Business Model and Performance of Firms

Abstract

This paper proposes to clarify the concept of business model, its usage and how it can contribute to the firm’s value creation. The literature review shows a board diversity of definitions and application complexity in the firm. The paper identifies the emergence of the business model and how it evolves to the “e-Business model” with commercial development of Internet. Then, it exposes the general typology, roles and the evolution of business model in recent years, whether in quantity or quality studies. Finally, the connection between the business model concept and the company’s performance is explained by the analysis of some recent studies. We also illustrated this relationship through comparing the business model of internet banks and the business model of the traditional banks.

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