Board Characteristics and the Likelihood of Business Model Innovation Adoption: Evidence from the Smart Home Industry

Abstract

What role does the board of directors play in fostering organisational innovation? This study contributes to this conversation by exploring the relationship between board characteristics and business model innovation adoption. Drawing from resource dependence theory and using the smart home business model as our context, we examined the relationship among board size, CEO duality and proportion of outside directors on the likelihood of business model innovation adoption. Our analysis of 96 firms indicates that both board size and CEO duality significantly increase the likelihood of business model innovation adoption. Our findings highlight the important resource provision role boards play in promoting organisational innovation.