We propose a framework to explain how business models develop
in technology-driven start-up companies using a case study from
Scandinavia. We suggest that existing frameworks assume a linear
decision process that ignores the company’s course of experimenting
under environmental uncertainty. Our proposed framework acknowledges
how a start-up makes several iterative and path-dependent
decisions to create several business model prototypes before
eventually making the irreversible strategic choice of which one to
implement.