IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v178y2022ics0040162522001238.html
   My bibliography  Save this article

How business model design drives innovation performance: The roles of product innovation capabilities and technological turbulence

Author

Listed:
  • Jin, Chenglin
  • Liu, Along
  • Liu, Hefu
  • Gu, Jibao
  • Shao, Meng

Abstract

While prior studies indicate that business model design (BMD) can affect innovation performance, empirical evidence on how and when BMD drives innovation performance is still limited. By integrating dynamic capability theory into business model research, we empirically investigate the influence of BMD on innovation performance. Based on the matched survey data and the objective performance data of 282 Chinese high-tech firms, we employed bootstrap tests to estimate the mediating effects of product innovation capability (PIC) and used hierarchical regression analysis to estimate the moderating effects of technological turbulence. The results show that novelty-centered BMD positively relates to innovation performance and that this link is partially mediated by radical PIC and incremental PIC. In contrast, efficiency-centered BMD cannot directly impact innovation performance, but can indirectly affect it through incremental PIC. We further find that the indirect effect of novelty-centered BMD on innovation performance via incremental PIC is stronger than that of efficiency-centered BMD. In addition, technological turbulence strengthens the positive effect of novelty-centered BMD on PIC while weakening the positive impact of efficiency-centered BMD on PIC. Our study thus provides high-tech firm managers with an in-depth understanding of how and when BMD drives innovation performance.

