Do Business Models Matter? Performance Differences of Online Sales Activity Systems in the European Online Retail Industry

Abstract

We investigate business model types and their performance implications in the European online retail industry. Taking an activity system perspective and analyzing more than 400 online retailers using cluster analysis, we find four business models, which we refer to as the “independent active focused”, “medium active broad”, “synergistic active focused”, and “passive focused” online retail business model. They differ with respect to the content, structure, and governance of the firms’ online sales activity systems. Furthermore, three of the four business model types vary in performance. Our results contribute to the discussion whether the business model construct represents a relevant construct.