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Business Model Concept: An Integrative Framework Proposal

Author

Listed:
  • Marko Peric

    (University of Rijeka, Croatia)

  • Vanja Vitezic

    (University of Rijeka, Croatia)

  • Jelena Durkin

    (University of Rijeka, Croatia)

Abstract

Every firm employs a particular business model seeking competitive advantage. However, this pursuit is difficult, and sometimes unsuccessful. The reasons for failure should be sought in the managers’ lack of understanding of their organisations’ business models, their unique building blocks, and the potential that they have. To help managers better understand business models, this paper reviews the extant literature and identifies the elements of business models cited therein. Further, considering the new needs on the changing markets and the prevailing search for sustainability beyond profit, this paper portrays essential business model elements in an integrated framework. An updated generic business model framework consists of four primary categories, namely, value proposition, value capture, value creation, and value network, and could be useful for a variety of organisations, profit and non-profit, with various mission and vision orientations and interaction with the environment.

Suggested Citation

  • Marko Peric & Vanja Vitezic & Jelena Durkin, 2017. "Business Model Concept: An Integrative Framework Proposal," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 15(3 (Fall)), pages 255-274.
    • Handle: RePEc:mgt:youmgt:v:15:y:2017:i:3:p:255-274
    DOI: 10.26493/1854-6935.15.255-274
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    References listed on IDEAS

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    More about this item

    Keywords

    business model; value proposition; value creation; value capture; value network;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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