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The Power of Sustainability in the “Black Swan” Event: Entrepreneurial Cognition of Top Management Team and Dual Business Model Innovation

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  • Yuan Ni

    (School of Economics and Management, Beijing Information Science and Technology University, Beijing 100192, China)

  • Jia Wang

    (School of Economics and Management, Beijing Information Science and Technology University, Beijing 100192, China)

  • Cui Li

    (School of Economics and Management, The Institute of Disaster Prevention, Sanhe 065201, China)

Abstract

In the dynamic environment where “Black Swan” events occur frequently, the dual business model innovation (DBMI) which has both proactive and reactive characteristics is the core force for the enterprises to turn crises into opportunities and achieve their survival and sustainability. However, prevailing views do not clearly explain how to drive dual business model innovation. Based on the upper echelon theory, this study developed a multiple mediation model, which links entrepreneurial cognition of the top management team (TMT), knowledge search with dual business model innovation. By taking the data of 217 TMTs, the hypotheses are verified. The results show that TMT’s configuration cognition, willing cognition, and ability cognition all have a positive effect on both proactive and reactive business model innovation. Knowledge search acts as a “bridge” between TMT’s entrepreneurial cognition and DBMI. Greater entrepreneurial cognition can guide exploratory and exploitative knowledge searches and promote the DBMI. The results also show the mediating effect between different entrepreneurial cognition and DBMI is not completely consistent, and a partial mediation effect exists associating configuration cognition with DBMI, but a full mediation effect is present between other cognitions and DBMI. These results provide more understanding to the formation of dual business model innovation under the impact of COVID-19.

Suggested Citation

  • Yuan Ni & Jia Wang & Cui Li, 2022. "The Power of Sustainability in the “Black Swan” Event: Entrepreneurial Cognition of Top Management Team and Dual Business Model Innovation," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3530-:d:773251
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    2. Dhir, Amandeep & Khan, Sher Jahan & Islam, Nazrul & Ractham, Peter & Meenakshi, N., 2023. "Drivers of sustainable business model innovations. An upper echelon theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Chen, Su & Shen, Wenbin & Qiu, Zhiqiang & Liu, Rongzhi & Mardani, Abbas, 2023. "Who are the green entrepreneurs in China? The relationship between entrepreneurs’ characteristics, green entrepreneurship orientation, and corporate financial performance," Journal of Business Research, Elsevier, vol. 165(C).

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