In this paper, we explore the fit between a firm’s
product market strategy, and its business model. We
develop a formal model in order to analyze and develop
theoretical hypotheses on the contingent effects of
product market strategy and business model choices on
firm performance. By investigating a unique, manually
collected data set, we find that noveltycentered
business models, coupled with product market strategies
that emphasize differentiation, cost leadership, or
early market entry, enhance firm performance. pdf
