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How manufacturing firms navigate through stormy waters of digitalization: the role of dynamic capabilities, organizational factors and environmental turbulence for business model innovation

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  • Witschel, Daliborka
  • Baumann, Dominik
  • Voigt, Kai-Ingo

Abstract

Although research has shown that business model innovation (BMI) is an effective means to remain competitive in the digital age, many firms do not respond appropriately and often fail to exploit new digital opportunities. In this study, we adopt a microfoundational approach to understand the role and effects of dynamic capabilities (DCs) on BMI in the context of digitalization. Furthermore, we test how this relationship is influenced by contextual factors. Our results from a survey of German manufacturing firms demonstrate the importance of building strong DCs for effective BMI in the context of digitalization. We also highlight the advantages of an entrepreneurial leadership and mindset in this context. The study further suggests that environmental turbulence in the digital context acts as an antecedent to DCs and BMI, rather than moderating their relationship. While strategic factors indirectly affect BMI as antecedents of DCs, we found no evidence of an influence of the organizational structure.

Suggested Citation

  • Witschel, Daliborka & Baumann, Dominik & Voigt, Kai-Ingo, 2022. "How manufacturing firms navigate through stormy waters of digitalization: the role of dynamic capabilities, organizational factors and environmental turbulence for business model innovation," Journal of Management & Organization, Cambridge University Press, vol. 28(3), pages 681-714, May.
    • Handle: RePEc:cup:jomorg:v:28:y:2022:i:3:p:681-714_13
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    Cited by:

    1. 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).
    2. Tim Heubeck & Reinhard Meckl, 2023. "Microfoundations of innovation: A dynamic CEO capabilities perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3108-3126, September.
    3. Esther Calderon-Monge & Domingo Ribeiro-Soriano, 2024. "The role of digitalization in business and management: a systematic literature review," Review of Managerial Science, Springer, vol. 18(2), pages 449-491, February.
    4. Ulvi Rzazade & Sergey Deryabin & Igor Temkin & Egor Kondratev & Alexander Ivannikov, 2023. "On the Issue of the Creation and Functioning of Energy Efficiency Management Systems for Technological Processes of Mining Enterprises," Energies, MDPI, vol. 16(13), pages 1-21, June.
    5. Daliborka Witschel & Julian Marius Müller & Kai-Ingo Voigt, 2023. "What Takes the Wind out of Their Sails? A Micro-Foundational Perspective of Challenges for Building Dynamic Capabilities Towards Digital Business Model Innovation," Schmalenbach Journal of Business Research, Springer, vol. 75(3), pages 345-388, September.

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