Dynamic Capabilities and Business Model Innovation: Navigating the Complex Interplay of Embeddedness and Innovation Performance in China's International Freight Forwarding Industry

Abstract

This paper aims to investigate the correlation between structural and relational embeddedness with BMI and CIP, as well as the influence of dynamic capabilities within the Chinese international goods forwarding sector. Using a comprehensive quantitative framework, this study investigates the impact of network ties on BMI and its subsequent effect on CIP. The focus is on understanding the structural and functional factors involved. Additionally, it broadens the understanding of dynamic capabilities as a factor that enhances the change-oriented nature of embeddedness and BMI, particularly in relation to innovation performance. The findings show that BMIs for both types of embeddedness are positive and stable. This supports the idea that network ties are an important way to learn new things and come up with new ideas. BMI also emerges as a crucial factor that connects inherent benefits to concrete outcomes of innovation, thus reinforcing the theoretical significance of inventive business models. Furthermore, it is clear that dynamic capabilities have a significant impact on these relationships, underscoring their importance in helping companies thrive in ever-changing environments. This study adds to the body of research on the theoretical side by showing how network theory, BMI, and dynamic capabilities affect innovation performance when they are used together. It emphasizes for practitioners the importance of achieving a competitive edge and excelling in innovation by leveraging their network positions, cultivating dynamic capabilities, and continuously innovating their business models. This research not only adds to our understanding of the relationship between embeddedness, BMI, and innovation performance, but it also provides a strategic model for global firms, especially those in the goods forwarding industry and other sectors facing similar competitive and global forces.