Why Business Model Replication Fails: Evidence from Greenhouse-Based Agritourism

Abstract

Business model replication is widely recognized as an effective strategy for accelerating business growth. However, organizations adopting similar business models often achieve markedly different performance outcomes. This study aims to explain why business model replication fails to produce comparable competitive performance by examining the strategic role of the destination ecosystem in greenhouse-based agritourism. A comparative qualitative case study was conducted at two greenhouse-based fruit-picking destinations in East Java, Indonesia. Although both businesses adopted similar business concepts, cultivation practices, and managerial approaches under the guidance of the same mentor, they demonstrated substantially different business performance.

Data were collected through field observations, semi-structured interviews, and document analysis and were analyzed using the interactive model of Miles, Huberman, and Saldaña, complemented by cross-case comparison. The findings reveal that business model replication alone is insufficient to achieve competitive success. Instead, differences in business performance are primarily explained by the destination ecosystem in which the businesses operate. Agritourism integrated with complementary attractions benefits from visitor spillover, broader tourism experiences, higher purchasing opportunities, and repeat visitation, whereas standalone agritourism relies almost entirely on intentionally planned visits.

These findings suggest that the destination ecosystem functions as a strategic context that determines how organizational capabilities are translated into competitive performance. This study contributes to strategic management by demonstrating that competitive advantage depends not only on internal business capabilities but also on the strategic embeddedness of firms within interconnected tourism ecosystems.