Digital-based business model design and firm performance: the mediating role of ambidextrous innovation.

Purpose: Business model design (BMD) is essential for firms to interact with stakeholders and gain competitive advantages in a changeable business environment. The advances in digital technologies create plenty of opportunities for the transformation of BMD. However, the effect of digital-based BMD on firm performance and the underlying mechanisms are unclear. Based on dynamic capability theory, this paper aims to introduce a framework elaborating on how digital-based novelty- and efficiency-centered BMD impact firm performance. Design/methodology/approach: To examine the hypotheses, the authors collect data from 277 Chinese manufacturing firms and use hierarchical regression analysis to process the data. Findings: The results indicate that ambidextrous innovation partially mediates the impacts of digital-based novelty- and efficiency-centered BMD on firm performance. Interorganizational learning only strengthens the impact of digital-based efficiency-centered BMD on ambidextrous innovation. Originality/value: This study reveals the impacts of two distinct digital-based BMD on firm performance and uncovers the underlying mechanisms, which enrich the BMD literature and provide a deeper understanding of B2B marketing. [ABSTRACT FROM AUTHOR]