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.

Research limitations/implications

The intrinsic characteristics of surveyed SMEs led to the hybridization of empirically derived profiles, which allowed to partially associate them with theoretically predicted configurations of BMs.

Practical implications

The paper suggests the patterns of predictive strategy–BM alignment that allow managers and entrepreneurs to monitor the dynamic consistency between strategic choices and their implementation.

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.

Citation

Chereau, P. and Meschi, P.-X. (2019), "The performance implications of the strategy–business model fit", Journal of Small Business and Enterprise Development, Vol. 26 No. 3, pp. 441-463. https://doi.org/10.1108/JSBED-04-2018-0122