New ventures on the search for viable business models: Taking into account levels of uncertainty / ambiguity.

Abstract

There exists evidence that most initial selections of business models by new ventures have to be adapted later on and that minor this need for adaptation stems from the high degrees of uncertainty and ambiguity new ventures are confronted with, both on the technology and the market level. The main research question of this paper is whether different levels of uncertainty and ambiguity have an effect on the appropriateness of different search strategies new ventures can use to adapt their business model; and if yes, what this effect is. We first present the relevant literature. We then put forward a simulation model - based on the model developed by Kauffman (1989, 1993) - as a formal basis for addressing our research question and analyze the simulation results. To conclude, these results are discussed in the light of existing research on entrepreneurship and innovation and some limitations of our research methodology are presented.Innovation; Market; Model; Models; Research; Selection; Simulation; Strategy; Technology; Uncertainty;