Sha, Xu, Wu, Xiaojie, He, Jie, Zhu, Renhong, Morrison, Alastair M. ORCID: https://orcid.org/0000-0002-0754-1083, Su, Xiaohua and Xie, Cheng (2024) Turning entrepreneurial networks into business model innovation for start-ups: a moderated mediation model. Management Decision. ISSN 0025-1747 (Print), 1758-6070 (Online) (doi:10.1108/MD-04-2023-0558)

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Abstract

Purpose - Although it is acknowledged that entrepreneurial networks play a crucial role in fostering business model innovation (BMI) for start-ups, it is unclear how and when these networks affect BMI. The purpose of this research was to develop a moderated mediation model to explore the impact of entrepreneurial networks on BMI in start-ups and to examine the dual mediating effects of causality and effectuation, as well as the moderation of environmental dynamism.
Design/methodology/approach - The proposed framework was tested by hierarchical regression analyses and bootstrapping using samples of 248 start-ups in China.
Findings - The results show that entrepreneurial networks have a significant positive impact on start-up BMI. Causation and effectuation play dual mediating effects between entrepreneurial networks and BMI. Furthermore, the entrepreneurial networks-effectuation-BMI association is stronger in highly dynamic environments whereas the entrepreneurial networks-causation-BMI relationship is unaffected.
Research implications - There are several theoretical contributions resulting from this research. First, the findings offer new insights for understanding the antecedents of start-up BMI. Second, this research adds to the growing literature on resource orchestration (RO) by exploring the dual mediating influences of causation and effectuation in resource management. Third, this research revealed the boundary condition between entrepreneurial networks and BMI by testing the moderating influence of environmental dynamism.
Practical implications - First, startups must effectively use external resources embedded within networks to advance BMI. Second, start-up entrepreneurs should apply causation and effectuation to transform entrepreneurial network resources into BMI. Third, start-up entrepreneurs must dynamically manage resources in response to ever-changing environmental conditions. Resource acquisition and management of entrepreneurial networks can vary significantly in their influence on start-up BMI under different environmental contexts.
Originality/value - First, unlike previous BMI research focused on internal organizational factors, this study highlights the critical importance of entrepreneurial networks as a prerequisite for achieving start-up BMI, contributing to the literature on open innovation and RBV. Second, examining the dual mediating roles of causation and effectuation illustrates the bridging role of strategic decision-making logic in connecting resources to value creation, contributing to the developing RO literature. Third, it explores the moderating influence of environmental dynamism, clarifying how start-up BMI benefit from entrepreneurial networks in differing situations. It also provides a framework for reconciling contradictory findings concerning the association between entrepreneurial networks and innovation.

Item Type:	Article
Uncontrolled Keywords:	entrepreneurial networks; causation; effectuation; business model innovation; environmental dynamism; resource orchestration
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce
Faculty / School / Research Centre / Research Group:	Faculty of Business Greenwich Business School > Tourism and Marketing Research Centre (TMRC) Greenwich Business School > Networks and Urban Systems Centre (NUSC)
Last Modified:	02 Dec 2024 16:26
URI:	http://gala.gre.ac.uk/id/eprint/45226

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