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On conceptual differentiation and integration of strategy and business model

Author

Listed:
  • Ivan Stefanovic

    (NIS a.d. Novi Sad, Novi Sad, Serbia)

  • Dragan Milosevic

    (College of Business Economics and Entrepreneurship, Belgrade, Serbia)

Abstract

The objective of this paper is to develop the conceptual integration of strategy and business model. Theoretical method is used in order to achieve this objective. The theory building leads to the construction of conceptual model of strategy and business model, and provides its underlying logic. The main finding is that strategy is a pattern within which a business model changes. Only one strategy may exist for a firm in a concrete time frame, while there may be countless business models in the same period. Therefore, strategy represents the sum of all business models and their changes within a specified period. Each business model matches the set of functional strategies and their interdependencies, making strategic content in some particular moment, i.e. each business model is actually a bisection of the business strategy or a bisection of a set of functional strategies in one concrete moment. This specific contribution can be understood only if one takes an appropriate viewpoint of the process of strategy formation, namely the reactive perspective.

Suggested Citation

  • Ivan Stefanovic & Dragan Milosevic, 2012. "On conceptual differentiation and integration of strategy and business model," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 30(1), pages 141-161.
    • Handle: RePEc:rfe:zbefri:v:30:y:2012:i:1:p:141-161
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    References listed on IDEAS

    as
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    Cited by:

    1. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.

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    More about this item

    Keywords

    strategy; business model; strategy process; strategic management;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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