IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-02910-z.html
   My bibliography  Save this article

The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia

Author

Listed:
  • Liping Liu

    (Guangxi Normal University
    Education Department of Guangxi Zhuang Autonomous Region)

  • Lichuan Cui

    (Guangxi Normal University)

  • Qian Han

    (Guangxi Normal University)

  • Chunyu Zhang

    (Guangxi Normal University
    Education Department of Guangxi Zhuang Autonomous Region)

Abstract

This study aims to investigate the impact of digital capabilities on business model innovation, and emphasizes the pivotal mediating role of dynamic capabilities, comprising sensing, seizing, and reconfiguring resources, in translating digital strengths into innovative business models. And also uncovers a nuanced perspective on organizational inertia, showcasing its potential to positively moderate the relationship between digital capabilities and business model innovation. A questionnaire-based, time-lagged study with a 1-week interval. From January 2023 to March 2023, we collected a total of 262 questionnaires from entrepreneurs located in the Pearl River-West River Economic Belt, such as Guangzhou and Nanning, China. To analyse the moderation and mediation model, we utilized The PROCESS Model 5. Digital capabilities have a positive impact on the innovation of enterprises’ business models. Moreover, the connection between digital capabilities and business model innovation is mediated by dynamic capability. The findings also illustrate that organisational inertia moderates the relationship between digital capabilities and business model innovation. This study contributes to the existing literature on enterprise sustainable development by shedding light on the mediating and moderating mechanisms through which digital capabilities enhance business model innovation in enterprises. These findings offer valuable insights for enterprises aiming to thrive in dynamic markets, emphasizing the importance of a balanced approach to digital innovation, and instrumental for entrepreneurs seeking to refine their organisational strategies, particularly by bolstering their digital capabilities.

