The Design Logic of New Business Models: Unveiling Cognitive Foundations of Managerial Reasoning

Despite the importance of managerial reasoning in designing business models to handle exogenous change, little is known about its cognitive foundations. We address this gap with a comparative analysis of how managers rethink business model configurations to provide value in the emerging collaborative consumption economy. As customer behaviors shift from owning to sharing possessions, they challenge firms’ established business model logics. Using...