An economic model provides a consistent logic for earning profits within a venture. In this research, a four-component framework is developed and tested for capturing the entrepreneur's economic model. The proposed framework argues for integrating these four elements in a logical and consistent manner. Certain combinations of these elements can lead to highly successful ventures while others should result in more marginal firms. To test the framework, a cross-sectional survey of independent retail establishments was undertaken. Using cluster analysis techniques, five dominant economic models were identified among these ventures. Evidence of performance differences, depending on the type of model, was produced. Theoretical and managerial implications are drawn.
|Peer-reviewed scientific journal||Journal of Small Business and Entrepreneurship|
|Number of pages||25|
|Publication status||Published - 01.07.2009|
|MoE publication type||A1 Journal article - refereed|
- 512 Business and Management