An empirical study of the effect of business model structural coupling on the firm performance

Abstract

Abstract: Although the business model has become a new important unit of analysis in business strategy, the relationship between business models and firm performance is still unclear. The extant research mainly focuses on the effect of types of business models on firm performance. This paper decomposed the structure of business model into three components: customer value proposition, business activity system and profit formula and discusses how they affect firm performance. Using the sample of listed companies on the Chinese growth enterprises market, this paper examines the effect of customer value proposition, business activity system, profit formula and their interaction on four types of firm performance, including profitability, growth, operational efficiency and market value. The result shows that structural coupling among different components of business model are more important than individual component when exerting influence on firm performance. It also has been revealed that customer value proposition has the strongest positive effect on firm performance significantly and that business models affect firm profitability and growth most significantly. This paper helps Chinese ventures innovate business models to improve firm performance. Also, it extends the framework of the empirical study of business models.

Key words: business models, customer value proposition, business activity system, structural coupling

CLC Number:

F270.7

Wang Xiang, Li Dong, Hou Shixiang. An empirical study of the effect of business model structural coupling on the firm performance[J]. Science Research Management, 2015, 36(7): 96-104.

References

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