Skip to main content

The Impact of Improvisational and Dynamic Capabilities on Business Model Innovation During COVID-19: A Composite-Based Approach

  • Conference paper
  • First Online:
The Role of Digital Technologies in Shaping the Post-Pandemic World (I3E 2022)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 13454))

Included in the following conference series:

Abstract

Dynamic capabilities embody various capabilities that drive the organization’s adaptiveness and are studied from management and information systems perspectives. However, the impact of specific dynamic and organizational capabilities, i.e., management system adaptability and improvisational capabilities, on business model innovation under tumultuous times still has to be unfolded. Therefore, this study investigates the role of these capabilities during the COVID-19 crisis. This study presents the results of analyses on obtained survey data (N = 105) from Ghana and shows that these two strategic capabilities significantly influence business model innovation. Also, this study shows that business model innovation positively influences organizational performance under COVID-19. These results extend the current knowledge base of dynamic and organizational capabilities while offering implications for practice. We also offer various practical recommendations that help overcome business model innovation challenges during tumultuous times.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Crittenden, V.L., Crittenden, W.F.: Building a capable organization: the eight levers of strategy implementation. Bus. Horiz. 51(4), 301–309 (2008)

    Article  Google Scholar 

  2. Bock, A.J., Opsahl, T., George, G., Gann, D.M.: The effects of culture and structure on strategic flexibility during business model innovation. J. Manage. Stud. 49(2), 279–305 (2012)

    Article  Google Scholar 

  3. Guo, H., Su, Z., Ahlstrom, D.: Business model innovation: the effects of exploratory orientation, opportunity recognition, and entrepreneurial bricolage in an emerging economy. Asia Pac. J. Manag. 33(2), 533–549 (2015). https://doi.org/10.1007/s10490-015-9428-x

    Article  Google Scholar 

  4. Teece, D.J.: Business models and dynamic capabilities. Long Range Plan. 51(1), 40–49 (2018)

    Article  Google Scholar 

  5. Chesbrough, H.: Business model innovation: it’s not just about technology anymore. Strategy Leadersh. 35(6), 12–17 (2007)

    Article  Google Scholar 

  6. Christensen, C.M., Bartman, T., Bever, D.V.: The hard truth about business model innovation. MIT Sloan Manag. Rev. 58(1), 31–40 (2016)

    Google Scholar 

  7. Lindgardt, Z., Reeves, M., Stalk, G., Deimler, M.S.: Business model innovation. When the Game Gets Tough, Change the Game. The Boston Consulting Group, Boston, MA 118 (2009)

    Google Scholar 

  8. Anwar, M.: Business model innovation and SMEs performance—does competitive advantage mediate? Int. J. Innov. Manag. 22(07), 1850057 (2018)

    Article  Google Scholar 

  9. Zott, C., Amit, R.: Business model design and the performance of entrepreneurial firms. Organ. Sci. 18(2), 181–199 (2007)

    Article  Google Scholar 

  10. Chesbrough, H.: Business model innovation: opportunities and barriers. Long Range Plan. 43(2–3), 354–363 (2010)

    Article  Google Scholar 

  11. Rachinger, M., Rauter, R., Müller, C., Vorraber, W., Schirgi, E.: Digitalization and its influence on business model innovation. J. Manuf. Technol. Manag. 30(8), 1143–1160 (2018)

    Article  Google Scholar 

  12. Gibson, C.B., Birkinshaw, J.: The antecedents, consequences, and mediating role of organizational ambidexterity. Acad. Manag. J. 47(2), 209–226 (2004)

    Article  Google Scholar 

  13. Akgün, A.E., Keskin, H., Byrne, J.: Antecedents and contingent effects of organizational adaptive capability on firm product innovativeness. J. Product Innov. Manag. 29, 171–189 (2012)

