University of Hertfordshire

From the same journal

A new business model? The capital market and the new economy

Research output: Contribution to journalArticle

  • H. Feng
  • J. Froud
  • S. Johal
  • C. Haslam
  • K. Williams
View graph of relations
Original languageEnglish
Pages (from-to)467-503
JournalEconomy and Society
Journal publication date2001
Publication statusPublished - 2001


This paper uses the concepts of business model and financial ecosystem to analyse the relation between the US capital market and corporate business. Under a capital market double standard, from 1995 to 2000, new companies with digital prospects could recover their costs from the capital market; but, after the tech stock crash in 2000, all companies were required to generate profits from the product market. This encourages a blurring of old and new firm identities, because sectoral power is increasingly necessary to secure cost recovery. But this does not imply any return to business as usual when the financial ecosystem for new technology survives the crash and large-scale venture capital investment continues. From this point of view,the new economy illustrated, concretely, the determining role of finance in the broader processes of financialization.


Original article can be found at : Copyright Informa / Taylor and Francis Group [Full text of this article is not available in the UHRA]

ID: 81630