Abstract

We study the impact on performance when incumbents operate multiple business models in a business model portfolio. Drawing upon data from the global airline industry we conduct QCA analysis and document conflicts as well as complementarities between distinct business models over time. Our results suggest that aligning monetization mechanisms across business models can actually mitigate classic stuck-in-the-middle dilemmas that occur when a firm operates a price leader and differentiated business model at the same time. In contrast to conventional views we also find that sharing resources across a firm’s business models does not unlock synergies per se but may actually lead to negative performance consequences. We match our findings to settings in other industries and discuss theoretical and managerial implications for business model innovation and diversification of business model portfolios

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