Abstract
Organizational factors have been identified as a possible explanation for total factor productivity and hence the Solow paradox. We posit that business model innovation is a major organizational factor. However, there has not been any systematic study on how business model innovation affects productivity growth rates. We introduce a novel approach of measuring business model innovation using change in the net asset turnover ratio. The study shows that business model innovation contributes significantly to productivity growth across firms in the UK between 2003 and 2017. The study provides empirical support that business model innovation could partially explain the Solow productivity paradox.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.