Does digital platform capability enable Chinese SMEs’ business model innovation? The role of complementary assets and entrepreneurial orientation

In the digital economy, many small and medium-sized enterprises (SMEs) establish digital platforms early in their operations to drive business model innovation. However, effectively utilizing diverse complementary assets through digital platform capability to achieve the intended business model design remains a significant challenge. This study classifies business model innovation into two types: novelty-oriented and efficiency-oriented. It constructs a theoretical framework grounded in digital platform capability and empirically tests it using data from 328 Chinese SMEs. The findings demonstrate that digital platform capability positively influences both innovation types, with generic and specialised complementary assets serving as mediators. Moreover, entrepreneurial orientation strengthens the relationship between digital platform capability and business model innovation. This research advances theoretical insights into digital platform capability and its role in fostering business model innovation, while providing valuable insights for building a business model innovation ecosystem specifically tailored to SMEs.