Common and Differential Effects of Organizational Learning on Business Model Innovation

Abstract

Organizational learning is an essential driven factor for firms to conduct business model innovation. However, the specific role of different learning strategies in affecting distinct types of business model innovation are still, unfortunately, unclear. Utilizing the analytical lens of organizational learning theory, we explore the common and differential effects of two learning strategies on novelty-centered vs. efficiency-centered business model innovation. Our empirical study of 303 firms of China revealed that both exploratory learning and exploitative learning are positively associated with novelty-centered and efficiency-centered business model innovation. Interestingly, compared with exploitative learning, exploratory learning has a stronger impact on novelty-centered business model innovation, however, has a weaker impact on efficiency-centered business model innovation. These findings contribute to our understanding of the role of organizational learning in influence business model innovation that is distinct with other innovation types, and inform managers to optimize their learning strategies to drive business model innovation.