Research On Dynamic Capability Building Mechanism For Business Model Innovation

With the continuous upsurge of "mass entrepreneurship",more and more emerging SMEs gain competitive advantage through business model.Meantime,how to achieve sustainable development in the environment of relatively scarce resources and fierce competition becomes an increasingly concerned problem by many business managers.Business model innovation,an important measure for enterprises to cope with complex and turbulent business environment,has attracted wide attention from academia and practice.At present,researches on business model innovation focus on the theoretical connotation and driving factors,but overlook the evolution mechanism of innovation process,especially the micro-research on small and medium-sized enterprises.Therefore,this study takes Handu Group as an example to explore the business model innovation process of small and medium-sized enterprises,hoping to provide insights for the theoretical and practical circles.Firstly,this paper combs the literature on business model innovation,dynamic capabilities and executive cognition and puts forward a research framework.Then,based on the in-depth case study of Handu Group and the coding analysis of written materials,this paper analyzes the process of business model innovation,and explores the mechanism of executive cognitive and dynamic capabilities in this process.Accordingly,this study carries out the following findings.(1)Business model innovation of Handu Group is a continuous evolutionary process,which goes through three stages:market-oriented business model,technology-driven business model and eco-driven business model.From the perspective of innovation types,enterprises will first carry out evolutionary innovation,and then seek to achieve complex innovation.(2)In the process of Handu's development,dynamic capabilities are the key factors to ensure the success of business model innovation.Specifically,dynamic capability includes four aspects.Strategic sensitivity is the driver and leader of business model innovation.Leadership unity is an important guarantee of business model innovation.Resource Bricolage ability can solve the problem of insufficient resources in the initial stage of entrepreneurship and it is the basic condition of business model innovation.Resource fluidity is an important guarantee of business model innovation.(3)Executive cognition is an important antecedent to the formation of dynamic capabilities and business model innovation.Specifically,attention focus represents the degree of executives' search to external information,while the decision-making logic is the judgement logic of managers to the information they have already paid attention to.These two cognitive factors will influence managers' behavior and enterprises' strategic decision-making.(4)In different stages of business model innovation,Executives'cognitive and dynamic abilities are different.Managers need to judge the key information that affects the current development of enterprises,combining with the enterprises'external market environment,and then create different dynamic abilities to promote business model innovation in order to gain long-term competitive advantages.Based on the above analysis,this paper summarizes the evolution model of business model innovation from the perspective of dynamic capabilities,which complements the micro-level research on business model innovation and enriches the theory of executives'cognitive,dynamic capabilities and business model innovation.This paper also puts forward corresponding countermeasures and suggestions from the perspective of enterprises and senior managers to help SMEs successfully achieve business model innovation.