How information technology capability and knowledge integration capability interact to affect business model design:A polynomial regression with response surface analysis

This study examines how information technology (IT) capability and knowledge integration (KI) capability individually and jointly influence efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), drawing on organizational learning and capability complementarity perspectives. Based upon a survey data of 205 Chinese firms, our empirical results indicate that both IT capability and KI capability are positively related to EBMD and NBMD. Besides, we demonstrate the existence of complementary effect (i.e., positive synergy) as well as balance and imbalance effect between IT capability and KI capability on EBMD and NBMD using a polynomial regression with response surface analysis. Specifically, we find that when IT capability and KI capability are balanced at higher levels, the degree of EBMD and NBMD will be higher, and when their imbalance increases in either direction, the degree of EBMD will be lower. We also have an unexpected finding that the degree of NBMD will be higher when the firm has high IT capability with low KI capability than vice versa. Our study provides a comprehensive understanding of the individual and joint effect of IT capability and KI capability on business model design.

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