Theorising the Normative Business Model

Abstract

We begin with a critique of the ontological underpinnings of the mainstream business model literature with its origins in design-science and offer instead insights from sociology and organisational institutionalism to argue for a more accurate representation of actual processes of organisational transformation, especially necessary where scholarship is concerned to address societal mission-oriented normative cares beyond the objectives of efficiency and profit maximisation. We propose the foundations of a new theoretical construct: the Normative Business Model (NBM) distinguishing deep institutionalisation as the embedding of values (normative orientations) into the design, practices and identity of organisations. The NBM comprises four cornerstones: (a) normativity, (b) (de)institutionalisation and deep institutionalisation processes, (c) institutional entrepreneurialism and (d) economic and financial governance. A case overview of Arizona State University is used to highlight that the NBM refers to the full range and variety of organisation types, not exclusively businesses.