Is the Business Model a Useful Strategic Concept? Conceptual, Theoretical, and Empirical Insights
AbstractAlthough a widely used managerial concept, the notion of a "business model" has only recently begun to receive serious attention from researchers. While disparate opinions exist regarding its nature, the business model holds promise as a focal point for the development of theory in entrepreneurship. Realizing this promise requires progress not only in how to conceptualize the business model but, also, in how to measure a firm's model and draw comparisons across model types. Utilizing a six-component framework published earlier by the authors, a methodology for measuring the business model is demonstrated with a random sample of high-growth firms. Cluster analysis indicates the existence of four generic models. Suggestions are made and implications drawn for ongoing theory development and entrepreneurial practice.
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