Revisiting the modularity-performance nexus : Business model innovation as a missing mechanism

Journal article


Najmaei, Arash. (2016). Revisiting the modularity-performance nexus : Business model innovation as a missing mechanism. International Journal of Innovation Management. 20(7). https://doi.org/10.1142/S1363919616500651
AuthorsNajmaei, Arash
Abstract

Prior research on the modularity–performance nexus is heavily biased towards product innovation, leaving the impact of modularity on other types of innovation such as business model innovation unknown. This study seeks to address this gap. To do so, we develop and test a parsimonious model which examines whether a firm’s pursuit of business model innovation serves as a salient conduit through which modular product and process translate to firm performance. In addition, we examine environmental dynamism as a contingency that to further illuminate these associations. Using data from 87 manufacturing SMEs in Australia we find partial support for our model. Specifically, we find that pursuit of BMI is a missing mechanism only in the process modularity-performance nexus not the product modularity. In addition, contrary to predictions, we observe that environmental dynamism negatively moderates this relationship. These findings have important implication for theory and practice of innovation management. We discuss these implications and suggest several directions for future research.

Keywordsbusiness model innovation; process modularity; process modularity; firm performance; environmental dynamism
Year2016
JournalInternational Journal of Innovation Management
Journal citation20 (7)
PublisherWorld Scientific Publishing
ISSN1363-9196
Digital Object Identifier (DOI)https://doi.org/10.1142/S1363919616500651
Scopus EID2-s2.0-84963668082
Research or scholarlyResearch
Publisher's version
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All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Online08 Apr 2016
Publication process dates
Deposited07 Sep 2021
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