User-driven supply chain business model innovation: The role of dynamic capabilities

Abstract

This research explores how focal tea companies facilitate supply chain business model innovation (SCBMI) to meet consumer demands and achieve sustainable development. By applying a case study method and dynamic capability theory, we find that: (1) the end-user innovation-driven is the precondition for tea SCBMI; (2) the user-driven innovation leads to the change of the supply chain focal company dynamic capabilities and the tea supply chain network structure, and thus promote the tea SCBMI; (3) SCBMI will, in turn, enhance the focal company's dynamic capabilities and promote the change of tea supply chain network structure in order to meet the consumers' changing demands. Our research suggests that the supply chain should pay attention to the construction of dynamic capabilities and proactively manage supply chain network structure. Ultimately, the entire supply chain business model will continuously adapt to the external changes and achieve sustainable development in the long term.