Performance implications of business model centrality over technology-based firms’ life courses

This research examines business model centrality over technology-based firms' (TBFs') life courses and thus contributes to the discourse on business models by addressing recent calls for time-sensitive and contextualized research. Based on analysis of data collected from a large sample of European TBFs, we find that younger TBFs are more likely than older TBFs to opt to bring their innovations to market using novelty-centered business models, and the same is true for efficiency-centered business models. By examining relationships between business model centrality and performance over TBFs’ life courses, we uncover important implications for TBFs of all ages suggesting caution in the pursuit of novelty-centered business models by younger TBFs, which are likely to fare better by bringing their innovations to market using efficiency-centered business models. Meanwhile, older firms are more likely to achieve success through novelty-centered business models.