The Business Model Concept and the Sharing Economy : An Overview

The aim of this article is to give an overview of the business model concept and theories focussing on the sharing economy. Selected concepts and studies are presented, and its application, usefulness and limitations are discussed. The concepts and models that are presented in more detail build the foundation for the realisation of a digital business plan. The plan was part of the overall examination for the course ‘Digital Business Development’ at Linnæus University. The theories and studies concerning business models are being traced back to 1975. With the advent of the Internet mid-1990s the academic community picked up on the business model concept and an increasing number of articles, publications and studies were published. Although the huge interest in the concept, there is still no common theoretical foundation and established researchers such as Michael E. Porter even argue that the business model doesn’t help a company to develop or to assess competitive advantage instead it only helps to understand basic questions. Airbnb and Uber have been the companies mostly cited when articles were written about the ‘sharing economy’. The research field of the sharing economy is rather new and most of the theoretical foundation is rooted in the concept of ownership. Recently, researchers have begun to investigate frameworks around the sharing economy i.e. understanding the determinants of a successful sharing model from a marketing and technological perspective. The literature related to the sharing economy is still in its formation phase. The theory must reach a higher level of generalizability and move away from pure descriptions of ‘successful companies in the sharing economy’. Most studies have focused on identifying motivational factors for consumers and companies to participate in the sharing economy. In conclusion, both concepts have its strengths and weaknesses, but they provide useful insights for analyzing current situations and developing potential strategic directions