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Aalto University School of Business Master's Theses are now in the Aaltodoc publication archive (Aalto University institutional repository)
School of Business | Department of Management Studies | MSc Degree Programme in Strategy | 2015
Thesis number: 13853
From initial idea to business model: A logic model approach to entrepreneurial cognition in business model design
Author: Foy, Shirah E.
Title: From initial idea to business model: A logic model approach to entrepreneurial cognition in business model design
Year: 2015  Language: eng
Department: Department of Management Studies
Academic subject: MSc Degree Programme in Strategy
Index terms: strategia; strategy; yrittäjyys; entrepreneurship; mallit; models; liikeidea; business idea
Pages: 83
Key terms: business model; business idea; framing; logic model; market pull; technology push
Abstract:
Entrepreneurship-as-process theory proposes a process that begins with an elemental idea driven by need in the market or underused technological resources and capabilities. As the firm emerges, this idea is developed into a business model - the underlying logic of the way the firm does business.

Myriad evidence links business models to firm success, but little empirical research has been done to characterize the business models of new firms and their antecedents. Fifteen Swiss technology startups participated in this qualitative analysis of initial business models. Osterwalder's (2004) business model ontology was used to assess five dimensions of business model design: assumptions, logic, focus, precision, and network orientation.

Findings suggest that the initial idea has a framing effect on the trajectory of initial business model design.

Market-driven ideas led to a comprehensive approach to business model design, in which a balanced focus among market-related and technology-related business model components were defined rather precisely, and a high network orientation was exhibited regarding sourcing external knowledge and resources for both market-related and technology-related business model components.

Technology-driven ideas, conversely, did not result in a balanced approach to business model design, but rather exhibited technology-focused business models that did not define market-related business model components with great precision, and displayed a low orientation to the potential value added of interactions with an external network.
Master's theses are stored at Learning Centre in Otaniemi.