Genesis of entrepreneur business models in new ventures

Arash Najmaei, Jo Rhodes, Peter Lok, Zahra Sadeghinejad

Research output: Contribution to journalConference paper

Abstract

In this article we endeavor to explore how a new business model comes into existence in the Australian cloud-computing eco-system. Findings from multiple case study methodology reveal that to develop a business model new ventures adopt a three-phase approach. In the first phase, labelled as business model ideation (BMID) various ideas for a viable business model are generated from both internal and external networks of the entrepreneurial team and the most viable one is chosen. Strategic consensus and commitment are generated in the second phase. This phase is a business modelling strategic action phase. We labelled this phase as business model strategic commitment (BMSC) because through commitment and the subsequent actions of executives resources are pooled, coordinated and allocated to the business model. Three complementary sets of resources shape the business model: managerial (MnRs), marketing (MRs) and technological resources (TRs). The third phase is the market-test phase where the business model is reified through the delivery of the intended value to customers and conversion of revenue into profit. We labelled this phase business model actualization (BMAC). Theoretical and managerial implications of these findings will be discussed and several directions for future research will be illuminated.
Original languageEnglish
Pages (from-to)1257-1263
Number of pages7
JournalInternational science index
Volume8
Issue number11
Publication statusPublished - 2014
EventInternational Conference on Entrepreneurship, Innovation and Development (12th : 2014) - London
Duration: 28 Nov 201429 Nov 2014

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Keywords

  • Entrepreneur Business Model
  • high-tech venture
  • resources

Cite this

Najmaei, A., Rhodes, J., Lok, P., & Sadeghinejad, Z. (2014). Genesis of entrepreneur business models in new ventures. International science index, 8(11), 1257-1263.