Performance Consequences of Fit between Financials and Strategy Descriptions in the Renewable Energy Industry: A contingent view on the business model consistency heuristic

Melanie K. Oschlies; Moritz Loock

doi:10.5771/0042-059X-2015-3-302

Contents
- Chapter Expand | CollapseAuthorsPage
- I–II Titelei/Inhaltsverzeichnis I–II
- 237–237 Editorial Wolfgang Stölzle Wolfgang Stölzle 237–237
- 238–350 Beiträge 238–350
  - 238–254 Idea Management in Switzerland and Germany: Past, Present and Future Norbert Thom Norbert Thom 238–254
  - 255–278 Herausforderungen des Innovationsmanagements in Netzwerken am Beispiel des Tourismus – von der Theorie zur Praxis Pietro Beritelli, Thomas Bieger Pietro Beritelli, Thomas Bieger 255–278
  - 279–301 Professional service firms and their strategic renewal: Evidence from Germany’s legal advisory industry Kai-Christian Muchow, Günter Müller-Stewens Kai-Christian Muchow, Günter Müller-Stewens 279–301
  - 302–321 Performance Consequences of Fit between Financials and Strategy Descriptions in the Renewable Energy Industry: A contingent view on the business model consistency heuristic Melanie K. Oschlies, Moritz Loock Melanie K. Oschlies, Moritz Loock 302–321
  - 322–350 Erfolgstreiber Innovationskennzahlen Carsten Schönefeld, Klaus Möller, Philipp Engelhardt Carsten Schönefeld, Klaus Möller, Philipp Engelhardt 322–350
- 351–354 Rezension 351–354
  - Sebastian Bodemer & Roger Disch: Corporate Treasury Management, Schäffer Poeschel Verlag, Stuttgart 2014, 382 Seiten, ISBN 978-3-7910-3344-0, EUR 59,95 Christian Schlick Christian Schlick
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Die Unternehmung , page 302 - 321

Performance Consequences of Fit between Financials and Strategy Descriptions in the Renewable Energy Industry: A contingent view on the business model consistency heuristic

Autoren

Melanie K. Oschlies Moritz Loock

DOI
- doi.org/10.5771/0042-059X-2015-3-302
- ISSN: 0042-059X
- ISSN online: 2942-318X
Abstract

A dimension that has received little attention in business model-performance assessments is consistency or “configuration as a quality”. Business model consistency in this regard indicates the degree of fit of different business model elements. Managers and researchers seem to follow a business model consistency heuristic that regards a high degree of consistency superior to lower degrees of consistency. However, when considering costs of consistency within emerging industries we also find arguments in favor of a low degree of consistency. This paper explores contingency factors that determine whether consistency is rational or not. Our proxy for measuring consistency is the fit between financials and business descriptions within multi-year observations of 210 wind and solar firms in the renewable energy industry. We find that contingency factors such as industry, business model-themes or pattern of firm growth can impact the consistency-performance relationship positively as well as negatively. Based on our findings, we propose to account for the distinct contingencies of business model consistency rather than uncritically considering business model consistency as being rational per se. Implications for managers, investors and researchers apply.
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