Suggested Citation

  • Jin, Chenglin & Liu, Along & Liu, Hefu & Gu, Jibao & Shao, Meng, 2022. "How business model design drives innovation performance: The roles of product innovation capabilities and technological turbulence," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    • Handle: RePEc:eee:tefoso:v:178:y:2022:i:c:s0040162522001238
    DOI: 10.1016/j.techfore.2022.121591
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162522001238
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2022.121591?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. Fiona M. Schweitzer & Oliver Gassmann & Kurt Gaubinger, 2011. "Open Innovation And Its Effectiveness To Embrace Turbulent Environments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1191-1207.
    2. Snihur, Yuliya & Lamine, Wadid & Wright, Mike, 2021. "Educating engineers to develop new business models: Exploiting entrepreneurial opportunities in technology-based firms," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    3. Wei Jiang & Aric Xu Wang & Kevin Zheng Zhou & Chuang Zhang, 2020. "Stakeholder Relationship Capability and Firm Innovation: A Contingent Analysis," Journal of Business Ethics, Springer, vol. 167(1), pages 111-125, November.
    4. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
    5. Wu, Liang & Liu, Heng & Zhang, Jianqi, 2017. "Bricolage effects on new-product development speed and creativity: The moderating role of technological turbulence," Journal of Business Research, Elsevier, vol. 70(C), pages 127-135.
    6. Bacon, Emily & Williams, Michael D. & Davies, Gareth, 2020. "Coopetition in innovation ecosystems: A comparative analysis of knowledge transfer configurations," Journal of Business Research, Elsevier, vol. 115(C), pages 307-316.
    7. Hu, Baoliang, 2014. "Linking business models with technological innovation performance through organizational learning," European Management Journal, Elsevier, vol. 32(4), pages 587-595.
    8. C. Fritz Foley & William R. Kerr, 2013. "Ethnic Innovation and U.S. Multinational Firm Activity," Management Science, INFORMS, vol. 59(7), pages 1529-1544, July.
    9. Erwin Danneels & Rajesh Sethi, 2011. "New Product Exploration Under Environmental Turbulence," Organization Science, INFORMS, vol. 22(4), pages 1026-1039, August.
    10. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    11. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    12. Amit Karna & Ansgar Richter & Eberhard Riesenkampff, 2016. "Revisiting the role of the environment in the capabilities–financial performance relationship: A meta-analysis," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1154-1173, June.
    13. Alexander Davidson & Marcelo Vinhal Nepomuceno & Michel Laroche, 2019. "Shame on You: When Materialism Leads to Purchase Intentions Toward Counterfeit Products," Journal of Business Ethics, Springer, vol. 155(2), pages 479-494, March.
    14. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    15. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    16. Brettel, Malte & Strese, Steffen & Flatten, Tessa C., 2012. "Improving the performance of business models with relationship marketing efforts – An entrepreneurial perspective," European Management Journal, Elsevier, vol. 30(2), pages 85-98.
    17. Yun, JinHyo Joseph & Won, DongKyu & Jeong, EuiSeob & Park, KyungBae & Yang, JeongHo & Park, JiYoung, 2016. "The relationship between technology, business model, and market in autonomous car and intelligent robot industries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 142-155.
    18. Patrick Spieth & Dirk Schneckenberg & Kurt Matzler, 2016. "Exploring the linkage between business model (&) innovation and the strategy of the firm," Post-Print hal-02007883, HAL.
    19. Michael Song & Cornelia Droge & Sangphet Hanvanich & Roger Calantone, 2005. "Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 259-276, March.
    20. D. Daniel Keum, 2021. "Innovation, short‐termism, and the cost of strong corporate governance," Strategic Management Journal, Wiley Blackwell, vol. 42(1), pages 3-29, January.
    21. Mohan Subramaniam & N. Venkatraman, 2001. "Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 359-378, April.
    22. Alexander Davidson & Marcelo Vinhal Nepomuceno & Michel Laroche, 2019. "Erratum to: Shame on You: When Materialism Leads to Purchase Intentions Toward Counterfeit Products," Journal of Business Ethics, Springer, vol. 155(4), pages 1215-1215, April.
    23. Varadarajan, Rajan, 2009. "Fortune at the bottom of the innovation pyramid: The strategic logic of incremental innovations," Business Horizons, Elsevier, vol. 52(1), pages 21-29.
    24. Souto, Jaime E., 2015. "Business model innovation and business concept innovation as the context of incremental innovation and radical innovation," Tourism Management, Elsevier, vol. 51(C), pages 142-155.
    25. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    26. Tanya Menon & Jeffrey Pfeffer, 2003. "Valuing Internal vs. External Knowledge: Explaining the Preference for Outsiders," Management Science, INFORMS, vol. 49(4), pages 497-513, April.
    27. Wang, Chun-Hsien & Chang, Ching-Hsing & Shen, George C., 2015. "The effect of inbound open innovation on firm performance: Evidence from high-tech industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 222-230.
    28. Mark Loon & Roy Chik, 2019. "Efficiency-centered, innovation-enabling business models of high tech SMEs: Evidence from Hong Kong," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 87-111, March.
    29. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    30. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    31. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    32. Molden, Lars Hovdan & Clausen, Tommy Hoyvarde, 2021. "Playing 3D chess, or how firms can thrive under complexity: The mediating role of innovation capabilities in the use of innovation input," Journal of Business Research, Elsevier, vol. 125(C), pages 1-13.
    33. Myong-Hun Chang & Joseph E. Harrington, Jr, 2003. "Multimarket Competition, Consumer Search, and the Organizational Structure of Multiunit Firms," Management Science, INFORMS, vol. 49(4), pages 541-552, April.
    34. Sean M. Handley & Corey M. Angst, 2015. "The impact of culture on the relationship between governance and opportunism in outsourcing relationships," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1412-1434, September.
    35. Balboni, Bernardo & Bortoluzzi, Guido & Pugliese, Roberto & Tracogna, Andrea, 2019. "Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups," Journal of Business Research, Elsevier, vol. 99(C), pages 115-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Li, Lixu & Zhu, Wenwen & Wei, Long & Yang, Shuili, 2022. "How can digital collaboration capability boost service innovation? Evidence from the information technology industry," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    3. Bernardo Gala-Velásquez & Américo Hurtado-Palomino & Angela Y. Arredondo-Salas, 2023. "Organisational Flexibility and Innovation Performance: The Moderating Role of Management Support," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 219-234, June.
    4. Lo, Fang-Yi & Nguyen, Thi Hong Anh, 2023. "Cross-cultural adjustment and training on international expatriates' performance," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Venâncio, Ana & Picoto, Winnie & Pinto, Inês, 2023. "Time-to-unicorn and digital entrepreneurial ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    6. Danlei Feng & Mingzhao Hu & Lingdi Zhao & Sha Liu, 2022. "The Impact of Firm Heterogeneity and External Factor Change on Innovation: Evidence from the Vehicle Industry Sector," Sustainability, MDPI, vol. 14(11), pages 1-15, May.

