paper 3

Question 1

what kind of advances have accentuated the possibilities for the design of new boundary-spanning organizational forms?

Answer 1

advances in communication and information technologies, such as the emergence and the swift expansion of the internet, and the rapid decline in computing and communication costs

Question 2

boundary spanning =

Answer 2

term for developing external relationships in order to accomplish your business objectives.

Question 3

according to the article ‘business model design and the performance of entrepreneurial firms’, what does a business model elucidate?

Answer 3

how an organization is linked to external stakeholders and how it engages in economic exchanges with them to create value for all exchange partners

Question 4

according to the article, what is one of the central design tasks of entrepreneurs?

Answer 4

to describe the ways in which their new businesses transact with suppliers, customers, and partners

Question 5

efficiency-centered business model design refers to:

Answer 5

the measures that firms may take to achieve transaction efficiency through their business models. aims at reducing transaction costs for all transaction participants

Question 6

novelty-centered business model design refers to:

Answer 6

the conceptualization and adoption of new ways of conducting economic exchanges amongst various participants

Question 7

the association between novelty centered business model design and firm performance = + or -

Answer 7

positive (quite stable, even under varying environmental regimes)

Question 8

entrepreneurs’ attempts to design both efficiency- and novelty centered business models may be ….

Answer 8

counterproductive (having the opposite of the desired effect)

Question 9

what are the design elements of a business model?

Answer 9

content, structure, and governance of transactions

Question 10

what are common design themes that connect the elements of a business model ?

Answer 10

innovation and efficiency

Question 11

the design of an entrepreneurial firm’s business model, which is centered specifically on the themes of novelty and/or efficiency, is associated with the firm’s performance.
This association can be broken down into two effects:

Answer 11

1. one relies on the total value creation potential of the business model design
2. the other considers the impact of business model design on the firm’s ability to appropriate the value that its business model creates

Question 12

what are two ways in which business models can create value?

Answer 12

• enhancing customers’ willingness to pay

- decreasing suppliers’ and partners’ opportunity cost

Question 13

what are ways to achieve a novelty centered business model design? name 3

Answer 13

• connecting previously unconnected parties
• linking transaction participants in a new way
• designing new transaction mechanisms

Question 14

the ability to appropriate the value that a company’s business model generates depends on factors like:

Answer 14

• switching costs of other business model stakeholders
• the focal firm’s ability to control information
• the ability of other stakeholders to take unified action vis-a-vis the focal firm
• the replacement costs of other stakeholders

Question 15

the more novelty centered an entrepreneurial firm is, …(higher or lower)… the firm’s performance.
sustain your answer with the reason
(hypothesis 1)

Answer 15

higher, because they are able to take advantage of the greater willingness to pay of customers, and they will not suffer a decrease in their aggregate bargaining power with regards to other business model stakeholders

Question 16

what are ways to achieve efficiency centered design?

Answer 16

• reduction of uncertainty and/or complexity
• reduce transaction cost
• speed up transactions
• reduction of asymmetric information
• reduction of coordination cost and transaction risk

Question 17

the more efficiency centered an entrepreneurial firm is, …(higher or lower)… the firm’s performance.
sustain your answer with the reason
(hypothesis 3)

Answer 17

higher, as it enables :

• better information flow
• increased bargaining power
• reduction of direct costs which increases the pool of potential customers, partners, suppliers.

Question 18

why might it be a bad idea to adopt both novelty and efficiency centered design?
(hypotheses 5&6)

Answer 18

firm gets stuck between innovation and imitation, which causes firm to miss out on opportunities to become a more skillful innovator or imitator
! however it is possible for novelty and efficiency to be complementary !

Question 19

what was found from the research about how munificence moderates relationship between business mdoel design and focal firm performance?

Answer 19

it does not moderate the positive nor the negative relationship

Question 20

mariken =

Answer 20

niet goed aan het studeren