Science Research Management ›› 2021, Vol. 42 ›› Issue (12): 45-55.

Previous Articles     Next Articles

The mechanism of action of dominant logic on business model innovation: A perspective based on dynamic resource management

Chang Qing1, Guo Songming1, Ma Ping2, Zhang Lu1, Jiang Yuting1, Liu Yuntao3#br# #br#   

  1. 1.School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, Inner Mongolia, China;
    2. Electric Power Transmission & Transformation Engineering Corporation,Tianjin 300000,China;
    3. School of International Trade and Economics,University of International Business and Economics,Beijing 100029,China
  • Received:2020-11-13 Revised:2021-10-20 Online:2021-12-20 Published:2021-12-17

Abstract:     Along with the digital transformation and upgrading of local industries, the concept of business model innovation brings new development opportunities to the market. However, in the fierce market competition, how enterprises can quickly coordinate the relationship between opportunity situation and strategy execution so as to break through the established framework of business model to seize market opportunities through innovation has become a key concern in the practice and academic circle. This paper selects the enterprise of "M-Grass Ecology Corporation" as an exploratory single case study sample and explores the evolution path of business model innovation guided by the dominant logic driven by the window of opportunity from the perspective of dynamic resource management.
    The results show that: (1) The changing window of opportunity in the external situation and the internal growth needs of enterprises influence the type of dominant logic constantly changing. Window of opportunity to trigger the external diffusion of large amounts of information, managers screen opportunity information construct various stages of the dominant logic to promote enterprise change resource capability and resources action pattern to grasp the external opportunity to continuously updated situation, and through the dynamic interaction of a series of enterprise adaptive behavior to reshape guided by the value proposition of the business model, the business model is highly consistent with the top-level management-led logic; (2) Dynamic resource management is a process in which the interaction between resource capabilities and resource actions under the guidance of dominant logic produces instantaneous actions that drive the generation of differentiated strategic results. As a core component of communication between managers′ cognition and business model innovation, dynamic resource management realizes the behavioral leap from management cognition to organizational strategy execution. Based on the perspective of capability, in the process of innovation, resource capabilities realize a transition from low to high, presenting an evolutionary path of "resource construction - resource extension - resource reconstruction", while affecting the continuous evolution of enterprise resource actions according to the pattern of "resource patchwork - resource arrangement - resource coordination". Based on the perspective of behavior, the manager′s adaptation window of opportunity forms a dominant logic to guide enterprises in resource allocation and help enterprises to quickly improve their analytical ability and then grasp the opportunity to achieve resource accumulation and ability improvement. Therefore, the organic coordination between capacity and resource actions can promote each other and produce different instantaneous actions to drive enterprises to produce different strategic results and enhance the efficiency of business model innovation promotion; (3) The dominant logic generated by the interaction between the manager and the external opportunities guides enterprises to change the cooperative mode of resource capacity and resource action, and promotes enterprises to form the business model innovation of "market-oriented -- technology-led -- shared and open" successively in the entrepreneurial process. The evolution of enterprises business model on managers to interact with external opportunity situation at any time, value propositions as the core elements of business model, its center of gravity in accordance with the guidance of dominant logic operations in ability and resources under the action of continuous adjustment, has experienced the "market + service" to the "product + technology" to "industrial and social responsibility" the evolution of the process. From the original more quickly adapt to the market by the high quality service, to build the core technology to subvert the market, eventually creatively integrate social responsibility into business model innovation to build a good relationship between government and enterprises to realize the sustainable development, the value proposition to guide enterprises to take corresponding action to complete the value creation and transmission and value, so business model to realize "the adaptive business model - market technology leading business model - sharing open business model" in the evolution process of innovation.
    This study emphasizes the importance of executives′ dynamic perception of external situations and construction of flexible dominant logic to guide internal decision-making for enterprises to achieve success in business model innovation. Through the theoretical framework of building leading logic to guide the evolution and upgrading of business model, it clearly explains the guidance of enterprise strategic behavior by managers selecting opportunity information and the realization path of business model innovation based on dynamic resource management. It opens the "black box" of successful path of business model innovation from the source of organizational strategic thinking.It has a theoretical contribution to the internal mechanism of enterprises internalizing opportunity information and using managers′ cognition to reshape business models in turbulent situations, and also has a practical inspiration to Chinese enterprises on how to realize business model innovation and successfully complete market reversal.

Key words: opportunity window, dominant logic, dynamic resource management, business model innovation