Value of Business Model Adaptivity for Growth and Performance of Firms in Emerging Industries

It is often stated that a business model should be characterized by a high
internal fit of its components and that a stronger fit results in higher firm performance and growth. However, for emerging industries, like the renewable energy industry, we also find arguments that point to negative aspects of too much internal fit. Thus, we argue for business model adaptivity which we assume to benefit firm performance and growth in emerging industries. We test our model on a sample of 804 firm-yearobservations for renewable energy companies and ask what impact an adaptive business model has on performance and growth. Initial findings point towards the advantage of a high fit in efficiency-driven business
models in young industries and towards a disadvantage of high fit in more established segments.