Business Model, the

Abstract

This entry provides an introduction to research on business models. The emerging literature highlights the business model as a new unit and level of analysis for scholars of strategic management. It emphasizes a system-level, holistic approach to explaining how firms ‘do business’, and how value is created, not just how it is captured. Researchers have shown that a firm’s business model represents a poten- tial source of ▶competitive advantage, and complements firm product market strategy. It is thus an important concept that offers oppor- tunities for further theoretical, empirical and field research.