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The Role of Business Models in Developing Business Networks
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Author(s): Jukka Heikkila (University of Jyvaskyla, Finland), Marikka Heikkila (University of Jvaskyla, Finland)and Markku Tinnila (Helsinki School of Economics, Finland)
Copyright: 2008
Pages: 11
Source title:
Electronic Commerce: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): Annie Becker (Florida Institute of Technology, USA)
DOI: 10.4018/978-1-59904-943-4.ch020
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Abstract
Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessary means by which companies can coordinate cooperation in practice. The CSOFT metamodel proposed in this chapter provides guidance for joint business model development by emphasizing customer relationship and adjustment processes needed within the network.
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