Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

Abstract

Purpose

The purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.

Design/methodology/approach

A survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.

Findings

The analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.

Originality/value

This paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

Citation

Liao, S., Liu, Z., Fu, L. and Ye, P. (2019), "Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation", Chinese Management Studies, Vol. 13 No. 1, pp. 93-112. https://doi.org/10.1108/CMS-02-2018-0420