The Role of IT-Driven Entrepreneurial Processes In Business Model Development
COM2 Level 4
Executive Classroom, COM2-04-02
Abstract:
The creation of a business model is, in essence, the creation of a business idea that enables the pursuit of entrepreneurial opportunities. Employing the theoretical lens of effectuation and opportunity constructs in the entrepreneurship field, our studies provide insight into the mechanisms linking the business model with entrepreneurial processes. Three empirical in-depth case studies (referred to as Study 1, Study 2 and Study 3) were conducted to determine how organizations develop their business models, from formulation to implementation, using entrepreneurial processes. The strategic actions in all three studies are closely associated with information systems (IS) ecosystems, IS strategies and IS resources. The first study examined how a software firm revised its business models multiple times during a new product creation cycle to position itself in an established IS ecosystem. The second study examined how a large organization uses IS strategies and IS resources to increase its options to configure its business model. The third study examined how a social enterprise established a new IS-driven ecosystem within a rural community to exploit opportunities offered by a much larger e-commerce ecosystem. The empirical investigation of effectuation, opportunity creation, opportunity discovery and opportunity exploitation in the contexts of IS ecosystem, IS strategy and IS resources contribute to a better understanding of the role of IT-enabled entrepreneurial processes in business model development.