Business Models as Models

Business Models as Models

2010 | Charles Baden-Fuller* and Mary S. Morgan**
The article by Baden-Fuller and Morgan (2010) explores the concept of business models as models, emphasizing their role in describing, classifying, and guiding business behavior. Drawing on research in the history and philosophy of science, the authors argue that business models function as various types of models, including role models and scale models, which help in understanding and categorizing business practices. They compare business models to model organisms in biology and mathematical models in economics, highlighting their role in scientific inquiry. The authors also discuss how business models can act as recipes, providing practical frameworks for innovation and adaptation. The paper emphasizes the importance of business models in management theory, noting their ability to capture generic types of behavior and their utility in classifying firms. The authors argue that business models are not just descriptive but also instrumental in guiding managerial decisions and driving innovation. The discussion includes examples from various industries and highlights the evolving nature of business models, which reflect changes in economic and technological contexts. The article concludes that business models are multifaceted, serving as tools for classification, scientific investigation, and practical innovation, and that their role in management research is both significant and complex.The article by Baden-Fuller and Morgan (2010) explores the concept of business models as models, emphasizing their role in describing, classifying, and guiding business behavior. Drawing on research in the history and philosophy of science, the authors argue that business models function as various types of models, including role models and scale models, which help in understanding and categorizing business practices. They compare business models to model organisms in biology and mathematical models in economics, highlighting their role in scientific inquiry. The authors also discuss how business models can act as recipes, providing practical frameworks for innovation and adaptation. The paper emphasizes the importance of business models in management theory, noting their ability to capture generic types of behavior and their utility in classifying firms. The authors argue that business models are not just descriptive but also instrumental in guiding managerial decisions and driving innovation. The discussion includes examples from various industries and highlights the evolving nature of business models, which reflect changes in economic and technological contexts. The article concludes that business models are multifaceted, serving as tools for classification, scientific investigation, and practical innovation, and that their role in management research is both significant and complex.
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[slides and audio] Business models as models