Suggested Citation

  • Liping Liu & Lichuan Cui & Qian Han & Chunyu Zhang, 2024. "The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02910-z
    DOI: 10.1057/s41599-024-02910-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-02910-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-02910-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erwin Danneels, 2008. "Organizational antecedents of second‐order competences," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 519-543, May.
    2. Hang T. T. Nguyen & Hanh Song Thi Pham & Susan Freeman, 2023. "Dynamic capabilities in tourism businesses: antecedents and outcomes," Review of Managerial Science, Springer, vol. 17(5), pages 1645-1680, July.
    3. Keiningham, Timothy & Aksoy, Lerzan & Bruce, Helen L. & Cadet, Fabienne & Clennell, Natasha & Hodgkinson, Ian R. & Kearney, Treasa, 2020. "Customer experience driven business model innovation," Journal of Business Research, Elsevier, vol. 116(C), pages 431-440.
    4. Burström, Thommie & Parida, Vinit & Lahti, Tom & Wincent, Joakim, 2021. "AI-enabled business-model innovation and transformation in industrial ecosystems: A framework, model and outline for further research," Journal of Business Research, Elsevier, vol. 127(C), pages 85-95.
    5. Teece, David J., 2020. "Hand in Glove: Open Innovation and the Dynamic Capabilities Framework," Strategic Management Review, now publishers, vol. 1(2), pages 233-253, June.
    6. Lina Liu & Bo Yu & Weiwei Wu, 2019. "The Formation and Effects of Exploitative Dynamic Capabilities and Explorative Dynamic Capabilities: An Empirical Study," Sustainability, MDPI, vol. 11(9), pages 1-21, May.
    7. Jie Zhen & Cejun Cao & Hanguang Qiu & Zongxiao Xie, 2021. "Impact of organizational inertia on organizational agility: the role of IT ambidexterity," Information Technology and Management, Springer, vol. 22(1), pages 53-65, March.
    8. Ekaterina Albats & Daria Podmetina & Wim Vanhaverbeke, 2023. "Open innovation in SMEs: A process view towards business model innovation," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(6), pages 2519-2560, November.
    9. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    10. Wei Jiang & Felix Mavondo & Weihong Zhao, 2020. "The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1239-1266, December.
    11. Ilse Hellemans & Amanda J. Porter & Damla Diriker, 2022. "Harnessing digitalization for sustainable development: Understanding how interactions on sustainability‐oriented digital platforms manage tensions and paradoxes," Business Strategy and the Environment, Wiley Blackwell, vol. 31(2), pages 668-683, February.
    12. Matthias Fabian Gregersen Trischler & Jason Li-Ying, 2023. "Digital business model innovation: toward construct clarity and future research directions," Review of Managerial Science, Springer, vol. 17(1), pages 3-32, January.
    13. Broekhuizen, T.L.J. & Emrich, O. & Gijsenberg, M.J. & Broekhuis, M. & Donkers, B. & Sloot, L.M., 2021. "Digital platform openness: Drivers, dimensions and outcomes," Journal of Business Research, Elsevier, vol. 122(C), pages 902-914.
    14. Magdalena Rusch & Josef‐Peter Schöggl & Rupert J. Baumgartner, 2023. "Application of digital technologies for sustainable product management in a circular economy: A review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1159-1174, March.
    15. Wannakrairoj, Wit & Velu, Chander, 2021. "Productivity growth and business model innovation," Economics Letters, Elsevier, vol. 199(C).
    16. Halpern, Nigel & Mwesiumo, Deodat & Suau-Sanchez, Pere & Budd, Thomas & Bråthen, Svein, 2021. "Ready for digital transformation? The effect of organisational readiness, innovation, airport size and ownership on digital change at airports," Journal of Air Transport Management, Elsevier, vol. 90(C).
    17. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    18. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    19. Bhatti, Sabeen Hussain & Santoro, Gabriele & Khan, Jabran & Rizzato, Fabio, 2021. "Antecedents and consequences of business model innovation in the IT industry," Journal of Business Research, Elsevier, vol. 123(C), pages 389-400.
    20. Matarazzo, Michela & Penco, Lara & Profumo, Giorgia & Quaglia, Roberto, 2021. "Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 123(C), pages 642-656.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiang, Guopeng & Peng, Mixiang & Tang, Fei & Liu, Yuan, 2024. "Unpacking the impact of entrepreneurial learning on business model innovation in internet startups: Mediating roles of digital capabilities," Technology in Society, Elsevier, vol. 77(C).
    2. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    3. Franzè, Claudia & Paolucci, Emilio & Pessot, Elena, 2024. "Sustained value creation driven by digital connectivity: A multiple case study in the mechanical components industry," Technovation, Elsevier, vol. 129(C).
    4. Wang, Xiangyang & Liu, Zhiyi & Li, Jiamin & Lei, Xuefei, 2023. "How organizational unlearning leverages digital process innovation to improve performance: The moderating effects of smart technologies and environmental turbulence," Technology in Society, Elsevier, vol. 75(C).
    5. Zhong, Xi & Ren, Ge, 2023. "Independent and joint effects of CSR and CSI on the effectiveness of digital transformation for transition economy firms," Journal of Business Research, Elsevier, vol. 156(C).
    6. Wang, Sai & Wen, Wen & Niu, Yuhao & Li, Xin, 2024. "Digital transformation and corporate labor investment efficiency," Emerging Markets Review, Elsevier, vol. 59(C).
    7. Vincenzo Scafarto & Tamanna Dalwai & Federica Ricci & Gaetano della Corte, 2023. "Digitalization and Firm Financial Performance in Healthcare: The Mediating Role of Intellectual Capital Efficiency," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    8. Zhou, Shuya & Zhou, Peiyan & Ji, Hannah, 2022. "Can digital transformation alleviate corporate tax stickiness: The mediation effect of tax avoidance," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    9. Markoff-Legrand, Anastasia & Bocquet, Rachel & Gandia, Romain, 2024. "Multi-level neo-institutional analysis of pressures and tensions for adopting a digitally driven business model innovation: Responses from a French energy incumbent," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    10. Christou, Prokopis & Hadjielias, Elias & Simillidou, Aspasia & Kvasova, Olga, 2023. "The use of intelligent automation as a form of digital transformation in tourism: Towards a hybrid experiential offering," Journal of Business Research, Elsevier, vol. 155(PB).
    11. Rizvi, Syed Kumail Abbas & Rahat, Birjees & Naqvi, Bushra & Umar, Muhammad, 2024. "Revolutionizing finance: The synergy of fintech, digital adoption, and innovation," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    12. Cong Cheng & Hongfang Cui, 2024. "Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    13. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    14. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    15. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    16. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    17. Piepponen, Amanda & Ritala, Paavo & Keränen, Joona & Maijanen, Päivi, 2022. "Digital transformation of the value proposition: A single case study in the media industry," Journal of Business Research, Elsevier, vol. 150(C), pages 311-325.
    18. Jingmei Gao & Zahid Sarwar, 2024. "How do firms create business value and dynamic capabilities by leveraging big data analytics management capability?," Information Technology and Management, Springer, vol. 25(3), pages 283-304, September.
    19. Liukai Wang & Caiting Wang & Larisa Yarovaya & Heshu Huang, 2024. "Trade credit and corporate digital transformation: The role of managerial ability," The Financial Review, Eastern Finance Association, vol. 59(3), pages 779-806, August.
    20. Jiang, Kangqi & Du, Xinyi & Chen, Zhongfei, 2022. "Firms' digitalization and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 82(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02910-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.