Abstract
Building on the extant literature on business modelling and focussing on start-up firms, this article aims at exploring the combination between conventional business model schemes and System Dynamics methodology with the intent to overcome those limitations related to a static design approach. By mapping the multiple key elements underlying value creation processes – linked according to a cause-and-effect perspective – and with the support of a simulation-based methodology, entrepreneurs may experiment and understand how the firm reacts to strategic and organizational changes in terms of performance, innovation and value creation.References
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Sterman, J.D. (2000). Business Dynamics: System Thinking and Modelling for a Complex World. London, UK: McGraw-Hill.
Stewart, D. W., & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of Public Policy & Marketing, 19(2), 287-296. doi: 10.1509/jppm.19.2.287.17125
Teece, D.J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2), 172-194. doi: 10.1016/j.lrp.2009.07.003
Trimi, S., & Berbegal-Mirabent, J. (2012). Business model innovation in entrepreneurship. International Entrepreneurship and Management Journal, 8(4), 449-465. doi: 10.1007/s11365-012-0234-3
Van Werven, R., Bouwmeester, O., & Cornelissen, J.P. (2015). The power of arguments: How entrepreneurs convince stakeholders of the legitimate distinctiveness of their ventures. Journal of Business Venturing, 30(4), 616–631. doi: 10.1016/j.jbusvent.2014.08.001
Wirtz, B.W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning, 49(1), 36-54. doi: 10.1016/j.lrp.2015.04.001
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that promotes experimentation. Strategy & Leadership, 44(1), 11–19. doi: 10.1108/SL-06-2015-0048
Yin, R.K. (2009). Case Study Research: Design and Methods. 4th ed., Thousand Oaks, CA: Sage.
Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal, 29(1), 1 - 26. doi: 10.1002/smj.642
Zott, C., & Amit, R. (2010). Business Model Design: An Activity System Perspective. Long Range Planning, 43(2/3), 216-226. doi: 10.1016/j.lrp.2009.07.004
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(4), 1019-1042. doi: 10.1177/0149206311406265
Amit, R., & Zott, C. (2012). Creating value through business model innovation. Sloan Management Review, 53(3), 41–49.
Andries, P., Debackere, K., & Van Looy, B. (2013). Simultaneous Experimentation as a Learning Strategy: Business Model Development under Uncertainty. Strategic Entrepreneurship Journal, 7(4), 288–310. doi: 10.1002/sej.1170
Bass, F. (1969). A New Product Growth for Model Consumer Durables. Management Science, 15(5), 215–227. Doi: 10.1287/mnsc.15.5.215
Bellman, R., Clark, C.E., Malcolm, D.G., Craft, C.J., & Ricciardi, F.M. (1957). On the construction of a multi-stage, multi-person business game. Operations Research, 5(4), 469-503. Doi: 10.1287/opre.5.4.469
Berends, H., Smits, A., Reymen, I., & Podoynitsyna, K. (2016). Learning while (re)configuring: Business model innovation processes in established firms. Strategic Organization, 14(3), 181–219. doi: 10.1177/1476127016632758
Bianchi, C. (2010). Improving Performance and Fostering Accountability in the Public Sector through System Dynamics Modelling: From an ‘External’ to an ‘Internal’ Perspective. System Research and Behavioral Science, 27(4): 361-384. doi: 10.1002/sres.1038
Bianchi, C. (2016). Dynamic Performance Management. Springer. doi: 10.1007/978-3-319-31845-5
Brinckmann, G., Grichnik, D., & Kapsa, D. (2010). Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing, 25(1), 24-40. doi: 10.1016/j.jbusvent.2008.10.007
Casadesus-Masanell, R., & Ricart, J.E. (2010). From strategy to business models and onto tactics. Long Range Planning, 43(2), 195-215. doi: 10.1016/j.lrp.2010.01.004
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long Range Planning, 43(2), 354-363. doi: 0.1016/j.lrp.2009.07.010
Ching, H.Y., & Fauvel, C. (2013). Criticisms, Variations and Experiences with Business Model Canvas. European Journal of Agriculture and Forestry Research, 1(2), 26-37.
Coda, V. (1988). L’orientamento strategico dell’impresa. Torino: Utet.
