The lens of business model element activation

A business model is the foundation for understanding the functioning of a business entity and is a source of innovation and change. Therefore, developing a business model is necessary, and proactive activation can be a source of competitive advantage to meet the appropriate requirements in the composition of business model elements. The study aims to identify the key elements of activation in business models and to discover their significance. This study uses an expert-based approach based on the use of multi-criteria decision-making (MCDM) with the definition of the main elements. It also compares data from fuzzy analytical hierarchy process (AHP) and conduct primary research among small and medium-sized enterprises (SMEs) to determine the importance of various elements in their business models. It provides insight into determining the degree of significance of business model elements, with its expansion to the Delphi method and a panel of experts on 97 sub-criteria. Predominant factors such as value proposition, customer segments, and key partnerships have been identified as primarily critical for SMEs. The results obtained can then be used by businesses for subsequent concentration on a specific business element to achieve higher company performance and strengthen the competitive position. This study presents a fresh perspective on reimagining the classification of business models, their elements, and, above all, the determination of the meaning of individual business model criteria.