Dyadic business model convergence or divergence in alliances? – A configurational approach

• Business model changes call for a neoconfigurational evolutionary perspective. • Technological proximity leads to converging and diverging business models. • Business models between competitors converge through complementarities. • Equity participation enables business model divergence through co-specialization. In this study, we contribute to the scholarly conversation on firm-level business model changes following a neoconfigurational approach. By exploring configurations of business model changes over time, we add the direction of business model changes—namely business model convergence or divergence—as a vital avenue to the business model innovation literature. We identify necessary business model convergence and divergence recipes in a sample of N = 217 strategic dyadic alliances. Firstly, technological proximity emerges as a single pre-condition to both converging and diverging business models. Secondly, business models between competitors either converge through complementarities or tend not to change relative to each other. Thirdly, equity participation enables business model divergence through co-specialization. We conclude with a discussion of business model trajectories and future research directions.