Cosenz, F., & Noto, G. (2016). Applying System Dynamics Modelling to Strategic Management: A Literature Review. Systems Research and Behavioral Science. doi: 10.1002/sres.2386
Delmar, F., & Shane, S. (2003). Does business planning facilitate the development of new ventures?. Strategic Management Journal, 24(12), 1165–1185. doi: 10.1002/smj.349
Demil, B., & Lecocq, X. (2010). Business Model Evolution: In Search of Dynamic Consistency. Long Range Planning, 43(2/3), 227-246. doi: 10.1016/j.lrp.2010.02.004
Demil, B., Lecocq, X., Ricart, J.E., & Zott, C. (2015). Business models within the domain of strategic entrepreneurship. Strategic Entrepreneurship Journal, 9(1), 1-11. doi: 10.1002/sej.1194
Forrester, J.W. (1961). Industrial Dynamics. Cambridge, MA: MIT Press.
Ghaffarzadegan, N., Lyneis, J., & Richardson, G.P. (2011). How small system dynamics models can help the public policy process. System Dynamics Review, 27(1), 22–44. doi: 10.1002/sdr.442
Groesser, S.N., & Jovy, N. (2015). Business model analysis using computational modeling: a strategy tool for exploration and decision-making. Journal of Management Control. Doi: 10.1007/s00187-015-0222-1
Knight, F.H. (1921). Risk, Uncertainty, and Profit. Boston, MA: Hart, Schaffner & Marx.
Magretta, J. (2002). Why Business Models Matter. Harvard Business Review, 80(4), 86-92.
Malmström, M., & Wincent, J. (2012). Modeling competence acquisition in small firms. International Journal of Entrepreneurship and Innovation Management, 15(1), 131-158. doi: 10.1504/IJEIM.2012.044072
Martins, L.L., Rindova, V.P., & Greenbaum, B.E. (2015). Unlocking the Hidden Value of Concepts: A Cognitive Approach to Business Model Innovation. Strategic Entrepreneurship Journal, 9, 99–117. doi: 10.1002/sej.1191
McGrath, R.G. (2010). Business models: A discovery driven approach. Long Range Planning, 43(2), 247-261. doi: 10.1016/j.lrp.2009.07.005
Osterwalder, A., Pigneur, Y., & Tucci, C.L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the association for Information Systems, 16(1), 1-25.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. Hoboken: Wiley.
Pisano, P., Pironti, M., & Rieple, A. (2015). Identify Innovative Business Models: Can Innovative Business Models Enable Players to React to Ongoing or Unpredictable Trends?. Entrepreneurship Research Journal, 5(3), 181-199. doi: 10.1515/erj-2014-0032
Reymen, I. M. M. J., Andries, P., Berends, H., Mauer, R., Stephan, U., & Van Burg, E. (2015). Understanding Dynamics of Strategic Decision Making in Venture Creation: A Process Study of Effectuation and Causation. Strategic Entrepreneurship Journal, 9(4), 351–379. doi: 10.1002/sej.1201
Sarasvathy, S.D. (2008). Effectuation: Elements of Entrepreneurial Expertise. Cheltenham, UK: Edward Elgar.
Sterman, J.D. (2000). Business Dynamics: System Thinking and Modelling for a Complex World. London, UK: McGraw-Hill.
Stewart, D. W., & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of Public Policy & Marketing, 19(2), 287-296. doi: 10.1509/jppm.19.2.287.17125
Teece, D.J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2), 172-194. doi: 10.1016/j.lrp.2009.07.003
Trimi, S., & Berbegal-Mirabent, J. (2012). Business model innovation in entrepreneurship. International Entrepreneurship and Management Journal, 8(4), 449-465. doi: 10.1007/s11365-012-0234-3
Van Werven, R., Bouwmeester, O., & Cornelissen, J.P. (2015). The power of arguments: How entrepreneurs convince stakeholders of the legitimate distinctiveness of their ventures. Journal of Business Venturing, 30(4), 616–631. doi: 10.1016/j.jbusvent.2014.08.001
Wirtz, B.W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning, 49(1), 36-54. doi: 10.1016/j.lrp.2015.04.001
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that promotes experimentation. Strategy & Leadership, 44(1), 11–19. doi: 10.1108/SL-06-2015-0048
Yin, R.K. (2009). Case Study Research: Design and Methods. 4th ed., Thousand Oaks, CA: Sage.
Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal, 29(1), 1 - 26. doi: 10.1002/smj.642
Zott, C., & Amit, R. (2010). Business Model Design: An Activity System Perspective. Long Range Planning, 43(2/3), 216-226. doi: 10.1016/j.lrp.2009.07.004
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(4), 1019-1042. doi: 10.1177/0149206311406265
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