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Internal factors & consequences of business model innovation

Makhmoor Bashir (Department of Marketing & Strategy, ICFAI Business School, Hyderabad, India)
Rajesh Verma (Mittal School of Business, Lovely Professional University, Phagwara, India)

Management Decision

ISSN: 0025-1747

Article publication date: 1 August 2018

Issue publication date: 8 January 2019




The purpose of this paper is to propose a theoretical model of business model innovation based on evidences from the past literature. The paper established a link between business model innovation (BMI) strategic flexibility, competitive advantage and firm competence.


The study was approached from a theoretical perspective using previous literature on BMI from 2000 to 2017, as per the recommendations of Tranfield et al. (2003). A total of 104 conceptual and empirical articles on BMI research spanning from 2000 to 2017 were analyzed based on different classification schemes.


The study proposed a theoretical model of BMI and discussed how the various internal factors, such as organizational culture, organizational structure, organizational inertia, leadership and technology drive BMI. The study highlighted how BMI gives companies sustainable competitive advantage. The study also highlighted that the BMI is an important predictor of firm performance and strategic flexibility. Further, the study found that the firm size and firm inexperience mediate the influence of BMI on firm competence.

Research limitations/implications

The study highlights how BMI can be a source of sustainable competitive advantage and enhance the firm competitiveness and strategic flexibility of a firm.


This study is the first of its kind which has developed a conceptual model on the various internal factors and consequences of BMI. The study highlighted how BMI is an important predictor of firm performance, competitive advantage and strategic flexibility.



The authors would like to express their sincere gratitude to the anonymous reviewers and the editorial board for their valuable suggestions which has helped to improve the quality of the paper. This research work required high concentration and the whole hearted support of people from industry and academics without which it would have not been possible to accomplish. The authors therefore express their sincere thanks and gratitude to all the people who have been associated with this research.


Bashir, M. and Verma, R. (2019), "Internal factors & consequences of business model innovation", Management Decision, Vol. 57 No. 1, pp. 262-290.



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