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A two-tier business model and its realization for entrepreneurship

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  • Huarng, Kun-Huang

Abstract

Entrepreneurs are important to economic development. Business model design is critical to assist entrepreneurs. This study proposes a two-tier business model for entrepreneurs, consisting of a conceptual model and a financial model. The conceptual model describes the idea of a new business which is useful to explain a business. The financial model provides the numbers of the new business which makes the business model accountable and measurable. The two-tier business model is more applicable in that on one hand, the model addresses the conceptual and financial issues separately to avoid confusion; on the other hand, the model integrates both the conceptual and financial models to provide a complete view of the business. Each of the conceptual and financial models provides the relationships among their components. In addition, the two-tier business model shows the relationships between both models. This study realizes the business model by the application of Internet. In addition, two real cases, including Apps and one million dollar home page, exemplify the practices.

Suggested Citation

  • Huarng, Kun-Huang, 2013. "A two-tier business model and its realization for entrepreneurship," Journal of Business Research, Elsevier, vol. 66(10), pages 2102-2105.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:2102-2105
    DOI: 10.1016/j.jbusres.2013.02.036
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    1. Huarng, Kun-Huang & Ribeiro-Soriano, Domingo Enrique, 2014. "Developmental management: Theories, methods, and applications in entrepreneurship, innovation, and sensemaking," Journal of Business Research, Elsevier, vol. 67(5), pages 657-662.
    2. 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.
    3. Zaheer, Hasnain & Breyer, Yvonne & Dumay, John, 2019. "Digital entrepreneurship: An interdisciplinary structured literature review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    4. Kuo Tsung-Nien, 2020. "Research on evaluation of innovative 3-tier business model on online travel agency," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(2), pages 43-53.
    5. To, Chester K.M. & Chau, K.P. & Kan, Chi Wai, 2020. "The logic of innovative value proposition: A schema for characterizing and predicting business model evolution," Journal of Business Research, Elsevier, vol. 112(C), pages 502-520.
    6. Hubner, Sylvia & Frese, Michael & Song, Zhaoli & Tripathi, Neha & Kaschner, Tamara & Le Kong, Xing, 2022. "An Asia-centric approach to team innovation: Cultural differences in exploration and exploitation behavior," Journal of Business Research, Elsevier, vol. 138(C), pages 408-421.
    7. Zaheer, Hasnain & Breyer, Yvonne & Dumay, John & Enjeti, Mahesh, 2022. "The entrepreneurial journeys of digital start-up founders," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    8. Kun-Huang Huarng & Tiffany Hui-Kuang Yu, 2021. "Complexity theory of entrepreneur characteristics," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1037-1048, September.
    9. Castillo-Vergara, Mauricio & Álvarez-Marín, Alejandro & Alfaro-Castillo, Mauricio & Sánchez Henríquez, Jorge & Pizarro Quezada, Ignacio, 2018. "Factores clave en el desarrollo de la capacidad emprendedora de estudiantes universitarios || Key Factors in the Development of Entrepreneurial Capacity of University Students," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 25(1), pages 111-129, Junio.
    10. Tom Lahti & Joakim Wincent & Vinit Parida, 2018. "A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    11. Huarng, Kun-Huang & Bresciani, Stefano & Ferraris, Alberto, 2020. "Experiential interaction design model," Journal of Business Research, Elsevier, vol. 118(C), pages 486-490.
    12. Huarng, Kun-Huang & Lee, Cheng-Fang & Yu, Tiffany Hui-Kuang, 2023. "Case study of a healthcare virtual community model," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    13. Abhishek Kumbhat & Sushil, 2022. "Interactive Effect of Success Factors for High-Tech Startups: Value Propositions, Target Market and Operational Excellence," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 73-88, June.

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