Business Model Imitation: Can it be predicted by Company Size and Technology Use?

In this project, we're trying to predict what companies are more likely to use a business model (BM) that is used by other companies (i.e., BM imitation). While we know it is important for a business to be innovative in their use of BM, and not use a BM that other companies use, we know little about what makes companies more likely to imitate.

104 Danish firms reported on their BM currently in use, the use of innovative technology, and the number of employees. We examined technology use and company size as potential factors influencing BM imitation. We find both of these to predict the likelihood of BM imitation.

The findings suggest that companies characterised by high tech use as well as bigger companies are more likely to have an imitative strategy regarding business models instead of an innovative one. This is surprising as high-tech firms often are regarded as highly innovative, but results indicate this is not the case regarding BM innovation. Hence our study furthers the current understanding but meanwhile calls for further research in understanding how, when, and why companies choose to imitate or innovate.