The nature of the business model

Business modal is a newly emerged research area that has been developed for about a decade, and its theoretical framework needs to be established on the basis of a thorough understanding of its nature. The present paper, therefore, starting from the relevant literatures, investigates the intrinsic features of the business model from the following perspectives: business relationship, business network, transaction structure, transaction cost theory and managerial theory. The investigation shows that business model is a commonly existed and yet complex concept which incorporates multi-level elements such as business logic, strategic planning, contractual arrangements and business philosophy of a company.