How companies configure digital innovation attributes for business model innovation? A configurational view

Digital innovation (DI) has garnered considerable attention across a broad array of literatures. However, empirical evidence about the impact of DI on business model innovation (BMI) is sparse with frameworks probably not fully capturing the complexities of DI attributes. We use the fuzzy-set approach by conducting qualitative comparative analysis (fsQCA) to explore the configurations of DI attributes and IT infrastructure capability that exist among the 167 manufacturing and service firms in China that undergoes different levels of BMI. Results reveal that DI attributes work in three pathways to promote BMI, including organization-oriented with emphasis on improvisation, product-oriented by focusing on user experience and value proposition, and product-organization complemented. When to additionally include IT infrastructure capability for deeper analysis, results demonstrate three more representative configurations among DI attributes and IT infrastructure capability to facilitate BMI: IT-enabled organization-product orchestration, IT-enabled product-organization orchestration, and IT-dominated orchestration. This research contributes to DI literature by uncovering the configurations among DI attributes in promoting BMI, and clarifying the complicated interacting effects between DI attributes and IT infrastructure capability to facilitate BMI.

Automated summary

Digital innovation (DI) has attracted considerable attention in the literature, yet empirical evidence on its impact on business model innovation (BMI) is limited. This study uses a fuzzy-set approach to explore the configurations of DI attributes and IT infrastructure capability in Chinese manufacturing and service firms, revealing different pathways through which DI attributes promote BMI. Additionally, the study identifies representative configurations of DI attributes and IT infrastructure capability that facilitate BMI, contributing to a better understanding of the complex interaction effects between DI attributes and IT infrastructure capability.