Business Model Innovation and Firm Performance: The Role of Turbulent Environments and Organizational Capabilities during two recent Brazilian economic downturns
DOI:
https://doi.org/10.5007/2175-8077.2025.e97755Keywords:
Firm's performance, Organizational capabilities, Business model innovation, Environmental turbulenceAbstract
Objective: This study explores the influence of Business Model Innovation (BMI) on organizational capabilities and firm performance during two recent Brazilian crises: the 2015-16 recession and the 2020 COVID-19 pandemic.
Methodology/Approach: The research was conducted with a two-wave cross-sectional online survey, targeting executives that interacted with a Brazilian business school. The first wave took place during the 2015-16 recession, and the second during the 2020 pandemic. The survey focused on BMI, organizational capabilities, competitive intensity, and environmental turbulence.
Originality/Relevance: This research contributes to the understanding of how firms respond to crises of different nature by innovating their business models and the role of organizational capabilities in mediating this process. It offers insights into how the impact of BMI on firm performance varies under different turbulence levels.
Key Findings: In the 2015-16 crisis, firms in less turbulent industries that embraced BMI achieved higher performance. In contrast, during the 2020 pandemic, BMI in highly turbulent settings led to superior performance. The study highlights the importance of resource and capability alignment with the crisis context for organizational fit and performance in turbulent times.
Theoretical/Methodological Contributions: This research aligns with Resource-Based Theory (RBT) and dynamic capabilities literature, shedding light on the interactions between BMI, organizational capabilities, and turbulence during crises.
Social/Management Contributions: Understanding the interplay between BMI, capabilities, and turbulence can guide firms´ responses to economic crises, supporting strategic decision-making and adaptability. This research offers valuable insights for organizations facing turbulent environments.
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