Business model innovation from dynamic capabilities perspective: Asystematic literature review

Abstract

Business model innovation (BMI) is increasingly recognized as a key source of competitive advantage andorganizational performance. BMI is rooted in the dynamic capabilities (DC) perspective as an iterative processthat involves the reconfiguration of activities, competencies, and routines. Despite the growing body of researchon BMI, its relationship with DC remains fragmented. This study addresses this gap by systematically reviewing57 peer-reviewed articles, applying the Antecedents, Decisions, and Outcomes (ADO) framework alongside theTheories, Context, and Methods (TCM) framework. Our analysis advances understanding by proposing an integratedframework in which DC drive BMI as a continuous process. The study identifies strategic sensing,business model (re)configuration, resource alignment, and organizational learning as key processes within DCthat shape the BMI process. Additionally, two cross-cutting DC–managerial dynamic capabilities and stakeholderengagement–are highlighted as critical enablers. These findings offer actionable strategies for managers to fosterinnovation and effectively navigate environmental uncertainty.