CORPORATE KEY CAPABILITIES, INNOVATION POLICY AND BUSINESS MODEL INNOVATION

Abstract

While this research largely focuses on the context of sustainability and businesses model innovation (BMI) from different aspects of business, relatively few studies conduct in-depth analysis of what key capabilities a firm needs to achieve BMI. Meanwhile, innovation policy is accounting for issues relating to business development as a tool for improving competitiveness at macro level, but little has been discussed in what way it influences on firms. This study therefore first identifies corporate key capabilities that are required towards BMI, and then adopts innovation policy as a moderator to examine its indirect effect on BMI outcomes. A structured questionnaire was designed and 287 valid samples were collected from a population comprised of 948 listed companies on Taiwan Stock Exchange. Hypotheses were tested using the structural equation modelling (SEM) in SPSS for direct path analysis and Process for indirect effects. The outcome shows that three key capabilities, including Architecture, Reputation and Innovation, are crucial for a firm to accumulate over time in reaching BMI. The findings also indicate that innovation policy can be a significant external support for firms to accelerate BMI only if they develop three key capabilities simultaneously. The results of this study may assist public authorities and company managers with a useful guideline to make relevant policies and govern businesses.