The performance implications of the strategy–business model fit

Abstract

Purpose The purpose of this paper is to highlight different strategy-business model (BM) alignments using Miles and Snow's strategic framework and analyze the performance implications of these different alignments. Design/methodology/approach The paper develops a composite conceptual model combining Miles and Snow's strategy typology with Demil and Lecocq's BM framework to explore the performance implications of strategy-BM fit. This model is empirically examined using a sample of 156 French small- and medium-sized enterprises (SMEs) in the manufacturing sector. Findings The results first highlight a limited set of BM configurations across strategic profiles, confirming that a BM reflects a firm's strategy as a means of realizing strategic choices. Second, they reveal that deviating from ideal strategy-BM alignments negatively affects performance. Finally, they shed light on the dynamics of Miles and Snow's typology, from intended to implemented strategy. Originality/value Do you need a strategy if you have a BM? Adopting a fit and performance perspective, this paper addresses this question and complements other studies emphasizing the need to connect strategies and BMs.