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How Do Entrepreneurs Develop Business Models in Small High-Tech Ventures? An Exploratory Model from Australian IT Firms

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  • Najmaei Arash

    (Peter Faber Business School, Australian Catholic University, Sydney, New South Wales 2060; The International College of Management, Sydney, New South Wales 2109, Australia)

Abstract

The objective of this article is to explore and explain how entrepreneurs develop new business models for new ventures. Though highly topical, there is little solid empirical knowledge of this issue. Findings from multiple case studies of firms operating in the Australian cloud-computing ecosystem reveal that developing a new business model involves three phases. In the first phase (business modelling ideation (BMI)), various ideas for a viable business model are generated and the most viable one is chosen. The strategic consensus and commitment are generated in the second phase, labelled as the “business modelling strategic commitment” (BMSC). The third phase, labelled as the “business model actualization” (BMAC) is the market-testing phase where the business model is reified or actualized. The theoretical and managerial implications of the findings are discussed and several directions for future research are suggested.

Suggested Citation

  • Najmaei Arash, 2016. "How Do Entrepreneurs Develop Business Models in Small High-Tech Ventures? An Exploratory Model from Australian IT Firms," Entrepreneurship Research Journal, De Gruyter, vol. 6(3), pages 297-343, July.
    • Handle: RePEc:bpj:erjour:v:6:y:2016:i:3:p:297-343:n:1
    DOI: 10.1515/erj-2014-0037
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    References listed on IDEAS

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    Cited by:

    1. Franco-Leal Noelia & Camelo-Ordaz Carmen & Fernandez-Alles Mariluz & Sousa-Ginel Elena, 2020. "The Entrepreneurial Ecosystem: Actors and Performance in Different Stages of Evolution of Academic Spinoffs," Entrepreneurship Research Journal, De Gruyter, vol. 10(2), pages 1-20, April.

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