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Business strategy and business model: extending the strategy-structure-performance paradigm (RV of 2004/84/ENT/SM/ACGRD 8)

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The authors extend the strategy-structure-performance paradigm to highlight the interdependencies among a firm's product market strategy, the structure of transactions it enables with external stakeholders (its business model), and its performance. By developing a formal model, they are able to explore, theoretically, the contingent effects of product market strategy and business model design on firm performance. Investigating a unique manually collected data set, they find that novelty-centered business model design, coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry, enhances firm performance.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2005/2005-26.pdf

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Copyright INSEAD. All rights reserved