Impact of knowledge brokering on performance heterogeneity among business models

Purpose: The strategic management literature lacks a comprehensive explanation as to why seemingly similar business models in the same industry perform differently. This paper strives to explain this phenomenon. Design/methodology/approach: The model is conceptualized and accompanied by a case study on the airline industry to explain knowledge brokerage that creates value from the effective utilization of knowledge resources acquired from intra‐ and inter‐firm environments. Findings: The model explains a cyclical view of business model flexibility in which the knowledge‐based resource accumulation of the business model is spread across the intra‐ and inter‐firm environments. Knowledge brokerage strategies from the inter‐ and intra‐firm environments result in improved performance of the business model. The flexibility that the business model acquires is determined by how efficiently resource accumulation is aligned with its external environment. Originality/value: The paper effectively integrates the concepts of knowledge brokerage and business models from a resource accumulation‐based view and simultaneously arrives at the performance heterogeneity of seemingly similar business models within the same industry. It has performance implications for firms that start out without any distinct resources of their own, or that use an imitated business model, to attain better performance through business model evolution aligned with successful knowledge brokerage strategies. It adds to the resource accumulation literature by explaining how resources can be effectively acquired to create value.