The effect of boundary-spanning search and cognitive style on the business model design of Internet start-ups: evidence from China

Abstract

ABSTRACT Internet start-ups have the most dynamic organisational structure due to the rapid growth of network information technology. Based on social cognition theory and information processing theory, this study investigates the connection between boundary-spanning search and business model design, proposing two types of cognitive styles: adaptive and innovative. Based on the questionnaire survey data of 223 Internet start-ups, this study finds that: (1) boundary-spanning search of technical knowledge is positively related to the efficiency-centered business model. (2) boundary-spanning search of market knowledge is positively related to the novelty-centered business model; (3) hybrid boundary-spanning search is positively related to the combined business model. (4) cognitive style weakens or enhances the relationship between boundary-spanning search and business model design. The research provides practical guidance for Internet start-ups and contributes to a better understanding of the antecedent variables of the business model.