Business Model Design of High-Growth Firms in Emerging and Mature Economies

Abstract

Research evidence suggests that business model design has strong positive effect on firm performance. On the other hand, there are reasons to suggest that business model design may also affect firm growth. The paper outlines potential relationships between the components of business model design, such as novelty and efficiency, and growth-relevant variables. We assume that depending on the firm’s size, age and level of innovativeness high-growth firms would employ predominantly novelty- or efficiency-based design. Further, we propose that this relationship will be moderated by the industry context (i.e. high-technology vs. non-technological industries). Finally, we suggest that the context of mature vs. emerging economies would, in turn, moderate the relationship between business model design and high-growth factors. By exploring business model phenomenon through entrepreneurship lens we attempt to provide insights in both fields. We strive to add to the conceptualization of business model research and to address controversies of growth research in entrepreneurship. Also, since high-growth firms are confirmed as major job providers regardless of the economic context, insights into the nature of high growth phenomenon will have important societal implications.