Organizational search and business model innovation: the moderating role of knowledge inertia

Purpose This study aims to explore the impact of organizational search (local and boundary-spanning search) on business model innovation (efficiency-centered/novelty-centered business model innovation) and the moderating role of knowledge inertia between them. Design/methodology/approach The relationships are examined through data provided by a sample of Chinese firms and by multiple hierarchical regressions. Findings Local search has a stronger effect on efficiency-centered business model innovation, whereas boundary-spanning search plays a stronger role in novelty-centered business model innovation. Knowledge inertia strengthens the effect of local search on efficiency-centered business model innovation but weakens the effect of boundary-spanning search on efficiency-centered business model innovation and the effect of local search on novelty-centered business model innovation. Practical implications The findings enable firms’ managers to understand the subtle ways in which organizational search interacts with knowledge inertia to affect business model innovation and may help them to make knowledge management efforts to harvest the full value of organizational search. Originality/value Previous studies have not examined the effect of different organizational search on different business model innovation from knowledge management perspective. With knowledge inertia as the moderator, the results reveal the contingent impact mechanism of organizational search on business model innovation, the findings provide fresh evidence that can bridge the gap between knowledge management and business model innovation.