The role of business models in explaining differences in firm performance

Riccardo Cappelli and Marco Cucculelli

Chapter 6 in Unpacking Innovation, 2024, pp 92-101 from Edward Elgar Publishing

Abstract: Even though the characteristics and implications of business models (BMs) have been receiving growing attention, robust empirical evidence on the contribution of BMs to firm performance is still limited. In this study, we first adopt a methodology that permits to retrieve different types of business model starting from firm-level financial and economic data. Then, using a sample of 1,156 Italian manufacturing small and medium-sized enterprises (SMEs), we identify an array of business models and assess to what extent the latter contribute to differences in firm performance. The results of the variance component analysis indicate that BMs account, on average, for one-third of the total variance in firm performance.

Keywords: Business and Management; Economics and Finance; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
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