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A value-based approach to business model innovation: Defining the elements of the concept

Author

Listed:
  • Nelson Areal

    (School of Economics and Management and NIPE, University of Minho)

  • Ana Carvalho

    (University of Minho: School of Economics and Management and NIPE)

Abstract

Business model innovation (BMI) has increasingly attracted attention by proposing the business model (BM) as a new unit of analysis in the study of innovation. However, the definition and dimensioning of the concept is still unclear. This paper thereby aims to identify a consistent set of interdependent BMI elements, aligning with a configurational approach. Taking a value-based perspective, we review the existing contributions to date and arrive at five elements of BMI, each focused on one facet of the company’s BM: (1) value creation innovation; (2) value proposition innovation; (3) value delivery innovation; (4) value capture innovation; and (5) value network innovation. This study contributes to the growing BMI literature by proposing a unique classification underpinned by a value-grounded theory of the firm. Furthermore, we describe how these five dimensions interact and explore its implications. Throughout, we illustrate our ideas with the examples of existing companies.

Suggested Citation

  • Nelson Areal & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 13/2018, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:13/2018
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    business model; business model innovation; value-based perspective; configurational approach;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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