Determinants of business model innovation: the role of proximity and technology adoption

Objectives. This paper investigates the non-technological and technological determinants of BMI, focusing on the role of proximity dimensions and technology adoption (TA). In particular, the paper looks at whether technological (TP), organizational (OP) and social proximities (SP) influence TA and BMI, while geographical proximity (GP) moderates these relationships. Then, a mediation effect of TA over TP, OP, and SP on BMI is also tested. Methodology. Based on a unique sample of 123 firms, the impact of the technological, organizational and social proximities over TA is tested by an OLS regression analysis. Then, a logit regression is adopted to test the impact of independent variables on BMI. Finally, a mediation analysis - obtained through g-computation formula - is adopted to look at the mediation effect of TP. Findings. For both TA and BMI, TP has a positive influence and GP acts as moderator of SP. Moreover, while GP negatively influences TA, it has an inverted U-shaped impact on BMI. Lastly, TA has a positive influence on BMI, and it is able to mediate the effect of TP over BMI. Research limits. The study does not consider the multi-dimensional nature of each proximity dimension. Practical implications. This study suggests that firms should invest in TA if they want to innovate their business model, but also be careful at collaborating with too much socially proximate partners that may hinder BMI. However, when these partners are geographically close, their negative influence is mitigated. Originality of the study. This is the first quantitative study on the role of proximity dimensions on BMI.