Productivity growth and business model innovation
Accepted version
Peer-reviewed
Repository URI
Repository DOI
Change log
Authors
Wannakrairoj, Wit
Velu, Chander https://orcid.org/0000-0002-2316-4441
Abstract
Organizational factors have been identified as a possible explanation for total factor productivity and hence the Solow paradox. We posit that business model innovation is a major organizational factor. However, there has not been any systematic study on how business model innovation affects productivity growth rates. We introduce a novel approach of measuring business model innovation using change in the net asset turnover ratio. The study shows that business model innovation contributes significantly to productivity growth across firms in the UK between 2003 and 2017. The study provides empirical support that business model innovation could partially explain the Solow productivity paradox.
Description
Keywords
Business model innovation, Productivity paradox, Firm productivity and production function
Journal Title
ECONOMICS LETTERS
Conference Name
Journal ISSN
0165-1765
1873-7374
1873-7374
Volume Title
199
Publisher
Elsevier BV
Publisher DOI
Sponsorship
Engineering and Physical Sciences Research Council (EP/R024367/1)
EPSRC (via University of Nottingham) (EP/T024429/1)
EPSRC (via University of Nottingham) (EP/T024429/1)
Engineering and Physical Sciences Research Council (EPSRC - EP/R024367/1) and the Economic and Social Research Council - Productivity Institute (ES/V002740/1)