The business model has gained recognition as an important industry concept and is a growing area of interest among entrepreneurship scholars. However, research on the topic is limited, in part due to multiple conceptualizations regarding what constitutes a model, and an unclear theoretical foundation. Recent research has highlighted the impact created by innovative business models (Markides 2006) and the pivotal role novel models have on new venture performance (Zott & Amit, 2007). Richer empirical insights are now needed regarding the nature of “novelty” in models and the sources of such novelty. To what extent does novelty emerge, and what are the factors that drive such emergence?