On the applicability of the configurational approach to business model theory with fs/QCA

In this paper we aim at demonstrating that business model literature would benefit from the adoption of a configurational approach both for theoretical and empirical developments. While the business model literature is asking for a more robust, comprehensive approach able to capture the multi-dimensionality of the concept, almost no empirical study has tried to prove it empirically. In this paper we apply a configurational approach to business model configuration through the use of fuzzy set qualitative comparative analysis method (fs/QCA). The configurational logic of fs/QCA explains complementarity effects in business model components and gives insights on equifinal configurations and substitution effects. Drawing upon the business model literature, we distinguished between two main types of business model (i.e. the integrated business model and the layer player business model) and tested our model on a sample of 419 manufacturing firms in order to explain the elements of a business model causally associated with high performing configurations both in terms of growth and economic performance. Our results showed consistent configurations for performance and (partially) for growth. We discussed the core and peripheral elements of diverse business models and how elements interact via complementarity or substitution effects. Overall, our study offers a new lens for further advancing the business model literature, and empirical evidence to common theoretical recommendations.