The Business Performance of New Technology-based Firms: The Importance of the Business Model's Value Proposition and Customer Relationships
Citation:
Hans Löfsten, 'The Business Performance of New Technology-based Firms: The Importance of the Business Model's Value Proposition and Customer Relationships', Senate Hall, 2019, International Review of Entrepreneurship, 323-346Download Item:
Abstract:
This study analyses the impact of the business model's value proposition and customer
relationships on business performance of new technology-based firms (NTBFs). NTBFs must create
a suitable business model to commercialise a new product or service to realize their economic
potential and perform as a business. We conducted a survey among 401 small, young Swedish
NTBFs in 2016 in the early stages of their existence and applied a multiple regression analysis
explaining business performance from various measures capturing value propositions and customer
relationships. The results show that performance-enhancing elements for business performance in
the early phases are product similarity (to products of other firms), internationalisation and
maintaining very close relationships to customers. The finding on product similarity is particularly
striking as it suggests that in the early stages of NTBFs it is imitation rather than innovation that may
help achieve higher business performance. This study contributes to the literature on NTBFs by
showing how various elements of the business model's value proposition and customer relationships
affect the firm's business performance in the very early stage of its development.
Author: Löfsten, Hans
Publisher:
Senate HallType of material:
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International Review of EntrepreneurshipAvailability:
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2009-2822Metadata
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