Openness influences business model innovation: the mediating role of digital capability

Abstract

PurposeExploring open value, cultivating digital capability (DC) and driving business model innovation (BMI) have become an inevitable choice for enterprises to meet market demand and adapt to environmental changes. However, as one of the situational variables of BMI, the positive or negative influence of openness has not been proved and the path mechanism between DC and BMI is not clear. Based on the dynamic capability theory, this paper takes manufacturing enterprises as an example to explore the internal impact mechanisms of organizational openness on BMI. It extends the analysis by introducing DC as a mediating variable and introducing manufacturing enterprise type (high-tech and non-high-tech) as a moderating variable.Design/methodology/approachA questionnaire survey was conducted using data collected in China, data from 355 manufacturing enterprises were collected to carry out empirical research. Participants were mainly middle and senior managers with a comprehensive grasp of their firms’ information. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to test the reliability and validity of the sample data, and negative binomial regression analysis was used to test hypothesis relationships.FindingsThe authors find an inverted U-shaped relationship between openness and BMI, and explain that excessive openness may lead to low resource utilization, organizational inertia, cooperation distrust, which will have a negative impact on BMI. DC includes digital resource capability (DRC), digital management capability (DMC) and digital collaboration capability (DCC), which promote BMI and play a mediating role between openness and BMI. Enterprise type has a moderating effect on the relationship between DC and BMI.Research limitations/implicationsThe results of this paper summarize the opportunities and threats of open innovation, help enterprises fully understand the double-edged sword impact of openness, guide manufacturing enterprises to be sensitive to openness and achieve sustainable innovation. By analyzing the path of DRC, DMC and DCC to BMI, managers can improve their understanding of digital-driven value creation process and improve the competitive advantage of enterprises.Originality/valueThis paper presents the relationships among openness, DC and BMI. We find the non-linear effects of openness on DC and BMI, bridging the inconsistent view of positive or negative relationship between openness and organizational change in previous studies. The introduction of DC extends the theory of dynamic capability in the digital age, and opens the “black box” from opening to BMI from the process perspective of DRC, DMC and DCC. From the perspective of enterprise type, this paper provides different choices of capability upgrading and strategic innovation based on openness for high-tech and non-high-tech manufacturing enterprises.