The Role of Business Model Innovation in the Emergence of Markets : A Missing Dimension of Entrepreneurial Strategy?

Current theorizing assumes business models are developed to match firm resources and capabilities to existing market conditions. Consequently, entrepreneurs who successfully introduce new business models that significantly alter existing market preferences and structures are viewed as an anomaly; their success attributed to the strategic failure of incumbents. In contrast, we attribute success to both a co-evolution of individual and collective interests and the entrepreneur's concerted efforts to align those interests with their strategic vision of a new business model and market. This process combines the experimental and iterative nature of effectuation with a strategic orientation that is fundamentally market driving