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Value Creation and Value Capture Through Internet Business Models

In: Handbook of Strategic e-Business Management

Author

Listed:
  • Francesco D. Sandulli

    (Complutense University)

  • Antonio Rodríguez-Duarte

    (Complutense University)

  • Daría C. Sánchez-Fernández

    (Complutense University)

Abstract

Firms compete in online markets through business models that have not yet been studied in sufficient detail. First, this chapter contributes to the literature on Internet business models through the study of the main mechanisms for creating and capturing value in electronic markets. The chapter describes how the main mechanisms of value creation on the Internet are aggregation, efficiency and customization. This chapter also discusses how companies can capture value in online markets by increasing the switching costs for consumers or leveraging network effects. Second, the chapter sets out four broad categories of business model based on specific mechanisms of value creation and value capture: Internet Malls, Content Providers, Merchants and Connectors. Finally, the chapter reflects on the dynamic nature of Internet business models and how most online companies tend to adopt hybrid business models which are continuously evolving.

Suggested Citation

  • Francesco D. Sandulli & Antonio Rodríguez-Duarte & Daría C. Sánchez-Fernández, 2014. "Value Creation and Value Capture Through Internet Business Models," Progress in IS, in: Francisco J. Martínez-López (ed.), Handbook of Strategic e-Business Management, edition 127, pages 83-108, Springer.
    • Handle: RePEc:spr:prochp:978-3-642-39747-9_4
    DOI: 10.1007/978-3-642-39747-9_4
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    Cited by:

    1. Mancuso, Ilaria & Messeni Petruzzelli, Antonio & Panniello, Umberto, 2023. "Innovating agri-food business models after the Covid-19 pandemic: The impact of digital technologies on the value creation and value capture mechanisms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).

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