Business models and dynamic capabilities

TLDR

Business models, dynamic capabilities, and strategy are interdependent, with dynamic capabilities shaping business model design and vice versa, yet empirical evidence is needed to detail these theoretical relationships. The study aims to deepen understanding of business model innovation, implementation, and change to illuminate dynamic capabilities.

Abstract

Business models, dynamic capabilities, and strategy are interdependent. The strength of a firm's dynamic capabilities help shape its proficiency at business model design. Through its effect on organization design, a business model influences the firm's dynamic capabilities and places bounds on the feasibility of particular strategies. While these relationships are understood at a theoretical level, there is a need for future empirical work to flesh out the details. In particular, studies that provide a better understanding of business model innovation, implementation, and change will also shed light on important aspects of dynamic capabilities.