Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups

Published on Jun 1, 2019in Journal of Business Research4.028
· DOI :10.1016/j.jbusres.2019.02.029
Bernardo Balboni6
Estimated H-index: 6
(University of Modena and Reggio Emilia),
Guido Bortoluzzi7
Estimated H-index: 7
(UniTS: University of Trieste)
+ 1 AuthorsAndrea Tracogna5
Estimated H-index: 5
(UniTS: University of Trieste)
Abstract Focusing on the role of efficiency and novelty design themes, this paper examines how (a) the initial business model of a start-up, (b) the subsequent changes in the design themes and (c) the combinative effect of efficiency and novelty (contextual ambidexterity) impact a start-up's growth performance. The study is based on a survey involving 267 new ventures from high-tech industries. The results highlight the importance of pursuing higher efficiency over the life cycle of a start-up, although not at the moment of its establishment. In relation to business model ambidexterity, the findings highlight the different effect that contextual ambidexterity can have on the growth performance of a start-up firm in different stages of its life cycle. While initial ambidexterity is found to have a negative effect on growth performance, successive increases in the level of ambidexterity have a positive influence on growth.
  • References (79)
  • Citations (1)
📖 Papers frequently viewed together
1 Citations
2 Citations
7 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1Suqin Liao (USTC: University of Science and Technology of China)H-Index: 1
#2Zhiying Liu (USTC: University of Science and Technology of China)H-Index: 1
Last. Shanshan ZhangH-Index: 1
view all 3 authors...
1 CitationsSource
#1Joseph B. Farhat (CCSU: Central Connecticut State University)H-Index: 8
#2Alicia Robb (CU: University of Colorado Boulder)H-Index: 20
The Kauffman Firm Survey (KFS) was a panel study of new businesses that employed a complex sample design to collect key data about the dynamics of high-technology, medium-technology, and female-owned business entities. Complex sample designs of the type employed in the KFS typically have multi-frame sampling, stratification, non-response adjustment, and over-sampling components. Each of these design elements has been proven to enhance the efficiency with which researchers analyze and draw infere...
5 CitationsSource
#1Blendi Gërdoçi (University of Tirana)H-Index: 1
#2Guido Bortoluzzi (UniTS: University of Trieste)H-Index: 7
Last. Sidita Dibra (University of Tirana)H-Index: 1
view all 3 authors...
Purpose The purpose of this paper is to contribute to the literature on business model (BM) design by deepening the relationship between BM design themes and performance in a sample of firms based in a developing country. In particular, the authors deepen the relationship between business model novelty (BMN), business model efficiency (BME), the trade-off between novelty and efficiency – that the authors call BM ambidexterity – and performance. Design/methodology/approach Data are drawn from a s...
3 CitationsSource
#1Tina Saebi (NHH: Norwegian School of Economics)H-Index: 7
#2Lasse B. Lien (NHH: Norwegian School of Economics)H-Index: 6
Last. Nicolai Juul Foss (Bocconi University)H-Index: 72
view all 3 authors...
Business models change as managers not only innovate business models, but also engage in more mundane adaptation in response to external changes, such as changes in the level or composition of demand. However, little is known about what causes such business model adaptation. We employ threat-rigidity as well as prospect theory to examine business model adaptation in response to external threats and opportunities. Additionally, drawing on the behavioural theory of the firm, we argue that the past...
45 CitationsSource
#1Isabelle Reymen (TU/e: Eindhoven University of Technology)H-Index: 14
#2Hans Berends (VU: VU University Amsterdam)H-Index: 18
Last. Rgl Rutger StultiënsH-Index: 3
view all 4 authors...
This study investigates the decision-making logics used by new ventures to develop their business models. In particular, they focussed on the logics of effectuation and causation and how their dynamics shape the development of business models over time. They found that the effectual decision-making logic was used dominantly to generate a viable value proposition for a specific customer segment. Causal logic is then used dominantly to define the other business model components in relation to the ...
20 CitationsSource
#1Nicolai J. Foss (Bocconi University)H-Index: 5
#2Tina Saebi (NHH: Norwegian School of Economics)H-Index: 7
Abstract While research on business models and business model innovation continue to exhibit growth, the field is still, even after more than two decades of research, characterized by a striking lack of cumulative theorizing and an opportunistic borrowing of more or less related ideas from neighbouring fields in the place of cumulative theory. We argue that the lack of cumulativeness stems from lack of construct clarity (i.e., BM and BMI are seldom defined with much precision) and lack of agreem...
