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The fit between technological innovation and business model design for firm growth: evidence from C hina
Author(s) -
Wei Zelong,
Yang Dong,
Sun Biao,
Gu Meng
Publication year - 2014
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/radm.12069
Subject(s) - novelty , extant taxon , salient , business model , exploratory research , industrial organization , business , product innovation , open innovation , growth model , marketing , knowledge management , economics , microeconomics , computer science , psychology , social psychology , artificial intelligence , evolutionary biology , sociology , anthropology , biology
How does technological innovation fit with business model design to jointly impact firm growth? Given the increasingly salient role of business model, extant literature provides little answer to this question. This study builds a theoretical model based on technological innovation literature, business ecosystem theory, and business model literature to investigate this issue. This study finds that exploitative innovation and exploratory innovation fit with different business model designs to promote firm growth. Six hypotheses are proposed and examined by a database from 176 C hinese firms. This research finds that exploitative innovation has a negative whereas exploratory innovation has a positive effect on firm growth. More importantly, we find that efficiency‐centered business model design enhances the negative effect of exploitative innovation and weakens the positive effect of exploratory innovation. We also find that novelty‐centered business model design weakens the negative effect of exploitative innovation. This research contributes to both technological innovation and business model design literature.