Abstract

Despite the increasing interest in the role of business model design (BMD) in improving performance, its influence on operational performance remains unexplored, as do the underlying mechanisms of such effects. Drawing on dynamic capability theory, we propose that supply chain integration (SCI), including external integration and internal integration, mediates the relationship between BMD and operational performance. Matched survey data and objective performance data were collected from 131 Chinese manufacturing firms in three waves to test our research model. The key results are that external integration fully mediates the effect of novelty-centered BMD on operational performance, and efficiency-centered BMD directly improves operational performance. Theoretical and practical insights on how BMD and SCI can be leveraged to support operational performance are discussed.

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