An Analysis of the Relationship Between Business Model of High-tech Firms and Porter's Generic Strategies using a survey approach

As a new management concept, business model has been highly emphasized by academics, practitioners and business analysts in last 2 decades. Academics use the term “business model” when they want to describe the rationale of value creation and value capture in an organization. Since perspectives in defining business model concept and function is highly diverse, many ambiguities has been arisen regarding the relation of business model and strategy. To shed light on this issue, the present article first investigated the business model literature and then reviewed the different views regarding business model and strategy relationship. In second stage, a research framework was developed to address business model elements arrangement fit to Porter`s generic strategies in a field study of high-tech firms. Also, Clustering Analysis was used to group firms based on their business models and strategies and then performance of firms was compared to investigate the fit between business model elements and each porter`s generic strategies. At last, results have revealed that the arrangement of business model in firms which follow cost leadership strategy was different from the arrangement of business model in firms that follow differentiation strategy.