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How and Why Business Model Matters in Acquisition of Knowledge in Small and Entrepreneurial Firms
Abstract
Much has been written about acquisition of knowledge and its role in survival and growth of small and entrepreneurial firms. Little, however, is known about the role of business model in knowledge acquiring activities of the firms. Therefore, by incorporating the cognitive and reified activity-based view of business model into the knowledge-based view (KBV) and absorptive capacity of the firms, this article attempts to address this deficiency. The author posits that business model is a holistic framework in the mind of the executives. It is embodied and reified in activities which employees and particularly executives perform to create and capture value for the firm. In light of this perspective knowledge acquisition is conceived as a key strategic activity whose scope, depth, and breadth are regulated by the business model of the firm. Adding to and extending KBV, this manuscript offers several contributions to theory and practice. Given this analysis, contributions of this view are presented, implications for theory and practice are discussed, and some fruitful areas for future research are highlighted.
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