Research On Dynamic Capability Nurturing Of Internet Company Based On Business Model Innovation

With the rapid development of internet technology and information technology, the number and types of internet companies have obtained tremendous development. Compared to the traditional manufacturing firms, the internet company is different in produce cost structure, circulation links, income and profit, the habits of consumer. Under the stable external environment, the enterprise’s core competence is an important explanation for its competitive advantage. However, under the dynamic environments, the enterprise’s core competence has core rigidity, which results in excessive dependence on core technology. So the company will ignore changes of external competitive conditions and consumer demands. The dynamic capability theory can solve the problems about company keeping persistent competitive advantages under the dynamic environments. Under the dynamic environments, the company must make strategic adjustment which means the company should undertake business model innovation in the actual operation. The most of previous research about dynamic capability mainly focuses on its content and composition, but the seldom is about dynamic capability nurturing.The combination of dynamic capability nurturing and business model innovation has benefit for the company’s dynamic capability nurturing in the actual operating.Based on the previous literature, this paper shows that the internet companies mainly make business model innovation in four different dimensions which include customer value proposition, products and services, cost and income, partner. And the dynamic capability of internet companies is consisted of the market sense capability, social networks constructing capability, internal and external resources integration capability and organization support capability. On one hand, the business model innovation plays a guiding role in dynamic capability nurturing. On the other hand, dynamic capability nurturing plays a safeguard role in the success of business model innovation. The fulfillment of internet companies’dynamic capability nurturing can be realized by building entrepreneurship, organizational learning mechanisms, social relation networks, regulations and rules. In the nurturing process of dynamic capabilities, entrepreneurship plays a leading role, organizational learning plays a powerful role, social networks plays an integration role, rules and regulations plays a guaranteeing role. The raising process of dynamic capability based on the business model innovation is divided into stages of orientation stage, nurturing stage, institutionalization stage and feedback stage. In the nurturing stage, the internet company needs specific operational solutions to realize the nurturing of dynamic capability.The research on dynamic capability nurturing of the internet company based on business model innovation, on one hand, extends the perspectives and areas of dynamic capability research and provides experience for the future researchers. On the other hand, it combines the dynamic capability with the business model innovation in the actual operating, which makes the company take various measures to ensure the success of business model innovation and plays a guiding role for the enterprise’s operation.