Impact of digital capability on business model innovation: Does political connections matter?

Purpose This study aims to examine the relationships among digital capability (DC), opportunity identification (OI), political connections (PC) and business model innovation (BMI) based on the dynamic capability and resource-based theories. Design/methodology/approach This study uses the method of hierarchical regression to test our research hypotheses. The survey data was collected from 241 Chinese enterprises. Findings DC has a significant positive impact on BMI and OI. OI has a significant positive impact on BMI and plays a partial mediating role in the relationship between DC and BMI. Direct and indirect PC play a positive moderating role in the impact of OI on BMI. Direct and indirect PC do not play a moderating role in the impact of DC and BMI. Originality/value This study contributes to the literature on the antecedents of BMI. The results reveal the mechanism through which DC impacts BMI and emphasize the importance of OI. Besides, this study distinguishes the heterogeneity of the regulatory role of PC in different dimensions.