Spring And Mason Paper

Industrial Marketing Management 40 (2011) 1032–1041

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Industrial Marketing Management

The sites and practices of business models
Katy Mason a,⁎, Martin Spring b a b

Department of Marketing, Lancaster University Management School, Lancaster, Lancaster, LA1 4YX, United Kingdom
Department of Management Science, Lancaster University Management School, Lancaster, Lancaster, LA1 4YX, United Kingdom

a r t i c l e

i n f o

Article history:
Received 30 November 2010
Received in revised form 11 April 2011
Accepted 14 June 2011
Available online 26 July 2011
Keywords:
Business models
Business networks
Management practices
Market-making
Strategy

a b s t r a c t
This paper examines the concept of business models. Drawing on the business model literature, we first identify technology, market offering and network architecture as the three core elements of business models.
The theoretical routes of each element are then examined through the associated literatures: technology and innovation studies, industrial marketing, operations strategy, and evolutionary economics. Multiple dimensions of each element are identified and the resultant framework is used to explore developments within the recorded music market across three centuries.
Through changes in the recorded music market since the 1870s, we explore how business models emerged, took on multiple sites and evolved through their practice over time. We look at how interlinking business models become spread out across the business network as different network actors play their part. The recorded music market generates important insights into how business models are created, developed and practiced. We suggest that firms, business networks and markets form embedded systems within which multiple overlapping business models can be considered as constituent parts. In this way, the business model is understood as having agency to shape action; but in turn actions (of others in the business

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