Contribution of systems thinking to business model research and business model innovation

Systems thinking (ST) offers leaders in management a systematic way of thinking for increased understanding and more effective work. However, ST has been seldom used in the past in combination with either business models or business model innovation (BMI). Because business model research is still diverse, and the process of BMI is a challenging and complex management task, the application of ST in this field is promising. This paper aims to contribute to the cross–fertilisation between ST and business model. To do so, we have reviewed the literature on systems theory and business models and identified an ST approach. The application of this ST approach to BMI is illustrated in a simplified case study example. Through this paper, we aim to contribute to business model research by conceptualising BMI types and BMI directions as well as by reviewing model theory. Additionally, the system–oriented framework provides a clear holistic agenda for practitioners to innovate business models.