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Business models : a routine dynamics reconceptualization

Nair, Anup Karath and D'Adderio, Luciana and Corney, Jonathan (2017) Business models : a routine dynamics reconceptualization. In: British Academy of Management 2017 Conference. British Academy of Management, Warwick.

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Despite its widespread use within strategy and innovation research the notion of “business model” as a theoretical construct remains ill-defined and conceptually underdeveloped. In this conceptual paper, we address these limitations, first, by identifying some of the reasons for the lack of consensus around business models conceptualisation, and, second, by reconceptualising business models from a novel perspective based on Routine Dynamics. More specifically, we show how the lack of theoretical integration between the transaction cost economics, Schumpeterian innovation, resource based theory, strategic networks and cognitive perspectives that underpin current business models research act as a major source of theoretical dissonance. We elaborate and illustrate these arguments by drawing on the business models of Amazon, a leading e-commerce firm. We then propose a routine dynamics perspective to integrate insights from the various perspectives within business model research. Our findings contribute towards further integrating BM research with Management and Organisational Theory.