Innovating markets by putting business models to work

The purpose of this research is to explore how business models are developed and put to work as frames for action in ways that innovate markets. Business models have the characteristics of frames, often being described as the configuration of multiple components or elements, surrounded by a narrative or logic that explains how the business works. We argue that business models frame action. Business model elements represent a way of framing what the business includes and manages and in this way are put to work by managers as they try to work out what to do next. This study draws upon the framing literature to understand how business models are put to work, and follows the development and use of a business model to conceptualize, mobilize and make new service-based offerings in IT services market and the industrial services market. The paper presents findings that show the chains of translation, framing and reframing of business models and their different components as they are put to work as frames for action. Our findings suggest that business models were put to work as diagnostic, prognostic and motivation tools and in so doing were transformed in business practices in ways that innovated markets.