Uncovering disruptors’ business model innovation activities: evidencing the relationships between dynamic capabilities and value proposition innovation

Abstract

• VPI-based activities are positively related to DI. • DCs are positively related to VPI-based activities. • VPI-based activities regarding new offerings and channels fully mediate the relationship between DCs and DI. Ongoing debates highlight the need for continuous business model innovation for inducing disruptive dynamics. However, the conceptual or qualitative nature of studies impede the formulation of confirmatory statements. We collected survey data from 98 German strategy executives and performed partial least squares structural equation modelling to study the antecedents and sub-constructs of value proposition innovation (VPI). Results suggest that VPI-based activities regarding new offerings and channels fully mediate the relationship between dynamic capabilities and disruptive innovation. This study contributes by unfolding the business model problem inherent to disruptive innovation and providing confirmatory statements, thereby spurring theory development of disruption.