How absorptive capacity drives business model innovation through strategic agility: an empirical study of an Indonesian state-owned logistics enterprise

This study examines the impact of absorptive capacity and strategic agility on Business Model Innovation (BMI) in Indonesia’s logistics sector, emphasizing the mediating role of strategic agility. A quantitative survey was conducted among 434 managerial employees of a state-owned logistics enterprise in Indonesia, with data analyzed using Structural Equation Modelling – Partial Least Squares (SEM-PLS). The findings reveal that absorptive capacity significantly enhances both strategic agility and BMI, while strategic agility not only directly influences BMI but also partially mediates the relationship between absorptive capacity and BMI. These results highlight the importance of dynamic capabilities in sustaining a competitive advantage through business model innovation. This study contributes to Dynamic Capability Theory (DCT) by empirically demonstrating the mediating role of strategic agility in the absorptive capacity–BMI relationship, addressing a gap in the literature by exploring how logistics firms leverage internal capabilities for continuous innovation. From a practical perspective, logistics firms should invest in digital technologies, enhance knowledge management, and foster strategic agility to remain adaptable in an evolving market. However, as this study focuses on an Indonesian state-owned logistics enterprise, its generalizability is limited, and future research should examine multiple firms across different industries to strengthen external validity.