An Analysis of the Relationship Between Business Model of High-tech Firms and Porter`s Generic Strategies, Using a Survey Approach

Document Type : Original Article

Authors

1 Malekashtar University of technology

2 Malekashtar University of Technology

3 University of Tehran

Abstract

As a new management concept, business model has been highly emphasized by academics, practitioners and business analysts in the last two decades. Academics use the term "business model" when they want to describe the rationale of value creation and value capture in an organization. Since perspectives on defining business model concept and function is highly diverse, many ambiguities have been arisen regarding the relationship between business model and strategy. To shed light on this issue, the present paper first investigates the business model literature and then reviews different views regarding business model and strategy relationship. After that, a research framework is developed to address business model elements arrangement fit to Porter`s generic strategies in high-tech firms. Also, clustering analysis is used to group firms based on their business models and strategies, and then the performance of the firms is compared to investigate the fit between business model elements and each of the Porter's generic strategies. Finally, the results reveal that the arrangement of business model in firms which follow cost leadership strategy is different from the arrangement of business model in firms which follow differentiation strategy.

Keywords

References

 
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Innovation Management Journal
Volume 1, Issue 1 - Serial Number 1
December 2012
Pages 77-97

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History

  • Receive Date: 03 April 2012
  • Accept Date: 21 March 2019

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