Business Models and Value
We identify the business model as the mechanism that explains how a firm engages with consumers to create and capture value. We look back into the literatures of marketing, strategy, entrepreneurship and sociology, and identify 4 important – mutually exclusive - theoretical types: dyadic product; dyadic solutions; triadic matchmaking; and triadic multi-sided. Each of these business model types implies a different set of behaviors by the consumer; different actions by the firm; and give rise to differences in value for the consumer; profit opportunities for the firm; and corresponding entrepreneurial pathways. Our paper draws on and extends the current literature on the demand side perspective and effectuation.