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This paper aims to explore how intra-industry entrepreneurial experience and failure entrepreneurial experience affect novelty-centered business model design in a new venture. Moreover, the authors also consider whether the contingent value of entrepreneurial experience may differ according to competitive intensity.

A survey via questionnaire was conducted with 290 entrepreneurs and top managers from Chinese new ventures that provided the research data. Hierarchical regression analysis was used to test the proposed theoretical hypotheses.

The empirical results indicate that intra-industry entrepreneurial experience has an inverted U-shaped effect on novelty-centered business model design, whereas failure entrepreneurial experience has a negative effect on novelty-centered business model design. Furthermore, the authors also find that competitive intensity weakens the inverted U-shaped effect of intra-industry entrepreneurial experience on novelty-centered business model design.

This study offers new insights into the effects of intra-industry entrepreneurial experience and failure entrepreneurial experience on novelty-centered business model design and provides useful suggestions for new ventures to promote business model design.

This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms.

The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships.

The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures.

This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.

Knowledge management (KM) capability plays an important role in the promotion of firm performance in the knowledge economy era. However, empirical evidence on how KM capability affects firm performance is still limited. The study therefore aims to explore the impacts of internal and external KM capabilities on firm performance via the parallel mediation of efficiency-centered and novelty-centered business model innovations (BMIs).

The authors empirically analyzed a survey data of 295 Chinese innovative enterprises by applying partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).

According to the results of PLS-SEM, the relationship between internal KM capability and firm performance is not significant, instead it is fully mediated by efficiency-centered and novelty-centered BMIs. External KM capability can directly and positively affect firm performance, while the relationship is also partially mediated by BMIs. Furthermore, the authors recognized the antecedent conditions for high-level and low-level firm performance by fsQCA analysis, which substantiate the above findings.

It not only enriches the literature that links KM and innovation management but also contributes to the new theoretical perspective on firm sustainable growth. Methodologically, it combines symmetric and asymmetric analyses together. Additionally, it provides some insights for managers to understand how KM capability drives firm performance through BMI.

Drawing on the knowledge-based view, this study investigates how IT–business alignment influences business model design via organizational learning and examines the moderating role of data-driven culture in the relationship between IT–business alignment and business model design via organizational learning.

Using multi-respondent survey data collected from 597 Chinese firms, mediation and moderated mediation analyses were used to examine this study's hypotheses.

The mediation test results revealed organizational learning served as a mediator between IT–business alignment and two types of business model design (i.e. novelty- and efficiency-centered). In addition, data-driven culture strengthened the indirect effects of IT–business alignment on these two types of business model design via organizational learning.

This study extends current understandings of the relationship between IT–business alignment and business model design by revealing the mediating role of organizational learning and investigating its indirect effects under various degrees of data-driven culture. As such, it contributes to the literature on the business model and IT–business alignment and provides insights for managers seeking to achieve the expected business model design.

We advance theory of how founder identity affects business model (BM) design during new venture creation and contribute to the cognitive perspective on BMs. We look at BM design as a longitudinal process involving a variety of cognitive work that is co-shaped by the founder identity work. Based on an in-depth nine-year process study of a single venture managed by three founders, we observed that a novelty-centered BM design resulted from cognitive work co-shaped by founder identity construction and verification processes. Yet, more remarkably, we noted that founder identity verification decreased over time and observed a process that we labeled “identity-business model decoupling.” It meant that the founders did not alter their founder identity but, over time, attentively grew self-aware and mindfully disengaged negative identity effects to design an effective BM. Our results provide a dynamic view on founder identity imprinting on ventures’ BMs and contribute to the identity, BM, and entrepreneurship literatures.

The purpose of this paper is to examine the underlying mediating mechanism and contextual conditions in the relationship between dynamic capabilities and novelty-centered business model design (NCBMD).

Using data from 146 firms in China and the process conditional modeling, the authors acquire evidence supporting the hypothesized moderated mediation.

The authors find that interfunctional coordination plays a crucial mediator role in the relationship between dynamic capabilities and NCBMD. Environmental dynamism positively moderates the mediating effect of interfunctional coordination on the relationship of dynamic capabilities and NCBMD.

First, the research setting focuses on a specific intermediary mechanism of dynamic capabilities on NCBMD. Second, dynamic capabilities are considered as an integrative construct in the study. Future research could further examine the effect mechanism of dynamic capabilities' sub-dimensions, which might provide more theoretical findings. Third, the impact of public policies, an important source of environmental dynamism, on NCBMD needs a fine-grained analysis. Fourth, the sample data restricts the popularity of the conclusion.

