Organizational structure and dynamic capabilities on business model innovation in project-driven enterprises: evidence from the construction industry
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 3 August 2023
Abstract
Purpose
Flexibility and efficiency are dual attributes of the organizational structure that are crucial for project-driven enterprises to achieve sustainable development in a dynamic environment. However, there is a lack of research on the patterns by which the dual attributes of a project-driven enterprise’s organizational structure affect business model innovation. Employing organizational theory, this study aims to assess the mediating mechanisms and dynamic capabilities through which the dual attributes of the organizational structure influence business model innovation in project-driven enterprises.
Design/methodology/approach
Data were collected from 242 employees from four project-driven companies across 26 cities (e.g. Beijing, Tianjin, Guangzhou and Shenzhen) in China. Structural equation modeling revealed the relationship between organizational structure’s dual attributes and business model innovation.
Findings
The findings show that the dual attributes (flexibility and efficiency) of the organizational structure have positive impacts on business model innovation. Moreover, dynamic capabilities mediate the relationship between the dual attributes and business model innovation in project-driven enterprises.
Originality/value
This study provides contributions to innovation research in the context of project-driven enterprises by revealing the influence of organizational structure on business model innovation through the firms’ dynamic capabilities. Such knowledge can enable managers of project-driven enterprises to develop effective interventions to promote business model innovation.
Keywords
Acknowledgements
This work was supported by the Chongqing Social Science Plan Project [grant number 2021BS081], the National Natural Science Foundation of China [grant number: 71802030], the National Natural Science Foundation of China [grant number: 72271183], the National Natural Science Foundation of China [grant number: 72004085], the Natural Science Foundation of Chongqing [grant number cstc2021jcyj-msxmX1064], the Fundamental Research Funds for the Central Universities [grant number 2019CDJSK03XK14], and the Fundamental Research Funds for the Central Universities [grant number 2022CDSKXYGG006].
Citation
Wang, D., Huang, R., Li, K. and Shrestha, A. (2023), "Organizational structure and dynamic capabilities on business model innovation in project-driven enterprises: evidence from the construction industry", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-01-2023-0090
Publisher
:Emerald Publishing Limited
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