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The breadth of business model reconfiguration and firm performance
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Desyllas, Panos, Salter, Ammon and Alexy, Oliver (2022) The breadth of business model reconfiguration and firm performance. Strategic Organization, 20 (2). pp. 231-269. doi:10.1177/1476127020955138 ISSN 1476-1270.
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Official URL: http://doi.org/10.1177/1476127020955138
Abstract
Looking at business models as systems of interdependent elements, we study how the breadth of an incumbent firm’s business model reconfiguration influences its performance. Drawing on the metaphor of firms searching on a performance landscape, we argue that the relationship between business model reconfiguration breadth and performance should form an inverted U-shape. While firms can gain from increasing business model reconfiguration breadth, these benefits need to be traded-off against the increasing complexity of its associated changes. We further predict that this inverted U-shape will flip for highly performing firms while being amplified for firms heavily active in innovation. Using data from an original survey of knowledge-intensive business services firms, we find that, on average, business model reconfiguration has little effect on performance. However, U-shaped effects clearly emerge when accounting for the effects of past performance and innovative activity. Our findings contribute to a better understanding of the conditional nature of the advantages stemming from business model reconfiguration.
| Item Type: | Journal Article | ||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||
| Library of Congress Subject Headings (LCSH): | Business enterprises , Business enterprises -- Growth, Business planning , Strategic planning | ||||||
| Journal or Publication Title: | Strategic Organization | ||||||
| Publisher: | Sage Publications Ltd | ||||||
| ISSN: | 1476-1270 | ||||||
| Official Date: | May 2022 | ||||||
| Dates: |
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| Volume: | 20 | ||||||
| Number: | 2 | ||||||
| Page Range: | pp. 231-269 | ||||||
| DOI: | 10.1177/1476127020955138 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||||
| Date of first compliant deposit: | 1 June 2023 | ||||||
| Date of first compliant Open Access: | 1 June 2023 | ||||||
| RIOXX Funder/Project Grant: |
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