Linking the top management team transactive memory system, strategic flexibility and digital business model innovation: a dynamic capabilities perspective

Abstract

ABSTRACT This study applies the dynamic capabilities perspective to explore how the top management team transactive memory system affects digital business model innovation through strategic flexibility. It proposes hypotheses regarding the relationships between the top management team transactive memory system, strategic flexibility, and digital business model innovation. Furthermore, it tests these hypotheses using the Structural Equation Model and the Bootstrapping method for the data collected from 205 Chinese firms. The results show that the top management team transactive memory system has a significant positive impact on strategic flexibility and digital business model innovation; the top management team transactive memory system can influence digital business model innovation through strategic flexibility. These findings provide a new dynamic capabilities framework for digital business model innovation from the perspective of top management team cognition and contribute to the literature on digital business model innovation from a dynamic capabilities perspective. They also provide insight into how firms can build dynamic capabilities to promote digital business model innovation.