The match between business model design and knowledge base in firm growth: from a knowledge-based view

Abstract

ABSTRACT Effective knowledge change and reorganisation are important factors in the success of business model (BM) design. However, the existing literature has rarely focused on investigating the suitable match between the existing knowledge base and BM design. Building on the knowledge-based view (KBV), this research analyzes the effects of efficiency- and novelty-centered BM designs on firm growth, which will be differently moderated by the knowledge factors of breadth and depth. With the empirical examination of 290 Chinese enterprises, we found that to foster firm growth, efficiency-centered BM design benefits more from a deep knowledge base than from a broad knowledge base, whereas novelty-centered BM design benefits from both. The above results provide new empirical evidence for understanding the contingency effects of knowledge base on the effectiveness of BM design for firm growth.