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Hermans’ (2002) research within the context of Finnish biotechnology firms provides an exception. He tests and analyzes empirically how intellectual capital is connected to the market potential of Finnish biotechnology firms, finding among other things that management experience, research and patent application intensities, and the public financing of R&D activities have significant influence on growth prospects of the enterprises. e. value, is a prime deliverable of applying a business model perspective.

Thus, we can perceive business models as representations of a business system where the specific business model in a company represents a choice between feasible alternatives (Chaharbaghi, Fendt & Willis, 2003) and essentially summarizes these choices that prepare the business to perform in the future (Betz 2002). Bell & Solomon (2002) enhance this perspective of the business model as a representation of the business system, in that it is a “simplified representation of the network of causes and effects that determine the extent to which the entity creates value”, thereby underlining the business models role in illuminating the critical value drivers of the company.

Representation thus becomes a communicative tool in the sense of projection as the power to get ones projection out enables control from a distance. com 42 The Basics of Business Models Moving Towards Maturity in Business Model Definitions When perceiving business models as simplified versions of reality, representation becomes an abstraction of the business, identifying how that business makes money. Business models are abstracts about how inputs to an organization are transformed to value-adding outputs (Betz 2002).

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The Basics of Business Models by Bookboon.com


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