THE INFLUENCE OF INITIAL BUSINESS MODELS ON EARLY BUSINESS PERFORMANCE: A STUDY OF 589 NEW HIGH-TECH FIRMS

Anders Isaksson, Hans Löfsten () and Heikki Rannikko ()
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Anders Isaksson: Division of Entrepreneurship and Strategy, Department of Technology Management and Economics, Chalmers University of Technology, SE 412 96 Göteborg, Sweden
Hans Löfsten: Division of Entrepreneurship and Strategy, Department of Technology Management and Economics, Chalmers University of Technology, SE 412 96 Göteborg, Sweden
Heikki Rannikko: #x2021;Metropolia University of Applied Sciences, Hämeentie 135 D, 00560 Helsinki

International Journal of Innovation Management (ijim), 2021, vol. 25, issue 05, 1-37

Abstract: The initial business model of start-ups affects the performance and development of new ventures. Therefore, new technology-based firms (NTBFs) must choose a suitable initial business model to survive, perform, and grow. We propose a measurement framework comprising of nine elements described using 16 variables for NTBFs’ initial business models. We test our framework by surveying 589 young manufacturing and knowledge-intensive high-tech firms established in 2013 in Sweden, Finland, and France. We identify differences between the business models across countries and measure sales growth during 2014–2016. We find significant differences between high-tech manufacturing firms and high-tech knowledge-intensive firms regarding key partners, activities, and resources, as well as value propositions and the ranking of elements. In the second part of the analysis, we apply correlation and regression tests for the nine elements regarding early business performance (sales growth) for the manufacturing and knowledge-intensive high-tech firms.

Keywords: Business models; new technology-based firms; initial business model; industry sector; early business performance (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S1363919621500559

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