The effects of business model innovations alignment with social relationship affect firm performance bear important implication for firms. However, previous literature offers little insight on this question. We know little about how to align business model innovations with social relationship to promote firm performance. Addressing on these gaps, this study builds theoretical model based on business ecosystem theory and social capital theory to investigate how does business model innovation alignment with social relationship affect firm performance. This study further empirical examines theoretical model with data from 174 Chinese firms. The empirical results support our theoretical model. We find that both incremental business model innovation and radical business model innovation have positive effects on firm performance. More importantly, this study finds that two types of social relationships have different moderating effects on business model innovation and firm performance. This study contributes to extant literature by identifying the specific effects of alignment of business model innovation and social relationship, and enriching the empirical evidence. Our findings indicate that firms should align business model innovation with social relationship to promote firm performance.
Guan, Yujuan and Zhang, Li, "Empirical Research on Business Model Innovation Alignment with Social Relationship Affect Firm Performance" (2016). ICEB 2016 Proceedings. 29.