Business Model Design and Firm Performance: The Moderating Effect of Strategic Flexibility

Abstract

Abstract:

Based on business ecosystem theory and dynamic capability theory, this paper investigates the effects of novelty-centered and efficiency-centered business model design on firm performance and explores the moderating effects of resource flexibility and coordination flexibility. With data from 204 Chinese firms, we find that both novelty-centered and efficiency-centered business model design have positive effects on firm performance. Furthermore, resource flexibility strengthens the positive effect of the efficiency-centered business model design on firm performance, while inverted U-shaped moderates the relationship between novelty-centered business model design and firm performance. Coordination flexibility strengthens the positive effect of the novelty-centered business model design on firm performance, while has an inverted U-shaped moderating effect on the relationship of efficiency-centered business model design and firm performance.

Key words: novelty centered business model design, efficiency centered business model design, resource flexibility, coordination flexibility

Wei Zelong, Zhang Linqian, Wei Zesheng, Yang Tong. Business Model Design and Firm Performance: The Moderating Effect of Strategic Flexibility[J]. , 2019, 31(11): 171-182.

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