The fit between product market strategy and business model: implications for firm performance
Open accessAbstract
We examine the fit between a firm's product market strategy and its business model. We develop a formal model in order to analyze the contingent effects of product market strategy and business model choices on firm performance. We investigate a unique, manually collected dataset, and find that novelty‐centered business models—coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry—can enhance firm performance. Our data suggest that business model and product market strategy are complements, not substitutes. Copyright © 2007 John Wiley & Sons, Ltd.
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Several empirical studies indicate that how an innovation is brought to the market, and not only the innovation itself, decides about market success or failure.
“Several empirical studies indicate that it is how an innovation is brought to the market, and not only the innovation itself, that decides about market success or failure (e.g., Mitchell & Coles, 2003;Zott & Amit, 2008).”
From Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research (2020) · cites this paper as Zott & Amit, 2008
Product and market scope may affect a firm's competitive advantage and capability development.
“In line with Zott and Amit (2008), I controlled for the breadth of the firm's product offering and targeted market, as these are key dimensions of a firm's strategy that may affect its competitive advantage and capability development.”
From On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism (2014) · cites this paper as Zott and Amit, 2008
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- Authors
- Zott, C., & Amit, R.
- Affiliations
- INSEAD (FR)
- University of Pennsylvania (US)
- Corresponding author
- Zott, Christoph
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2007-08-22
- Volume
- 29
- Issue
- 1
- Pages
- 1-26
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2091683391
- Cited by
- 1,731
- References
- 4
- Citations by year
- 2026: 57 · 2025: 69 · 2024: 110 · 2023: 119 · 2022: 112 · 2021: 133 · 2020: 122 · 2019: 131 · 2018: 121 · 2017: 122 · 2016: 104 · 2015: 107 · 2014: 105 · 2013: 107 · 2012: 73
- FWCI
- 79.50
- Type
- journal article
- Language
- en
- Open access
- green
- repository.upenn.edu
- Licence
- public-domain
- onlinelibrary.wiley.com/termsAndConditions#vor (vor)
- Locations
- Strategic Management Journal (publishedVersion)
- ScholarlyCommons (University of Pennsylvania) (submittedVersion, public-domain)
- ScholarlyCommons (University of Pennsylvania) (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Keywords
- business models, product market strategy, strategic fit, firm performance, differentiation strategy, cost leadership, early market entry
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