Business Model Innovation under Digital Disruption: How Platform Ecosystems Moderate the Relationship between Dynamic Capabilities and Firm Resilience

Abstract

Digital disruption has fundamentally altered the competitive landscape, compelling firms to reconfigure their business models to survive and thrive. While prior research acknowledges the role of dynamic capabilities in fostering resilience, the mechanisms through which business model innovation and platform ecosystems moderate this relationship remain underexplored. Drawing on dynamic capabilities theory and ecosystem literature, this study investigates how platform ecosystems moderate the link between business model innovation and firm resilience under digital disruption. Using a mixed-method approach—survey data from 312 firms across manufacturing, retail, and technology sectors, supplemented by four case studies—we find that business model innovation partially mediates the relationship between dynamic capabilities and resilience. More importantly, platform ecosystem integration significantly moderates this mediated relationship, such that firms embedded in multi-sided digital platforms exhibit stronger resilience gains from dynamic capabilities than standalone firms. The findings contribute to strategic management by integrating business model innovation and ecosystem theory into resilience research. Practically, the study offers a roadmap for managers to leverage platform ecosystems as resilience amplifiers during turbulent digital transitions.