Toward a knowledge-based view of a business model: A multi-level framework and dynamic perspective

In this chapter, we use the knowledge-based view (KBV) to investigate the concept of a business model (BM) and build a multi-level framework to explore its architecture and dynamics. In this framework, a BM can be viewed as a structured knowledge cluster contains both explicit and implicit parts. The architecture of a BM consists of three levels: components, sub-cluster business themes, and the overall BM. Based on this, the design and imitation of BMs is conceptualized as a dynamic process of (implicit and explicit) knowledge creation and cross-boundary diffusion. The proposed framework could provide a deeper understanding of the ontology and architecture of BMs, assist in the design of new business-related knowledge components and valuable linkages regarding its hierarchy. In addition, as a new analysis tool, this framework may not only help " new entrants " of a focal industry (or a " niche”) to successfully and effectively learn a well-established BM “archetype” but also help " incumbents " to design barriers to prevent their successful BM from being imitated. Drawing on a knowledge management (KM) approach, the BM can be conceptualized at a more fundamental level and the implicit part of BMs is explored and its importance and implications in BM innovation and diffusion is discussed.