Architecture of technology ventures: A business model perspective

Abstract

This chapter develops a framework for analyzing the architecture of technology ventures. The framework is based on the concept of business model-how the venture creates and captures value. Application of the business model concept in the technology venturing literature results in four theoretical postulations which explain how and why technology ventures differ from other ventures. In summary, we propose that: (1) business model of technology ventures has a complex technological core and a flexible marketing periphery. (2) Because of this core-peripheral architecture, business model of technology ventures is technology-driven and market-driving (3) market driving-ness makes these business models disruptive and (4) versatile, able to tap into multiple emerging markets. Supportive empirical evidence from three technology ventures substantiates this framework and its implications.