Meaning, legitimacy and impact of business models in fast‐moving environments

Abstract

This paper explores the underlying principles on which effective model building can be explained in fast‐moving environments through an examination of qualities that govern the effectiveness of businesses and are shared by models that represent them. By studying a number of generic and specific cases three strands are shown to be of central importance: the way of thinking, operational system, and capacity for value generation. These three strands, which are interrelated, form the basis of a meta‐model for business models. Whilst specific business models always represent a choice between alternatives, each of which rests on different assumptions regarding the reality of business and its environment, the ability to generalise business models from one context to another is the function of the meta‐model. The application of the meta‐model will enable businesses to adapt themselves naturally to their environment which is changing at an ever‐increasing rate.

Citation

Chaharbaghi, K., Fendt, C. and Willis, R. (2003), "Meaning, legitimacy and impact of business models in fast‐moving environments", Management Decision, Vol. 41 No. 4, pp. 372-382. https://doi.org/10.1108/00251740310468013