40 CitationsSource
#1Manuel AdelinoH-Index: 10
#2Song MaH-Index: 2
Last. David T. RobinsonH-Index: 22
view all 3 authors...
New firms are an important source of job creation, but the underlying economic mechanisms for why this is so are not well understood. Using an identification strategy that links shocks to local income to job creation in the nontradable sector, we ask whether job creation arises more through new firm creation or through the expansion of existing firms. We find that new firms account for the bulk of net employment creation in response to local investment opportunities. We also find significant gro...
22 CitationsSource
#1Nicolai Juul Foss (Bocconi University)H-Index: 72
#2Tina Saebi (NHH: Norwegian School of Economics)H-Index: 7
Over the last 15 years, business model innovation (BMI) has gained an increasing amount of attention in management research and among practitioners. The emerging BMI literature addresses an important phenomenon but lacks theoretical underpinning, and empirical inquiry is not cumulative. Thus, a concerted research effort seems warranted. Accordingly, we take stock of the extant literature on BMI. We identify and analyze 150 peer-reviewed scholarly articles on BMI published between 2000 and 2015. ...
204 CitationsSource
#1Francesca Ricciardi (University of Verona)H-Index: 9
#2Alessandro Zardini (University of Verona)H-Index: 6
Last. Cecilia Rossignoli (University of Verona)H-Index: 8
view all 3 authors...
Firm performance in turbulent business environments strongly depends on the adaptive (re)generation of the firm's business model. However, studies on the enablers of business model innovation are sparse. This study leverages the literature on dynamic capabilities, on organizational ambidexterity/vacillation, and Lewis's view of organizational paradoxes to build an integrated model of organizational dynamism that includes seven dimensions: three pairs of paradoxical constructs (cooperation–compet...
16 CitationsSource
#1Johann Kranz (GAU: University of Göttingen)H-Index: 10
#2Andre Hanelt (GAU: University of Göttingen)H-Index: 7
Last. Lutz M. Kolbe (GAU: University of Göttingen)H-Index: 22
view all 3 authors...
The increasing popularity of Software as a Service has strongly affected the established business model of on-premise enterprise software. Software as a Service has distinctive characteristics of disruptive innovations that typically create several difficulties for incumbent firms, in particular with regard to adapting business models. To date, however, little empirical understanding exists regarding the dynamics of business model change - a topic of special importance to the highly dynamic soft...
18 CitationsSource
Cited By1
#1Chester K.M. ToH-Index: 10
#2K.P. ChauH-Index: 1
Last. Chi-wai KanH-Index: 30
view all 3 authors...
Abstract Innovations in business models involve a dynamic process that makes business values resilient against market and technology changes. We propose a schema that supports predicting the effect of innovation on business model values. The schema redefines the value proposition logic in business model innovations with five primary variables: business dependence structure, business value dominance, innovation dynamics, innovation domains, and innovation-resources-agility. Based on the schema, w...
2 CitationsSource
#1Eva MavroudiH-Index: 1
#2Effie Kesidou (University of Leeds)H-Index: 9
view all 3 authors...
Research on ambidexterity has established that many firms engage in temporal cycling between exploratory and exploitative activities, but it has not examined how quickly firms engage in temporal cycling and how this decision affects their performance. We enhance understanding of this phenomenon by examining how the speed at which innovative firms choose to cycle between exploratory and exploitative R&D influences their performance. We also examine contingencies that affect this relationship. Our...
#1Anastasia A. Katou (Cardiff University)H-Index: 13
#2Pawan S. Budhwar (Aston University)H-Index: 48
Last. Charmi Patel (University of Reading)H-Index: 4
view all 3 authors...
Abstract By proposing an integrative multilevel framework, this paper analyzes the simultaneous impact of two internal micro-antecedents (i.e., leader’s social intelligence and employee’s work engagement) and one external macro-antecedent (i.e., dynamically changing environment) of organizational ambidexterity on two dimensions of organizational performance (i.e., creativity and productivity) through the simultaneous pursuance of organizational exploration and exploitation by firms. The analysis...
#1Cong ChengH-Index: 1
#2Liebing CaoH-Index: 1
Last. Jiahong QianH-Index: 1
view all 5 authors...
Adopting the empowerment perspective of leadership, this study proposes and examines the mediating model that leader encouragement of creativity affects innovation speed through strengthening employees’ engagement in the creative process. Using a sample of 245 participants in China, the results from structural equation modeling (SEM) suggest that the impact of leader encouragement of creativity on innovation speed is significantly mediated by creative process engagement, and positively moderated...
1 CitationsSource