Do Business Models Matter? Performance Differences of Online Sales Activity Systems

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