Business Overview - Concepedia

Principles

Definition

Business is an academic discipline dedicated to the systematic investigation of organizational structures, operational processes, and strategic decision-making within commercial and economic entities. This field encompasses the analysis of core functional areas, including accounting, finance, marketing, and management, examining their interdependencies and collective impact on organizational performance, sustainability, and value generation in diverse market contexts.

Ontological type

Core Subdisciplines

Theoretical Foundations

Strategic Decision Domains

Key developments

Key Figures

Integrated Enterprise Economics era

Michael C. Jensen [1], associated with Harvard University [3] and the University of Rochester [4] during this era, helped establish governance focused analysis of the firm. Jensen [1]'s key contribution—the Theory of the firm: Managerial behavior, agency costs and ownership structure [6]—formalized how managerial incentives and ownership arrangements create governance frictions, a cornerstone of integrated enterprise economics. William H. Meckling [2], affiliated with Washington University in St. Louis [5] and the University of Rochester [4] in this era, helped shape the same governance framework. Meckling [2]'s collaboration on the Theory of the firm: Managerial behavior, agency costs and ownership structure [6] established a rigorous account of agency costs and ownership structures, anchoring the era’s governance metrics.

Contractual and Resource Governance era

Jay B. Barney [1] is prominently associated with the University of California, Los Angeles [3] and Fudan University [4] during this era. Barney [1]’s 1991 paper Firm Resources and Sustained Competitive Advantage [7] helped establish the resource-based view, showing how asset heterogeneity and capabilities translate into durable rents and informing governance choices around ownership design and make-or-buy decisions in this era. Eugene F. Fama [2] is associated with Cornell University [5] and the University of Chicago [6] during this era. Fama [2]’s 1980 paper Agency Problems and the Theory of the Firm [8] helped formalize agency problems and governance considerations at the heart of contracts and incentive alignment in this era.

Capability-Led Sustainable Business era

Nancy Bocken [1] is a leading scholar connected with the University of Cambridge [3] and Maastricht University [4] in this era. Her key contributions include the literature and practice review to develop sustainable business model archetypes [5], the analysis of circular economy business models capturing environmental value propositions [6], and lessons from eight cases in Experimenting with a circular business model: Lessons from eight cases [7], all foundational for guiding sensing, seizing, and transforming toward servitization and circularity in capability-led sustainable business models. Samuel W. Short [2] is a prominent researcher associated with the University of Cambridge [3] and Maastricht University [4] in this era. His sole listed contribution is the 2014 paper A literature and practice review to develop sustainable business model archetypes [5], which provided a foundational framework for understanding sustainable business models and their role in capability-led value creation during this era.