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Business Models: A Unit of Analysis for Company Performance

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  • Ormrod, Nicholas George

Abstract

Business models have been popularised in recent practitioner literature as a tool for summarising and representing how a company generates value. But academic consensus remains absent with a multitude of different definitions and typologies generally structured for application within a single focal business. There remains an opportunity to use the business model beyond intra application and act as a unit of analysis for inter-enterprise comparison. Weill et al (2006) have created a typology titled the MIT Business Model Archetypes. This research applies the MIT typology to New Zealand’s publically listed companies to generate a business model landscape. Several financial metrics are used to compare the performance and patterns of different business models. Interesting patterns emerge such as 33% annual compound growth for gross shareholder returns exhibited by one archetype, and a total of six out of nine that exhibit higher returns than the S&P/NZX50 index. The two research questions proposed are; can a business model be used as a unit of analysis? And, do some business models perform differently than others? The results of this analysis evidence a positive response to both questions.

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  • Ormrod, Nicholas George, 2015. "Business Models: A Unit of Analysis for Company Performance," MBA Research Papers 4957, Victoria University of Wellington, School of Management.
    • Handle: RePEc:vuw:vuwmba:4957
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/4957
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    1. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    2. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 529-555, June.
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    Keywords

    Business; Model; Archetype;
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