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The design logic of new business models : unveiling cognitive foundations of managerial reasoning

  • Despite the importance of managerial reasoning in designing business models to handle exogenous change, little is known about its cognitive foundations. We address this gap with a comparative analysis of how managers rethink business model configurations to provide value in the emerging collaborative consumption economy. As customer behaviors shift from owning to sharing possessions, they challenge firms’ established business model logics. Using data from in‐depth interviews with managers from 22 sharing ventures, we find six cognitive processes to influence reasoning in new business model design. Furthermore, we find that these processes fall into distinctive dimensions of dominant and emerging logics. Ultimately, they combine into a design logic that explains how managerial reasoning results in conceptually different value creation and value capture configurations. Overall, our findings provide insights for theorizing business model design, and they enhance understanding of the foundations of managerial cognition in innovation contexts.

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Document Type:Article
Author:Dirk SchneckenbergORCiD, Vivek K. VelamuriORCiD, Christian Comberg
Chairs and Professorships:Chair of Entrepreneurship and Technology Transfer
Parent Title (English):European management review : the journal of the European Academy of Management
Issue:2 (Summer 2019)
Year of Completion:2019
First Page:427
Last Page:447
Tag:Business model design; Collaborative consumption; Design logic; Innovation theory; Managerial cognition; Sharing economy
Content Focus:Academic Audience
Peer Reviewed:Yes
Rankings:AJG Ranking / 3
VHB Ranking / B
SJR Ranking / Q2
Licence (German):License LogoUrheberrechtlich geschützt