Case 3: Business model design and the performance of Entrepreneurial Firms Flashcards
1
Q
What are the two critical themes of business model design?
A
Efficiency-centered business model design
Novelty-centered business model design
2
Q
What is the efficiency-centered business model?
A
Refers to the measures that firms may take to achieve transaction efficiency through their business models. It aims at reducing transaction costs for all transaction participants.
3
Q
What is novelty-centered business model design?
A
Refers to new ways of conducting economic exchanges among various participants. It can be achieved, for example, by connecting previously unconnected parties, by linking transaction participants in new ways, or by designing a new transaction mechanism.
