Explicating the business model from a knowledge-based view: nature, structure, imitability and competitive advantage erosion
Journal of Knowledge Management
ISSN: 1367-3270
Article publication date: 23 December 2020
Issue publication date: 23 January 2021
Abstract
Purpose
The purpose of this paper is to conceptualize the business model (BM) from a knowledge-based view (KBV), to interpret its nature and knowledge structure and to investigate the relationship between its imitability and the erosion of firm’s competitive advantage.
Design/methodology/approach
Based on a systematic literature review, this study builds an integrated framework to explicate the nature and structure of the BM from a KBV. Moreover, on the analysis of two contrasting cases, the argument concerning the relationship between BM imitability and its strategic value is proposed, analyzed and supported.
Findings
The main finding of this study is that a BM can be viewed as a structured knowledge cluster that contains explicit and implicit parts. Its imitation is a dynamic process of knowledge diffusion across firm boundaries. Ceteris paribus, with a lower proportion of implicit knowledge, a BM is more likely to be imitated and the adopter’s competitive advantage is more likely to be eroded, and vice versa.
Practical implications
The proposed framework could provide managers with a deeper understanding of the nature and structure of the BM and help potential adopters develop a successful entry strategy by avoiding BMs that seem profitable but are incapable of maintaining competitive advantage.
Originality/value
As a complement to previous studies, the research conceptualizes the BM as a “structured knowledge cluster” to explicate its nature and knowledge structure from a KBV. The implicit part of the BM is explored, and its importance for the adopter’s competitive advantage is discussed and verified.
Keywords
Citation
Chen, J., Wang, L. and Qu, G. (2021), "Explicating the business model from a knowledge-based view: nature, structure, imitability and competitive advantage erosion", Journal of Knowledge Management, Vol. 25 No. 1, pp. 23-47. https://doi.org/10.1108/JKM-02-2020-0159
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited