When an incumbent firm introduces a new business model (BM), the redeployment of resources from the old BM is crucial for the firm's operational efficiency. While previous studies have largely focused on the bright side of resource redeployment (RR) on firm performance, this study focuses on its dark side effect, namely, the business model conflict (BMC). Using data of 133 traditional Chinese retail companies that have introduced an online retail BM, we find that RR increases the BMC and decreases the firm performance. In other words, BMC mediates the relationship between RR and incumbent performance. We also highlight the significant contingent effect of the new business model age (NBMA) and the autonomous business unit (ABU) for the new BM. These findings have concrete implications for both researchers and practitioners.
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