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Abstract. Business model has allowed strategic management to depart Benoît Demil
from the “one best way” of traditional approaches, integrating the various University of Lille (IAE) and LEM (UMR
ways to deploy resources, to create and capture value. Hence, the CNRS 9221)
benoit.demil@iae.univ-lille1.fr
“business model thinking” has induced major change in strategic
management over the last ten years. In this essay, we take a pragmatist Xavier Lecocq
approach to tentatively detail the main features of the environment of the University of Lille (IAE), IESEG, and
organization introduced by business model thinking. We advance that LEM (UMR CNRS 9221)
adopting a business model perspective does not mean that the xavier.lecocq@univ-lille1.fr
environment is neglected in the strategy process. However, the Vanessa Warnier
environment is not considered as deterministic, and the organization does University of Lille (IAE) and LEM (UMR
not have to fit with it or to try to change it. Through a pragmatist lens, the CNRS 9221)
business model is conceived as performing the ecosystem of an vanessa.warnier@iae.univ-lille1.fr
organization within a broader environment. Therefore, we argue that the
business model selects the relevant competitive landscape. This view has
three main consequences. First, the environment is not the same for every
INTRODUCTION
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The modern view of the environment of the firm can be traced back
to the 1950s when an open-system view of organizations developed (Katz
& Khan, 1966). This view was echoed and further developed in strategy
through the LCAG model (Learned, Christensen, Andrews & Guth, 1965)
and the work of Porter (1979), who suggested that firms have to navigate a
task environment composed of suppliers, customers and competitors.
Later, strategy took greater account of the institutional dimension of the
environment as an important driving force (see, for instance, Carroll & Huo,
1986; Zucker, 1987).
their profitability and growth. The authors define a profit pool as the total
profits earned at all points along the industry’s value chain. The profit pool
approach gives insights for the strategy of companies. However, it is worth
noting that this vertical view has not made an impact on the field of
strategy and that industry remains the dominant level of analysis and
action domain of companies.
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“Business model thinking” business ecosystems and platforms M@n@gement, vol. 21(4): 1213-1228
Over the last 15 years, use of the term “business model” has
boomed. Business models have paved the way to new conceptions for
setting up new companies, but they have also driven the transformation of
incumbents. At a theoretical level, business models have also impacted
various fields, such as the management of information systems or
technology management (Wirtz, Pistoia, Ullrich & Göttel, 2016). Today, the
term can be used to designate several things, which is a source of
confusion. For instance, Massa et al. (2017) point out that business model
can designate a real attribute of a firm, a cognitive schema or a conceptual
representation of an activity. Beyond these ontological issues, in our view,
depending on the context, the business model may designate a concept, a
framework or a new perspective on organizations and their performance.
This perspective has grown in the field of strategy, leading to what may be
called “business model thinking”.
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M@n@gement, vol. 21(4): 1213-1228 Benoît Demil & Xavier Lecocq & Vanessa Warnier
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M@n@gement, vol. 21(4): 1213-1228 Benoît Demil & Xavier Lecocq & Vanessa Warnier
way they imagined, some do not get the support of banks, and others are
not followed by the producers of the complementary offers necessary for
the creation of a complete system of products and services. These are only
examples of cases where the business model that has been designed is
not implemented in its ideal form.
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“Business model thinking” business ecosystems and platforms M@n@gement, vol. 21(4): 1213-1228
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