Pricing model, engagement model and firm performance: evidence from Indian data science industry

Purpose Data science industry is a multidisciplinary field that deals with a large amount of data and derives useful information for taking routine and strategic business decisions. The purpose of this article is to examine the relationship between pricing models, engagement models, and firm performance (FP). This study also aims at uncovering the most effective pricing model and engagement model for improving FP. Design/methodology/approach Indian data scientists were the respondents of the study. A total of 213 responses were carefully chosen. The data were analyzed using structural equations on Statistical Package for Social Sciences-Analysis of Moment Structures (SPSS-AMOS) version 25 software. Findings The findings of the study suggested the positive and significant impact of pricing models and engagement models on FP. Value-based pricing strategies have the maximum impact on FP. On the other hand, managed services have a higher influence on FP. Originality/value By developing a multi-faceted framework, this study is a novel contribution to the field of business strategy, especially for the data science industry.