Supporting start-up business model design through system dynamics modelling
ISSN: 0025-1747
Article publication date: 13 February 2017
Issue publication date: 13 February 2017
Abstract
Purpose
The purpose of this paper is to explore how system dynamics (SD) modelling can provide a methodological support to business model (BM) design with the intent to better communicate business strategy and manage performance.
Design/methodology/approach
After a literature review of the field and an analysis of the strengths and limitations of conventional BM frameworks, the paper illustrates and discusses an approach that combines such a framework with SD modelling. A single-case study design was selected to explore the implications and limitations of using this combined approach to business modelling.
Findings
The methodological support provided by SD to BM design may effectively improve business strategy communication and performance management through both the adoption of a systemic and flexible perspective able to identify and analyse the main cause-and-effect relationships between the key-elements of the business strategy, and the use of a simulation technique that contributes in understanding how a firm operates, and its prospective performance over time.
Originality/value
Growing interest for BMs appears in the recent strategic management literature with research highlighting strengths and shortcomings. However, few attempts have been produced to overcome such limitations, while the adoption of SD is relatively new in supporting BM design.
Keywords
Acknowledgements
Corrigendum It has come to the attention of the publisher that the article Cosenz, F. (2017), “Supporting start-up business model design through system dynamics modelling”, published in Management Decision, Vol. 55 No. 1, pp. 57-80, has been found to include similarities to the author’s own previously published works, which were not referenced in this article. In addition, a source drawn upon was not sufficiently attributed.
These sources were: Federico Cosenz (2018), ‘Supporting public sector management through simulation-based methods: a dynamic performance management approach’, International Review of Public Administration, 23:1, 20-36, DOI: 10.1080/12294659.2018.1432978. D. Qorbani, Y. Yamaguchi, F. Cosenz, (2017), ‘Analyzing Business Dynamics of Ride-Hailing Services - A DPM Approach Applied to Uber Inc.’, 35th International Conference of the System Dynamics Society 2017, Proceedings of a meeting held 16-20 July 2017, Cambridge, Massachusetts, pp. 1314-1362. ISBN: 9781510851078. http://www.proceedings.com/36907.html. Groesser, S.N., Jovy, N. (2016), ‘Business model analysis using computational modeling: a strategy tool for exploration and decision-making’, J Manag Control 27, 61–88. https://doi.org/10.1007/s00187-015-0222-1.
The author guidelines for Management Decision state that articles must be fully referenced. The author sincerely apologises for this.
Citation
Cosenz, F. (2017), "Supporting start-up business model design through system dynamics modelling", Management Decision, Vol. 55 No. 1, pp. 57-80. https://doi.org/10.1108/MD-06-2016-0395
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited