretical underpinnings and empirical illustrations

Hedman, Jonas, Kalling, Thomas·2003·European Journal of Information Systems

DOI 10.1057/palgrave.ejis.3000446

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Abstract

The business model concept is becoming increasingly popular within IS, management and strategy literature. It is used within many fields of research, including both traditional strategy theory and in the emergent body of literature on e-business. However, the concept is often used independently from theory, meaning model components and their interrelations are relatively obscure. Nonetheless, we believe that the business model concept is useful in explaining the relation between IS and strategy. This paper offers an outline for a conceptual business model, and proposes that it should include customers and competitors, the offering, activities and organisation, resources and factor market interactions. The causal inter-relations and the longitudinal processes by which business models evolve should also be included. The model criticises yet draws on traditional strategy theory and on the literature that addresses business models directly. The business model is illustrated by an ERP implementation in a European multi-national company.

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Authors: Hedman, J., & Kalling, T.
Affiliations: Lund University (SE)
Corresponding author: Hedman, Jonas
ORCID: Hedman, Jonas
Venue: European Journal of Information Systems
Publisher: Informa UK Limited
Published: 2003-03
Volume: 12
Issue: 1
Pages: 49-59
ISSN: 0960-085X (ISSN-L)
1476-9344
DOI: 10.1057/palgrave.ejis.3000446
OpenAlex: W2026835877
Cited by: 919
References: 76
Citations by year: 2026: 8 · 2025: 12 · 2024: 27 · 2023: 34 · 2022: 31 · 2021: 51 · 2020: 42 · 2019: 47 · 2018: 44 · 2017: 68 · 2016: 58 · 2015: 72 · 2014: 64 · 2013: 75 · 2012: 63
FWCI: 35.03
Type: journal article
Language: en
Open access: closed
Licence: www.springer.com/tdm (unspecified)
Locations: European Journal of Information Systems (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Lund University Publications (Lund University) (submittedVersion)
Topics: Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
Keywords: business models, business model evolution, e-commerce, strategy theory, ERP implementation, business model components

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The business model concept: theoretical underpinnings and empirical illustrations

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