    Article  Google Scholar 

  14. Pavlou, P.A., El Sawy, O.A.: The “third hand”: IT-enabled competitive advantage in turbulence through improvisational capabilities. Inf. Syst. Res. 21(3), 443–471 (2010)

    Article  Google Scholar 

  15. Ray, G., Barney, J.B., Muhanna, W.A.: Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource-based view. Strateg. Manag. J. 25(1), 23–37 (2004)

    Article  Google Scholar 

  16. Ismail, A.I., Rose, R.C., Uli, J., Abdullah, H.: The relationship between organisational resources, capabilities, systems and competitive advantage. Asian Acad. Manag. J. 17(1), 151–173 (2012)

    Google Scholar 

  17. Wang, C.L., Ahmed, P.K.: Dynamic capabilities: a review and research agenda. Int. J. Manag. Rev. 9(1), 31–51 (2007)

    Article  Google Scholar 

  18. Zhou, K.Z., Li, C.B.: How strategic orientations influence the building of dynamic capability in emerging economies. J. Bus. Res. 63(3), 224–231 (2010)

    Article  Google Scholar 

  19. Van de Wetering, R.: The impact of artificial intelligence ambidexterity and strategic flexibility on operational ambidexterity. In: Proceedings of the Pacific Asia Conference on Information Systems (PACIS) 2022, Taipei/Sydney Virtual Conference (2022)

    Google Scholar 

  20. Van de Wetering, R.: Understanding the Impact of enterprise architecture driven dynamic capabilities on agility: a variance and fsQCA study. Pac. Asia J. Assoc. Inf. Syst. 13(4), 32–68 (2021)

    Google Scholar 

  21. Tuominen, M., Rajala, A., Möller, K.: How does adaptability drive firm innovativeness? J. Bus. Res. 57(5), 495–506 (2004)

    Article  Google Scholar 

  22. Senyard, J., Baker, T., Davidsson, P.: Entrepreneurial bricolage: towards systematic empirical testing. Front. Entrepreneurship Res. 29(5), 1–14 (2009)

    Google Scholar 

  23. Van de Wetering, R.: Enterprise Architecture Resources, Dynamic Capabilities, and their Pathways to Operational Value. In: Proceedings of the Fortieth International Conference on Information Systems (ICIS), AIS (2019)

    Google Scholar 

  24. Mintzberg, H.: The strategy concept I: five Ps for strategy. Calif. Manage. Rev. 30(1), 11–24 (1987)

    Article  Google Scholar 

  25. Van de Wetering, R., Hendrickx, T., Brinkkemper, S., Kurnia, S.: The impact of EA-Driven dynamic capabilities, innovativeness, and structure on organizational benefits: a variance and fsQCA perspective. Sustainability 13(10), 5414 (2021)

    Article  Google Scholar 

  26. Van de Wetering, R., Besuyen, M.: How IT-enabled dynamic capabilities add value to the development of innovation capabilities, In: Mehdi Khosrow-Pour, D.B.A. (eds.) Encyclopedia of Organizational Knowledge, Administration, and Technology, pp. 999–1016. IGI Global: Hershey, PA, USA (2021)

    Google Scholar 

  27. Teece, D., Leih, S.: Uncertainty, innovation, and dynamic capabilities: an introduction. Calif. Manage. Rev. 58(4), 5–12 (2016)

    Article  Google Scholar 

  28. Schoemaker, P.J., Heaton, S., Teece, D.: Innovation, dynamic capabilities, and leadership. Calif. Manage. Rev. 61(1), 15–42 (2018)

    Article  Google Scholar 

  29. Jiang, Y., Stylos, N.: Triggers of consumers’ enhanced digital engagement and the role of digital technologies in transforming the retail ecosystem during COVID-19 pandemic. Technol. Forecast. Soc. Chang. 172, 1–19 (2021)

    Article  Google Scholar 

  30. e Cunha, M.P., Gomes, E., Mellahi, K., Miner, A.S., Rego, A.: Strategic agility through improvisational capabilities: implications for a paradox-sensitive HRM. Hum. Resour. Manag. Rev. 30(1), 100695 (2020)

