Logic Multiplicity in Digital Business Models – An Institutional Logics Perspective

Abstract

Digital business models (DBM) are built upon digital technologies with complexity-inducing characteristics, connecting multiple heterogeneous actors seeking to co-create value. Institutional logics coordinate and constrain actors’ value co-creation interactions. Multiple, competing institutional logics can co-exist and create barriers to value co-creation. However, we argue that business model research in the information systems (IS) discipline still assumes a homogeneous concept, overlooking the possibility of logic multiplicity within DBMs. We conceptually show why logic multiplicity should be acknowledged and derive three propositions introducing logic multiplicity to the structures and practices of DBMs. By assuming an institutional logics perspective, challenging the assumption of homogeneity, and introducing a logic multiplicity lens, we call for a return to the discipline’s sociotechnical roots. We thereby enable scholars to study the complex reality of digital business and aid practitioners in turning situations of multiplicity into opportunities.