Adapting to Change: Understanding the Relation between Business Model Design and Technology Development in the Creation of New Ventures

Purpose This paper aims to explore how intra-industry entrepreneurial experience and failure entrepreneurial experience affect novelty-centered business model design in a new venture. Moreover, the authors also consider whether the contingent value of entrepreneurial experience may differ according to competitive intensity. Design/methodology/approach A survey via questionnaire was conducted with 290 entrepreneurs and top managers from Chinese new ventures that provided the research data. Hierarchical regression analysis was used to test the proposed theoretical hypotheses. Findings The empirical results indicate that intra-industry entrepreneurial experience has an inverted U-shaped effect on novelty-centered business model design, whereas failure entrepreneurial experience has a negative effect on novelty-centered business model design. Furthermore, the authors also find that competitive intensity weakens the inverted U-shaped effect of intra-industry entrepreneurial experience on novelty-centered business model design. Originality/value This study offers new insights into the effects of intra-industry entrepreneurial experience and failure entrepreneurial experience on novelty-centered business model design and provides useful suggestions for new ventures to promote business model design.

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Does holistic cognition frame always promote business model design?

Chinese Management Studies ◽

10.1108/cms-06-2018-0565 ◽

2019 ◽

Vol 13 (4) ◽

pp. 840-859 ◽

Cited By ~ 1

Author(s):

Yong Wu ◽

Linqian Zhang ◽

Zelong Wei ◽

Mingjun Hou

Keyword(s):

Business Model ◽

Design Methodology ◽

New Ventures ◽

Model Design ◽

Content Type ◽

Business Model Design ◽

Established Firms ◽

The Relationship ◽

Positive Effect ◽

Holistic Cognition

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.

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