Business models and the performance of Chinese high-tech service firms: the role of the technological innovation mode and technological regimes

Abstract

Given China’s rapidly developing landscape, improving innovation performance has become a critical objective for high-tech service firms. This study examined the relationship between business models and the performance of Chinese high-tech service firms. The theoretical model is based on contingency theory and incorporates concepts from business model innovation, and technological innovation. A multilevel regression analysis was conducted using data from 489 high-tech service firms in China. The results indicate significant positive correlations between innovation performance and various factors such as efficiency- and novelty-oriented business models, technology development, and technology acquisition. Second, technological innovation mode mediates the relationship between the business model and innovation performance. Third, technological regimes have different moderating effects on the relationships between the type of business model and innovation performance and that between the type of technological innovation and innovation performance. From a practical perspective, firms operating under different technological regimes should adjust their business strategies to achieve optimal innovation performance. Furthermore, the results have several theoretical contributions and practical implications. The findings offer a valuable reference for business growth in developing regions and identifies viable ways to improve the innovation performance of China’s high-tech service enterprises.