Capturing value from Business Models: The role of formal and informal protection strategies
Journal
International Journal of Technology Management
ISSN
0267-5730
ISSN-Digital
1741-5276
Type
journal article
Date Issued
2017
Author(s)
Abstract
As an overarching concept a business model describes how a firm creates and captures value for itself, its customers, and its partners. Although research has highlighted the importance of value creation and capture of business models, it primarily focused on the value creation mechanisms and neglected aspects of value capturing: Until to date, little is known about how firms attempt to protect their business models from competition, which is a critical component of value capture. Drawing on a sample of 24 cases, we explore how business models relate to IP protection mechanisms for value capture and derive a business model protection framework. Our empirical study reveals that the choice of IP protection is contingent on the applied business model. Whereas some razor and blade business models are characterized by a high degree of both formal and informal protection, firms operating franchising business models put higher emphasis on informal protection strategies. Firms running the pay-per-use business model or the multi-sided platform business model apply formal and informal protection strategies to a medium degree in order to capture value. Our findings extend business model literature on novel insights on intellectual property management and also extend the ‘profiting from innovation literature’ on protection mechanisms in the context of business models.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
Global Center for Entrepreneurship + Innovation
Refereed
Yes
Publisher
Inderscience Enterprises Ltd
Volume
73
Number
4
Start page
151
End page
175
Pages
25
Subject(s)
Eprints ID
254674
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Name
ijtm.2017.083073.pdf
Size
279.96 KB
Format
Adobe PDF
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