Year: 2009
Type: report
Abstract: This study examines the antecedents to and performance effects of software firms' business models.Based on a structural equation modeling of data gathered from almost 200 firms in the software industry, the study shows that firms' service orientation, technology orientation, and open innovation engagement explain a significant amount of the variation evident in their business models.In addition, the study shows that business model focus has significant implications for firm performance.Notably, software firms' service orientation is found to be positively related with their customer proximity-focused business models.The findings indicate that such business models have a significant positive impact on firms' financial performance and slightly weaker, yet significant impact on their market performance.Moreover, firms' engagement in open innovation activity is seen to foster their product uniformity-focused business models.Such business models are found to have a direct and positive effect on firms' market performance.This study makes three principal contributions.First, it formalizes the definitions of an organization's service orientation, technology orientation, and open innovation engagement.Second, it establishes a model that explains how and why these factors antecede individual firms' business models and shows their respective performance effects.Finally, the analysis of business model performance offers the basis for future research directions.
Source: Aaltodoc (Aalto University)
Author: Risto Rajala
Institution: Aalto University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2600599681