Effects of business model innovation on corporate sustainability: intervening role of organisational learning and strategic flexibility
by Nitin Simha Vihari
International Journal of Innovation and Learning (IJIL), Vol. 26, No. 2, 2019

Abstract: In the current competitive economic environment, business models through their value creation mechanisms act as a support system in fostering the sustainability of a firm. Business model innovation is typically performed either by renewal or replication strategy. Drawing on the instrumental and integrative theories, a framework of hypotheses is developed that underlines the effects of business model innovation (renewal and replication) on a firm's corporate sustainability practices. The operational responsiveness of the relationship between business model innovation and corporate sustainability practices is tested using organisational learning, strategic flexibility as sequential mediating variables and environmental dynamism as a moderating variable. Using a conclusive research design, the present study employed survey questionnaire to managerial workforce of the select Indian pharmaceutical companies. Some of the findings indicate that the types of business model innovation significantly predict corporate sustainability practices; organisational learning and strategic flexibility acts as sequential mediators and environmental dynamism strengthens the relationship.

Online publication date: Tue, 30-Jul-2019

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