Business model innovation from dynamic capabilities perspective: A systematic literature review

Abstract

Business model innovation (BMI) is increasingly recognized as a key source of competitive advantage and organizational performance. BMI is rooted in the dynamic capabilities (DC) perspective as an iterative process that involves the reconfiguration of activities, competencies, and routines. Despite the growing body of research on BMI, its relationship with DC remains fragmented. This study addresses this gap by systematically reviewing 57 peer-reviewed articles, applying the Antecedents, Decisions, and Outcomes (ADO) framework alongside the Theories, Context, and Methods (TCM) framework. Our analysis advances understanding by proposing an integrated framework in which DC drive BMI as a continuous process. The study identifies strategic sensing, business model (re)configuration, resource alignment, and organizational learning as key processes within DC that shape the BMI process. Additionally, two cross-cutting DC–managerial dynamic capabilities and stakeholder engagement–are highlighted as critical enablers. These findings offer actionable strategies for managers to foster innovation and effectively navigate environmental uncertainty.