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Introduction
Business model innovation attracts increasing research attention because extant literature underscores the locus of competitive advantage has turned from focal firms, bilateral partnership to the holistic business model design (Amit and Zott, 2001; Zott and Amit, 2007; Foss and Saebi, 2017). Business model is a focal firms’ boundary-spanning activity system designed to create and capture value for stakeholders (Zott and Amit, 2010). In connected economy, firms can create competitive advantage by business model innovation (Chesbrough, 2010; Zott and Amit, 2008; Foss and Saebi, 2017). Business models are not stable over time. They frequently become subject to adaptation and innovation. Business model innovation refers to the search for a new way of doing business and design new activity system to create and capture value for its stakeholders (Zott and Amit, 2010). For example, enabling with digital technology, more manufacturing firms transformed from B2C business model to servitization, C2B manufacturing and internet-based intelligent manufacturing (Rabetino et al., 2018).
Numerous studies have emphasized firms’ motivations to engage in business model innovation. Foss and Saebi (2017) argued that neither the external antecedents nor the internal drivers of business model innovation have been sufficiently regarded. Recent literature has turned to identify the antecedents of business model innovation from rational position, cognition, learning and dynamic capability view. According to Teece (2018), the dynamic capabilities of firms are one kinds of capabilities for devising and refining business models (Teece, 2007, 2018). Following a widely accepted logic, dynamic capabilities involve sensing, seizing and transforming capabilities (Teece, 2012). Likewise, studies that focus on specific aspects of dynamic capabilities, such as opportunity recognition and flexibility, will illuminate aspects of business model innovation (Teece, 2018).
More importantly, extant literature achieved consensus that business opportunities creating or recognition is the initial step for business model innovation (Schneider, 2017). The needs of customers signal the opportunities to create values and are integral to business model innovation (Amit and Zott, 2012, 2015). Firms need to identify the consumer needs and translate these into effective value creation. Market orientation (MO) is considered to serve as sensing capabilities, which is particularly helpful in market-driven customer value creation as it helps firms to source, track, store and disseminate market information for greater awareness of business opportunities (Day and van den...