Business Model Innovation And Corporate Sustainability: A Mediated Moderation Model

In the current competitive economic environment, business models through their value creation mechanisms act as a support system in fostering the sustainability of a firm. Business model innovation is typically performed either by renewal or replication strategy. Drawing on the instrumental and integrative theories, a framework of hypotheses is developed that underlines the effects of business model innovation on a firm's corporate sustainability practices. The operational responsiveness of the relationship between business model innovation and corporate sustainability practices is tested using organizational learning, strategic flexibility as sequential mediating variables and environmental dynamism as a moderating variable. Using a conclusive research design, the present study tests the two types of business model innovation (replication, renewal) on the triple bottom line approach of corporate sustainability with special reference to managerial workforce of the select Indian pharmaceutical companies. Furthermore, the study uses Structural Equation Modeling and Sequential Mediation Analysis, to test the proposed research model. Some of the findings indicate that both the types of business model innovation significantly predict corporate sustainability practices and organizational learning sequentially mediates strategic flexibility.