Digital-based business model design and firm performance: the mediating role of ambidextrous innovation

Abstract

Purpose Business model design (BMD) is essential for firms to interact with stakeholders and gain competitive advantages in a changeable business environment. The advances in digital technologies create plenty of opportunities for the transformation of BMD. However, the effect of digital-based BMD on firm performance and the underlying mechanisms are unclear. Based on dynamic capability theory, this paper aims to introduce a framework elaborating on how digital-based novelty- and efficiency-centered BMD impact firm performance. Design/methodology/approach To examine the hypotheses, the authors collect data from 277 Chinese manufacturing firms and use hierarchical regression analysis to process the data. Findings The results indicate that ambidextrous innovation partially mediates the impacts of digital-based novelty- and efficiency-centered BMD on firm performance. Interorganizational learning only strengthens the impact of digital-based efficiency-centered BMD on ambidextrous innovation. Originality/value This study reveals the impacts of two distinct digital-based BMD on firm performance and uncovers the underlying mechanisms, which enrich the BMD literature and provide a deeper understanding of B2B marketing.