The fit between product market strategy and business model: implications for firm performance

Соответствие стратегии на товарном рынке и бизнес‑модели: последствия для результативности фирмы
Christoph Zott, Raphael Amit, Christoph Zott
2007-08-22
SCID:  54.1/c25thewv Discuss with AI
business modelcomplementaritycost leadershipdifferentiationearly market entryfirm performancefit between strategy and business modelmanually collected datasetnovelty-centered business modelsproduct market strategy
Abstract (AI)
Abstract We examine the fit between a firm's product market strategy and its business model. We develop a formal model in order to analyze the contingent effects of product market strategy and business model choices on firm performance. We investigate a unique, manually collected dataset, and find that novelty‐centered business models—coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry—can enhance firm performance. Our data suggest that business model and product market strategy are complements, not substitutes. Copyright © 2007 John Wiley & Sons, Ltd.
Key Findings
1
Business model and product market strategy act as complements rather than substitutes.
2
Novelty-centered business models combined with cost leadership strategies improve firm performance.
3
Novelty-centered business models combined with early market entry strategies improve firm performance.
4
Novelty-centered business models combined with product market strategies emphasizing differentiation improve firm performance.
5
The paper develops a formal model analyzing how product market strategy and business model choices jointly affect firm performance.
Research Object

The fit between a firm's product market strategy and its business model

Research Subject

How the alignment (fit) between product market strategy and business model affects firm performance, including contingent/complementary effects of different strategy–model combinations (e.g., novelty-centered models with differentiation, cost leadership, or early entry)

Publication Details
Publication Date
2007-08-22
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Author Information
Authors
Christoph Zott
Raphael Amit
Christoph Zott
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