The Moderating Effect Of Environment Munificence And Absorptive Capacity On The Relationship Between Business Model Design And New Venture Performance

The progress of information and communication technology has given rise to a large number of excellent new venture. Based on their own special business model design, these new ventures could effectively turn technology into commercial output, and quickly become the industry’s rising star, which has injected new vitality to the development of China’s economy. Not only have the new ventures’ business model designs been active in the market, but also caused the extensive concern of scholars. However, most scholars use the conceptual model and method of case study to discuss the relationship between business model and firm performance, with limited quantitative research.Given this situation, this paper would combine theoretical study and empirical research method to explore the effect mechanism of business model design on new venture performance. At the same time, this paper argues that firm performance is a function of the resources and capacity. Environment munificence and absorptive ability are important contextual actors affecting the relationship between business model design and new venture performance. Thus, in this paper, we introduce environment munificence and absorptive capacity as moderating variables, and explore their moderating effect on the relationship between business model design and new venture performance.Based on the literature review, we put forward research hypothesis, collect data in forms of questionnaire survey, and draw the following conclusions by statistical analysis:(1) novelty-centered business model design has significantly positive impact on new venture performance, while the effect of efficiency-centered business model design on new venture performance is not significant;(2) environment munificence positively moderates the relationship between novelty-centered business model design and new venture performance, while negatively moderates the relationship between efficiency-centered business model design and new venture performance;(3) absorptive capacity positively moderates the relationship between novelty-centered business model design and new venture performance, while doesn’t moderates the relationship between efficiency-centered business model design and new venture performance significantly.