back to volume

The Interaction Between Business Models and Business Reality

Published: 09.12.2021

by Peter Kesting

Abstract

Purpose: The aim of this paper is to conceptualize the connection between business model and
business reality. On this basis, the paper aims to put the business model on a solid conceptual basis
and to build bridges to its neighbouring concepts. In this way, this paper should to contribute to more
terminological and conceptual rigor of the business model construct. In addition, this paper aims to
conceptualize the processes of constructing and using business models for decision-making.

Design/Methodology/Approach: This is a conceptual paper; it introduces and specifies a new construct,
the status quo, as real-world counterpart to the business model. Based on this, it develops a
model of the interaction between business model and status quo.

Findings: The key finding of this paper is that business model and status quo are shaped (and need to
be described) by different characteristics. The characteristics of the status quo result from repetition
(stability) and routinization (efficiency, low resistance, etc.). The characteristics of the business
model result from observation, abstraction and simplification (purpose, observer perspective, etc.).

Originality/Value: This is the first paper to develop the status quo as an independent construct for
management research. It also offers the first comprehensive model of the relation between business
model and business reality. Based on that, it allows establishing new connections between
the business model concept and the theory of the firm, particularly with regard to innovation and
routine.

More information about this paper

DOI: https://doi.org/10.5278/jbm.v9i4.6238

Download paper

Recommended for you