Influence of Business Model Innovation and Competitive Strategies on the Performance of Dutch High-Tech Startups

Abstract

This master's thesis examines the effects of business model innovation and competitive strategies on the success of high-tech startups in the Netherlands. Understanding how high-tech startups can improve their performance and compete successfully is of utmost relevance given the increasing importance of technology entrepreneurship and the emergence of high-tech startups. High-tech businesses frequently fail within the first 18 months despite their promise; thus, it is necessary to identify techniques that encourage their expansion and success. Considering its significance in Europe and its ability to promote international entrepreneurship, this study concentrates on the Dutch high-tech startup ecosystem. By examining the interaction between business models, competitive strategies, and startup performance, the study seeks to fill a gap in the body of existing literature. The central research question, "What is the influence of competitive strategies and business model innovation on the performance of high-tech start-ups in the Netherlands?" serves as the focus of this study.

The study employs a quantitative research approach to gather insights from high-tech businesses established between 2017 and 2020. Data is meticulously collected from high-tech startups in the Netherlands, utilizing a meticulously crafted survey questionnaire. This comprehensive analysis aims to unravel the intricate dynamics between business model innovation and competitive strategies, shedding light on pivotal performance variables such as number of employees and revenue, pivotal indicators of startup growth. Through rigorous statistical analysis performed on a sample of 49 high-tech startups, the study unveils a noteworthy positive correlation between the interaction of business model novelty and cost-leadership strategy with enhanced startup performance, particularly in terms of full-time employees. However, other direct and interactional relationships failed to yield significance concerning the performance variables. Consequently, the study delves into discerning the prevalent business models and preferred competitive strategies within the Dutch high-tech startup ecosystem. Further, despite the significant insights garnered, this research acknowledges certain limitations, including sample size constraints, sampling methodology, and primarily the questions in the survey questionnaire design, which may have influenced the outcomes of the research study.

The results of this study have ramifications for practitioners as well as scholars. By providing insights into the intricate interactions between business models, competitive strategies, and startup performance, it adds to the body of academic literature on strategic management and entrepreneurship. The research also provides important insights from high-tech startups on their decision-making to enhance their performance with developing market trends. The research helps business owners make informed decisions that promote growth, profitability, and market competitiveness by identifying effective combinations of business models and strategies. Delving into these dynamics, this research not only enriches the academic understanding of entrepreneurship but also provides valuable insights with practical implications. Through its rigorous analysis and findings, this thesis aims to equip high-tech startups with the knowledge and strategies needed to succeed in today's dynamic world. In conclusion, this master's thesis provides a thorough examination of the complex linkages between business model innovation, competitive strategies, and the performance outcomes of Dutch high-tech startups.