Entrepreneurial networks, effectuation and business model innovation of startups: The moderating role of environmental dynamism

The effects of entrepreneurial networks and effectuation on business model innovation (BMI) are widely recognized. However, the existing researches focus on the driving of entrepreneurial networks (external factor) and effectuation (internal factor) on BMI separately. Few studies explore the combination of internal and external drivers. Consequently, how entrepreneurial networks' resource translates into the BMI in start‐ups remains unclear. Based on RBV, this research explored the impacts of entrepreneurial networks on BMI through effectuation in dynamic environments. A survey of 408 start‐ups in China reveals that (1) entrepreneurial networks have positive impacts on BMI. Particularly, network size and network strength positively impact BMI. (2) Effectuation plays a mediating role in the relationship between entrepreneurial networks and BMI. (3) Environmental dynamism strengthens the relationship between effectuation and BMI. The findings enrich the theoretical understanding of the relationships among entrepreneurial networks, effectuation and BMI and provide practical implications for start‐up BMI in dynamic environments.