- Elgar original reference
Edited by Gry Agnete Alsos, Sara Carter, Elisabet Ljunggren and Friederike Welter
Chapter 10: Contextualising Business Model Development in Nordic Rural Gourmet Restaurants
10 Contextualizing business model development in Nordic rural gourmet restaurants Magdalena Markowska, Rögnvaldur J. Saemundsson and Johan Wiklund Rural gourmet restaurants are becoming a vital part of regional development. The growing interest in high quality regional food, and the changing perception of values inherent in food, creates possibilities for many enterprising individuals. Through an in-depth case study of four Nordic rural gourmet restaurants, we explore the role of context in the process of business model development. By analysing the changes in the business model, we find that the development of the business reflects the interaction with the environment; in particular, that the more professionally embedded entrepreneurs are more active in searching their networks for ideas that might help them improve their business and they act more on contingencies, while restaurateurs with lesser professional embeddedness have exhibited less change in their business models and did not engage in extending their networks. Thus, we argue that understanding the context of how experiences as the main arena for value creation are created and sold is important for understanding how entrepreneurs can develop their local story and local identity and become co-producers of regional development. INTRODUCTION Experiences are becoming the main arena for value creation in the economy (Pine and Gilmore, 1999). As competition increases, pure product or service offerings become an insufficient instrument in attracting customers and generating sustainable revenue streams into businesses. Entrepreneurs need to engage in creating and attaching “stories” to the product or service, thus adding value to its...
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