Improvisational and Dynamic Capabilities as Drivers of Business Model Innovation: An Enterprise Architecture Perspective

Abstract

Background: This study examines how organizations can achieve business model innovation under the pressing COVID-19 conditions by leveraging two complementary capabilities, i.e., improvisational and dynamic capabilities driven by enterprise architecture (EA). We argue that EA-driven improvisational and dynamic capabilities ensure the adaptiveness of the organization and enable the organization to cope with emerging business model problems and opportunities through an integrated and orchestrated perspective. Method: We used a cross-sectional research approach and collected data from 414 decision-makers and senior practitioners to test our research model’s hypotheses. Results: We found that EA-driven improvisational and dynamic capabilities both positively impact business model innovation in tumultuous times. In turn, business model innovation positively impacts organizational performance under COVID-19. Also, we found a positive moderating effect of EA-driven dynamic capabilities on the relationship between improvisational capabilities and business model innovation. Conclusion: The outcomes of this study offer a nuanced understanding of the role of EA-driven capabilities in organizations. We also offer various managerial implications to achieve business model innovation under turbulent conditions.