A Qualitative Comparative Analysis of Business Model Configurations and Performance in Formula 1

The relationship between business models and firm performance is only partially understood, especially when firms use multiple business models simultaneously (i.e., adopt configurations of business models). In this paper, we investigate the relationship between business model configurations and firm performance in a technology-based environment by conducting a multiple case study and a qualitative comparative analysis on Formula 1 (2005-2013). We find that configurations that combine two types of business models—one focused on selling technology to competitors and the other one focused on developing and trading human capital—are associated with higher firm performance. In addition, we explore the mechanisms that underlie these associations, and we find that these two business models are linked by knowledge-based complementarity such that implementing one business model increases the knowledge generated by adopting the other business model in isolation, and vice versa. We discuss the implications of the findings for theory and practice in technology-based industries such as the automotive industry