IDEAS home Printed from https://ideas.repec.org/a/ids/ijmabs/v2y2016i1p45-67.html
   My bibliography  Save this article

Supporting business model decisions: a scenario-based simulation approach

Author

Listed:
  • Karl Täuscher
  • Melvis Chafac

Abstract

A key challenge for entrepreneurs is to find a robust and scalable business model. In complex environments, business model decisions often build on highly uncertain assumptions. The uncertainty increases when the entrepreneurial venture is confronted with unexpected changes in the environment. This paper proposes an approach to support entrepreneurs in understanding the future implications of their business model decisions. The approach combines system dynamics simulation modelling with formal scenario building. The paper presents a novel conceptual approach to modelling business models. It develops a business model simulation for a multi-sided platform such as the online marketplace eBay. The paper builds future scenarios to conduct simulation experiments that incorporate the uncertainty of developments external to the firm. Based on historic data of eBay, it demonstrates how the scenario-based simulation approach allows comparing the implications of different revenue model options on eBay's performance. Finally, the research discusses the general applicability of the scenario-based simulation approach as a tool for entrepreneurial decision making.

Suggested Citation

  • Karl Täuscher & Melvis Chafac, 2016. "Supporting business model decisions: a scenario-based simulation approach," International Journal of Markets and Business Systems, Inderscience Enterprises Ltd, vol. 2(1), pages 45-67.
    • Handle: RePEc:ids:ijmabs:v:2:y:2016:i:1:p:45-67
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=78107
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Täuscher, Karl & Laudien, Sven M., 2018. "Understanding platform business models: A mixed methods study of marketplaces," European Management Journal, Elsevier, vol. 36(3), pages 319-329.
    2. STEREA Diana - Ioana, 2023. "Determining a Revenue Generating Model that Creates Customer Value by Using a Skip-the-line Application in Romania," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    3. Shrutika Mishra & A. R. Tripathi, 2020. "Literature review on business prototypes for digital platform," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-19, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmabs:v:2:y:2016:i:1:p:45-67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=440 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.