Does Model Consistency in Business Model Innovation Matter? A Contingency‐Based Approach

12 Pages Posted: 7 May 2018

See all articles by Pascal Kranich

Pascal Kranich

EBS Universität für Wirtschaft und Recht

Andreas Wald

University of Agder - School of Business and Law

Date Written: June 2018

Abstract

Successful business model innovation requires managers to come up not only with new, but also with viable business models. To this end, it has been argued that business model consistency plays a vital role, as the internal fit of business model elements can generate reinforcing effects, thereby influencing performance and competitive advantage. Little research has been conducted to measure consistency and confirm these effects, especially within business model innovation. We tackle this issue by developing and testing a measurement of business model consistency, and investigate its relationship with business model innovation and its performance. We find evidence supporting the positive effect of consistency on innovation performance. We contribute to extant research by developing a concept and measurement for business model consistency based on contingency theory and empirically verifying it. Our findings underline that managers should pay close attention to the consistency of their business model designs during business model innovation.

Suggested Citation

Kranich, Pascal and Wald, Andreas, Does Model Consistency in Business Model Innovation Matter? A Contingency‐Based Approach (June 2018). Creativity and Innovation Management, Vol. 27, Issue 2, pp. 209-220, 2018. Available at SSRN: https://ssrn.com/abstract=3173895 or http://dx.doi.org/10.1111/caim.12247

Pascal Kranich (Contact Author)

EBS Universität für Wirtschaft und Recht

Gustav-Stresemann-Ring 3
Wiesbaden, 65189
Germany

Andreas Wald

University of Agder - School of Business and Law ( email )

Serviceboks 422
Kristiansand, N-4604
Norway

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