Capturing value from mobile business models: Design issues that matter

Abstract

Designing viable mobile business models that capture value for all organizations involved is challenging. A range of design issues could be considered, and it is often not clear how they ultimately impact the performance of the business model. This paper tests causal relations between design issues and success factors in the organization and finance domain of mobile business models, by analyzing a survey among 120 practitioners and experts in the mobile Internet services domain using structural equation modeling. We find that organizational design issues lead to more acceptable division of roles among actors, and that financial design issues impact more acceptable risks. However, profitability is influenced only indirectly by these design issues, as the relations are mediated through acceptable risks and role division. Our findings imply specific clues to organizations in the mobile domain on what design issues to address in order to satisfy specific success factors.