Abstract
International firms are more frequently faced with transformation of their business models than ever before. While the importance of business model innovation is widely acknowledged in international management and strategy literatures, the organizational learning process that translates global knowledge into business model innovation remains rather unexplored. In this study, we introduce a valid measure for business model innovation to explore how international firms acquire, integrate, interpret, and apply global knowledge to rethink and revamp established business models. Results of our structural equation modeling indicate that innovating a firm’s established way of value creation and value capture is a path, beginning with the synergetic effect of global knowledge sourcing and ambidextrous operational capabilities that positively impacts global knowledge integration. Global knowledge integration, in turn, supports business model innovation through strategic learning capability.
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