    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. Randhawa, Krithika & Wilden, Ralf & Gudergan, Siegfried, 2021. "How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation," Journal of Business Research, Elsevier, vol. 130(C), pages 618-634.
    2. Latifi, Mohammad-Ali & Nikou, Shahrokh & Bouwman, Harry, 2021. "Business model innovation and firm performance: Exploring causal mechanisms in SMEs," Technovation, Elsevier, vol. 107(C).
    3. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    4. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..
    5. Zhang, Hongfang & Xiao, Huilin & Wang, Yanling & Shareef, Mahmud A. & Akram, Muhammad Shakaib & Goraya, M. Awais Shakir, 2021. "An integration of antecedents and outcomes of business model innovation: A meta-analytic review," Journal of Business Research, Elsevier, vol. 131(C), pages 803-814.
    6. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    7. Jianmin Song & Senmao Xia & Demetris Vrontis & Arun Sukumar & Bing Liao & Qi Li & Kun Tian & Nengzhi Yao, 2022. "The Source of SMEs’ Competitive Performance in COVID-19: Matching Big Data Analytics Capability to Business Models," Information Systems Frontiers, Springer, vol. 24(4), pages 1167-1187, August.
    8. Candi, Marina & Kitagawa, Fumi, 2022. "Performance implications of business model centrality over technology-based firms’ life courses," Technovation, Elsevier, vol. 118(C).
    9. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    10. Mark Loon & Roy Chik, 2019. "Efficiency-centered, innovation-enabling business models of high tech SMEs: Evidence from Hong Kong," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 87-111, March.
    11. Elena Freisinger & Sven Heidenreich & Christian Landau & Patrick Spieth, 2021. "Business Model Innovation Through the Lens of Time: An Empirical Study of Performance Implications Across Venture Life Cycles," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 339-380, December.
    12. Bouwman, Harry & de Reuver, Mark & Nikou, Shahrokh, 2017. "The impact of Digitalization on Business Models: How IT Artefacts, Social Media, and Big Data Force Firms to Innovate Their Business Model," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168475, International Telecommunications Society (ITS).
    13. Baoliang Hu & Wei Huang & Shuai Yan & Guang Liu & Tao Zhang, 2020. "Business Model Design and Customer Loyalty: The Mediating Role of Customer Citizenship Behavior," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    14. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    15. Shuting Chen & Dengke Yu, 2024. "What Drives Business Model Innovation? Exploring the Role of Knowledge Management Capability in Chinese Top-Ranking Innovative Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6390-6424, June.
    16. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    17. Marlena Ciechan-Kujawa & Michal Buszko, 2020. "The Susceptibility of the Business Model to Changes - Empirical Analysis of Internal Determinants of Variability," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 739-757.
    18. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    19. Qaiyum, Sameer & Wang, Catherine L., 2018. "Understanding internal conditions driving ordinary and dynamic capabilities in Indian high-tech firms," Journal of Business Research, Elsevier, vol. 90(C), pages 206-214.
    20. Cristina Fernandes & João J. Ferreira & Mário L. Raposo & Cristina Estevão & Marta Peris-Ortiz & Carlos Rueda-Armengot, 2017. "The dynamic capabilities perspective of strategic management: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 529-555, July.

    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:eee:tefoso:v:178:y:2022:i:c:s0040162522001238. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.