Session 442

Performance Implications of Business models

Track A

Date: Monday, September 22, 2014


Time: 08:00 – 09:15


Room: Bruselas

Session Chair:

  • Timo Sohl, Pompeu Fabra University

Title: Business Models, Intra-firm Structure and Performance


  • Øystein Fjeldstad, BI Norwegian Business School
  • Binh Phan, BI Norwegian Business School
  • Amir Sasson, BI Norwegian Business School

Abstract: Activity and resource configurations including the associated linkages constitute the building blocks of the growing business model literature, which articulates how a firm creates and captures value. We examine how business models affect the relationship between properties of intra-firm structure and firm performance. Our findings contribute to the understanding the relationship between business models and internal organization. We link variation in business models and intra-firm structural changes to firm performance in a longitudinal study of 238 firms. We find that the return to firms with a business model conducive to machine bureaucracy (e.g. manufacturing) and adhocracy (e.g. professional service firms) are positively affected by increased internal coordination, but not so for those associated with administrative adhocracy (e.g. telecom operations).

Title: Dare to Learn: How Learning Orientation Fosters BMI in Dynamic Environments


  • Maria Rita Micheli, IESEG School of Management

Abstract: When managers encourage the diffusion of learning orientation, employees are triggered to engage in creative behaviours; as such, the enhancement of innovation is facilitated. On the opposite, when performance orientation is encouraged, conservative behaviours are preferred. However, innovative processes do not happen in a vacuum. Indeed the dynamism in the external environment might influence the effectiveness of companies' orientation. This influence is particularly important when the innovative process at stake is complex and entails the consideration of several factors, as in the case of business model innovation (BMI). In this paper we address this issue and we show that learning orientation fosters BMI and the dynamism of the environment positively moderates this effect. Moreover, we do not find a correlation between performance orientation and BMI.

Title: How Does Business Model Innovation Influence Firm Performance: The Moderating Effect of Environmental Dynamism


  • Cornelis Vincent Heij, Erasmus University Rotterdam
  • Henk Volberda, Erasmus University Rotterdam

Abstract: Although attention to business models has flourished over the last decade, few scholars have investigated how existing firms are able to innovate their business model, either by replicating their existing model or renewal by creating a fundamental new business model, and how environmental contingencies influence their performance-effects. This study fills these gaps in the literature by examining with a large-scale survey how business model replication and business model renewal influence firm performance, and how environmental dynamism moderates these relationships. Our results indicate that both business model replication and business model renewal have a positive effect on firm performance. Furthermore, environmental dynamism weakens the positive relationship between business model replication and firm performance, but surprisingly it does not strengthen the performance effect of business model renewal.

Title: How Much Does Business Model Matter?


  • Timo Sohl, Pompeu Fabra University
  • Govert Vroom, IESE Business School
  • Markus Fitza, Frankfurt School of Finance and Management

Abstract: Despite the recognition that business models identify how businesses create and capture value, little is known about how business model choices are linked to performance. Since business units employ business models to serve industries, we examine the relative importance of business model and industry effects in explaining performance variation, while controlling for year, home country, corporate parent, and business unit effects. Using a simultaneous variance decomposition approach on panel data of 2,993 business units (chains) in the retail- and wholesale-trade sectors (SIC 50-59) from 43 home countries (1996-2010), we find that business model effects matter most in explaining variance in chain efficiency. Surprisingly, our results also indicate that both business model and industry effects are less important in explaining variance in chain growth.

All Sessions in Track A...

Sun: 15:45 – 17:00
Session 444: Business Model innovations
Mon: 08:00 – 09:15
Session 442: Performance Implications of Business models
Mon: 11:00 – 12:15
Session 305: Business Model Design and Innovation in Different Institutional Environments
Mon: 14:45 – 16:00
Session 443: Business Model Theory Development
Mon: 16:30 – 17:45
Session 455: Selected topics on Business models
Tue: 08:00 – 09:15
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 11:00 – 12:15
Session 447: Business Model Design
Tue: 15:30 – 16:45
Session 449: Busienss Model Eco-systems

Strategic Management Society