Theoretical underpinnings and patterns of digital business models

This chapter’s goal is to make the notion of digital business models more understandable by synthesizing current developments in this area of research from the standpoint of management sciences. A preliminary typology of digital business models is presented, along with an overview of definitions of digital business models that are backed by a thorough investigation of the theoretical foundations of business model components. The chapter also clarifies and illustrates how businesses create, deliver, and capture value in the digital era. It presents theoretical underpinnings of digital business models, including the resource-based view (RBV), knowledge-based view (KBV), business model innovation, and dynamic capabilities frameworks appearing predominantly in the majority of empirical studies, and identifies the missing links that could potentially shed new light on the development of digital business models, such as network theory supported by mechanisms of knowledge co-creation. The chapter ends with implications for managers and science, technology and innovation (STI) policy contributing to business practice by indicating the directions to successful implementation of digital business models.