Dual Business Models: Going beyond Spatial Separation

Despite substantial literature on managing two conflicting business models within one company, little has been done regarding qualitative studies investigating the organizational context and the installed integration and separation mechanisms between these two. Based on organizational context factors and business model elements, using the organizational ambidexterity as theoretical lens, this research paper presents a longitudinal case study conducted at a magazine publisher that intends to advance the comprehension of the interplay between traditional and online business models. Our analysis suggests that integration and separation mechanisms occur along all elements of a business model. The organizational context factors moderate the integration and separation mechanisms between the traditional and the online business model and uncover details regarding the conflict inherent in those dual business models.