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In rapidly evolving digital environments, organizations must develop dynamic capabilities to drive business model innovation (BMI). This study examines how dynamic managerial capabilities (DMCs), including internal advice-seeking, external advice-seeking, and collaborative sensemaking, translate into BMI through two AI-driven organizational capabilities: artificial intelligence integration capability (AIIC) and AI-augmented coordination flexibility capability. Guided by the dynamic capabilities view (DCV), we construct and empirically test a multilevel model using survey data from 517 managers purposively sampled from Chinese firms undergoing digital transformation. Results from partial least squares structural equation modeling indicate that internal advice-seeking has the strongest direct effect on BMI. Conversely, external advice-seeking most strongly influences AIIC. AI integration enhances coordination flexibility, which in turn drives BMI. The findings support a serial mediation model in which DMCs influence BMI through AI integration and coordination flexibility. Moreover, a data-driven decision-making orientation significantly strengthens the relationship between coordination flexibility and BMI, underscoring the importance of organizational mindset. This study advances the DCV by introducing and validating two AI-driven capabilities that link sensing, seizing, and transforming in strategic renewal. Managers who actively seek external insights, foster collaborative sensemaking, and lead data-driven teams are best positioned to leverage AI for sustainable BMI.
Li et al. (Wed,) studied this question.