Does model consistency in business model innovation matter? A contingency‐based approach

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.