Developing an Instrument for Business Model Dimensions: Exploring Linkages with Firm Competitiveness

Abstract

The paper aims to develop an instrument to measure the position of a firm on business model dimensions (BMDs). The position of firms on the BMDs will help to delineate successful firms from unsuccessful firms. The scale items for the instrument were identified through a literature review. Four scales, one for each of the four BMDs, were developed. All the scales were empirically tested for reliability and validity. The scales proposed in this paper will help managers to locate the position of their firms on four BMDs and the position of a firm on four BMDs can be benchmarked with the industry average or with the best firm to gain competitive advantage. For the academicians, the scale for BMDs will pave the way for empirical studies to analyze the firm’s performance or competitiveness w.r.t to BMDs. The BMDs are used to classify the business model of a firm. However, scales to measure firms’ position on the selected BMDs were not available in the current literature. This paper attempted to address this need.