Shaping Business Models Through Interaction

Abstract

This chapter aims to understand how actors create meanings about a firm's business model through sensemaking processes. Actors hold different understandings of a firm's business model and infer different meanings. Business models result from the sensemaking and sensegiving processes that occur and evolve between actors. Business models make the action meaningful and frame the actions of the actors. This chapter builds on a single case study and presents essential characteristics of business model change and managers' sensemaking and sensegiving processes when shaping a business model. The chapter provides insights into how managers make sense of and reshape business models through interaction.