That is, business models are developed based on identifiable processes and activities performed by entrepreneurs to exploit opportunities ( George and Bock 2011). It is a fundamental process at the heart of individual-opportunity nexus ( Eckhardt 2013). The entrepreneurship literature suggests that business model development does not happen in vacuum. In this spirit, one of the most important yet unexplored issues is how business models emerge or come into existence. there is a need to transition from the idea-as-given perspective to a not-given perspective in order to place the business model idea in a theoretical perspective where it can be understood in more abstract terms and then applied in new ways. the use of the term ‘business model’ as a ‘description’ of how a traditional venture operates is strong on redundancy and weak on theoretical grounding. Supporting this gap, Arend (2013, 391) argues that: Although interesting ideas have been developed about the nature of the concept of a business model, the extant literature can be best characterized as a descriptive account of business models in action, taking their existence and more precisely their development for granted. Much has been written about what business models are, what they do and how they create a competitive advantage ( Kim and Mauborgne 1999 Magretta 2002 Shin 2014 Zott and Amit 2007 Zott, Amit, and Massa 2011). Thus, business model of the firm is an important unit of analysis which can help scholars gain a sense of the firm in action ( McGrath 2010). A business model, therefore, is a firm-specific recipe or blueprint that helps managers to structure resources in unique ways to differentiate their firms from competitors ( Chesbrough, Minin, and Piccaluga 2013). This business model defines how the venture exploits business opportunities by configuring resources to create a position in the marketplace ( George and Bock 2011 Teece 2010).
Whenever a new venture is established it explicitly or implicitly adopts a business model.