Business model and product market strategy in Australian biotechnology entrepreneurial firms: exploratory study

Abstract

The business model (BM) concept is a relatively new subject of academic research, though the term has been used extensively by practitioners. Even with the rapid growth of publications in this area, there remains a vague boundary around the topic and no universally accepted classification. Large scale empirical research on the relative effectiveness of different models is at the infancy stage. This study follows the integrative theoretical approach suggested by Amit and Zott [1] and the empirical approach adopted in Zott and Amit [2] and Malone et al [3]. We replicate [2] and extend it to Australian biotechnology IPOs in 1999-2004, testing the fit between BM design and product market strategies, and their effect on business performance. Early results suggest that the efficiency design theme is appropriate, but that complementary theory is required for a better fit with the industry’s characteristics