Business Models as Complex Nonlinear Systems: Providing a Conceptual Framework for Growth and Innovation

Purpose: This study conducts a comparative analysis between complex nonlinear systems and business
models.

Findings: Drawing from early research and current debates on complex systems, the paper links
business models’ qualities such as emergent properties, feedback loops, interdependency of its
components and sensitivity to initial conditions under the umbrella of complexity theory. The paper
also introduces the concept of attractors and non-equilibrium in business models.

Originality/Value: The value of directly addressing the construct’s nonlinear dynamic is twofold.
First, it will try to resolve the conceptual ambiguity that has traditionally surrounded the discipline
of business model and business model innovation by providing a new method to study the construct.
Also, by linking the business models’ qualities under the umbrella of complexity theory, this paper
hopes to resolve the disconnect in the current research effort and to encourage further dialogue and
studies on the subject of business model and complexity.

Practical Implications: By attempting to represent the business model construct as complex system,
the paper opens up the study of business model to novel possibilities to understand its dynamic
and evolution. Also, by introducing the concept of business model’s attractors the paper seeks to
find a framework to support and understand business model’s innovation and evolution.

Research Limitations/Implications: Limitations are inherent to the non-empirical nature of this
study. Furthermore, the paper sole objective is to introduce an overview of how different aspects of
complexity relate to business models, therefore this study lacks of depth in the analysis of each of
aspects.