Strategic Flexibility and Business Model Innovation: A Literature Review

Abstract

Fast changing and highly uncertain business environment requires firms to constantly be alerted to change. Being able to change and respond to such business environment requires organizational capabilities such as strategic flexibility and ability to innovate business models. Over the past decades considerable research has been done on both strategic flexibility and business model innovation. Often, they have been used studied together. Some studies address their joint impact on firm’s competitiveness, while others address the relationship between them. However, there is still no well-defined view on this relationship between business model innovation and strategic flexibility. This paper provides a review of the studies on strategic flexibility and business model innovation relationship and categorize impact of strategic flexibility on business model innovation. This research is based on a systematic scoping review. This research concludes that strategic flexibility can be categorized as pre-requisite, moderator, and as an outcome of business model innovation.