Developing business models from a knowledge-based perspective

In the knowledge-based economy today, knowledge is recognized as the driver of firm competitiveness. However, how a firm can base on knowledge to develop its business model has yet been fully explored in academia. Using software and books as our cases to undertake historical research, we aim to shed light on the development of business models from a knowledge-based perspective. We reviewed past literature to explore the knowledge essence of software and books, contending that software, like books, is an artifact that embodies knowledge. Based on our historical analysis, we then illustrate how software firms and book publishers can develop their business models from a knowledge-based perspective. Three aspects, knowledge preservation, knowledge acquisition and dissemination, and knowledge application, are addressed. Today, firms from other industries also rely heavily on knowledge to do business, and they need to rejuvenate their business models, from a knowledge-based perspective as well. We further elaborate how our approach can be applied by firms in other industries, especially in the manufacturing industry. We conclude that, in the knowledge-based economy, developing new business models based on the knowledge perspective will allow firms to secure their long-term competitiveness.