Abstract:
Purpose The purpose of this paper is to introduce a new business model logic, highlighting value processes in and properties of platform business models to inform business model thinking from a systemic and dynamic perspective. It challenges the idea of firms managing, influencing and controlling entire activity systems. Design/methodology/approach The study traces the evolution of different approaches to business models and assesses theories that explain value cocreation and systemic value capture to develop a new business model logic. Findings Business model thinking has evolved away from Porter’s value chain to a new logic based on open networks and platforms. This study develops a framework for understanding platform business models from a systemic perspective. Derived from service-dominant logic, this new business model logic responds to phenomena in contemporary business environments characterized by increasing connectivity and sociality among actors.