The paper develops and tests a framework for evaluating mobile commerce business models and strategies. To study business model innovation in mobile commerce, we analyze the cost, revenue, and growth components of the business model. In addition, we also investigate whether the implementation of the new business model successfully capitalized on the key disruptive attributes of mobile commerce. An analytical framework is developed to guide the empirical study of the two leading mobile commerce companies in Taiwan. The empirical research indicates that the mobile commerce industry in Taiwan has been able to capitalize on many but not all of the value-adding mobile commerce disruptive attributes as well as the economic principles of the digital economy to provide mobile value. The development of mobile application services should be demand-driven and customer-focused, rather than merely supply- oriented. Mobile commerce service providers must understand the tacit consumer demand and be able to capture the full benefits of the disruptive technology and service innovation in order to achieve superior business performance.
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