First, firms should be aware of the irreplaceable role of dynamic capabilities in the process of designing a novel business model. Second, firms promoting the design of business models should pay more attention to interfunctional coordination. Third, the significant moderating mediation effect reveals that the importance of interfunctional coordination for the relationship between dynamic capabilities and NCBMD under a highly dynamic environment.

First, the authors reveal how a firm's dynamic capabilities can promote NCBMD. By focusing on the influence of dynamic capabilities on NCBMD, the authors elucidate the source of value creation from the perspective of organizational capability. Second, the analysis of mediating effect delineates the bridging mechanism of dynamic capabilities and NCBMD. These findings emphasize the important role of interfunctional coordination in designing a novel business model. Third, given the context of this research, the results present implications for the role of a dynamic environment. For the methodology of theoretical research, the different findings indicate that scholars could further refine the manipulation of moderators, which contributes to elucidate new conclusions ignored in the past studies. Accordingly, this research extends both theoretical research and methodology.

As the transition between exploration and exploitation is a unique challenge for SMEs, what mechanism(s) might facilitate this transition? Building on the entrepreneurship literature's entrepreneurial opportunity identification and development framework, this study hypothesizes that the novelty-centered business model (NCBM) may serve as such a mechanism.

Based on cross-sectional survey data collected from 169 Italian SMEs in various sectors, this study tests the mediation, moderation and moderated mediation relationships using the statistical PROCESS procedure.

Supporting the hypotheses that exploration and exploitation are positively associated within SMEs, that NCBM mediates this relationship and that the indirect relationship between exploration and exploitation by way of NCBM is stronger for SMEs with employees of medium to high creative human capital, the results suggest that SMEs can more effectively exploit new ideas identified in the exploration phase by developing an NCBM and accessing their creative human capital.

Although the robustness checks confirm the direction of the proposed hypotheses, given the cross-sectional nature of the dataset used, a longitudinal study would further validate the proposed framework.

SMEs can successfully achieve the transition between exploration and exploitation by reinventing their business model to compensate for their limited resources in terms of financial or relational capital. They can further enhance their ability to reinvent their business model and, in turn, to exploit innovations by hiring and retaining employees with greater creative human capital.

This study draws on the entrepreneurial opportunity, ambidexterity (exploration-exploitation) and business model literature to enhance our understanding of the role of the NCBM design concept (business model innovation) as a mechanism to achieve temporal ambidexterity in SMEs.

Top management team (TMT) serves as the critical designer of a firm’s business model, whose cognition exerts key influence on business model design (BMD). Drawing insights from the managerial cognition and knowledge-based views, this paper aims to examine the effect of TMT transactive memory system on BMD and investigate how the relationship between TMT transactive memory system and BMD is contingent upon the firm’s strategic orientation.

Survey data collected from 210 Chinese firms was used to test the research hypotheses through multivariate regression analysis.

This paper reveals that TMT transactive memory system facilitates novelty- and efficiency-centered BMD. Furthermore, both differentiation orientation and cost leadership orientation can strengthen the effect of TMT transactive memory system on novelty-centered BMD; the impact of TMT transactive memory system on efficiency-centered BMD is weakened by differentiation orientation but strengthened by cost leadership orientation.

This paper adds to the business model literature by unraveling the effect of TMT transactive memory system on BMD, which not only enriches the internal cognitive antecedents of BMD but also provides an in-depth understanding of how TMTs can use their knowledge structure to proactively design a certain business model. Moreover, this paper also offers insights into how TMTs can better use transactive memory system to design business models according to the specific strategic orientation.

This study aims to examine the impacts of the novelty-centered business model design (NBMD) and efficiency-centered business model design (EBMD) on mass customization capability (MCC), as well as the mediating role of supply chain integration.

Using survey data from 277 Chinese manufacturing firms, we test the hypothesized relationships by conducting structural equation modeling.

The results indicate that both NBMD and EBMD have significantly positive impacts on product-oriented MCC and service-oriented MCC. In addition, three dimensions of supply chain integration play different mediating roles in the relationship between BMD and MCC. Specifically, relational integration partially mediates the impacts of NBMD and EBMD on service-oriented MCC, information integration partially mediates the impact of NBMD on product-oriented MCC and service-oriented MCC and operational integration partially mediates the impact of NBMD and EBMD on product-oriented MCC.

This study opens the “black box” in the relationship between business model design and MCC, which offers insights on the complex process of supply chain integration and considers business ecosystem for operational performance.

The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions.

Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account.

Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions.

This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).