    Google Scholar 

  31. Baker, T., Miner, A.S., Eesley, D.T.: Improvising firms: bricolage, account giving and improvisational competencies in the founding process. Res. Policy 32(2), 255–276 (2003)

    Article  Google Scholar 

  32. Keiningham, T., et al.: Customer experience driven business model innovation. J. Bus. Res. 116, 431–440 (2020)

    Article  Google Scholar 

  33. Clauss, T., Kesting, T., Naskrent, J.: A rolling stone gathers no moss: the effect of customers’ perceived business model innovativeness on customer value co-creation behavior and customer satisfaction in the service sector. R&D Manag. 49(2), 180–203 (2019)

    Article  Google Scholar 

  34. Clauss, T., Breier, M., Kraus, S., Durst, S., Mahto, R.V.: Temporary business model innovation–SMEs’ innovation response to the COVID-19 crisis. R&D Manag. 52(2), 294–312 (2022)

    Article  Google Scholar 

  35. Johnson, M.W., Lafley, A.G.: Seizing the white space. In: Business Model Innovation for Growth and Renewal. Harvard Business School Press, Boston, MA (2010)

    Google Scholar 

  36. Amit, R., Zott, C.: Business model innovation: creating value in times of change. IESE Business School of Navarra, Barcelona. IESE Working Paper, No. WP-870 (2010)

    Google Scholar 

  37. Pohle, G., Chapman, M.: IBM’s global CEO report 2006: business model innovation matters. Strategy Leadersh. (2006)

    Google Scholar 

  38. Ucaktürk, A., Bekmezci, M., Ucaktürk, T.: Prevailing during the periods of economical crisis and recession through business model innovation. Procedia-Soc. Behav. Sci. 24, 89–100 (2011)

    Article  Google Scholar 

  39. Amit, R., Zott, C.: Creating value through business model innovation. Strategy in changing markets: new business models. MIT Sloan Manag. Rev. 53(310), 36–44 (2012)

    Google Scholar 

  40. Chen, J.-S., Tsou, H.-T.: Performance effects of IT capability, service process innovation, and the mediating role of customer service. J. Eng. Tech. Manage 29(1), 71–94 (2012)

    Article  Google Scholar 

  41. Dijkstra, T.K., Henseler, J.: Linear indices in nonlinear structural equation models: best fitting proper indices and other composites. Qual. Quant. 45(6), 1505–1518 (2011)

    Article  Google Scholar 

  42. Henseler, J.: Composite-based structural equation modeling: analyzing latent and emergent variables. Guilford Publications (2020)

    Google Scholar 

  43. Henseler, J.: Partial least squares path modeling: quo vadis? Qual. Quant. 52(1), 1–8 (2018). https://doi.org/10.1007/s11135-018-0689-6

    Article  Google Scholar 

  44. Hair Jr, J.F., Sarstedt, M., Ringle, C.M., Gudergan, S.P.: Advanced issues in partial least squares structural equation modeling. SAGE Publications (2017)

    Google Scholar 

  45. Petter, S., Hadavi, Y.: With great power comes great responsibility: the use of partial least squares in information systems research. ACM SIGMIS Database DATABASE Adv. Inf. Syst. 52(SI), 10–23 (2021)

    Article  Google Scholar 

  46. Hair, J.F., Risher, J.J., Sarstedt, M., Ringle, C.M.: When to use and how to report the results of PLS-SEM. Eur. Bus. Rev. 31(1), 2–24 (2019)

    Article  Google Scholar 

  47. Tsao, W.-C., Hsieh, M.-T., Lin, T.M.: Intensifying online loyalty! the power of website quality and the perceived value of consumer/seller relationship. Ind. Manag. Data Syst. 116(9), 1987–2010 (2016)

