Title: Beyond high tech: the pivotal role of technology in start-up business model design

Authors: Franziska Günzel; Helge Wilker

Addresses: Otto von Guericke University, Faculty of Economics and Management, Interaktionszentrum Entrepreneurship, Universitätsplatz 2, 39106 Magdeburg, Germany. ' Otto von Guericke University, Faculty of Electrical Engineering and Information Technology, Universitätsplatz 2, 39106 Magdeburg, Germany

Abstract: Technology plays an important role for any start-up as an opportunity to be exploited, as well as an enabler to structure the start-up|s activities to better generate value. The business model is a useful tool in these settings to keep track of technology and understand its potential value for the start-up. To analyse the interrelation between business model development and technology change, a multiple case study approach was conducted. Using a maximum variation strategy, three cases of start-ups depicting the range of technological discontinuity were selected. Analysis of these resulted in three different ways in which technology use in new ventures influenced business model development and vice versa. In addition, this paper introduces the business model dynamics framework as a tool for pro-active, continuous business modelling and analysis.

Keywords: business models; business model dynamics framework; high tech; technology change; business start-ups; business model design; value generation; maximum variation strategies; technological discontinuity; new business ventures; venture creation processes; pro-active modelling; continuous business modelling; pro-active analysis; continuous business analysis; precious metals; retailing; retail trade; telemedical stroke care; telemedical advisory services; healthcare; strokes; semiconductor wafers; Germany; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship; interdisciplinary research; Europe.

DOI: 10.1504/IJESB.2012.044586

International Journal of Entrepreneurship and Small Business, 2012 Vol.15 No.1, pp.3 - 22

Published online: 29 Dec 2011 *

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