Defining Technology-Based Business Models Through a Systematic Literature Review and Empirical Research

A business model is an essential concept for securing long-term success and competitive advantage, where technologies take on an enabling role. Without the respective technology, the business model becomes unviable. Digital technologies are well known to enable business models, and various definitions of the term digital business models and their characteristics are discussed in the existing literature. However, scholars sometimes use this term interchangeably with the term technology-based business models, although not all technologies are digital in nature. In fact, many different types of technologies other than digital ones exist. A strong theoretical foundation for digital business models is available, while the research on technology-based business models is fragmented and incomplete. This term has been used without further defining its meaning or the definitions provided are too narrow and decisive characteristics are missing. Although authors have used these two terms interchangeably, they cannot be seen as equivalent, and the definitions and characteristics of digital business models cannot be simply transferred to the concept of technology-based ones. Therefore, the absence of a holistic and comprehensive definition of the term technology-based business models in the existing literature represents a significant gap that this research seeks to address. The aim of our study was to examine how business models are based on a particular technology. We use the results of a systematic literature review and semi-structured expert interviews to construct a comprehensive definition for the term technology-based business models, and we identify the major and minor characteristics of both terms. In addition to adding to the business model literature, these findings help practitioners understand technology-based business models in more detail and how technology can enable business models to meet customers’ needs.