    Article  Google Scholar 

  48. Wetering, R.: Achieving digital-driven patient agility in the era of big data. In: Dennehy, D., Griva, A., Pouloudi, N., Dwivedi, Y.K., Pappas, I., Mäntymäki, M. (eds.) I3E 2021. LNCS, vol. 12896, pp. 82–93. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-85447-8_8

    Chapter  Google Scholar 

  49. Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18(7), 509–533 (1997)

    Article  Google Scholar 

  50. Zhou, K.Z., Wu, F.: Technological capability, strategic flexibility, and product innovation. Strateg. Manag. J. 31(5), 547–561 (2010)

    MathSciNet  Google Scholar 

  51. Van de Wetering, R., Versendaal, J.: Information technology ambidexterity, digital dynamic capability, and knowledge processes as enablers of patient agility: empirical study. JMIRx Med 2(4), e32336 (2021). https://doi.org/10.2196/32336

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rogier van de Wetering .

Editor information

Editors and Affiliations

Appendix A: Measurement items

Appendix A: Measurement items

Improvisational Capabilities

(7-point Likert Scale, 1 = Strongly disagree, 7 = Strongly agree)

To what extent do you agree with the following statements?

  • IMP1: We apply combinations of business and IT resources at hand to pursue new strategic initiatives such as entering a new market

  • IMP2: We apply combinations of resources at hand for new business operations

  • IMP3: We apply combinations of resources at hand for expansion

  • IMP4: We apply combinations of resources at hand to create new products or services

Management System Adaptability

(7-point Likert Scale, 1 = Strongly disagree, 7 = Strongly agree)

To what extent do you agree with the following statements?

  • MSA1:The management systems in this organization encourage people to challenge outmoded traditions/practices/sacred cows

  • MSA2: The management systems in this organization are flexible enough to allow us to respond quickly to the current changes in our markets

  • MSA3: The management systems in this organization evolve rapidly in response to shifts in our business priorities

Business Model Innovation

(7-point Likert Scale,, 1 = Strongly disagree, 7 = Strongly agree.

Please indicate your firm’s capabilities relative to competition for each of the following:

  • BMI1: Our business model offers new combinations of products, services, and information

  • BMI2: Our business model attracts a lot of new customers

  • BMI3: Our business model attracts a lot of new suppliers and partners

  • BMI4: Our business model bonds participants together in novel ways

  • BMI5: Our business model links participants to transactions in novel ways

  • BMI6: We frequently introduce new ideas and innovations into our business model

  • BMI7: We frequently introduce new operational processes, routines, and norms into our business model

  • BMI8: We are pioneers of the business model

  • BMI9: Overall, our business model is novel

Organizational Performance During COVID-19

(7-point Likert Scale,, 1 = Strongly disagree, 7 = Strongly agree)

For the past few weeks, our company, relatively to our main competitors in the same industry (for non-competing governmental agencies, you could also read competitors as ‘other ministries or departments’), has been able to maintain or increase:

  • OP1:Customer satisfaction

  • OP2: Business brand and image

  • OP3: Customer loyalty

  • OP4: Market share

  • OP5: Profitability

Rights and permissions

Reprints and permissions

Copyright information

© 2022 IFIP International Federation for Information Processing

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

van de Wetering, R., Doe, J., van den Heuvel, R., Al Halbusi, H. (2022). The Impact of Improvisational and Dynamic Capabilities on Business Model Innovation During COVID-19: A Composite-Based Approach. In: Papagiannidis, S., Alamanos, E., Gupta, S., Dwivedi, Y.K., Mäntymäki, M., Pappas, I.O. (eds) The Role of Digital Technologies in Shaping the Post-Pandemic World. I3E 2022. Lecture Notes in Computer Science, vol 13454. Springer, Cham. https://doi.org/10.1007/978-3-031-15342-6_33

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-15342-6_33

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-15341-9

  • Online ISBN: 978-3-031-15342-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics