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The business model concept: theoretical underpinnings and empirical illustrations
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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“The relationship between BMs and strategy has long been debated (Hedman & Kalling, 2003;Seddon, Lewis, Freeman, & Shanks, 2004).”
From Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? (2019) · cites this paper as Hedman & Kalling, 2003
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“We follow the view that strategy needs to be implemented in the business logic as a first step in the BMI process.”
From Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? (2019) · cites this paper as Hedman & Kalling, 2003
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Metadata
- 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
- 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
- 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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