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When the window of opportunity opens: how does open search impact the business model design of digital startups?

Hai Guo, Xiaoyu Li and Chao Wang

Asia Pacific Business Review, 2023, vol. 29, issue 4, 852-875

Abstract: Open search is crucial to business model design. In recent years, the digital revolution has significantly reshaped the open search environment and the business model landscape. The traditional ‘either/or’ paradigm that separately tests the effects of open search breadth and depth on business model design is no longer applicable. By introducing the ‘both/and’ paradigm, this study explores how open search breadth and depth, both jointly and in an orderly manner, impact hybrid business model design. Using a sample of digital startups during the opportunity window of China’s digital entrepreneurship, we find that open search breadth positively relates to the balance between technology- and consumer-oriented business models. Furthermore, under the premise of high breadth, open search depth shows a U-shaped relationship with this balance. This study not only enriches our knowledge of the antecedents of business model design but also provides a comprehensive understanding of the role of open search.

Date: 2023
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DOI: 10.1080/13602381.2023.2191451

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